filings.toolsItem 1. Financial Statements
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Item 1. Financial Statements
WYNN RESORTS, LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
| September 30, 2021 | December 31, 2020 | ||||||||||
| (unaudited) | |||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 2,475,757 | $ | 3,482,032 | |||||||
| Restricted cash | 3,618 | — | |||||||||
| Accounts receivable, net of allowance for credit losses of $94,309 and $100,329 | 221,933 | 200,158 | |||||||||
| Inventories | 64,043 | 66,285 | |||||||||
| Prepaid expenses and other | 90,535 | 64,672 | |||||||||
| Total current assets | 2,855,886 | 3,813,147 | |||||||||
| Property and equipment, net | 8,859,157 | 9,196,644 | |||||||||
| Restricted cash | 3,779 | 4,352 | |||||||||
| Goodwill and intangible assets, net | 286,124 | 278,195 | |||||||||
| Operating lease assets | 378,344 | 398,594 | |||||||||
| Other assets | 224,405 | 178,615 | |||||||||
| Total assets | $ | 12,607,695 | $ | 13,869,547 | |||||||
| LIABILITIES AND STOCKHOLDERS' DEFICIT | |||||||||||
| Current liabilities: | |||||||||||
| Accounts and construction payables | $ | 154,663 | $ | 148,478 | |||||||
| Customer deposits | 466,004 | 646,856 | |||||||||
| Gaming taxes payable | 51,908 | 66,346 | |||||||||
| Accrued compensation and benefits | 180,504 | 126,846 | |||||||||
| Accrued interest | 143,341 | 136,421 | |||||||||
| Current portion of long-term debt | 50,000 | 596,408 | |||||||||
| Other accrued liabilities | 240,172 | 159,533 | |||||||||
| Total current liabilities | 1,286,592 | 1,880,888 | |||||||||
| Long-term debt | 11,693,785 | 12,469,362 | |||||||||
| Long-term operating lease liabilities | 117,156 | 123,124 | |||||||||
| Other long-term liabilities | 102,751 | 133,490 | |||||||||
| Total liabilities | 13,200,284 | 14,606,864 | |||||||||
| Commitments and contingencies (Note 15) | |||||||||||
| Stockholders' deficit: | |||||||||||
| Preferred stock, par value $0.01; 40,000,000 shares authorized; zero shares issued and outstanding | — | — | |||||||||
| Common stock, par value $0.01; 400,000,000 shares authorized; 131,361,484 and 123,482,836 shares issued; 115,658,818 and 107,888,336 shares outstanding, respectively | 1,314 | 1,235 | |||||||||
| Treasury stock, at cost; 15,702,666 and 15,594,500 shares, respectively | (1,433,535) | (1,422,531) | |||||||||
| Additional paid-in capital | 3,485,759 | 2,598,115 | |||||||||
| Accumulated other comprehensive income | 4,119 | 3,604 | |||||||||
| Accumulated deficit | (2,110,895) | (1,532,420) | |||||||||
| Total Wynn Resorts, Limited stockholders' deficit | (53,238) | (351,997) | |||||||||
| Noncontrolling interests | (539,351) | (385,320) | |||||||||
| Total stockholders' deficit | (592,589) | (737,317) | |||||||||
| Total liabilities and stockholders' deficit | $ | 12,607,695 | $ | 13,869,547 |
The accompanying notes are an integral part of these condensed consolidated financial statements.
WYNN RESORTS, LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
| Operating revenues: | |||||||||||||||||||||||
| Casino | $ | 496,264 | $ | 201,872 | $ | 1,615,228 | $ | 782,074 | |||||||||||||||
| Rooms | 173,817 | 61,144 | 387,772 | 231,240 | |||||||||||||||||||
| Food and beverage | 217,501 | 76,586 | 435,152 | 250,007 | |||||||||||||||||||
| Entertainment, retail and other | 107,062 | 30,850 | 283,287 | 146,545 | |||||||||||||||||||
| Total operating revenues | 994,644 | 370,452 | 2,721,439 | 1,409,866 | |||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Casino | 315,316 | 160,861 | 1,048,897 | 734,689 | |||||||||||||||||||
| Rooms | 52,100 | 35,940 | 136,187 | 139,787 | |||||||||||||||||||
| Food and beverage | 163,655 | 76,536 | 354,709 | 314,335 | |||||||||||||||||||
| Entertainment, retail and other | 156,490 | 13,370 | 310,871 | 75,823 | |||||||||||||||||||
| General and administrative | 197,350 | 160,896 | 574,669 | 547,305 | |||||||||||||||||||
| Provision for credit losses | (347) | 11,588 | 7,461 | 60,548 | |||||||||||||||||||
| Pre-opening | 1,333 | 877 | 5,455 | 5,614 | |||||||||||||||||||
| Depreciation and amortization | 177,110 | 183,486 | 545,538 | 541,498 | |||||||||||||||||||
| Property charges and other | 15,301 | 9,905 | 26,569 | 43,701 | |||||||||||||||||||
| Total operating expenses | 1,078,308 | 653,459 | 3,010,356 | 2,463,300 | |||||||||||||||||||
| Operating loss | (83,664) | (283,007) | (288,917) | (1,053,434) | |||||||||||||||||||
| Other income (expense): | |||||||||||||||||||||||
| Interest income | 507 | 2,033 | 2,131 | 13,969 | |||||||||||||||||||
| Interest expense, net of amounts capitalized | (150,325) | (145,142) | (453,601) | (407,187) | |||||||||||||||||||
| Change in derivatives fair value | 1,176 | 4,675 | 6,557 | (14,279) | |||||||||||||||||||
| Loss on extinguishment of debt | (738) | (3,139) | (2,060) | (4,601) | |||||||||||||||||||
| Other | (11,784) | 412 | (17,324) | 12,980 | |||||||||||||||||||
| Other income (expense), net | (161,164) | (141,161) | (464,297) | (399,118) | |||||||||||||||||||
| Loss before income taxes | (244,828) | (424,168) | (753,214) | (1,452,552) | |||||||||||||||||||
| Provision for income taxes | (1,155) | (407,365) | (2,345) | (564,103) | |||||||||||||||||||
| Net loss | (245,983) | (831,533) | (755,559) | (2,016,655) | |||||||||||||||||||
| Less: net loss attributable to noncontrolling interests | 79,734 | 73,391 | 176,963 | 218,912 | |||||||||||||||||||
| Net loss attributable to Wynn Resorts, Limited | $ | (166,249) | $ | (758,142) | $ | (578,596) | $ | (1,797,743) | |||||||||||||||
| Basic and diluted net loss per common share: | |||||||||||||||||||||||
| Net loss attributable to Wynn Resorts, Limited: | |||||||||||||||||||||||
| Basic | $ | (1.45) | $ | (7.10) | $ | (5.10) | $ | (16.85) | |||||||||||||||
| Diluted | $ | (1.45) | $ | (7.10) | $ | (5.10) | $ | (16.85) | |||||||||||||||
| Weighted average common shares outstanding: | |||||||||||||||||||||||
| Basic | 114,655 | 106,783 | 113,420 | 106,720 | |||||||||||||||||||
| Diluted | 114,655 | 106,783 | 113,420 | 106,720 | |||||||||||||||||||
| Dividends declared per common share | $ | — | $ | — | $ | — | $ | 1.00 |
The accompanying notes are an integral part of these condensed consolidated financial statements.
WYNN RESORTS, LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(in thousands)
(unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
| Net loss | $ | (245,983) | $ | (831,533) | $ | (755,559) | $ | (2,016,655) | |||||||||||||||
| Other comprehensive (loss) income: | |||||||||||||||||||||||
| Foreign currency translation adjustments, before and after tax | (2,863) | 14 | 879 | 1,082 | |||||||||||||||||||
| Total comprehensive loss | (248,846) | (831,519) | (754,680) | (2,015,573) | |||||||||||||||||||
| Less: comprehensive loss attributable to noncontrolling interests | 80,423 | 73,387 | 176,599 | 218,611 | |||||||||||||||||||
| Comprehensive loss attributable to Wynn Resorts, Limited | $ | (168,423) | $ | (758,132) | $ | (578,081) | $ | (1,796,962) |
The accompanying notes are an integral part of these condensed consolidated financial statements.
WYNN RESORTS, LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
(in thousands, except share data)
(unaudited)
| For the Three Months Ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shares outstanding | Par value | Treasury stock | Additional paid-in capital | Accumulated other comprehensive income | Accumulated deficit | Total Wynn Resorts, Ltd. stockholders' equity (deficit) | Noncontrolling interests | Total stockholders' deficit | |||||||||||||||||||||||||||||||||||||||||||||
| Balances, July 1, 2021 | 115,683,983 | $ | 1,313 | $ | (1,427,094) | $ | 3,466,908 | $ | 6,293 | $ | (1,944,668) | $ | 102,752 | $ | (456,591) | $ | (353,839) | ||||||||||||||||||||||||||||||||||||
| Net loss | — | — | — | — | — | (166,249) | (166,249) | (79,734) | (245,983) | ||||||||||||||||||||||||||||||||||||||||||||
| Currency translation adjustment | — | — | — | — | (2,174) | — | (2,174) | (689) | (2,863) | ||||||||||||||||||||||||||||||||||||||||||||
| Issuance of restricted stock | 48,435 | 1 | — | (1) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Cancellation of restricted stock | (5,224) | — | — | — | — | 22 | 22 | 4 | 26 | ||||||||||||||||||||||||||||||||||||||||||||
| Shares repurchased by the Company and held as treasury shares | (68,376) | — | (6,441) | — | — | — | (6,441) | — | (6,441) | ||||||||||||||||||||||||||||||||||||||||||||
| Distribution to noncontrolling interest | — | — | — | — | — | — | — | (5,364) | (5,364) | ||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation | — | — | — | 18,852 | — | — | 18,852 | 3,023 | 21,875 | ||||||||||||||||||||||||||||||||||||||||||||
| Balances, September 30, 2021 | 115,658,818 | $ | 1,314 | $ | (1,433,535) | $ | 3,485,759 | $ | 4,119 | $ | (2,110,895) | $ | (53,238) | $ | (539,351) | $ | (592,589) |
| For the Three Months Ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shares outstanding | Par value | Treasury stock | Additional paid-in capital | Accumulated other comprehensive loss | Retained earnings (accumulated deficit) | Total Wynn Resorts, Ltd. stockholders' equity (deficit) | Noncontrolling interests | Total stockholders' equity (deficit) | |||||||||||||||||||||||||||||||||||||||||||||
| Balances, July 1, 2020 | 107,869,865 | $ | 1,234 | $ | (1,419,435) | $ | 2,543,718 | $ | (908) | $ | (505,090) | $ | 619,519 | $ | (345,321) | $ | 274,198 | ||||||||||||||||||||||||||||||||||||
| Net loss | — | — | — | — | — | (758,142) | (758,142) | (73,391) | (831,533) | ||||||||||||||||||||||||||||||||||||||||||||
| Currency translation adjustment | — | — | — | — | 10 | — | 10 | 4 | 14 | ||||||||||||||||||||||||||||||||||||||||||||
| Issuance of restricted stock | 182,087 | 2 | — | (3) | — | — | (1) | — | (1) | ||||||||||||||||||||||||||||||||||||||||||||
| Cancellation of restricted stock | (164,633) | (2) | — | 2 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Shares repurchased by the Company and held as treasury shares | (15,021) | — | (1,100) | — | — | — | (1,100) | — | (1,100) | ||||||||||||||||||||||||||||||||||||||||||||
| Cash dividends declared | — | — | — | — | — | 285 | 285 | 15 | 300 | ||||||||||||||||||||||||||||||||||||||||||||
| Distribution to noncontrolling interest | — | — | — | — | — | — | — | (998) | (998) | ||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation | — | — | — | 10,726 | — | — | 10,726 | 1,763 | 12,489 | ||||||||||||||||||||||||||||||||||||||||||||
| Balances, September 30, 2020 | 107,872,298 | $ | 1,234 | $ | (1,420,535) | $ | 2,554,443 | $ | (898) | $ | (1,262,947) | $ | (128,703) | $ | (417,928) | $ | (546,631) |
The accompanying notes are an integral part of these condensed consolidated financial statements.
WYNN RESORTS, LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) (continued)
(in thousands, except share data)
(unaudited)
| For the Nine Months Ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shares outstanding | Par value | Treasury stock | Additional paid-in capital | Accumulated other comprehensive income | Accumulated deficit | Total Wynn Resorts, Ltd. stockholders' equity (deficit) | Noncontrolling interests | Total stockholders' deficit | |||||||||||||||||||||||||||||||||||||||||||||
| Balances, January 1, 2021 | 107,888,336 | $ | 1,235 | $ | (1,422,531) | $ | 2,598,115 | $ | 3,604 | $ | (1,532,420) | $ | (351,997) | $ | (385,320) | $ | (737,317) | ||||||||||||||||||||||||||||||||||||
| Net loss | — | — | — | — | — | (578,596) | (578,596) | (176,963) | (755,559) | ||||||||||||||||||||||||||||||||||||||||||||
| Currency translation adjustment | — | — | — | — | 515 | — | 515 | 364 | 879 | ||||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock, net of $17.7 million underwriter discounts, commissions and other expenses | 7,475,000 | 75 | — | 841,821 | — | — | 841,896 | — | 841,896 | ||||||||||||||||||||||||||||||||||||||||||||
| Issuance of restricted stock | 428,406 | 4 | — | 5,898 | — | — | 5,902 | 370 | 6,272 | ||||||||||||||||||||||||||||||||||||||||||||
| Cancellation of restricted stock | (24,758) | — | — | — | — | 121 | 121 | 19 | 140 | ||||||||||||||||||||||||||||||||||||||||||||
| Shares repurchased by the Company and held as treasury shares | (108,166) | — | (11,004) | — | — | — | (11,004) | — | (11,004) | ||||||||||||||||||||||||||||||||||||||||||||
| Distribution to noncontrolling interest | — | — | — | — | — | — | — | (11,843) | (11,843) | ||||||||||||||||||||||||||||||||||||||||||||
| Subsidiary equity issuance | — | — | — | (20,211) | — | — | (20,211) | 25,371 | 5,160 | ||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation | — | — | — | 60,136 | — | — | 60,136 | 8,651 | 68,787 | ||||||||||||||||||||||||||||||||||||||||||||
| Balances, September 30, 2021 | 115,658,818 | $ | 1,314 | $ | (1,433,535) | $ | 3,485,759 | $ | 4,119 | $ | (2,110,895) | $ | (53,238) | $ | (539,351) | $ | (592,589) |
| For the Nine Months Ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shares outstanding | Par value | Treasury stock | Additional paid-in capital | Accumulated other comprehensive loss | Retained earnings (accumulated deficit) | Total Wynn Resorts, Ltd. stockholders' equity (deficit) | Noncontrolling interests | Total stockholders' equity (deficit) | |||||||||||||||||||||||||||||||||||||||||||||
| Balances, January 1, 2020 | 107,363,943 | $ | 1,228 | $ | (1,410,998) | $ | 2,512,676 | $ | (1,679) | $ | 641,818 | $ | 1,743,045 | $ | (201,573) | $ | 1,541,472 | ||||||||||||||||||||||||||||||||||||
| Net loss | — | — | — | — | — | (1,797,743) | (1,797,743) | (218,912) | (2,016,655) | ||||||||||||||||||||||||||||||||||||||||||||
| Currency translation adjustment | — | — | — | — | 781 | — | 781 | 301 | 1,082 | ||||||||||||||||||||||||||||||||||||||||||||
| Issuance of restricted stock | 843,102 | 8 | — | 6,700 | — | — | 6,708 | 818 | 7,526 | ||||||||||||||||||||||||||||||||||||||||||||
| Cancellation of restricted stock | (237,680) | (2) | — | 2 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Shares repurchased by the Company and held as treasury shares | (97,067) | — | (9,537) | — | — | — | (9,537) | 141 | (9,396) | ||||||||||||||||||||||||||||||||||||||||||||
| Cash dividends declared | — | — | — | — | — | (107,022) | (107,022) | 45 | (106,977) | ||||||||||||||||||||||||||||||||||||||||||||
| Distribution to noncontrolling interest | — | — | — | — | — | — | — | (1,996) | (1,996) | ||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation | — | — | — | 35,065 | — | — | 35,065 | 3,248 | 38,313 | ||||||||||||||||||||||||||||||||||||||||||||
| Balances, September 30, 2020 | 107,872,298 | $ | 1,234 | $ | (1,420,535) | $ | 2,554,443 | $ | (898) | $ | (1,262,947) | $ | (128,703) | $ | (417,928) | $ | (546,631) |
The accompanying notes are an integral part of these condensed consolidated financial statements.
WYNN RESORTS, LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
| Nine Months Ended September 30, | |||||||||||
| 2021 | 2020 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net loss | $ | (755,559) | $ | (2,016,655) | |||||||
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||
| Depreciation and amortization | 545,538 | 541,498 | |||||||||
| Deferred income taxes | (527) | 562,262 | |||||||||
| Stock-based compensation expense | 75,033 | 40,501 | |||||||||
| Amortization of debt issuance costs | 19,891 | 21,770 | |||||||||
| Loss on extinguishment of debt | 2,060 | 4,601 | |||||||||
| Provision for credit losses | 7,461 | 60,548 | |||||||||
| Change in derivatives fair value | (6,557) | 14,279 | |||||||||
| Property charges and other | 43,893 | 30,721 | |||||||||
| Increase (decrease) in cash from changes in: | |||||||||||
| Receivables, net | (29,729) | 105,879 | |||||||||
| Inventories, prepaid expenses and other | (38,377) | 15,923 | |||||||||
| Customer deposits | (178,959) | 45,852 | |||||||||
| Accounts payable and accrued expenses | 99,000 | (208,258) | |||||||||
| Net cash used in operating activities | (216,832) | (781,079) | |||||||||
| Cash flows from investing activities: | |||||||||||
| Capital expenditures, net of construction payables and retention | (213,088) | (261,093) | |||||||||
| Purchase of intangible and other assets | (19,741) | — | |||||||||
| Proceeds from sale of assets and other | 3,689 | 3,733 | |||||||||
| Net cash used in investing activities | (229,140) | (257,360) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Proceeds from issuance of long-term debt | 1,141,026 | 3,919,377 | |||||||||
| Repayments of long-term debt | (2,477,690) | (1,540,609) | |||||||||
| Proceeds from issuance of Wynn Resorts, Limited common stock | 841,896 | — | |||||||||
| Repurchase of common stock | (11,004) | (9,537) | |||||||||
| Finance lease payments | (11,709) | (2,194) | |||||||||
| Proceeds from exercise of stock options | — | 70 | |||||||||
| Dividends paid | (932) | (108,282) | |||||||||
| Distribution to noncontrolling interest | (11,843) | (1,996) | |||||||||
| Proceeds from issuance of subsidiary common stock | 4,662 | — | |||||||||
| Payments for debt financing costs | (29,975) | (20,350) | |||||||||
| Net cash (used in) provided by financing activities | (555,569) | 2,236,479 | |||||||||
| Effect of exchange rate on cash, cash equivalents and restricted cash | (1,689) | 3,412 | |||||||||
| Cash, cash equivalents and restricted cash: | |||||||||||
| (Decrease) increase in cash, cash equivalents and restricted cash | (1,003,230) | 1,201,452 | |||||||||
| Balance, beginning of period | 3,486,384 | 2,358,292 | |||||||||
| Balance, end of period | $ | 2,483,154 | $ | 3,559,744 | |||||||
| Supplemental cash flow disclosures: | |||||||||||
| Cash paid for interest, net of amounts capitalized | $ | 426,462 | $ | 313,696 | |||||||
| Liability settled with shares of common stock | $ | 6,272 | $ | 6,720 | |||||||
| Accounts and construction payables related to property and equipment | $ | 70,844 | $ | 85,585 | |||||||
| Other liabilities related to intangible assets | $ | 12,335 | $ | 12,880 | |||||||
| Finance lease liabilities arising from obtaining finance lease assets | $ | 7,423 | $ | 42,432 |
The accompanying notes are an integral part of these condensed consolidated financial statements.
WYNN RESORTS, LIMITED AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
Note 1 - Organization
Organization
Wynn Resorts, Limited, a Nevada corporation (together with its subsidiaries, "Wynn Resorts" or the "Company"), is a designer, developer, and operator of integrated resorts featuring luxury hotel rooms, high-end retail space, an array of dining and entertainment options, meeting and convention facilities, and gaming.
In the Macau Special Administrative Region of the People's Republic of China ("Macau"), the Company owns approximately 72% of Wynn Macau, Limited ("WML"), which includes the operations of the Wynn Palace and Wynn Macau resorts. The Company refers to Wynn Palace and Wynn Macau as its Macau Operations. In Las Vegas, Nevada, the Company operates and, with the exception of certain retail space, owns 100% of Wynn Las Vegas. Additionally, the Company is a 50.1% owner and managing member of a joint venture that owns and leases certain retail space at Wynn Las Vegas (the "Retail Joint Venture"). The Company refers to Wynn Las Vegas, Encore, an expansion at Wynn Las Vegas, and the Retail Joint Venture as its Las Vegas Operations. On June 23, 2019, the Company opened Encore Boston Harbor, an integrated resort in Everett, Massachusetts, that is owned 100% by the Company. In October 2020, Wynn Interactive Ltd. ("Wynn Interactive") was formed through the merger of the Company's U.S. online sports betting and gaming business, social casino business, and Wynn Resorts' strategic partner, BetBull Limited ("BetBull"). Wynn Resorts holds an approximately 74% interest in, and consolidates, Wynn Interactive. The results of Wynn Interactive's operations are presented within Corporate and other in the accompanying condensed consolidated financial statements, except where otherwise noted.
Recent Developments Related to COVID-19
Since the outbreak of COVID-19 in early 2020, steps have been taken by various countries, including those in which the Company operates, to advise citizens to avoid non-essential travel, to restrict inbound international travel, to implement closures of non-essential operations, and to implement quarantines and lockdowns to contain the spread of the virus. As part of the immediate response to the initial outbreak of COVID-19, each of the Company's properties was subject to partial or full closure for varying lengths of time during 2020, and each has since reopened. Several vaccines have been granted authorization in numerous countries and are being rolled out to citizens based on availability and priority of need. There can be no assurance as to when a sufficient number of individuals will be vaccinated, or when travel restrictions may be fully lifted thereafter.
Macau Operations
Visitation to Macau has fallen significantly since the outbreak of COVID-19, driven by the strong deterrent effect of the COVID-19 pandemic on travel and social activities, quarantine measures put in place in Macau and elsewhere, travel and entry restrictions and conditions in Macau, the PRC, Hong Kong and Taiwan involving COVID-19 testing, among other things, and the suspension or reduced accessibility of transportation to and from Macau. Beginning in June 2020, certain restrictions and conditions have eased to allow for some visitation to Macau as certain regions recover from the COVID-19 pandemic. Quarantine-free travel, subject to COVID-19 safeguards such as testing and the usual visa requirements, has been reintroduced between Macau and most areas and cities within the PRC, and in September 2020, PRC authorities fully resumed the IVS exit visa program, which permits individual PRC citizens from nearly 50 PRC cities to travel to Macau for tourism purposes. Given the evolving conditions created by and in response to the COVID-19 pandemic, measures that have been lifted may be reintroduced if there are adverse developments in the COVID-19 situation in Macau and other regions with access to Macau, and the Company is currently unable to determine when protective measures and the suspension of certain offerings in effect at our Macau Operations will be lifted. Given the uncertainty around the extent and timing of the potential future spread or mitigation of COVID-19 and around the imposition or relaxation of protective measures, management cannot reasonably estimate the impact to the Company's future results of operations, cash flows, or financial condition.
Las Vegas Operations and Encore Boston Harbor
In response to the COVID-19 outbreak, the Company’s Las Vegas Operations and Encore Boston Harbor each implemented certain COVID-19 specific protective measures, such as limiting the number of seats per table game, slot machine spacing, temperature checks, mask protection, and suspension of certain entertainment and nightlife offerings. Over the course of the nine months ended September 30, 2021, the Company's Las Vegas Operations and Encore Boston Harbor have each incrementally resumed full operations, including reopening gaming areas to 100% of capacity and restoring seven-day-per-week hotel operations, as permitted by governmental authorities and in response to increased customer demand. Given the
WYNN RESORTS, LIMITED AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(unaudited)
evolving conditions created by and in response to the COVID-19 pandemic, measures that have been lifted may be reintroduced if there are adverse developments in the COVID-19 situation, and management cannot reasonably estimate the impact of such developments to the Company's future results of operations, cash flows, or financial condition.
Liquidity
As of September 30, 2021, the Company had total cash and cash equivalents, excluding restricted cash, of $2.48 billion, and had access to $834.2 million of available borrowing capacity from the WRF Revolving Facility and $413.1 million of available borrowing capacity from the WM Cayman II Revolver (as defined and discussed further in Note 7, "Long-Term Debt"). The Company has suspended its dividend program. Given the Company's liquidity position as of September 30, 2021, the Company believes it is able to support continuing operations and respond to the current COVID-19 pandemic challenges.
Macau Gaming Concession
The term of the Company's concession agreement with the Macau government ends on June 26, 2022. If the term of this concession agreement is not extended or renewed or is not replaced by a new gaming concession, all of the Company's gaming operations and related equipment in Macau will be automatically transferred to the Macau government without compensation on that date and the Company will cease to generate gaming revenues from its Macau Operations. In addition, under the indentures governing the Company's $4.7 billion aggregate principal amount of WML Senior Notes and the facility agreement governing the WM Cayman II Revolver, upon the occurrence of any event after which the Company does not own or manage casino or gaming areas or operate casino games of fortune and chance in Macau in substantially the same manner as of the issue date of the respective senior notes or the date of the facility agreement, for a period of 10 consecutive days or more in the case of the WML Senior Notes or a period of 30 consecutive days or more in the case of the WM Cayman II Revolver, and such event has a material adverse effect on the financial condition, business, properties or results of operations of WML and its subsidiaries, taken as a whole, holders of the WML Senior Notes can require the Company to repurchase all or any part of the WML Senior Notes at par, plus any accrued and unpaid interest (the "Special Put Option"), and any amounts owed under the WM Cayman II Revolver may become immediately due and payable (the "Property Mandatory Prepayment Event").
The Company is monitoring developments with respect to the Macau government's concession renewal or extension process, and at this time believes that its concession will be renewed or extended beyond June 26, 2022. The failure to extend or renew the Company's concession or obtain a new concession and the resulting ability of the WML Senior Note holders to exercise the Special Put Option and triggering of the Property Mandatory Prepayment Event would have a material adverse effect on the Company's business, financial condition, results of operations, and cash flows.
Business Combination Agreement
On May 10, 2021, Wynn Interactive entered into a business combination agreement (the "Business Combination Agreement") with Austerlitz Acquisition Corporation I, a Cayman Islands exempted company ("Austerlitz I"), and Wave Merger Sub Limited, an exempted company limited by shares incorporated in Bermuda and a direct, wholly owned subsidiary of Austerlitz I ("Merger Sub"). The Business Combination Agreement provides for, among other things, the consummation of the following transactions: (i) Austerlitz I will transfer by way of continuation from the Cayman Islands to Bermuda and change its name to "Wynn Interactive, Limited"; and (ii) Merger Sub will merge with and into Wynn Interactive (the "Merger"), with Wynn Interactive being the surviving company of the Merger and direct, wholly owned subsidiary of Austerlitz I. Upon closing of the transaction, assuming no share redemptions by the public stockholders of Austerlitz I, the Company is expected to retain an approximately 58% equity interest (and approximately 72% voting interest) in Wynn Interactive. Closing of the proposed business combination is subject to approval by Austerlitz I's stockholders, gaming regulatory approval and other customary closing conditions.
Note 2 - Basis of Presentation and Significant Accounting Policies
Basis of Presentation
The accompanying condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP") have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures herein
WYNN RESORTS, LIMITED AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(unaudited)
are adequate to make the information presented not misleading. In the opinion of management, the accompanying condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary to a fair presentation of the results for the interim periods presented. The results for the three and nine months ended September 30, 2021 are not necessarily indicative of results to be expected for the full fiscal year. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto in the Company's Annual Report on Form 10-K for the year ended December 31, 2020.
Principles of Consolidation
The accompanying condensed consolidated financial statements include the accounts of the Company, its majority-owned subsidiaries and entities the Company identifies as variable interest entities ("VIEs") of which the Company is determined to be the primary beneficiary. For information on the Company's VIEs, see Note 16, "Retail Joint Venture." All significant intercompany accounts and transactions have been eliminated. Certain amounts in the condensed consolidated financial statements for the first quarter of 2021 have been reclassified to be consistent with the current quarter presentation. These reclassifications had no effect on the previously reported net loss or operating loss.
Use of Estimates
The preparation of consolidated financial statements 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates and assumptions reflected in the financial statements relate to and include, but are not limited to, inputs into the Company's estimated allowance for credit losses, estimates regarding the useful lives and recoverability of the cost of long-lived assets, fair value estimates of intangible assets and their estimated useful lives, and litigation and contingency estimates.
Gaming Taxes
The Company is subject to taxes based on gross gaming revenues in the jurisdictions in which it operates, subject to applicable jurisdictional adjustments. These gaming taxes are recorded as casino expenses in the accompanying Condensed Consolidated Statements of Operations. These taxes totaled $188.7 million and $66.1 million for the three months ended September 30, 2021 and 2020, respectively, and $637.9 million and $332.5 million for the nine months ended September 30, 2021 and 2020, respectively.
Recently Issued Accounting Standards
In March 2020, the FASB issued ASU No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" ("ASU 2020-04"). ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In response to the concerns about structural risks of interbank offered rates and, particularly, the risk of cessation of the London Interbank Offered Rate (referred to as "LIBOR"), regulators in several jurisdictions around the world have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction-based and less susceptible to manipulation. ASU 2020-04 also provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. ASU 2020-04 can be adopted no later than December 1, 2022 with early adoption permitted. The Company is currently assessing the impact the adoption of the new guidance will have on its consolidated financial statements.
WYNN RESORTS, LIMITED AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(unaudited)
Note 3 - Cash, Cash Equivalents and Restricted Cash
Cash, cash equivalents and restricted cash consisted of the following (in thousands):
| September 30, 2021 | December 31, 2020 | ||||||||||
| Cash and cash equivalents: | |||||||||||
| Cash (1) | $ | 2,054,901 | $ | 2,501,452 | |||||||
| Cash equivalents (2) | 420,856 | 980,580 | |||||||||
| Total cash and cash equivalents | 2,475,757 | 3,482,032 | |||||||||
| Restricted cash (3) | 7,397 | 4,352 | |||||||||
| Total cash, cash equivalents and restricted cash | $ | 2,483,154 | $ | 3,486,384 | |||||||
| (1) Cash consists of cash on hand and bank deposits. (2) Cash equivalents consist of bank time deposits and money market funds. (3) Restricted cash consists of cash subject to certain contractual restrictions, cash collateral associated with obligations and cash held in a trust in accordance with WML's share award plan. |
Note 4 - Receivables, net
Accounts Receivable and Credit Risk
Receivables, net consisted of the following (in thousands):
| September 30, 2021 | December 31, 2020 | ||||||||||
| Casino | $ | 217,788 | $ | 207,823 | |||||||
| Hotel | 23,593 | 7,075 | |||||||||
| Other | 74,861 | 85,589 | |||||||||
| 316,242 | 300,487 | ||||||||||
| Less: allowance for credit losses | (94,309) | (100,329) | |||||||||
| $ | 221,933 | $ | 200,158 |
As of September 30, 2021 and December 31, 2020, approximately 72.8% and 77.3%, respectively, of the Company's markers were due from customers residing outside the United States, primarily in Asia. Business or economic conditions or other significant events in the countries in which the Company's customers reside could affect the collectability of such receivables.
The Company’s allowance for casino credit losses was 42.2% and 47.2% of gross casino receivables as of September 30, 2021 and December 31, 2020, respectively. Although the Company believes that its allowance is adequate, it is possible the estimated amounts of cash collections with respect to receivables could change. The Company’s allowance for credit losses from its hotel and other receivables is not material.
The following table shows the movement in the Company's allowance for credit losses recognized for receivables that occurred during the period (in thousands):
| September 30, 2021 | September 30, 2020 | ||||||||||
| Balance at beginning of year | $ | 100,329 | $ | 39,317 | |||||||
| Provision for credit losses | 7,461 | 60,548 | |||||||||
| Write-offs | (14,022) | (1,233) | |||||||||
| Recoveries of receivables previously written off | 736 | 228 | |||||||||
| Effect of exchange rate | (195) | 129 | |||||||||
| Balance at end of period | $ | 94,309 | $ | 98,989 |
WYNN RESORTS, LIMITED AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(unaudited)
Note 5 - Property and Equipment, net
Property and equipment, net consisted of the following (in thousands):
| September 30, 2021 | December 31, 2020 | ||||||||||
| Buildings and improvements | $ | 9,794,863 | $ | 9,758,846 | |||||||
| Land and improvements | 1,277,046 | 1,265,510 | |||||||||
| Furniture, fixtures and equipment | 3,099,055 | 3,093,481 | |||||||||
| Airplanes | 110,623 | 110,623 | |||||||||
| Construction in progress | 194,912 | 136,390 | |||||||||
| 14,476,499 | 14,364,850 | ||||||||||
| Less: accumulated depreciation | (5,617,342) | (5,168,206) | |||||||||
| $ | 8,859,157 | $ | 9,196,644 |
As of September 30, 2021 and December 31, 2020, construction in progress consisted primarily of costs capitalized for various capital enhancements at the Company's properties, including the Wynn Las Vegas room remodel.
Depreciation expense for the three months ended September 30, 2021 and 2020 was $169.7 million and $177.3 million, respectively, and depreciation expense for the nine months ended September 30, 2021 and 2020 was $523.6 million and $522.4 million, respectively.
Note 6 - Goodwill
The following table shows the movement in the Company's goodwill balance that occurred during the nine-month period (in thousands):
| Balance as of January 1, 2021 | $ | 144,094 | |||
| Foreign currency translation | (4,167) | ||||
| Balance as of September 30, 2021 | $ | 139,927 |
WYNN RESORTS, LIMITED AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(unaudited)
Note 7 - Long-Term Debt
Long-term debt consisted of the following (in thousands):
| September 30, 2021 | December 31, 2020 | ||||||||||
| Macau Related: | |||||||||||
| Wynn Macau Credit Facilities (1): | |||||||||||
| Wynn Macau Term Loan, due 2022 | $ | — | $ | 1,268,106 | |||||||
| Wynn Macau Revolver, due 2022 | — | 407,443 | |||||||||
| WM Cayman II Revolver, due 2025 (2) | 1,089,143 | — | |||||||||
| WML 4 7/8% Senior Notes, due 2024 | 600,000 | 600,000 | |||||||||
| WML 5 1/2% Senior Notes, due 2026 | 1,000,000 | 1,000,000 | |||||||||
| WML 5 1/2% Senior Notes, due 2027 | 750,000 | 750,000 | |||||||||
| WML 5 5/8% Senior Notes, due 2028 | 1,350,000 | 1,350,000 | |||||||||
| WML 5 1/8% Senior Notes, due 2029 | 1,000,000 | 1,000,000 | |||||||||
| U.S. and Corporate Related: | |||||||||||
| WRF Credit Facilities (3): | |||||||||||
| WRF Term Loan, due 2024 | 900,000 | 937,500 | |||||||||
| WRF Revolver, due 2024 | — | 716,000 | |||||||||
| WLV 4 1/4% Senior Notes, due 2023 | 500,000 | 500,000 | |||||||||
| WLV 5 1/2% Senior Notes, due 2025 | 1,780,000 | 1,780,000 | |||||||||
| WLV 5 1/4% Senior Notes, due 2027 | 880,000 | 880,000 | |||||||||
| WRF 7 3/4% Senior Notes, due 2025 | 600,000 | 600,000 | |||||||||
| WRF 5 1/8% Senior Notes, due 2029 | 750,000 | 750,000 | |||||||||
| Retail Term Loan, due 2025 (4) | 615,000 | 615,000 | |||||||||
| 11,814,143 | 13,154,049 | ||||||||||
| Less: Unamortized debt issuance costs and original issue discounts and premium, net | (70,358) | (88,279) | |||||||||
| 11,743,785 | 13,065,770 | ||||||||||
| Less: Current portion of long-term debt | (50,000) | (596,408) | |||||||||
| Total long-term debt, net of current portion | $ | 11,693,785 | $ | 12,469,362 |
(1) In September 2021, the Company prepaid the aggregate amount of $1.26 billion of borrowings outstanding under Wynn Macau Credit Facilities.
(2) The borrowings under the WM Cayman II Revolver bear interest at LIBOR or HIBOR plus a margin of 1.875% to 2.875% per annum based on WM Cayman II’s leverage ratio on a consolidated basis. Approximately $226.5 million and $862.6 million of the WM Cayman II Revolver bears interest at a rate of LIBOR plus 2.625% per year and HIBOR plus 2.625% per year, respectively. As of September 30, 2021, the weighted average interest rate was approximately 2.69%. As of September 30, 2021, the available borrowing capacity under the WM Cayman II Revolver was $413.1 million.
(3) The WRF Credit Facilities bear interest at a rate of LIBOR plus 1.75% per year. As of September 30, 2021, the weighted average interest rate was approximately 1.84%. Additionally, as of September 30, 2021, the available borrowing capacity under the WRF Revolver was $834.2 million, net of $15.8 million in outstanding letters of credit.
(4) The Retail Term Loan bears interest at a rate of LIBOR plus 1.70% per year. As of September 30, 2021, the effective interest rate was 2.70%.
WM Cayman II Revolver
On September 16, 2021, WM Cayman Holdings Limited II, an indirect wholly owned subsidiary of WML, as borrower ("WM Cayman II") and WML as guarantor, each an indirect subsidiary of Wynn Resorts, entered into a facility agreement with, among others, Bank of China Limited, Macau Branch as agent and a syndicate of lenders (the "Facility Agreement"), pursuant to which the lenders will make available in an aggregate amount of $1.50 billion equivalent revolving unsecured credit facility consisting of one tranche in an amount of $312.5 million and one tranche in an amount of HK$9.26 billion (approximately $1.19 billion) to WM Cayman II (the "WM Cayman II Revolver"). WM Cayman II has the ability to upsize the total WM Cayman II Revolver by an additional $1.00 billion equivalent under the Facility Agreement and related agreements upon the satisfaction of various conditions.
WYNN RESORTS, LIMITED AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(unaudited)
The final maturity of all outstanding loans under the WM Cayman II Revolver is September 16, 2025 (or if September 16, 2025 is not a business day, the next business day in the relevant calendar month), by which time any outstanding borrowings from the WM Cayman II Revolver must be repaid.
Borrowings of $1.09 billion under the WM Cayman II Revolver, along with $200.0 million of cash, were used to facilitate the prepayment of the outstanding $1.26 billion of borrowings under the Wynn Macau Credit Facilities, and to pay related fees and expenses totaling $29.1 million, of which $28.5 million was recorded as debt issuance costs within the Condensed Consolidated Balance Sheet. The Company recognized this transaction primarily as a modification of existing debt with the related unamortized debt issuance costs reallocated to the WM Cayman II Revolver. For those components of debt that were deemed extinguished, the Company recognized a loss on extinguishment of debt of $0.7 million.
The Facility Agreement contains representations, warranties, covenants and events of default customary for similar financings. The Facility Agreement also contains certain mandatory prepayment provisions relating to the loss or termination of the Company's gaming operations or concession contracts in Macau.
Debt Covenant Compliance
As of September 30, 2021, management believes the Company was in compliance with all debt covenants.
Fair Value of Long-Term Debt
The estimated fair value of the Company's long-term debt as of September 30, 2021 and December 31, 2020, was approximately $11.68 billion and $13.35 billion, respectively, compared to its carrying value, excluding debt issuance costs and original issue discount and premium, of $11.81 billion and $13.15 billion, respectively. The estimated fair value of the Company's long-term debt is based on recent trades, if available, and indicative pricing from market information (Level 2 inputs).
Note 8 - Stockholders' Deficit
Equity Offering
On February 11, 2021, the Company completed a registered public offering of 7,475,000 newly issued shares of its common stock, par value $0.01 per share, at a price of $115.00 per share for proceeds of $841.9 million, net of $17.7 million in underwriting discounts, commissions, and other expenses. The Company used $716.0 million of the proceeds from the equity offering to repay the then outstanding borrowings under the WRF Revolver, and used the remaining net proceeds for general corporate purposes.
Dividends
During the first quarter of 2020, the Company paid a cash dividend of $1.00 per share, and recorded $107.5 million as a reduction of retained earnings from cash dividends declared.
On May 6, 2020, the Company announced that it had suspended its quarterly dividend program due to the financial impact of the COVID-19 pandemic.
Noncontrolling Interests
On April 16, 2021, Wynn Interactive issued a pre-emptive rights notice to its shareholders in connection with the proposed creation and issuance of new Class A shares. Upon the consummation of the share issuance in May 2021, Wynn Interactive issued 3,229 new Class A shares to noncontrolling interest holders in exchange for aggregate proceeds of $4.7 million.
The WML board of directors concluded not to recommend the payment of a dividend with respect to either of the years ended December 31, 2020 or 2019 due to the financial impact of the COVID-19 pandemic. As such, WML paid no dividends during 2020 or the nine months ended September 30, 2021.
WYNN RESORTS, LIMITED AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(unaudited)
During the nine months ended September 30, 2021 and 2020, the Retail Joint Venture made aggregate distributions of approximately $11.8 million and $2.0 million, respectively, to its noncontrolling interest holder. For more information on the Retail Joint Venture, see Note 16, "Retail Joint Venture".
Note 9 - Fair Value Measurements
The following tables present assets and liabilities carried at fair value (in thousands):
| Fair Value Measurements Using: | |||||||||||||||||||||||
| September 30, 2021 | Quoted Market Prices in Active Markets (Level 1) | Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | ||||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Cash equivalents | $ | 420,856 | $ | — | $ | 420,856 | — | ||||||||||||||||
| Restricted cash | $ | 7,397 | $ | 5,672 | $ | 1,725 | — | ||||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Interest rate collar | $ | 10,351 | — | $ | 10,351 | — | |||||||||||||||||
| Fair Value Measurements Using: | |||||||||||||||||||||||
| December 31, 2020 | Quoted Market Prices in Active Markets (Level 1) | Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | ||||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Cash equivalents | $ | 980,580 | $ | 504,980 | $ | 475,600 | — | ||||||||||||||||
| Restricted cash | $ | 4,352 | $ | 2,054 | $ | 2,298 | — | ||||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Interest rate collar | $ | 16,908 | — | $ | 16,908 | — |
Note 10 - Customer Contract Liabilities
In providing goods and services to its customers, there is often a timing difference between the Company receiving cash and the Company recording revenue for providing services or holding events.
WYNN RESORTS, LIMITED AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(unaudited)
The Company's primary liabilities associated with customer contracts are as follows (in thousands):
| September 30, 2021 | December 31, 2020 | Increase / (decrease) | September 30, 2020 | December 31, 2019 | Increase / (decrease) | ||||||||||||||||||||||||||||||
| Casino outstanding chips and front money deposits (1) | $ | 380,442 | $ | 596,463 | $ | (216,021) | $ | 836,370 | $ | 769,053 | $ | 67,317 | |||||||||||||||||||||||
| Advance room deposits and ticket sales (2) | 62,993 | 29,224 | 33,769 | 28,885 | 49,834 | (20,949) | |||||||||||||||||||||||||||||
| Other gaming-related liabilities (3) | 21,217 | 7,882 | 13,335 | 6,212 | 13,970 | (7,758) | |||||||||||||||||||||||||||||
| Loyalty program and related liabilities (4) | 33,440 | 22,736 | 10,704 | 23,362 | 21,148 | 2,214 | |||||||||||||||||||||||||||||
| $ | 498,092 | $ | 656,305 | $ | (158,213) | $ | 894,829 | $ | 854,005 | $ | 40,824 |
(1) Casino outstanding chips generally represent amounts owed to gaming promoters and customers for chips in their possession, and casino front money deposits represent funds deposited by customers before gaming play occurs. These amounts are included in customer deposits on the Condensed Consolidated Balance Sheets and may be recognized as revenue or redeemed for cash in the future.
(2) Advance room deposits and ticket sales represent cash received in advance for goods or services to be provided in the future. These amounts are included in customer deposits on the Condensed Consolidated Balance Sheets and will be recognized as revenue when the goods or services are provided or the events are held. Decreases in this balance generally represent the recognition of revenue and increases in the balance represent additional deposits made by customers. The deposits are expected to primarily be recognized as revenue within one year.
(3) Other gaming-related liabilities generally represent unpaid wagers primarily in the form of unredeemed slot, race and sportsbook tickets or wagers for future sporting events. The amounts are included in other accrued liabilities on the Condensed Consolidated Balance Sheets.
(4) Loyalty program and related liabilities represent the deferral of revenue until the loyalty points or other complimentaries are redeemed. The amounts are included in other accrued liabilities on the Condensed Consolidated Balance Sheets and are expected to be recognized as revenue within one year of being earned by customers.
Note 11 - Stock-Based Compensation
The total compensation cost for stock-based compensation plans was recorded as follows (in thousands):
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
| Casino (1) | $ | 3,423 | $ | 2,496 | $ | 11,000 | $ | 4,796 | |||||||||||||||
| Rooms | 351 | 403 | 1,260 | 1,098 | |||||||||||||||||||
| Food and beverage | 737 | 868 | 2,709 | 2,171 | |||||||||||||||||||
| Entertainment, retail and other (2) | 7,071 | 102 | 16,292 | 259 | |||||||||||||||||||
| General and administrative (3) | 13,998 | 6,184 | 43,772 | 32,177 | |||||||||||||||||||
| Total stock-based compensation expense | 25,580 | 10,053 | 75,033 | 40,501 | |||||||||||||||||||
| Total stock-based compensation capitalized | 2,242 | 659 | 4,271 | 1,362 | |||||||||||||||||||
| Total stock-based compensation costs | $ | 27,822 | $ | 10,712 | $ | 79,304 | $ | 41,863 |
(1) For the nine months ended September 30, 2020, reflects the reversal of $3.3 million of compensation cost previously recognized for awards forfeited in connection with the departure of an employee.
(2) For the nine months ended September 30, 2021, reflects compensation cost of $2.7 million recognized in connection with the vesting of restricted stock performance awards.
(3) For the nine months ended September 30, 2020, reflects compensation cost of $4.4 million recognized in connection with the vesting of restricted stock performance awards.
Note 12 - Income Taxes
The Company recorded an income tax expense of $1.2 million and $407.4 million for the three months ended September 30, 2021 and 2020, respectively and an income tax expense of $2.3 million and $564.1 million for the nine months ended September 30, 2021 and 2020, respectively. The 2021 income tax expense primarily related to an increase in valuation allowance for U.S. deferred tax assets and to the Macau dividend tax agreement that provides for an annual payment of MOP 12.8 million (approximately $1.6 million) as complementary tax otherwise due by stockholders of Wynn Macau SA. The 2020 income tax expense primarily related to the increase in the valuation allowance for U.S. foreign tax credits.
In March 2021, the Company received an extension of its Macau dividend tax agreement, providing for a payment of MOP 12.8 million (approximately $1.6 million) for 2021 and MOP 6.3 million (approximately $0.8 million) for the period ending June 26, 2022, the expiration date of the gaming concession agreement.
WYNN RESORTS, LIMITED AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(unaudited)
The Company records valuation allowances on certain of its U.S. and foreign deferred tax assets. During the third quarter of 2020, the Company concluded it could no longer rely on forecasted future taxable income in assessing a valuation allowance on its deferred tax assets. This conclusion was reached due to cumulative operating losses incurred by the Company and tax legislation that reduced future sources of taxable income. As of September 30, 2021, the Company continues to rely solely on the reversal of net taxable temporary differences in assessing a need for a valuation allowance.
In April 2020, Wynn Macau SA received an extension of the exemption from Macau’s 12% Complementary Tax on casino gaming profits earned from January 1, 2021 to June 26, 2022, the expiration date of the gaming concession agreement.
For the three and nine months ended September 30, 2021 and 2020, the Company did not have any casino gaming profits exempt from the Macau Complementary Tax. The Company's non-gaming profits remain subject to the Macau Complementary Tax and its casino winnings remain subject to the Macau special gaming tax and other levies in accordance with its concession agreement.
In March 2021, the Financial Services Bureau concluded its review of the 2017 and 2018 Macau income tax returns of Palo with no changes.
Note 13 - Earnings Per Share
Basic earnings per share ("EPS") is computed by dividing net loss attributable to Wynn Resorts by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing net loss attributable to Wynn Resorts by the weighted average number of common shares outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potential dilutive securities had been issued, to the extent such impact is not anti-dilutive. Potentially dilutive securities include outstanding stock options and unvested restricted stock.
The weighted average number of common and common equivalent shares used in the calculation of basic and diluted EPS consisted of the following (in thousands, except per share amounts):
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
| Numerator: | |||||||||||||||||||||||
| Net loss attributable to Wynn Resorts, Limited | $ | (166,249) | $ | (758,142) | $ | (578,596) | $ | (1,797,743) | |||||||||||||||
| Denominator: | |||||||||||||||||||||||
| Weighted average common shares outstanding | 114,655 | 106,783 | 113,420 | 106,720 | |||||||||||||||||||
| Potential dilutive effect of stock options, nonvested, and performance nonvested shares | — | — | — | — | |||||||||||||||||||
| Weighted average common and common equivalent shares outstanding | 114,655 | 106,783 | 113,420 | 106,720 | |||||||||||||||||||
| Net loss attributable to Wynn Resorts, Limited per common share, basic | $ | (1.45) | $ | (7.10) | $ | (5.10) | $ | (16.85) | |||||||||||||||
| Net loss attributable to Wynn Resorts, Limited per common share, diluted | $ | (1.45) | $ | (7.10) | $ | (5.10) | $ | (16.85) | |||||||||||||||
| Anti-dilutive stock options, nonvested, and performance nonvested shares excluded from the calculation of diluted net income per share | 954 | 1,104 | 954 | 1,104 |
WYNN RESORTS, LIMITED AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(unaudited)
Note 14 - Leases
Lessor Arrangements
The following table presents the minimum and contingent operating lease income for the periods presented (in thousands):
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
| Minimum rental income (1) | $ | 27,719 | $ | (2,430) | $ | 75,676 | $ | 57,293 | |||||||||||||||
| Contingent rental income | 19,349 | 15,280 | 75,464 | 23,798 | |||||||||||||||||||
| Total rental income | $ | 47,068 | $ | 12,850 | $ | 151,140 | $ | 81,091 |
(1) For the three and nine months ended September 30, 2020, reflects the impact of rent concessions provided to tenants.
Note 15 - Commitments and Contingencies
Litigation
In addition to the actions noted below, the Company and its affiliates are involved in litigation arising in the normal course of business. In the opinion of management, such litigation is not expected to have a material effect on the Company's financial condition, results of operations, and cash flows.
Massachusetts Gaming License Related Actions
On September 17, 2014, the Massachusetts Gaming Commission ("MGC") designated Wynn MA the award winner of the Greater Boston (Region A) gaming license (the "Boston area license"). On November 7, 2014, the gaming license became effective.
Revere Action
On October 16, 2014, the City of Revere, the host community to the unsuccessful bidder for the Boston area license, the International Brotherhood of Electrical Workers, Local 103, and several individuals, filed a complaint against the MGC and its gaming commissioners in Suffolk Superior Court in Boston, Massachusetts (the "Revere Action"). Mohegan Sun ("Mohegan"), the other applicant for the Boston area license, joined the lawsuit and challenged the MGC's award of the Boston area license. On December 3, 2015, the court granted the MGC's motion to dismiss the claims asserted in the Revere Action and the court dismissed all claims except Mohegan's claim alleging procedural error by the MGC in granting the license to Wynn MA. The plaintiffs appealed. After multiple appeals and cross appeals, only two claims remained: (1) individual plaintiffs' claim for violation of the open meeting laws; and (2) Mohegan's claim for procedural error. On July 12, 2019, the Suffolk Superior Court granted the MGC's motion for summary judgment and dismissed the open meeting law claim, leaving only Mohegan's procedural claim for procedural error.
On August 2, 2019, Mohegan filed a motion to file a second amended complaint, to add new claims related to the MGC's allegedly inadequate 2013 investigation. On October 15, 2019, the court granted Mohegan's motion to amend and allowed it to file a second amended intervenor's complaint.
Wynn MA is not a party to and is not named in the Revere Action.
Derivative Litigation
A number of stockholder derivative actions were filed in state and federal court located in Clark County, Nevada against certain current and former members of the Company's Board of Directors and, in some cases, the Company's current and former officers. Each of the complaints alleged, among other things, breach of fiduciary duties in failing to detect, prevent and remedy alleged inappropriate personal conduct by Stephen A. Wynn in the workplace.
The actions filed in the Eighth Judicial District Court of Clark County, Nevada were consolidated as In re Wynn Resorts, Ltd. Derivative Litigation ("State Derivative Case").
WYNN RESORTS, LIMITED AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(unaudited)
On June 3, 2019, a separate stockholder derivative action was filed in the Eighth Judicial District Court of Clark County, Nevada alleging substantially similar causes of action as the State Derivative Case with the additional allegation that various of the Company's attorneys committed professional malpractice, and certain current and former executives also breached fiduciary duties and aided and abetted the breach of fiduciary duties, in connection with the alleged inappropriate personal conduct by Stephen A. Wynn in the workplace. This case was consolidated in September 2019 into the State Derivative Case.
On November 27, 2019, the State Derivative Case parties agreed to terms of a settlement agreement. The court approved the settlement agreement on February 12, 2020, and entered a written order approving the settlement on March 10, 2020. Following the Nevada Supreme Court’s dismissal of the only appeal, the settlement agreement became effective and final. Following the dismissal, the Company received net proceeds of $30.2 million, which has been recognized as a reduction of general and administrative expense within the Condensed Consolidated Statements of Operations for the nine months ended September 30, 2020.
In 2018, several actions filed in the United States District Court, District of Nevada were consolidated as In re Wynn Resorts, Ltd. Derivative Litigation ("Federal Derivative Case"), which also claim corporate waste and violation of Section 14(a) of the Exchange Act. In June 2018, the Company filed a motion to dismiss and a motion to stay pending resolution of the Securities Action (described below). On March 29, 2019, the Court granted the Company's request for a stay. On March 25, 2020, the parties stipulated to dismiss the Federal Derivative Case given the approved settlement in the State Derivative Case.
On March 25, 2019, a separate stockholder derivative action was filed in the United States District Court, District of Nevada alleging similar causes of action as the Federal Derivative Case with the additional allegation that the Board of Directors improperly refused the stockholder's demand to commence litigation against the officers and directors of the Company. On April 30, 2020, the Company filed a motion for summary judgment, seeking dismissal of the claims given the approved settlement in the State Derivative Case. On January 12, 2021, the court granted the Company’s motion for summary judgment of this action and denied the stockholder’s request to vacate the parties' stipulation to dismiss the Federal Derivative Case. On February 11, 2021, the stockholder filed a notice of appeal to the United States Court of Appeals for the Ninth Circuit. On May 12, 2021, the parties stipulated to dismiss the appeal.
Each of the actions sought to recover for the Company unspecified damages, including restitution and disgorgement of profits, and also sought to recover attorneys' fees, costs and related expenses for the plaintiff.
Securities Action
On February 20, 2018, a putative securities class action was filed against the Company and certain current and former officers of the Company in the United States District Court, Southern District of New York (which was subsequently transferred to the United States District Court, District of Nevada) by John V. Ferris and Joann M. Ferris on behalf of all persons who purchased the Company's common stock between February 28, 2014 and January 25, 2018. The complaint alleges, among other things, certain violations of federal securities laws and seeks to recover unspecified damages as well as attorneys' fees, costs and related expenses for the plaintiffs. On April 15, 2019, the Company filed a motion to dismiss, which the court granted on May 27, 2020, with leave to amend. On July 1, 2020, the plaintiffs filed an amended complaint. On August 14, 2020, the Company filed a motion to dismiss the amended complaint. On July 28, 2021, the court granted in part, and denied in part, the Company's motion to dismiss the amended complaint, dismissing certain of plaintiffs' claims, including all claims against Mr. Billings and the individual directors, and allowing other claims to proceed against the Company and several of the Company's current and former executive officers, including Mr. Maddox, Stephen A. Wynn, Kimmarie Sinatra, and Steven Cootey.
The defendants in these actions will vigorously defend against the claims pleaded against them. These actions are in preliminary stages and management has determined that based on proceedings to date, it is currently unable to determine the probability of the outcome of these actions or the range of reasonably possible loss, if any.
WYNN RESORTS, LIMITED AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(unaudited)
Federal Investigation
From time to time, the Company receives regulatory inquiries about compliance with anti-money laundering laws. The Company received requests for information from the U.S. Attorney’s Office for the Southern District of California relating to its anti-money laundering policies and procedures, and in the first half of 2020, received two grand jury subpoenas regarding various transactions at Wynn Las Vegas relating to certain patrons and agents who reside or operate in foreign jurisdictions. The Company continues to cooperate with the U.S. Attorney's Office in its investigation, which remains ongoing. Because no charges or claims have been brought, the Company is unable to predict the outcome of the investigation, the extent of the materiality of the outcome, or reasonably estimate the possible range of loss, if any, which could be associated with the resolution of any possible charges or claims that may be brought against the Company.
Note 16 - Retail Joint Venture
As of September 30, 2021 and December 31, 2020, the Retail Joint Venture had total assets of $98.2 million and $96.3 million, respectively, and total liabilities of $626.6 million and $633.5 million, respectively. As of September 30, 2021 and December 31, 2020, the Retail Joint Venture's liabilities included long-term debt of $612.8 million and $612.3 million, respectively, net of debt issuance costs, related to the outstanding borrowings under the Retail Term Loan.
Note 17 - Segment Information
The Company reviews the results of operations for each of its operating segments, and identifies reportable segments based upon factors such as geography, regulatory environment, and the Company's organizational and management reporting structure. Wynn Macau and Encore, an expansion at Wynn Macau, are managed as a single integrated resort and have been aggregated as one reportable segment ("Wynn Macau"). Wynn Palace is presented as a separate reportable segment and is combined with Wynn Macau for geographical presentation. Other Macau primarily represents the assets for the Company's Macau holding company. Wynn Las Vegas, Encore, an expansion at Wynn Las Vegas, and the Retail Joint Venture are managed as a single integrated resort and have been aggregated as one reportable segment ("Las Vegas Operations"). Encore Boston Harbor is presented as one reportable segment. The results of Wynn Interactive are presented within Corporate and other.
WYNN RESORTS, LIMITED AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(unaudited)
The following tables present the Company's segment information (in thousands):
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
| Operating revenues | |||||||||||||||||||||||
| Macau Operations: | |||||||||||||||||||||||
| Wynn Palace | |||||||||||||||||||||||
| Casino | $ | 134,064 | $ | 12,301 | $ | 532,040 | $ | 208,449 | |||||||||||||||
| Rooms | 15,639 | 4,506 | 53,534 | 26,647 | |||||||||||||||||||
| Food and beverage | 10,952 | 6,856 | 36,429 | 24,385 | |||||||||||||||||||
| Entertainment, retail and other (1) | 20,668 | (7,962) | 67,017 | 24,451 | |||||||||||||||||||
| 181,323 | 15,701 | 689,020 | 283,932 | ||||||||||||||||||||
| Wynn Macau | |||||||||||||||||||||||
| Casino | 98,264 | 27,154 | 379,610 | 213,758 | |||||||||||||||||||
| Rooms | 10,896 | 4,938 | 39,025 | 23,480 | |||||||||||||||||||
| Food and beverage | 7,628 | 5,606 | 23,620 | 18,821 | |||||||||||||||||||
| Entertainment, retail and other (1) | 13,874 | 13,670 | 52,086 | 36,686 | |||||||||||||||||||
| 130,662 | 51,368 | 494,341 | 292,745 | ||||||||||||||||||||
| Total Macau Operations | 311,985 | 67,069 | 1,183,361 | 576,677 | |||||||||||||||||||
| Las Vegas Operations: | |||||||||||||||||||||||
| Casino | 112,575 | 65,694 | 305,253 | 161,354 | |||||||||||||||||||
| Rooms | 132,704 | 44,961 | 266,250 | 163,419 | |||||||||||||||||||
| Food and beverage | 180,455 | 55,043 | 333,390 | 177,114 | |||||||||||||||||||
| Entertainment, retail and other (1) | 50,269 | 20,999 | 104,892 | 73,520 | |||||||||||||||||||
| Total Las Vegas Operations | 476,003 | 186,697 | 1,009,785 | 575,407 | |||||||||||||||||||
| Encore Boston Harbor: | |||||||||||||||||||||||
| Casino | 151,361 | 96,723 | 398,325 | 198,513 | |||||||||||||||||||
| Rooms | 14,578 | 6,739 | 28,963 | 17,694 | |||||||||||||||||||
| Food and beverage | 18,466 | 9,081 | 41,713 | 29,687 | |||||||||||||||||||
| Entertainment, retail and other (1) | 7,809 | 4,143 | 18,544 | 11,888 | |||||||||||||||||||
| Total Encore Boston Harbor | 192,214 | 116,686 | 487,545 | 257,782 | |||||||||||||||||||
| Corporate and other: | |||||||||||||||||||||||
| Entertainment, retail and other | 14,442 | — | 40,748 | — | |||||||||||||||||||
| Total Corporate and other | 14,442 | — | 40,748 | — | |||||||||||||||||||
| Total operating revenues | $ | 994,644 | $ | 370,452 | $ | 2,721,439 | $ | 1,409,866 |
WYNN RESORTS, LIMITED AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
| Adjusted Property EBITDA (2) | |||||||||||||||||||||||
| Macau Operations: | |||||||||||||||||||||||
| Wynn Palace | $ | 12,112 | $ | (77,647) | $ | 93,036 | $ | (178,379) | |||||||||||||||
| Wynn Macau | (1,939) | (34,457) | 28,703 | (97,895) | |||||||||||||||||||
| Total Macau Operations | 10,173 | (112,104) | 121,739 | (276,274) | |||||||||||||||||||
| Las Vegas Operations | 183,416 | 20,258 | 344,719 | (77,383) | |||||||||||||||||||
| Encore Boston Harbor | 64,565 | 25,986 | 141,844 | (40,429) | |||||||||||||||||||
| Corporate and other | (103,593) | — | (187,961) | — | |||||||||||||||||||
| Total | 154,561 | (65,860) | 420,341 | (394,086) | |||||||||||||||||||
| Other operating expenses | |||||||||||||||||||||||
| Pre-opening | 1,333 | 877 | 5,455 | 5,614 | |||||||||||||||||||
| Depreciation and amortization | 177,110 | 183,486 | 545,538 | 541,498 | |||||||||||||||||||
| Property charges and other | 15,301 | 9,905 | 26,569 | 43,701 | |||||||||||||||||||
| Corporate expenses and other (3) | 18,901 | 12,826 | 56,663 | 28,034 | |||||||||||||||||||
| Stock-based compensation | 25,580 | 10,053 | 75,033 | 40,501 | |||||||||||||||||||
| Total other operating expenses | 238,225 | 217,147 | 709,258 | 659,348 | |||||||||||||||||||
| Operating loss | (83,664) | (283,007) | (288,917) | (1,053,434) | |||||||||||||||||||
| Other non-operating income and expenses | |||||||||||||||||||||||
| Interest income | 507 | 2,033 | 2,131 | 13,969 | |||||||||||||||||||
| Interest expense, net of amounts capitalized | (150,325) | (145,142) | (453,601) | (407,187) | |||||||||||||||||||
| Change in derivatives fair value | 1,176 | 4,675 | 6,557 | (14,279) | |||||||||||||||||||
| Loss on extinguishment of debt | (738) | (3,139) | (2,060) | (4,601) | |||||||||||||||||||
| Other | (11,784) | 412 | (17,324) | 12,980 | |||||||||||||||||||
| Total other non-operating income and expenses | (161,164) | (141,161) | (464,297) | (399,118) | |||||||||||||||||||
| Loss before income taxes | (244,828) | (424,168) | (753,214) | (1,452,552) | |||||||||||||||||||
| Provision for income taxes | (1,155) | (407,365) | (2,345) | (564,103) | |||||||||||||||||||
| Net loss | (245,983) | (831,533) | (755,559) | (2,016,655) | |||||||||||||||||||
| Net loss attributable to noncontrolling interests | 79,734 | 73,391 | 176,963 | 218,912 | |||||||||||||||||||
| Net loss attributable to Wynn Resorts, Limited | $ | (166,249) | $ | (758,142) | $ | (578,596) | $ | (1,797,743) |
(1) Includes lease revenue accounted for under lease accounting guidance. For more information on leases, see Note 14, "Leases".
(2) "Adjusted Property EBITDA" is net loss before interest, income taxes, depreciation and amortization, pre-opening expenses, property charges and other, management and license fees, corporate expenses and other (including intercompany golf course, meeting and convention, and water rights leases), stock-based compensation, change in derivatives fair value, loss on extinguishment of debt, and other non-operating income and expenses. Adjusted Property EBITDA is presented exclusively as a supplemental disclosure because management believes that it is widely used to measure the performance, and as a basis for valuation, of gaming companies. Management uses Adjusted Property EBITDA as a measure of the operating performance of its segments and to compare the operating performance of its properties with those of its competitors, as well as a basis for determining certain incentive compensation. We also present Adjusted Property EBITDA because it is used by some investors to measure a company's ability to incur and service debt, make capital expenditures and meet working capital requirements. Gaming companies have historically reported EBITDA as a supplement to GAAP. In order to view the operations of their casinos on a more stand-alone basis, gaming companies, including us, have historically excluded from their EBITDA calculations preopening expenses, property charges, corporate expenses and stock-based compensation, that do not relate to the management of specific casino properties. However, Adjusted Property EBITDA should not be considered as an alternative to operating income as an indicator of our performance, as an alternative to cash flows from operating activities as a measure of liquidity, or as an alternative to any other measure determined in accordance with GAAP. Unlike net income, Adjusted Property EBITDA does not include depreciation or interest expense and therefore does not reflect current or future capital expenditures or the cost of capital. We have significant uses of cash flows, including capital expenditures, interest payments, debt principal repayments, income taxes and other non-recurring charges, which are not reflected in Adjusted Property EBITDA. Also, our calculation of Adjusted Property EBITDA may be different from the calculation methods used by other companies and, therefore, comparability may be limited.
(3) For the nine months ended September 30, 2020, included $30.2 million net gain recorded in relation to a derivative litigation settlement.
WYNN RESORTS, LIMITED AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(unaudited)
| September 30, 2021 | December 31, 2020 | ||||||||||
| Assets | |||||||||||
| Macau Operations: | |||||||||||
| Wynn Palace | $ | 3,178,848 | $ | 3,393,790 | |||||||
| Wynn Macau | 905,443 | 1,202,709 | |||||||||
| Other Macau | 1,240,994 | 2,026,098 | |||||||||
| Total Macau Operations | 5,325,285 | 6,622,597 | |||||||||
| Las Vegas Operations | 3,038,127 | 2,992,870 | |||||||||
| Encore Boston Harbor | 2,236,837 | 2,300,016 | |||||||||
| Corporate and other | 2,007,446 | 1,954,064 | |||||||||
| Total | $ | 12,607,695 | $ | 13,869,547 |
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