MGM Resorts International 10-Q

Item 1. Financial Statements MGM RESORTS INTERNATIONAL AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except share data) (Unaudited) September 30, 2024 December 31, 2023 ASSETS Current assets Cash and cash equivalents $ 2,950,592 $ 2,927,833 Accounts receivable, net 964,741 929,135 Inventories 144,843 141,678 Income tax receivable 212,578 141,444 Prepaid expenses and other 559,699 770,503 Total current assets 4,832,453 4,910,593 Property and equipment, net 5,950,035 5,449,544 Other assets Investments in and advances to unconsolidated affiliates 414,161 240,803 Goodwill 5,175,752 5,165,694 Other intangible assets, net 1,776,503 1,724,582 Operating lease right-of-use assets, net 23,658,647 24,027,465 Other long-term assets, net 933,402 849,867 Total other assets 31,958,465 32,008,411 $ 42,740,953 $ 42,368,548 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts and construction payable $ 391,836 $ 461,718 Current portion of long-term debt 675,000 — Accrued interest on long-term debt 112,403 60,173 Other accrued liabilities 2,707,519 2,604,177 Total current liabilities 3,886,758 3,126,068 Deferred income taxes, net 2,792,523 2,860,997 Long-term debt, net 6,234,275 6,343,810 Operating lease liabilities 25,092,217 25,127,464 Other long-term obligations 880,296 542,708 Commitments and contingencies (Note 8) Redeemable noncontrolling interests 33,343 33,356 Stockholders’ equity Common stock, $ 0.01 par value: authorized 1,000,000,000 shares, issued and outstanding 296,886,350 and 326,550,141 shares 2,969 3,266 Capital in excess of par value — — Retained earnings 3,037,397 3,664,008 Accumulated other comprehensive income 191,575 143,896 Total MGM Resorts International stockholders’ equity 3,231,941 3,811,170 Noncontrolling interests 589,600 522,975 Total stockholders’ equity 3,821,541 4,334,145 $ 42,740,953 $ 42,368,548 The accompanying notes are an integral part of these consolidated financial statements. 1 MGM RESORTS INTERNATIONAL AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Revenues Casino $ 2,121,049 $ 2,050,584 $ 6,574,903 $ 5,884,394 Rooms 883,564 827,091 2,738,963 2,490,902 Food and beverage 755,322 698,261 2,326,863 2,163,628 Entertainment, retail and other 411,326 385,691 1,217,322 1,215,980 Reimbursed costs 11,877 11,556 35,932 33,782 4,183,138 3,973,183 12,893,983 11,788,686 Expenses Casino 1,205,286 1,056,487 3,698,885 3,073,122 Rooms 286,658 260,905 838,915 751,319 Food and beverage 563,521 530,145 1,693,031 1,579,561 Entertainment, retail and other 247,817 238,403 732,386 740,403 Reimbursed costs 11,877 11,556 35,932 33,782 General and administrative 1,176,726 1,192,298 3,582,376 3,472,228 Corporate expense 125,043 121,838 378,787 366,485 Preopening and start-up expenses 519 68 2,469 356 Property transactions, net 25,493 12,227 59,124 ( 378,235 ) Depreciation and amortization 233,330 201,827 621,868 608,831 3,876,270 3,625,754 11,643,773 10,247,852 Income (loss) from unconsolidated affiliates 7,989 22,507 ( 51,319 ) ( 68,681 ) Operating income 314,857 369,936 1,198,891 1,472,153 Non-operating income (expense) Interest expense, net of amounts capitalized ( 111,873 ) ( 111,170 ) ( 334,649 ) ( 353,415 ) Non-operating items from unconsolidated affiliates 417 438 2,043 ( 1,187 ) Other, net 93,333 ( 34,879 ) 45,096 35,121 ( 18,123 ) ( 145,611 ) ( 287,510 ) ( 319,481 ) Income before income taxes 296,734 224,325 911,381 1,152,672 Provision for income taxes ( 52,570 ) ( 12,440 ) ( 84,689 ) ( 217,360 ) Net income 244,164 211,885 826,692 935,312 Less: Net income attributable to noncontrolling interests ( 59,586 ) ( 50,768 ) ( 237,566 ) ( 106,592 ) Net income attributable to MGM Resorts International $ 184,578 $ 161,117 $ 589,126 $ 828,720 Earnings per share Basic $ 0.61 $ 0.46 $ 1.90 $ 2.30 Diluted $ 0.61 $ 0.46 $ 1.88 $ 2.28 Weighted average common shares outstanding Basic 300,499 347,345 310,688 360,732 Diluted 303,479 351,390 313,852 364,847 The accompanying notes are an integral part of these consolidated financial statements. 2 MGM RESORTS INTERNATIONAL AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands) (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Net income $ 244,164 $ 211,885 $ 826,692 $ 935,312 Other comprehensive income (loss), net of tax: Foreign currency translation 156,968 ( 30,386 ) 50,700 ( 36,475 ) Other — — — 871 Other comprehensive income (loss) 156,968 ( 30,386 ) 50,700 ( 35,604 ) Comprehensive income 401,132 181,499 877,392 899,708 Less: Comprehensive income attributable to noncontrolling interests ( 62,362 ) ( 51,056 ) ( 240,587 ) ( 105,104 ) Comprehensive income attributable to MGM Resorts International $ 338,770 $ 130,443 $ 636,805 $ 794,604 The accompanying notes are an integral part of these consolidated financial statements. 3 MGM RESORTS INTERNATIONAL AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Nine Months Ended September 30, 2024 2023 Cash flows from operating activities Net income $ 826,692 $ 935,312 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 621,868 608,831 Amortization of debt discounts and issuance costs 20,396 20,846 Loss on early retirement of debt 2,013 — Provision for credit losses 49,693 25,974 Stock-based compensation 51,720 46,246 Foreign currency transaction loss 28,303 26,302 Property transactions, net 59,124 ( 378,235 ) Noncash lease expense 386,412 388,571 Other investment losses (gains) ( 11,134 ) 39,452 Loss from unconsolidated affiliates 49,276 69,868 Distributions from unconsolidated affiliates 12,390 8,838 Deferred income taxes ( 68,942 ) 11,828 Change in operating assets and liabilities: Accounts receivable ( 40,244 ) 5,296 Inventories ( 3,029 ) ( 9,766 ) Income taxes receivable and payable, net ( 69,203 ) ( 81,871 ) Prepaid expenses and other ( 33,577 ) ( 74,088 ) Accounts payable and accrued liabilities ( 232,629 ) 276,924 Other 41,811 54,511 Net cash provided by operating activities 1,690,940 1,974,839 Cash flows from investing activities Capital expenditures ( 746,572 ) ( 603,053 ) Dispositions of property and equipment 3,472 6,133 Investments in unconsolidated affiliates ( 182,078 ) ( 144,452 ) Proceeds from sale of operating resorts — 460,392 Acquisitions, net of cash acquired ( 113,882 ) ( 122,058 ) Proceeds from repayment of principal on note receivable — 152,518 Distributions from unconsolidated affiliates 1,762 6,792 Investments and other 158,060 ( 176,826 ) Net cash used in investing activities ( 879,238 ) ( 420,554 ) Cash flows from financing activities Net repayments under bank credit facilities - maturities of 90 days or less ( 19,061 ) ( 931,028 ) Issuance of long-term debt 2,100,000 — Repayment of long-term debt ( 1,500,000 ) ( 1,285,600 ) Debt issuance costs ( 38,268 ) ( 20,617 ) Distributions to noncontrolling interest owners ( 103,569 ) ( 169,093 ) Repurchases of common stock ( 1,238,064 ) ( 1,668,888 ) Other 25,163 ( 101,871 ) Net cash used in financing activities ( 773,799 ) ( 4,177,097 ) Effect of exchange rate on cash, cash equivalents, and restricted cash ( 14,736 ) ( 36,316 ) Change in cash and cash equivalents classified as assets held for sale — 25,938 Cash, cash equivalents, and restricted cash Net change for the period 23,167 ( 2,633,190 ) Balance, beginning of period 3,014,896 6,036,388 Balance, end of period $ 3,038,063 $ 3,403,198 Supplemental cash flow disclosures Interest paid, net of amounts capitalized $ 262,023 $ 301,173 Federal, state and foreign income taxes paid, net 225,280 286,561 Non-cash investing and financing activities MGM Grand Paradise gaming concession intangible asset $ — $ 226,083 MGM Grand Paradise gaming concession payment obligation — 226,083 The accompanying notes are an integral part of these consolidated financial statements. 4 MGM RESORTS INTERNATIONAL AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (In thousands) (Unaudited) Common Stock Shares Par Value Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive Income Total MGM Resorts International Stockholders’ Equity Noncontrolling Interests Total Stockholders’ Equity Balances, July 1, 2024 304,965 $ 3,050 $ — $ 3,172,243 $ 37,383 $ 3,212,676 $ 601,469 $ 3,814,145 Net income — — — 184,578 — 184,578 59,499 244,077 Currency translation adjustment — — — — 154,192 154,192 2,776 156,968 Stock-based compensation — — 11,443 — — 11,443 774 12,217 Issuance of common stock pursuant to stock-based compensation awards 270 3 ( 4,396 ) — — ( 4,393 ) — ( 4,393 ) Distributions to noncontrolling interest owners — — — — — — ( 84,424 ) ( 84,424 ) Repurchases of common stock ( 8,349 ) ( 84 ) ( 6,535 ) ( 319,208 ) — ( 325,827 ) — ( 325,827 ) Adjustment of redeemable noncontrolling interest to redemption value — — — ( 216 ) — ( 216 ) — ( 216 ) Other — — ( 512 ) — — ( 512 ) 9,506 8,994 Balances, September 30, 2024 296,886 $ 2,969 $ — $ 3,037,397 $ 191,575 $ 3,231,941 $ 589,600 $ 3,821,541 Balances, January 1, 2024 326,550 $ 3,266 $ — $ 3,664,008 $ 143,896 $ 3,811,170 $ 522,975 $ 4,334,145 Net income — — — 589,126 — 589,126 237,171 826,297 Currency translation adjustment — — — — 47,679 47,679 3,021 50,700 Stock-based compensation — — 49,066 — — 49,066 2,181 51,247 Issuance of common stock pursuant to stock-based compensation awards 382 3 ( 6,154 ) — — ( 6,151 ) — ( 6,151 ) Distributions to noncontrolling interest owners — — — — — — ( 178,713 ) ( 178,713 ) Repurchases of common stock ( 30,046 ) ( 300 ) ( 34,066 ) ( 1,215,752 ) — ( 1,250,118 ) — ( 1,250,118 ) Adjustment of redeemable noncontrolling interest to redemption value — — — 15 — 15 — 15 Other — — ( 8,846 ) — — ( 8,846 ) 2,965 ( 5,881 ) Balances, September 30, 2024 296,886 $ 2,969 $ — $ 3,037,397 $ 191,575 $ 3,231,941 $ 589,600 $ 3,821,541 The accompanying notes are an integral part of these consolidated financial statements. 5 MGM RESORTS INTERNATIONAL AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (In thousands) (Unaudited) Common Stock Shares Par Value Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive Income Total MGM Resorts International Stockholders’ Equity Noncontrolling Interests Total Stockholders’ Equity Balances, July 1, 2023 352,790 $ 3,528 $ — $ 4,382,588 $ 30,057 $ 4,416,173 $ 419,194 $ 4,835,367 Net income — — — 161,117 — 161,117 50,625 211,742 Currency translation adjustment — — — — ( 30,674 ) ( 30,674 ) 288 ( 30,386 ) Stock-based compensation — — 10,270 — — 10,270 794 11,064 Issuance of common stock pursuant to stock-based compensation awards 891 9 ( 9,762 ) ( 9,318 ) — ( 19,071 ) — ( 19,071 ) Distributions to noncontrolling interest owners — — — — — — ( 7,476 ) ( 7,476 ) Repurchases of common stock ( 12,766 ) ( 128 ) — ( 571,462 ) — ( 571,590 ) — ( 571,590 ) Adjustment of redeemable noncontrolling interest to redemption value — — ( 34 ) — — ( 34 ) — ( 34 ) Other — — ( 474 ) — — ( 474 ) ( 362 ) ( 836 ) Balances, September 30, 2023 340,915 $ 3,409 $ — $ 3,962,925 $ ( 617 ) $ 3,965,717 $ 463,063 $ 4,428,780 Balances, January 1, 2023 379,088 $ 3,791 $ — $ 4,794,239 $ 33,499 $ 4,831,529 $ 378,594 $ 5,210,123 Net income — — — 828,720 — 828,720 106,111 934,831 Currency translation adjustment — — — — ( 34,987 ) ( 34,987 ) ( 1,488 ) ( 36,475 ) Stock-based compensation — — 44,092 — — 44,092 2,093 46,185 Issuance of common stock pursuant to stock-based compensation awards 1,096 11 ( 12,328 ) ( 9,318 ) — ( 21,635 ) — ( 21,635 ) Distributions to noncontrolling interest owners — — — — — — ( 21,566 ) ( 21,566 ) Issuance of restricted stock units — — 1,701 — — 1,701 — 1,701 Repurchases of common stock ( 39,269 ) ( 393 ) ( 33,688 ) ( 1,650,716 ) — ( 1,684,797 ) — ( 1,684,797 ) Adjustment of redeemable noncontrolling interest to redemption value — — 1,377 — — 1,377 — 1,377 Other — — ( 1,154 ) — 871 ( 283 ) ( 681 ) ( 964 ) Balances, September 30, 2023 340,915 $ 3,409 $ — $ 3,962,925 $ ( 617 ) $ 3,965,717 $ 463,063 $ 4,428,780 The accompanying notes are an integral part of these consolidated financial statements. 6 MGM RESORTS INTERNATIONAL AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 1 — ORGANIZATION Organization. MGM Resorts International, a Delaware corporation (together with its consolidated subsidiaries, unless otherwise indicated or unless the context requires otherwise, the “Company”) is a global gaming and entertainment company with domestic and international locations featuring hotels and casinos, convention, dining, and retail offerings, and sports betting and online gaming operations. As of September 30, 2024, the Company’s domestic casino resorts include the following integrated casino, hotel and entertainment resorts in Las Vegas, Nevada: Aria (including Vdara), Bellagio, The Cosmopolitan of Las Vegas ( “ The Cosmopolitan”), MGM Grand Las Vegas (including The Signature), Mandalay Bay, Luxor, New York-New York, Park MGM, and Excalibur. The Company also operates MGM Grand Detroit in Detroit, Michigan, MGM National Harbor in Prince George’s County, Maryland, MGM Springfield in Springfield, Massachusetts, Borgata in Atlantic City, New Jersey, Empire City in Yonkers, New York, MGM Northfield Park in Northfield Park, Ohio, and Beau Rivage in Biloxi, Mississippi. Additionally, the Company operates The Park, a dining and entertainment district located between New York-New York and Park MGM. The Company leases the real estate assets of its domestic properties pursuant to triple-net lease agreements. The Company has an approximate 56 % controlling interest in MGM China Holdings Limited (together with its subsidiaries, “MGM China”), which owns MGM Grand Paradise, S.A. (“MGM Grand Paradise”). MGM Grand Paradise owns and operates MGM Macau and MGM Cotai, two integrated casino, hotel and entertainment resorts in Macau, as well as the related gaming concession and land concessions. The Company also owns LV Lion Holding Limited (“LeoVegas”), a consolidated subsidiary that has global online gaming operations headquartered in Sweden and Malta. Additionally, the Company and its venture partner, Entain plc, each have a 50 % ownership interest in BetMGM, LLC (“BetMGM”), an unconsolidated affiliate, which provides online sports betting and gaming in certain jurisdictions in North America. The Company also has a 50 % ownership interest in Osaka IR KK, an unconsolidated affiliate, which plans to develop an integrated resort in Osaka, Japan. Reportable segments. The Company has three reportable segments: Las Vegas Strip Resorts, Regional Operations and MGM China. See Note 11 for additional information about the Company’s segments. NOTE 2 — BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of presentation . As permitted by 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 (“U.S. GAAP”) have been condensed or omitted. These consolidated financial statements should be read in conjunction with the Company’s 2023 annual consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s interim financial statements. The results for such periods are not necessarily indicative of the results to be expected for the full year. Principles of consolidation . The Company evaluates entities for which control is achieved through means other than voting rights to determine if it is the primary beneficiary of a variable interest entity (“VIE”). The Company consolidates its investment in a VIE when it determines that it is its primary beneficiary. Bellagio BREIT Venture (the landlord of Bellagio, which is a venture in which the Company has a 5 % ownership interest) and Osaka IR KK are VIEs in which the Company is not the primary beneficiary because it does not have power on its own to direct the activities that could potentially be significant to the ventures and, accordingly, does not consolidate the ventures. The Company may change its original assessment of a VIE upon subsequent events such as the modification of contractual arrangements that affect the characteristics or adequacy of the entity’s equity investments at risk and the disposition of all or a portion of an interest held by the primary beneficiary. The Company performs this analysis on an ongoing basis. For entities determined not to be a VIE, the Company consolidates such entities in which the Company owns 100 % of the equity. For entities in which the Company owns less than 100 % of the equity interest, the Company consolidates the 7 entity under the voting interest model if it has a controlling financial interest based upon the terms of the respective entities’ ownership agreements, such as MGM China. For these entities, the Company records a noncontrolling interest in the consolidated balance sheets and all intercompany balances and transactions are eliminated in consolidation. If the entity does not qualify for consolidation under the voting interest model and the Company has significant influence over the operating and financial decisions of the entity, the Company generally accounts for the entity under the equity method, such as BetMGM, which does not qualify for consolidation as the Company has joint control, given the entity is structured with substantive participating rights whereby both owners participate in the decision making process, which prevents the Company from exerting a controlling financial interest in such entity, as defined in Accounting Standards Codification (“ASC”) 810. For entities over which the Company does not have significant influence, the Company accounts for its equity investment under ASC 321. Reclassifications. Certain reclassifications have been made to conform the prior period presentation. Fair value measurements . Fair value measurements affect the Company’s accounting and impairment assessments of its long-lived assets, investments in unconsolidated affiliates or equity interests, assets acquired, and liabilities assumed in an acquisition, and goodwill and other intangible assets. Fair value measurements also affect the Company’s accounting for certain of its financial assets and liabilities. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and is measured according to a hierarchy that includes: Level 1 inputs, such as quoted prices in an active market; Level 2 inputs, which are quoted prices for identical or comparable instruments or pricing using observable market data; or Level 3 inputs, which are unobservable inputs. The Company used the following inputs in its fair value measurements: • Level 1 inputs when measuring its equity investments recorded at fair value; • Level 2 inputs for its long-term debt fair value disclosures; See Note 5; • Level 2 inputs for its derivatives, and • Level 1 and Level 2 inputs for its debt investments. Equity investments. Fair value is measured based upon trading prices on the applicable securities exchange for equity investments for which the Company has elected the fair value option of ASC 825 and equity investments accounted for under ASC 321 that have a readily determinable fair value. The fair value of these investments was $ 433 million and $ 435 million as of September 30, 2024 and December 31, 2023, respectively, and is reflected within “Other long-term assets, net” on the consolidated balance sheets. Gains and losses are recorded in “Other, net” in the statements of operations. For the three months ended September 30, 2024, the Company recorded a net gain on its equity investments of $ 48 million. For the nine months ended September 30, 2024, the Company recorded a net loss on its equity investments of $ 2 million. For the three and nine months ended September 30, 2023, the Company recorded a net loss on its equity investments of $ 57 million and $ 52 million, respectively. Derivatives. The Company uses derivatives that are not designated for hedge accounting. The changes in fair value of these derivatives are recorded within “Other, net” in the statements of operations and within “Other” in operating activities in the statements of cash flows. The balance sheet classification of the derivatives in a current liability position are within “Other accrued liabilities,” a long-term liability position are within “Other long-term obligations,” a current asset position are within “Prepaid expenses and other,” and a long-term asset position are within “Other long-term assets, net.” As of September 30, 2024, the Company has forward currency exchange contracts to manage its exposure to changes in foreign currency exchange rates. As of September 30, 2024, the fair value of derivatives classified as assets were $ 27 million, with $ 12 million in current assets and $ 15 million in long-term assets, and liabilities of $ 21 million, with $ 19 million in current liabilities and $ 2 million in long-term liabilities. As of December 31, 2023, the fair value of derivatives classified as assets were $ 10 million, with $ 1 million in current assets and $ 9 million in long-term assets, and liabilities of $ 17 million, with $ 8 million in current liabilities and $ 9 million in long-term liabilities. For the three months ended September 30, 2024, the Company recorded a net gain on its derivatives of $ 87 million and for the nine months ended September 30, 2024, the Company recorded a net loss on its derivatives of $ 13 million. Debt investments. The Company’s investments in debt securities are classified as trading securities and recorded at fair value. Gains and losses are recorded in “Other, net” in the statements of operations. Debt securities are considered cash equivalents if the criteria for such classification is met or otherwise classified as short-term investments within “Prepaid expenses and other” since the investment of cash is available for current operations. 8 The following table presents information regarding the Company’s debt investments: Fair value level September 30, 2024 December 31, 2023 (In thousands) Cash and cash equivalents: Money market funds Level 1 $ 217,131 $ 18,828 Cash and cash equivalents 217,131 18,828 Short-term investments: U.S. government securities Level 1 5,978 37,805 U.S. agency securities Level 2 — 9,804 Corporate bonds Level 2 189,242 364,926 Asset-backed securities Level 2 4,415 7,170 Short-term investments 199,635 419,705 Total debt investments $ 416,766 $ 438,533 Cash and cash equivalents. Cash and cash equivalents consist of cash and highly liquid investments with maturities of 90 days or less at the date of purchase. The fair value of cash and cash equivalents approximates carrying value because of the short maturity of those instruments (Level 1). Restricted cash. MGM China’s pledged cash of $ 87 million for each of September 30, 2024 and December 31, 2023, securing the bank guarantees discussed in Note 8 is restricted in use and classified within “Other long-term assets, net.” Such amounts plus “Cash and cash equivalents” on the consolidated balance sheets equal “Cash, cash equivalents, and restricted cash” on the consolidated statements of cash flows as of September 30, 2024 and December 31, 2023. Accounts receivable. As of September 30, 2024 and December 31, 2023, the loss reserve on accounts receivable was $ 145 million and $ 130 million, respectively. Note receivable. In February 2023, the secured note receivable related to the sale of Circus Circus Las Vegas and the adjacent land was repaid, prior to maturity, for $ 170 million, which approximated its carrying value on the date of repayment. Accounts payable. As of September 30, 2024 and December 31, 2023, the Company had accrued $ 90 million and $ 84 million, respectively, for purchases of property and equipment within “Accounts and construction payable” on the consolidated balance sheets. Revenue recognition. Contract and Contract-Related Liabilities . There may be a difference between the timing of cash receipts from the customer and the recognition of revenue, resulting in a contract or contract-related liability. The Company generally has three types of liabilities related to contracts with customers: (1) outstanding chip liability, which represents the amounts owed in exchange for gaming chips held by a customer, (2) loyalty program obligations, which represents the deferred allocation of revenue relating to loyalty program incentives earned, and (3) customer advances and other, which is primarily funds deposited by customers before gaming play occurs (“casino front money”) and advance payments on goods and services yet to be provided, such as advance ticket sales and deposits on rooms and convention space or for unpaid wagers. These liabilities are generally expected to be recognized as revenue within one year of being purchased, earned, or deposited and are recorded within “Other accrued liabilities” on the consolidated balance sheets. 9 The following table summarizes the activity related to contract and contract-related liabilities: Outstanding Chip Liability Loyalty Program Customer Advances and Other 2024 2023 2024 2023 2024 2023 (In thousands) Balance at January 1 $ 211,606 $ 185,669 $ 201,973 $ 183,602 $ 766,226 $ 816,376 Balance at September 30 171,502 185,615 213,330 204,333 795,489 847,572 Increase / (decrease) $ ( 40,104 ) $ ( 54 ) $ 11,357 $ 20,731 $ 29,263 $ 31,196 The January 1, 2023 balances exclude liabilities related to assets held for sale related to Gold Strike Tunica. Revenue by source. The Company presents the revenue earned disaggregated by the type or nature of the good or service (casino, room, food and beverage, and entertainment, retail and other) and by relevant geographic region within Note 11. Leases. Refer to Note 7 for information regarding leases under which the Company is a lessee. The Company is a lessor under certain other lease arrangements. Lease revenues earned by the Company from third parties are classified within the line item corresponding to the type or nature of the tenant’s good or service . For the three and nine months ended September 30, 2024, lease revenues from third-party tenants include $ 21 million and $ 62 million recorded within food and beverage revenue, respectively and $ 28 million and $ 86 million recorded within entertainment, retail, and other revenue for the same such periods, respectively. For the three and nine months ended September 30, 2023, lease revenues from third-party tenants include $ 20 million and $ 57 million recorded within food and beverage revenue, respectively and $ 27 million and $ 86 million recorded within entertainment, retail, and other revenue for the same such periods, respectively. Lease revenues from the rental of hotel rooms are recorded as rooms revenues within the consolidated statements of operations. Redeemable noncontrolling interest. Noncontrolling interests with redemption features, such as put rights, that are not exclusively in the Company’s control, are considered redeemable noncontrolling interests. Redeemable noncontrolling interests are presented outside of stockholders’ equity within the mezzanine section of the accompanying consolidated balance sheets. The interests are initially accounted for at fair value and subsequently adjusted to the greater of the redemption value and carrying value (initial fair value adjusted for attributed net income (loss) and distributions, as applicable). The Company records such adjustments to retained earnings, to the extent available, with any residual amount applied against capital in excess of par value. During the nine months ended September 30, 2023, the Company purchased $ 138 million of interests from its redeemable noncontrolling interest parties. NOTE 3 — ACQUISITIONS AND DIVESTITURES Push Gaming acquisition. On August 31, 2023, LeoVegas acquired 86 % of digital gaming developer, Push Gaming Holding Limited (“Push Gaming”) for total consideration of $ 146 million, which was allocated to $ 126 million of goodwill and $ 40 million of amortizable intangible assets. Gold Strike Tunica. On February 15, 2023, the Company completed the sale of the operations of Gold Strike Tunica to CNE Gaming Holdings, LLC, a subsidiary of Cherokee Nation Business, for cash consideration of $ 450 million, or $ 474 million, net of purchase price adjustments and transaction costs. At closing, the master lease between the Company and VICI was amended to remove Gold Strike Tunica and to reflect a $ 40 million reduction in annual cash rent. The Company recognized a $ 399 million gain recorded within “Property transactions, net.” The gain reflects the net cash consideration less the net carrying value of the assets and liabilities derecognized of $ 75 million. NOTE 4 — INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED AFFILIATES Investments in and advances to unconsolidated affiliates were $ 414 million and $ 241 million as of September 30, 2024 and December 31, 2023, respectively. The Company’s share of losses of BetMGM in excess of its equity method investment balance is $ 44 million and $ 5 million as of September 30, 2024 and December 31, 2023, respectively. 10 The Company recorded its share of income (loss) from unconsolidated affiliates as follows: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 (In thousands) Income (loss) from unconsolidated affiliates $ 7,989 $ 22,507 $ ( 51,319 ) $ ( 68,681 ) Non-operating items from unconsolidated affiliates 417 438 2,043 ( 1,187 ) $ 8,406 $ 22,945 $ ( 49,276 ) $ ( 69,868 ) The following table summarizes information related to the Company’s share of operating income (loss) from unconsolidated affiliates: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 (In thousands) BetMGM $ 3,211 $ 12,629 $ ( 67,781 ) $ ( 91,743 ) Other 4,778 9,878 16,462 23,062 $ 7,989 $ 22,507 $ ( 51,319 ) $ ( 68,681 ) NOTE 5 — LONG-TERM DEBT Long-term debt consisted of the following: September 30, 2024 December 31, 2023 (In thousands) MGM China first revolving credit facility $ 353,743 $ 371,300 5.375 % MGM China senior notes, due 2024 — 750,000 6.75 % senior notes, due 2025 — 750,000 5.75 % senior notes, due 2025 675,000 675,000 5.25 % MGM China senior notes, due 2025 500,000 500,000 5.875 % MGM China senior notes, due 2026 750,000 750,000 4.625 % senior notes, due 2026 400,000 400,000 5.5 % senior notes, due 2027 675,000 675,000 4.75 % MGM China senior notes, due 2027 750,000 750,000 4.75 % senior notes, due 2028 750,000 750,000 6.125 % senior notes, due 2029 850,000 — 7.125 % MGM China senior notes, due 2031 500,000 — 6.5 % senior notes, due 2032 750,000 — 7 % debentures, due 2036 552 552 6,954,295 6,371,852 Less: Unamortized discounts and debt issuance costs, net ( 45,020 ) ( 28,042 ) 6,909,275 6,343,810 Less: Current portion ( 675,000 ) — $ 6,234,275 $ 6,343,810 11 MGM China’s 5.25 % senior notes due within one year of the September 30, 2024 balance sheet was classified as long-term as MGM China has both the intent and ability to refinance the notes on a long-term basis under its revolving credit facilities. Senior secured credit facility. In February 2024, the Company amended its senior secured credit facility to increase the facility to $ 2.3 billion and extend the maturity date to February 2029. At September 30, 2024, no amounts were drawn. The Company’s senior secured credit facility contains customary representations and warranties, events of default and positive and negative covenants. The Company was in compliance with its credit facility covenants at September 30, 2024. MGM China first revolving credit facility. At September 30, 2024, the MGM China first revolving credit facility consisted of a HK$ 9.75 billion (approximately $ 1.3 billion) unsecured revolving credit facility, which matures in May 2026, and had a weighted average interest rate of 6.82 %. The MGM China first revolving credit facility contains customary representations and warranties, events of default, and positive, negative and financial covenants, including that MGM China maintains compliance with a maximum leverage ratio and a minimum interest coverage ratio. The financial covenants under the MGM China first revolving credit facility are waived through December 31, 2024 and become effective beginning on March 31, 2025. MGM China was in compliance with its applicable MGM China first revolving credit facility covenants at September 30, 2024. MGM China second revolving credit facility. At September 30, 2024, the MGM China second revolving credit facility consisted of a HK$ 5.85 billion (approximately $ 753 million) unsecured revolving credit facility. The option to increase the amount of the facility was further exercised in May 2024, increasing the facility by HK$ 1.26 billion (approximately $ 161 million) to its full capacity of HK$ 5.85 billion. At September 30, 2024, no amounts were drawn on the MGM China second revolving credit facility. The MGM China second revolving credit facility contains customary representations and warranties, events of default, and positive, negative and financial covenants, including that MGM China maintains compliance with a maximum leverage ratio and a minimum interest coverage ratio. The financial covenants under the MGM China second revolving credit facility are waived through December 31, 2024 and become effective beginning on March 31, 2025. MGM China was in compliance with its applicable MGM China second revolving credit facility covenants at September 30, 2024. Senior notes. In September 2024, the Company issued $ 850 million in aggregate principal amount of 6.125 % notes due 2029. The Company used the net proceeds from the offering to fund the early redemption of its $ 675 million in aggregate principal amount of 5.75 % notes due 2025 at a redemption price of 100.607 % in October 2024, with the remainder primarily used for general corporate purposes. In April 2024, the Company issued $ 750 million in aggregate principal amount of 6.5 % notes due 2032. The Company used the net proceeds from the offering to fund the early redemption of its $ 750 million in aggregate principal amount of 6.75 % notes due 2025 in May 2024. In March 2023, the Company repaid its $ 1.25 billion 6 % notes due 2023 upon maturity. MGM China senior notes. In June 2024, MGM China issued $ 500 million in aggregate principal amount of 7.125 % notes due 2031. In May 2024, MGM China repaid its $ 750 million in aggregate principal amount of 5.375 % notes due 2024. LeoVegas senior notes. In August 2023, LeoVegas repaid its outstanding senior unsecured notes totaling $ 36 million. Fair value of long-term debt. The estimated fair value of the Company’s long-term debt was $ 6.9 billion and $ 6.3 billion at September 30, 2024 and December 31, 2023, respectively. 12 NOTE 6 — INCOME TAXES For interim income tax reporting the Company estimates its annual effective tax rate and applies it to its year-to-date ordinary income. The tax effects of unusual or infrequently occurring items, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, are reported in the interim period in which they occur. The Company’s effective income tax rate was 17.7 % and 9.3 % for the three and nine months ended September 30, 2024, respectively, compared to 5.5 % and 18.9 % for the three and nine months ended September 30, 2023, respectively. On January 29, 2024, MGM Grand Paradise was granted an extension of its exemption from the Macau 12 % complementary tax on gaming profits for the period of January 1, 2023 through December 31, 2027. The Company recognizes deferred income tax assets, net of applicable reserves, related to net operating losses, tax credit carryforwards and certain temporary differences. The Company recognizes future tax benefits to the extent that realization of such benefit is more likely than not. Otherwise, a valuation allowance is applied. NOTE 7 — LEASES The Company leases real estate, land underlying certain of its properties, and various equipment under operating and, to a lesser extent, finance lease arrangements. Other information. Components of lease costs and other information related to the Company’s leases are: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 (In thousands) Operating lease cost, primarily classified within “General and administrative” (1) $ 575,293 $ 575,112 $ 1,725,494 $ 1,731,572 Finance lease costs Interest expense $ 8,891 $ 2,484 $ 27,701 $ 7,005 Amortization expense 14,755 17,030 40,711 51,869 Total finance lease costs $ 23,646 $ 19,514 $ 68,412 $ 58,874 (1) Operating lease cost includes $ 83 million for each of the three months ended September 30, 2024 and 2023 and $ 248 million for each of the nine months ended September 30, 2024 and 2023 related to the Bellagio lease, which is held with a related party. 13 September 30, 2024 December 31, 2023 (In thousands) Operating leases Operating lease ROU assets, net (1) $ 23,658,647 $ 24,027,465 Operating lease liabilities - current, classified within “Other accrued liabilities” $ 88,364 $ 74,988 Operating lease liabilities - long-term (2) 25,092,217 25,127,464 Total operating lease liabilities $ 25,180,581 $ 25,202,452 Finance leases Finance lease ROU assets, net, classified within “Property and equipment, net” $ 320,200 $ 85,783 Finance lease liabilities - current, classified within “Other accrued liabilities” $ 71,455 $ 9,166 Finance lease liabilities - long-term, classified within “Other long-term obligations” 259,464 85,391 Total finance lease liabilities $ 330,919 $ 94,557 Weighted average remaining lease term (years) Operating leases 25 25 Finance leases 8 22 Weighted average discount rate (%) Operating leases 7 7 Finance leases 6 6 (1) As of September 30, 2024 and December 31, 2023, operating lease right-of-use assets, net included $ 3.4 billion and $ 3.5 billion related to the Bellagio lease, respectively. (2) As of September 30, 2024 and December 31, 2023, operating lease liabilities – long-term included $ 3.8 billion related to the Bellagio lease. As of September 30, 2024, operating lease liabilities – current included $ 2 million related to the Bellagio lease. Nine Months Ended September 30, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities (In thousands) Operating cash outflows from operating leases $ 1,377,717 $ 1,350,828 Operating cash outflows from finance leases 11,389 4,917 Financing cash outflows from finance leases (1) 38,745 53,211 ROU assets obtained in exchange for new lease liabilities Operating leases $ 5,079 $ 12,347 Finance leases 272,878 518 (1) Included within “Other” within “Cash flows from financing activities” on the consolidated statements of cash flows. 14 Maturities of lease liabilities were as follows: Operating Leases Finance Leases Year ending December 31, (In thousands) 2024 (excluding the nine months ended September 30, 2024) $ 459,142 $ 25,229 2025 1,864,318 84,460 2026 1,889,911 81,026 2027 1,917,382 80,708 2028 1,945,374 29,445 Thereafter 48,944,154 128,248 Total future minimum lease payments 57,020,281 429,116 Less: Amount of lease payments representing interest ( 31,839,700 ) ( 98,197 ) Present value of future minimum lease payments 25,180,581 330,919 Less: Current portion ( 88,364 ) ( 71,455 ) Long-term portion of lease liabilities $ 25,092,217 $ 259,464 NOTE 8 — COMMITMENTS AND CONTINGENCIES Cybersecurity litigation, claims, and investigations. In September 2023, through unauthorized access to certain of its U.S. systems, third-party criminal actors accessed, for some of the Company’s customers, personal information (including name, contact information (such as phone number, email address and postal address), gender, date of birth and driver’s license numbers). For a limited number of customers, Social Security numbers and passport numbers were also accessed by the criminal actors. The Company has notified individuals impacted by this issue in accordance with federal and state law. In connection with this cybersecurity issue, the Company became subject to consumer class actions in U.S. federal and state courts. These class actions assert a variety of common law and statutory claims based on allegations that the Company failed to use reasonable security procedures and practices to safeguard customers’ personal information, and seek monetary and statutory damages, injunctive relief and other related relief. In addition, the Company is the subject of investigations by state and federal regulators, which also could result in monetary fines and other relief. The Company cannot predict the timing or outcome of any of these potential matters, or whether the Company may be subject to additional legal proceedings, claims, regulatory inquiries, investigations, or enforcement actions. While the Company believes it is reasonably possible that it may incur losses associated with the above-described proceedings, it is not possible to estimate the amount of loss or range of loss, if any, that might result from adverse judgments, settlements, or other resolution given the preliminary stage of these proceedings. The Company has incurred, and expects to continue to incur, certain expenses related to the cybersecurity issue, including expenses to respond to, remediate, and investigate this matter. The full scope of the costs and related impacts of this issue, including the extent to which all of the costs will be offset by cybersecurity insurance, has not been determined. Other litigation. The Company is a party to various other legal proceedings, most of which relate to routine matters incidental to its business. Management does not believe that the outcome of such proceedings will have a material adverse effect on the Company’s financial position, results of operations or cash flows . MGM China bank guarantees. In connection with the issuance of the gaming concession in January 2023, bank guarantees were provided to the government of Macau in the amount of MOP 1 billion (approximately $ 125 million as of September 30, 2024 ) to warrant the fulfillment of labor liabilities and of damages or losses that may result if there is noncompliance with the concession. The guarantees expire 180 days after the end of the concession term. As of September 30, 2024 , MOP 700 million of the bank guarantees (approximately $ 87 million as of September 30, 2024 ) were secured by pledged cash. Shortfall guarantees. The Company provides shortfall guarantees of the $ 3.01 billion principal amount of indebtedness (and any interest accrued and unpaid thereon) of Bellagio BREIT Venture, the landlord of Bellagio, which matures in 2029, and of the $ 3.0 billion principal amount of indebtedness (and any interest accrued and unpaid thereon) of the landlords of Mandalay Bay and MGM Grand Las Vegas, which matures in 2032 and has an anticipated repayment date of March 2030. The terms of the shortfall guarantees provide that after the lenders have exhausted certain remedies to collect on the obligations under the indebtedness, the Company would then be responsible for any shortfall between the 15 value of the collateral, which is the real estate assets of the applicable property owned by the landlord, and the debt obligation. The guarantees are accounted for under ASC 460 at fair value; such value is immaterial. MGM/Osaka IR KK guarantees. The Company provides for guarantees (1) in the amount of 12.65 billion yen (approximately $ 88 million as of September 30, 2024 ) for 50 % of Osaka IR KK’s obligations to Osaka under various agreements related to the venture’s development of an integrated resort in Osaka, Japan and (2) of an uncapped amount to provide funding to Osaka IR KK, if necessary, for the completion of the construction and full opening of the integrated resort. The guarantees expire when the obligations relating to the full opening of the integrated resort are fulfilled. The guarantees are accounted for under ASC 460 at fair value; such value is immaterial. Additionally, the Company’s ownership interest in Osaka IR KK, which had a carrying value of $ 302 million as of September 30, 2024 , is pledged as collateral for Osaka IR KK’s obligations under its credit agreement. MGM/Osaka IR KK funding commitment. The Company has commitments to fund Osaka IR KK for its proportionate share of the unfinanced portion of Osaka IR KK’s development project, of which approximately 271 billion yen (approximately $ 1.9 billion as of September 30, 2024 ) remains to be funded as of September 30, 2024. The amount and timing of funding is subject to change based upon inflation, the progress and scope of the development, and other factors, which may increase the funding. During the three and nine months ended September 30, 2024, the Company funded 22.2 billion yen (approximately $ 138 million) and 25.2 billion yen (approximately $ 157 million), respectively, of the committed amount to Osaka IR KK. During the three and nine months ended September 30, 2023, the Company funded 10.3 billion yen (approximately $ 69 million) of the committed amount to Osaka IR KK. Other guarantees. The Company and its subsidiaries are party to various guarantee contracts in the normal course of business, which are generally supported by letters of credit issued by financial institutions . The Company’s senior credit facility limits the amount of letters of credit that can be issued to $ 1.35 billion. At September 30, 2024, $ 28 million in letters of credit were outstanding under the Company’s senior credit facility. The amount of available borrowings under the credit facility is reduced by any outstanding letters of credit. NOTE 9 — EARNINGS PER SHARE The table below reconciles basic and diluted earnings per share of common stock. Diluted weighted-average common and common equivalent shares include adjustments for potential dilution of stock-based awards outstanding under the Company’s stock compensation plan. Antidilutive share-based awards excluded from the diluted earnings per share calculation are not material. Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 (In thousands) Numerator: Net income attributable to MGM Resorts International $ 184,578 $ 161,117 $ 589,126 $ 828,720 Adjustment related to redeemable noncontrolling interests ( 216 ) ( 34 ) 14 1,376 Net income attributable to common stockholders – basic and diluted $ 184,362 $ 161,083 $ 589,140 $ 830,096 Denominator: Weighted-average common shares outstanding – basic 300,499 347,345 310,688 360,732 Potential dilution from stock-based awards 2,980 4,045 3,164 4,115 Weighted-average common and common equivalent shares – diluted 303,479 351,390 313,852 364,847 NOTE 10 — STOCKHOLDERS’ EQUITY MGM Resorts International stock repurchases. In March 2022, the Company announced that the Board of Directors authorized a $ 2.0 billion stock repurchase plan, in February 2023, the Company announced that the Board of Directors authorized a $ 2.0 billion stock repurchase plan and, in November 2023, the Company announced that the Board of Directors authorized a $ 2.0 billion stock repurchase plan. Under these stock repurchase plans, the Company may repurchase shares from time to time in the open market or in privately negotiated agreements. Repurchases of common stock may also be made under a Rule 10b5-1 plan, which would permit common stock to be repurchased when the Company might otherwise be precluded from doing so under insider trading laws. The timing, volume and nature of stock 16 repurchases will be at the sole discretion of management, dependent on market conditions, applicable securities laws, and other factors, and may be suspended or discontinued at any time. During the three months ended September 30, 2023, the Company repurchased approximately 13 million shares of its common stock for an aggregate amount of $ 572 million. During the nine months ended September 30, 2023, the Company repurchased approximately 39 million shares of its common stock for an aggregate amount of $ 1.7 billion. In connection with these repurchases, the March 2022 stock repurchase plan was completed. Repurchased shares were retired. During the three months ended September 30, 2024, the Company repurchased approximately 8 million shares of its common stock for an aggregate amount of $ 326 million. During the nine months ended September 30, 2024, the Company repurchased approximately 30 million shares of its common stock for an aggregate amount of $ 1.3 billion. In connection with these repurchases, the February 2023 stock repurchase plan was completed. Repurchased shares were retired. The remaining availability under the November 2023 $ 2.0 billion stock repurchase plan was $ 946 million as of September 30, 2024. NOTE 11 — SEGMENT INFORMATION The Company’s management views each of its casino properties as an operating segment. Operating segments are aggregated based on their similar economic characteristics, types of customers, types of services and products provided, the regulatory environments in which they operate and their management and reporting structure. The Company has aggregated its operating segments into the following reportable segments: Las Vegas Strip Resorts, Regional Operations and MGM China. Las Vegas Strip Resorts. Las Vegas Strip Resorts consists of the following casino resorts in Las Vegas, Nevada: Aria (including Vdara), Bellagio, The Cosmopolitan, MGM Grand Las Vegas (including The Signature), Mandalay Bay (including Delano and Four Seasons), Luxor, New York-New York (including The Park), Excalibur, and Park MGM (including NoMad Las Vegas). Regional Operations. Regional Operations consists of the following casino properties: MGM Grand Detroit in Detroit, Michigan; Beau Rivage in Biloxi, Mississippi; Gold Strike Tunica in Tunica, Mississippi (until its disposition in February 2023); Borgata in Atlantic City, New Jersey; MGM National Harbor in Prince George’s County, Maryland; MGM Springfield in Springfield, Massachusetts; Empire City in Yonkers, New York; and MGM Northfield Park in Northfield Park, Ohio. MGM China. MGM China consists of MGM Macau and MGM Cotai. The Company’s operations related to LeoVegas, investments in unconsolidated affiliates, and certain other corporate operations and management services have not been identified as separate reportable segments; therefore, these operations are included in “Corporate and other” in the following segment disclosures to reconcile to consolidated results. Adjusted Property EBITDAR is the Company’s reportable segment GAAP measure, which management utilizes as the primary profit measure for its reportable segments and underlying operating segments. Adjusted Property EBITDAR is a measure defined as earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening and start-up expenses, property transactions, net, rent expense related to triple-net operating leases and ground leases, income from unconsolidated affiliates related to investments in real estate ventures, and also excludes corporate expense and stock compensation expense, which are not allocated to each operating segment. 17 The following tables present the Company’s segment information: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 (In thousands) Net revenue Las Vegas Strip Resorts Casino $ 476,434 $ 546,273 $ 1,458,721 $ 1,539,048 Rooms 743,261 694,554 2,337,808 2,152,960 Food and beverage 574,587 545,850 1,798,109 1,727,248 Entertainment, retail and other 337,931 319,162 998,066 1,009,385 2,132,213 2,105,839 6,592,704 6,428,641 Regional Operations Casino 692,654 678,565 2,061,659 2,074,972 Rooms 88,275 85,267 232,740 229,500 Food and beverage 116,378 107,952 336,037 331,322 Entertainment, retail and other, and reimbursed costs 54,841 53,173 158,329 161,106 952,148 924,957 2,788,765 2,796,900 MGM China Casino 800,208 713,961 2,611,497 1,938,891 Rooms 52,029 47,270 168,415 108,442 Food and beverage 64,356 44,460 192,716 105,058 Entertainment, retail and other 12,863 6,834 31,036 18,681 929,456 812,525 3,003,664 2,171,072 Reportable segment net revenues 4,013,817 3,843,321 12,385,133 11,396,613 Corporate and other 169,321 129,862 508,850 392,073 $ 4,183,138 $ 3,973,183 $ 12,893,983 $ 11,788,686 Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 (In thousands) Adjusted Property EBITDAR Las Vegas Strip Resorts $ 731,037 $ 714,086 $ 2,341,114 $ 2,326,424 Regional Operations 299,985 293,257 862,465 900,199 MGM China 237,356 226,117 832,405 604,454 Reportable segment Adjusted Property EBITDAR 1,268,378 1,233,460 4,035,984 3,831,077 Other operating income (expense) Corporate and other, net ( 132,444 ) ( 87,946 ) ( 468,740 ) ( 437,193 ) Preopening and start-up expenses ( 519 ) ( 68 ) ( 2,469 ) ( 356 ) Property transactions, net ( 25,493 ) ( 12,227 ) ( 59,124 ) 378,235 Depreciation and amortization ( 233,330 ) ( 201,827 ) ( 621,868 ) ( 608,831 ) Triple-net operating lease and ground lease rent expense ( 564,436 ) ( 564,154 ) ( 1,692,961 ) ( 1,698,867 ) Income from unconsolidated affiliates related to real estate ventures 2,701 2,698 8,069 8,088 Operating income 314,857 369,936 1,198,891 1,472,153 Non-operating income (expense) Interest expense, net of amounts capitalized ( 111,873 ) ( 111,170 ) ( 334,649 ) ( 353,415 ) Non-operating items from unconsolidated affiliates 417 438 2,043 ( 1,187 ) Other, net 93,333 ( 34,879 ) 45,096 35,121 ( 18,123 ) ( 145,611 ) ( 287,510 ) ( 319,481 ) Income before income taxes 296,734 224,325 911,381 1,152,672 Provision for income taxes ( 52,570 ) ( 12,440 ) ( 84,689 ) ( 217,360 ) Net income 244,164 211,885 826,692 935,312 Less: Net income attributable to noncontrolling interests ( 59,586 ) ( 50,768 ) ( 237,566 ) ( 106,592 ) Net income attributable to MGM Resorts International $ 184,578 $ 161,117 $ 589,126 $ 828,720 18