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Item 8. Financial Statements and Supplementary Data

2022-02-28 compared with 2021-02-26 · 291 added, 341 removed, 1336 unchanged (32% of the section changed)

1 unchanged sentence

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

Reports of Independent Registered Public Accounting Firm

Reports of Independent Registered Public Accounting Firm (PCAOB ID:

Consolidated Balance Sheets

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In our opinion, Wynn Resorts, Limited and subsidiaries (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2021, based on the COSO criteria.

As indicated in the accompanying Management Report on Internal Control Over Financial Reporting, management’s assessment of and conclusion on the effectiveness of internal control over financial reporting did not include the internal controls of BetBull, Limited, which are included in the 2020 consolidated financial statements of the Company and constituted less than 2% of total assets (goodwill constituted 1% of total assets) as of December 31, 2020 and less than 1% of operating revenues and net loss for the year then ended.

Our audit of internal control over financial reporting of the Company also did not include an evaluation of the internal control over financial reporting of BetBull, Limited.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2021 and 2020, the related consolidated statements of operations, comprehensive income (loss), stockholders' equity (deficit) and cash flows for each of the three years in the period ended December 31, 2021, and the related notes and financial statement schedule listed in the Index at Item 15(a)2 and our report dated February 28, 2022 expressed an unqualified opinion thereon.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of Wynn Resorts, Limited and subsidiaries

The Board of Directors and Stockholders of Wynn Resorts, Limited and subsidiaries

Opinion on the Financial Statements

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Allowance for Credit Losses on Casino Receivables

Description of the Matter

At December 31, 2020, the Company’s allowance for credit losses on accounts receivable was $100.3 million, primarily consisting of casino receivables.

Description of the Matter At December 31, 2021, the Company’s allowance for credit losses on accounts receivable was $111.3 million, primarily consisting of casino receivables.

As discussed in Note 2 to the consolidated financial statements, casino receivables primarily consist of credit issued to patrons in the form of markers and advances paid to gaming promoters.

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Auditing management’s estimate of the allowance for credit losses on casino receivables is complex due to the highly judgmental nature of the qualitative factors used to estimate the collectability of casino receivables and high degree of subjectivity in evaluating management’s judgments related to the collectability of patron accounts receivable.

How We Addressed the Matter in Our Audit

We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s allowance for credit losses process.

How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s allowance for credit losses process.

For example, we tested controls over the issuance of markers to patrons, the collection processes and management’s review controls over the assessment of the expected collection of casino receivables and evaluation of the allowance for credit losses, including the information used by management in those controls.

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Cash and cash equivalents $ 2,522,530 $ 3,482,032

Restricted cash 4,896 —

Accounts receivable, net of allowance for credit losses of $ 111,319 and $ 100,329

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Operating lease assets 371,365 398,594

Deferred income taxes, net — 562,262

Other assets 207,017 178,615

Total assets $ 12,530,826 $ 13,869,547

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

LIABILITIES AND STOCKHOLDERS' DEFICIT

Current liabilities:

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Commitments and contingencies (Note 17)

Stockholders' equity (deficit):

Stockholders' deficit:

Preferred stock, par value $ 0.01 ;

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Additional paid-in capital 3,502,715 2,598,115

Accumulated other comprehensive income (loss) 3,604 ( 1,679 )

Retained earnings (accumulated deficit) ( 1,532,420 ) 641,818

Total Wynn Resorts, Limited stockholders' equity (deficit) ( 351,997 ) 1,743,045

Accumulated other comprehensive income 6,004 3,604

Accumulated deficit ( 2,288,078 ) ( 1,532,420 )

Total Wynn Resorts, Limited stockholders' deficit ( 214,418 ) ( 351,997 )

Noncontrolling interests ( 621,797 ) ( 385,320 )

Total stockholders' equity (deficit) ( 737,317 ) 1,541,472

Total liabilities and stockholders' equity (deficit) $ 13,869,547 $ 13,871,281

Total stockholders' deficit ( 836,215 ) ( 737,317 )

Total liabilities and stockholders' deficit $ 12,530,826 $ 13,869,547

The accompanying notes are an integral part of these consolidated financial statements.

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General and administrative 796,592 720,849 896,670

Litigation settlement — — 463,557

Provision for credit losses 29,487 64,375 21,898

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Change in derivatives fair value 11,360 ( 13,060 ) ( 3,228 )

Change in Redemption Note fair value — — ( 69,331 )

(Loss) gain on extinguishment of debt ( 4,601 ) ( 12,437 ) 104

Loss on extinguishment of debt ( 2,060 ) ( 4,601 ) ( 12,437 )

Other ( 23,926 ) 28,521 15,159

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Income (loss) before income taxes ( 1,011,516 ) ( 1,762,275 ) 488,218

(Provision) benefit for income taxes ( 564,671 ) ( 176,840 ) 497,344

Provision for income taxes ( 474 ) ( 564,671 ) ( 176,840 )

Net income (loss) ( 1,011,990 ) ( 2,326,946 ) 311,378

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Net income (loss) $ ( 1,011,990 ) $ ( 2,326,946 ) $ 311,378

Other comprehensive income (loss):

Other comprehensive income:

Foreign currency translation adjustments, before and after tax 3,477 7,367 376

Change in net unrealized loss on investment securities, before and after tax — — 1,292

Redemption Note credit risk adjustment, net of tax of $ 2,735

Total comprehensive income (loss) ( 1,008,513 ) ( 2,319,579 ) 311,754

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Balances, January 1, 2019 107,232,026 $ 1,221 $ ( 1,344,012 ) $ 2,457,079 $ ( 1,950 ) $ 921,785 $ 2,034,123 $ ( 219,334 ) $ 1,814,789

Cumulative effect, change in accounting for credit risk, net of tax of $ 2,735

— — — — ( 9,211 ) 9,211 — — —

Net income — — — — — 122,985 122,985 188,393 311,378

Currency translation adjustment — — — — 271 — 271 105 376

Change in net unrealized loss on investment securities — — — — 1,292 — 1,292 — 1,292

Redemption Note settlement — — — — 9,211 — 9,211 — 9,211

Exercise of stock options 293,690 3 — 14,693 — — 14,696 — 14,696

Issuance of common stock 5,300,000 53 — 915,187 — — 915,240 — 915,240

Issuance of restricted stock 472,480 5 — 14,343 — — 14,348 785 15,133

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Balances, December 31, 2019 107,363,943 1,228 ( 1,410,998 ) 2,512,676 ( 1,679 ) 641,818 1,743,045 ( 201,573 ) 1,541,472

Net income — — — — — 122,985 122,985 188,393 311,378

Net loss — — — — — ( 2,067,245 ) ( 2,067,245 ) ( 259,701 ) ( 2,326,946 )

Currency translation adjustment — — — — 5,283 — 5,283 2,084 7,367

Exercise of stock options 293,690 3 — 14,693 — — 14,696 — 14,696

Issuance of restricted stock 886,014 9 — 6,711 — — 6,720 823 7,543

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Shares repurchased by the Company and held as treasury shares ( 120,513 ) — ( 11,533 ) — — — ( 11,533 ) — ( 11,533 )

Shares of subsidiary repurchased for share award plan — — — ( 3,885 ) — — ( 3,885 ) ( 1,499 ) ( 5,384 )

Cash dividends declared — — — — — ( 106,993 ) ( 106,993 ) 44 ( 106,949 )

Wynn Interactive transactions — — — 26,262 — — 26,262 73,768 100,030

Distribution to noncontrolling interest — — — — — — — ( 6,238 ) ( 6,238 )

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Currency translation adjustment — — — — 2,400 — 2,400 1,077 3,477

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 518,191 4 — 5,897 — — 5,901 370 6,271

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Change in derivatives fair value ( 11,360 ) 13,060 3,228

Change in Redemption Note fair value — — 69,331

Property charges and other 74,688 38,933 5,122

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Purchase of intangible and other assets ( 56,034 ) — ( 6,000 )

Proceeds from the sale or maturity of investment securities — — 359,461

Purchase of investment securities — — ( 34,098 )

Cash acquired from business combination — 4,604 —

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Repayments of long-term debt ( 2,488,401 ) ( 2,035,354 ) ( 2,930,015 )

Proceeds from note receivable from sale of ownership interest in subsidiary — — 75,000

Proceeds from issuance of common stock, net of issuance costs — — 915,240

Proceeds from issuance of Wynn Resorts, Limited common stock 841,896 — —

Proceeds from issuance of subsidiary common stock 4,662 — —

Repurchase of common stock ( 13,842 ) ( 11,533 ) ( 66,986 )

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Dividends paid ( 1,553 ) ( 108,777 ) ( 566,521 )

Distributions to noncontrolling interest ( 6,238 ) ( 7,745 ) ( 305,372 )

Payments for additional ownership interest in Wynn Interactive ( 33,621 ) — —

Payment to acquire derivatives — — ( 3,900 )

Payments to acquire ownership interest in subsidiary ( 5,433 ) ( 33,621 ) —

Distribution to noncontrolling interest ( 18,761 ) ( 6,238 ) ( 7,745 )

Payments for financing costs ( 31,193 ) ( 27,339 ) ( 32,738 )

Net cash provided by (used in) financing activities 2,463,245 299,012 ( 324,257 )

Net cash (used in) provided by financing activities ( 388,002 ) 2,463,245 299,012

Effect of exchange rate on cash, cash equivalents and restricted cash ( 2,301 ) 3,031 7,485

Cash, cash equivalents and restricted cash:

Increase (decrease) in cash, cash equivalents and restricted cash 1,128,092 138,969 ( 587,311 )

(Decrease) increase in cash, cash equivalents and restricted cash ( 955,317 ) 1,128,092 138,969

Balance, beginning of period 3,486,384 2,358,292 2,219,323

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Cash paid for income taxes (income tax refunds received) $ 1,749 $ 1,433 $ ( 16,811 )

Property and equipment acquired under finance leases $ 56,215 $ 1,413 $ —

Finance lease liabilities arising from obtaining finance lease assets $ 7,423 $ 56,215 $ 1,413

Liability settled with shares of common stock $ 6,272 $ 6,720 $ 15,134

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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 and the Retail Joint Venture as its Las Vegas Operations.

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 (the "BetBull Acquisition") of Wynn Resorts' digital gaming businesses and Wynn Resorts' strategic partner, BetBull Limited ("BetBull").

The merger was effected through a series of transactions which resulted in the Company contributing to BetBull its interests in WSI US, LLC and Wynn Social Gaming, LLC, which operate Wynn Resorts' existing U.S.

online sports betting and gaming business and social casino business, respectively.

Following the merger, Wynn Resorts holds an approximately 72 % controlling interest in Wynn Interactive.

The results of its operations are presented within Corporate and other in the accompanying consolidated financial statements, except where otherwise noted.

("Wynn Interactive") was formed through the merger of our U.S.

online sports betting and gaming business, social casino business, and our strategic partner, BetBull Limited ("BetBull").

Wynn Resorts holds an approximately 74 % interest in, and consolidates, Wynn Interactive.

For more information on the BetBull Acquisition, see Note 19, "Business Combination."

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Wynn Palace, which opened in August 2016, features a luxury hotel tower with 1,706 guest rooms, suites and villas, approximately 424,000 square feet of casino space, 14 food and beverage outlets, approximately 37,000 square feet of meeting and convention space, approximately 107,000 square feet of retail space, public attractions including a performance lake and floral art displays, and recreation and leisure facilities.

Wynn Macau features two luxury hotel towers with a total of 1,010 guest rooms and suites, approximately 252,000 square feet of casino space, 12 food and beverage outlets, approximately 31,000 square feet of meeting and convention space, approximately 59,000 square feet of retail space, a rotunda show and recreation and leisure facilities.

Wynn Macau features two luxury hotel towers with a total of 1,010 guest rooms and suites, approximately 252,000 square feet of casino space, 14 food and beverage outlets, approximately 31,000 square feet of meeting and convention space, approximately 59,000 square feet of retail space, a performance lake, a rotunda show and recreation and leisure facilities.

Las Vegas Operations

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On June 23, 2019, the Company opened Encore Boston Harbor, an integrated resort in Everett, Massachusetts, adjacent to Boston along the Mystic River.

The property features a luxury hotel tower with a total of 671 guest rooms and suites, approximately 208,000 square feet of casino space, 16 food and beverage outlets, approximately 71,000 square feet of meeting and convention space, and approximately 8,000 square feet of retail space.

The property features a luxury hotel tower with a total of 671 guest rooms and suites, approximately 211,000 square feet of casino space, 15 food and beverage outlets, one nightclub, approximately 71,000 square feet of meeting and convention space, and approximately 10,000 square feet of retail space.

Public attractions include a waterfront park, floral displays, and water shuttle service to downtown Boston.

Wynn Interactive

Wynn Interactive's subsidiary operates the digital and interactive sports betting app, WynnBET, which is operational in New Jersey, Colorado, Michigan, Virginia, Indiana, Arizona, Tennessee, Louisiana, and New York.

In addition, subject to all necessary legislative authorizations and regulatory approvals, Wynn Interactive’s subsidiary has secured market access in Iowa and Ohio.

BetBull, a wholly owned subsidiary of Wynn Interactive, operates a digital and interactive sports betting app in the United Kingdom.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

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Recent Developments Related to COVID-19

In January 2020, a new strain of coronavirus, COVID-19 ("COVID-19"), was identified.

Since then, COVID-19 has spread around the world, and 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.

Several vaccines have been granted authorizations in numerous countries and vaccines are being rolled out to citizens based on their priority of need.

There can be no assurance as to when a sufficient number of individuals will be vaccinated, permitting travel restrictions to be lifted.

Macau Operations

In response to the COVID-19 pandemic, casino operations in Macau were closed for a 15-day period in February 2020 and resumed on a reduced basis on February 20, 2020.

On March 20, 2020 casino operations were fully restored;

however, certain COVID-19 specific protective measures, such as limiting the number of seats per table game, increasing the spacing between active slot machines and visitor entry checks and requirements involving temperature checkpoints, mask wearing, health declarations and proof of negative COVID-19 test results remain in effect at the present time.

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, the suspension or reduced availability of the Individual Visit Scheme (the “IVS”), group tour scheme and other travel visas for visitors, quarantine measures 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.

At present, bans on entry or enhanced quarantine requirements remain in place for people attempting to enter Macau, depending on various conditions such as the usual visa requirements, their COVID-19 test results, purpose of visit, recent travel history and/or other conditions as applicable.

While many aspects of these travel restrictions and conditions continue to adversely impact visitations to Macau, beginning in June 2020 certain restrictions and conditions have eased to allow for 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, was reintroduced between Macau and an increasing number of areas and cities within the PRC in progressive phases from June to August 2020, commencing with an area in Guangdong Province, which is adjacent to Macau, and expanding to additional areas and major cities within Guangdong Province, followed by most other areas of the PRC.

On September 23, 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.

Notwithstanding these developments, certain border control, travel-related restrictions and conditions, including certain quarantine and medical observation measures, stringent health declarations, COVID-19 testing and other procedures remain in place, and all visitors need to test negative for COVID-19 before entering Macau.

Given the evolving conditions created by and in response to the COVID-19 pandemic, the Company is currently unable to determine when travel-related restrictions and conditions will be further lifted.

Measures that have been lifted or are expected to be lifted may be reintroduced if there are adverse developments in the COVID-19 situation in Macau and other regions with access to Macau.

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 visitation to Macau as some regions continue to 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

Wynn Las Vegas closed on March 17, 2020, and reopened on June 4, 2020 with certain COVID-19 specific protective measures in place, 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.

Beginning October 19, 2020, Encore at Wynn Las Vegas adjusted its operating schedule to five days/four nights each week due to currently reduced customer demand levels.

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 twelve months ended December 31, 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 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.

As of December 31, 2021, the Company had total cash and cash equivalents, excluding restricted cash, of $ 2.52 billion, and had access to $ 835.6 million of available borrowing capacity from the WRF Revolver and $ 212.5 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 at December 31, 2021 and the steps the Company has taken as further described in Note 7, "Long-Term Debt," the Company believes it is able to support continuing operations and respond to the 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").

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Encore Boston Harbor ceased all operations and closed to the public on March 15, 2020, and reopened on July 10, 2020 with certain COVID-19 specific protective measures in place, such as limiting the number of seats per table game, slot machine spacing, temperature checks, capacity restrictions, and mask protection.

Subsequent to reopening, certain food and beverage outlets have remained temporarily closed and our hotel operations were limited to Thursday through Sunday.

On November 6, 2020, pursuant to a Massachusetts directive implementing an overnight curfew on certain businesses, Encore Boston Harbor limited its daily operating hours and temporarily closed the hotel tower.

On January 25, 2021, the limitations on operating hours were lifted, and Encore Boston Harbor restored certain operations and reopened its hotel tower on a Thursday through Sunday weekly schedule.

The protective measures, including capacity restrictions, are still in place.

The Company is currently unable to determine when the remaining measures will be lifted.

The COVID-19 pandemic has had and will continue to have an adverse effect on the Company's results of operations.

The Company is currently unable to determine when protective measures in effect at our Macau Operations, Las Vegas Operations, and Encore Boston Harbor will be lifted.

As of December 31, 2020, the Company had total cash and cash equivalents, excluding restricted cash, of $ 3.48 billion, and had access to $ 117.9 million of available borrowing capacity from the WRF Revolving Facility and $ 343.5 million of available borrowing capacity from the Wynn Macau Revolving Facility.

The Company has suspended its dividend program and has postponed major project capital expenditures.

In addition, the Company raised $ 842.5 million in an equity offering in February 2021.

Given the Company's liquidity position at December 31, 2020 and the steps the Company has taken as further described in Note 7, "Long-Term Debt," the Company believes it is able to support continuing operations and respond to the current COVID-19 pandemic challenges.

In January 2022, the Macau government published a draft of its proposed revisions to the gaming law.

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.

Note 2 - Basis of Presentation and Significant Accounting Policies

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For information on the Company's VIEs, see Note 18, "Retail Joint Venture." All significant intercompany accounts and transactions have been eliminated.

Certain amounts in the consolidated financial statements for the previous years have been reclassified to be consistent with the current year presentation of the Company's reportable segments.

These reclassifications had no effect on the previously reported net income.

Use of Estimates

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The Company issues credit in the form of "markers" to approved casino customers following investigations of creditworthiness.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Accounts receivable, including casino and hotel receivables, are typically non-interest bearing and are recorded at amortized cost.

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Gaming promoter advances are settled shortly after each month end.

As of December 31, 2021, the Company had no agreements in place with gaming promoters.

An estimated allowance for credit losses is maintained to reduce the Company's receivables to their carrying amount, which reflects the net amount the Company expects to collect.

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Recoveries of accounts previously written off are recorded when received.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Inventories consist of retail merchandise and food and beverage items, which are stated at the lower of cost or net realizable value, and certain operating supplies.

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Property and Equipment

Purchases of property and equipment are stated at cost, and when placed into service, are depreciated over the estimated useful lives of the assets using the straight-line method as follows:

Purchases of property and equipment are stated at cost, and when placed into service, are depreciated over the estimated

useful lives of the assets using the straight-line method as follows:

Estimated Useful Life in Years

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When no debt is specifically identified as being incurred in connection with a construction project, the Company capitalizes interest on amounts expended on the project using the weighted average cost of the Company's outstanding borrowings.

Interest of $ 1.3 million, $ 53.9 million, and $ 57.3 million was capitalized for the years ended December 31, 2020, 2019, and 2018, respectively.

For the year ended December 31, 2021, the Company did not capitalize any i nterest.

Interest of $ 1.3 million and $ 53.9 million was capitalized for the years ended December 31, 2020 and 2019, respectively.

Business Combinations

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Estimates in valuing certain intangible assets include, but are not limited to future expected cash flows from acquired technology and acquired trademarks from a market participant perspective, useful lives, and discount rates.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates.

Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates.

Acquisition-related costs are recognized separately from the acquisition and are expensed as incurred.

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Goodwill is not amortized, but rather is subject to an annual impairment test.

The Company tests goodwill for impairment as of October 1 of each year, or more frequently if events or changes in circumstances indicate that this asset may be impaired.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

The Company tests goodwill for impairment annually, or more frequently if events or changes in circumstances indicate that this asset may be impaired.

The Company’s test of goodwill impairment starts with a qualitative assessment to determine whether it is necessary to perform a quantitative goodwill impairment test.

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For the quantitative analysis, the Company compares the fair value of its reporting unit to its carrying value.

If the estimated fair value exceeds its carrying value, goodwill is considered not to be impaired and no additional steps are necessary.

However, if the fair value of the reporting unit is less than book value, then under the second step the carrying amount of the goodwill is compared to its implied fair value.

If the estimated fair value exceeds its carrying amount, goodwill is considered not to be impaired and no additional steps are necessary.

However, if the fair value of the reporting unit is less than its carrying amount, goodwill impairment is recorded equal to the difference between the carrying amount of the reporting unit and its fair value, not to exceed the carrying amount of goodwill.

Intangible Assets other than goodwill

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The Company is the lessee under non-cancelable real estate and equipment leases.

Operating lease assets and liabilities are measured and recorded upon lease commencement at the present value of the future minimum lease payments.

Finance and operating lease assets and liabilities are measured and recorded upon lease commencement at the present value of the future minimum lease payments.

The Company combines lease and nonlease components in its determination of minimum lease payments, except for certain asset classes that have significant nonlease components.

As the interest rate implicit in its leases is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of lease payments.

The Company does not record an asset or liability for operating leases with a term of less than one year.

The Company does not record an asset or liability for leases with a term of less than one year.

Variable lease costs generally arise from changes in an index, such as the consumer price index.

Variable lease costs are expensed as incurred and are not included in the determination of lease assets or liabilities.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Lessor Arrangements

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The Company has elected to combine lease and nonlease components for the purpose of measuring lease revenue.

Lease revenue includes the impact of rent concessions provided to tenants at the Company's Macau operations due to the adverse effects of the COVID-19 pandemic and is recorded in Entertainment, retail and other revenue in the accompanying Consolidated Statements of Operations.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Debt Issuance Costs

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Approximately $ 27.0 million, $ 28.9 million, and $ 29.0 million was amortized to interest expense during the years ended December 31, 2021, 2020, and 2019, respectively.

Redemption Price Promissory Note

On February 18, 2012, pursuant to its articles of incorporation, the Company redeemed and canceled all Aruze USA, Inc.’s ("Aruze") 24,549,222 shares of Wynn Resorts’ common stock.

In connection with the redemption of the shares, the Company issued a promissory note (the "Redemption Note") with a principal amount of $ 1.94 billion, a maturity date of February 18, 2022 and an interest rate of 2 % per annum, payable annually in arrears on each anniversary of the date of the Redemption Note.

The Redemption Note was recorded at fair value in accordance with applicable accounting guidance.

The Company repaid the principal amount in full on March 30, 2018.

In determining this fair value, the Company estimated the Redemption Note's present value using discounted cash flows with a probability weighted expected return for redemption assumptions and a discount rate, which included time value and non-performance risk adjustments commensurate with the risk of the Redemption Note.

In determining the appropriate discount rate to be used to calculate the estimated present value, the Company considered the Redemption Note's subordinated position and credit risk relative to all other debt in the Company's capital structure and credit ratings associated with the Company's traded debt.

Observable inputs for the risk free rate were based on Federal Reserve rates for U.S.

Treasury securities and the credit risk spread was based on a yield curve index of similarly rated debt.

Derivative Financial Instruments

7 unchanged sentences

The Company applies a practical expedient by accounting for its casino wagering transactions on a portfolio basis versus an individual basis as all wagers have similar characteristics.

Commissions rebated to customers either directly or indirectly through games promoters

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

and cash discounts and other cash incentives earned by customers are recorded as a reduction of casino revenues.

Commissions rebated to customers either directly or indirectly through games promoters and cash discounts and other cash incentives earned by customers are recorded as a reduction of casino revenues.

In addition to the wager, casino transactions typically include performance obligations related to complimentary goods or services provided to incentivize future gaming or in exchange for points earned under the Company's loyalty programs.

12 unchanged sentences

As previously noted, Entertainment, retail and other revenue also includes lease revenue, which is recognized in accordance with the relevant accounting principles.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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 Consolidated Statements of Operations.

These taxes totaled $ 527.5 million, $ 2.24 billion, and $ 2.44 billion for the years ended December 31, 2020, 2019, and 2018, respectively.

These taxes totaled $ 830.4 million, $ 527.5 million, and $ 2.24 billion for the years ended December 31, 2021, 2020, and 2019, respectively.

Advertising Costs

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Pre-opening expenses represent personnel, advertising, and other costs incurred prior to the opening of new ventures and are expensed as incurred.

During the years ended December 31, 2020, the Company incurred pre-opening expenses primarily in connection with restaurant remodels at our Las Vegas Operations and the meeting and convention expansion at Wynn Las Vegas, which opened in February 2020.

During the years ended December 31, 2019, and 2018, the Company incurred pre-opening expenses primarily in connection with the development of Encore Boston Harbor.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

During the year ended December 31, 2021, the Company incurred pre-opening expenses primarily in connection with restaurant remodels at our Las Vegas Operations.

During the year ended December 31, 2020, the Company incurred pre-opening expenses primarily in connection with restaurant remodels at our Las Vegas Operations and the meeting and convention expansion at Wynn Las Vegas, which opened in February 2020.

During the year ended December 31, 2019, the Company incurred pre-opening expenses primarily in connection with the development of Encore Boston Harbor.

The Company is subject to income taxes in the U.S.

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Components of the Company's comprehensive income (loss) are reported in the accompanying Consolidated Statements of Stockholders' Equity (Deficit) and Consolidated Statements of Comprehensive Income (Loss).

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Fair Value Measurements

8 unchanged sentences

The Company accounts for stock-based compensation in accordance with accounting standards, which require the compensation cost relating to share-based payment transactions be recognized in the Company's Consolidated Statements of Operations.

The cost is measured at the grant date, based on the estimated fair value of the award using the Black-Scholes option pricing model for stock options, and based on the closing share price of the Company's stock on the grant date for

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

nonvested share awards.

Dividend yield is based on the estimate of annual dividends expected to be paid at the time of the grant.

6 unchanged sentences

The Company's stock-based employee compensation arrangements are more fully discussed in Note 12, "Stock-Based Compensation."

Recently Adopted Accounting Standards

Financial Instruments - Credit Losses

The FASB issued ASU No.

2016-13, Financial Instruments - Credit Losses (Topic 326) in 2016.

The new guidance replaces the incurred loss impairment methodology in current U.S.

GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates.

For trade and other receivables, loans and other financial instruments, the Company is required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable.

Application of the amendments is through a cumulative-effect adjustment to retained earnings.

The Company adopted the guidance effective January 1, 2020, and this adoption did not have a material effect on its Consolidated Financial Statements.

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 CONSOLIDATED FINANCIAL STATEMENTS (continued)

Note 3 - Cash, Cash Equivalents and Restricted Cash

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(2) Cash equivalents consist of bank time deposits and money market funds.

(3) Restricted cash consists of cash collateral associated with obligations and cash held in a trust in accordance with WML's share award plan.

(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

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$ 199,463 $ 200,158

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

As of December 31, 2021 and 2020, approximately 70.3 % 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 our customers reside could affect the collectability of such receivables.

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 53.7 % and 47.2 % of gross casino receivables as of December 31, 2021 and 2020, respectively.

The increase in allowance for casino credit losses is primarily due to the impact of historical collection patterns and expectations of current and future collection trends in light of the COVID-19 pandemic, as well as the specific review of customer accounts.

Although the Company believes that its allowance is adequate, it is possible the estimated amounts of cash collections with respect to receivables could change.

7 unchanged sentences

Balance at end of period $ 111,319 $ 100,329

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Note 5 - Property and Equipment, net

8 unchanged sentences

$ 8,765,308 $ 9,196,644

As of December 31, 2020, construction in progress consisted primarily of costs capitalized for various capital enhancements at our properties.

As of December 31, 2019, construction in progress consisted primarily of costs capitalized, including interest, for the construction of the additional meeting and convention space at Wynn Las Vegas, which was placed into service during the first quarter of 2020.

As of December 31, 2021 and 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 years ended December 31, 2021, 2020 and 2019 was $ 685.7 million, $ 699.6 million, and $ 602.9 million, respectively.

Encore Boston Harbor Real Estate Sale and Leaseback

On February 15, 2022, the Company announced its entry into a sale-leaseback arrangement with respect to certain real estate assets related to Encore Boston Harbor.

Upon closing of the related transactions, currently expected to take place in the fourth quarter of 2022 subject to regulatory approvals and customary closing conditions, the Company expects to receive cash consideration of approximately $ 1.7 billion in exchange for the sale of such real estate assets to an unrelated third party, and to concurrently enter into a lease agreement whereby the Company will lease such real estate assets for the purpose of continuing to operate the Encore Boston Harbor property.

The lease agreement provides for an initial annual minimum rent of $ 100.0 million for an initial term of 30 years, subject to certain annual rent escalations and renewal provisions.

The Company expects to use the cash proceeds from the sale of the real estate assets for general corporate purposes, which may include the repayment of certain debt obligations.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

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accumulated amortization ( 5,969 ) ( 620 )

70,348 16,378

Total finite-lived intangible assets 169,443 125,703

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Foreign currency translation ( 4,103 ) 4,593

Impairment ( 10,254 ) —

Balance end of period 129,738 144,095

2 unchanged sentences

The Macau gaming concession is a finite-lived intangible asset that is being amortized over the 20 year life of the concession.

The Company expects that amortization of the Macau gaming concession will be $ 2.4 million in 2021 and $ 1.2 million in 2022.

The Company expects that amortization of the Macau gaming concession will be $ 1.2 million in 2022.

The Massachusetts gaming license is a finite-lived intangible asset that is being amortized over the 15 year life of the license.

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The Other finite-lived intangible assets consist of trademarks and customer lists acquired in connection with the BetBull Acquisition and are being amortized over ten and three years , respectively.

For more information on the Betbull Acquisition, see Note 19, "Business Combination." The Company expects that amortization of Other intangible assets will be $ 3.4 million each year from 2021 through 2022, $ 2.9 million for 2023, and approximately $ 1.0 million each year from 2024 through 2030.

The Company recognized goodwill of $ 121.0 million in 2020 in connection with the Betbull Acquisition, and the Company recognized $ 18.5 million of goodwill related to an insignificant acquisition in 2019.

Goodwill is included in Corporate and other as of December 31, 2020 and 2019.

For more information on the BetBull Acquisition, see Note 19, "Business Combination." The Company expects that amortization of Other intangible assets will be $ 3.4 million in 2022, $ 2.9 million for 2023, $ 1.0 million each year from 2024 through 2029, and $ 0.8 million in 2030.

The Company recognized goodwill of $ 121.0 million in 2020 in connection with the BetBull Acquisition.

Goodwill is recorded within Wynn Interactive as of December 31, 2021 and 2020.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

On November 12, 2021, Wynn Resorts announced the termination of a previously announced agreement and plan of merger which contemplated the combination of Wynn Interactive and a special purpose acquisition company.

The Company concluded that the termination of the agreement constituted a potential indicator of impairment, and as a result of revisiting its estimated fair value of the reporting units comprising Wynn Interactive based on a combination of the income and market approaches, the Company recognized impairment of $ 10.3 million.

Impairment of goodwill is recorded in Property charges and other in the accompanying Consolidated Statements of Operations during the year ended December 31, 2021.

Note 7 - Long-Term Debt

1 unchanged sentence

Macau Related:

WM Cayman II Revolver, due 2025 (1)

$ 1,287,766 $ —

Wynn Macau Credit Facilities (2) :

Wynn Macau Term Loan, due 2022 — 1,268,106

$ 1,268,106 $ 2,302,540

Wynn Macau Revolver, due 2022 — 407,443

407,443 350,232

WML 4 7/8% Senior Notes, due 2024 600,000 600,000

19 unchanged sentences

Total long-term debt, net of current portion $ 11,884,546 $ 12,469,362

(1) The borrowings under the Wynn Macau Credit Facilities bear interest at LIBOR or HIBOR plus a margin of 1.50 % to 2.25 % per annum based on Wynn Resorts Macau S.A.’s leverage ratio.

(2) Approximately $ 717.3 million and $ 550.8 million of the Wynn Macau Term Loan bears interest at a rate of LIBOR plus 2.25 % per year and HIBOR plus 2.25 % per year, respectively.

As of December 31, 2020 and 2019, the weighted average interest rate was approximately 2.41 % and 3.95 %, respectively.

(3) Approximately $ 231.7 million and $ 175.7 million of the Wynn Macau Revolver bears interest at a rate of LIBOR plus 2.25 % per year and HIBOR plus 2.25 % per year, respectively.

As of December 31, 2020 and 2019, the weighted average interest rate was approximately 2.44 % and 3.92 %, respectively.

As of December 31, 2020, the available borrowing capacity under the Wynn Macau Revolver was $ 343.5 million.

(1) 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 $ 268.2 million and $ 1.02 billion 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 December 31, 2021, the weighted average interest rate was approximately 2.80 %.

As of December 31, 2021, the available borrowing capacity under the WM Cayman II Revolver was $ 212.5 million.

(2) In September 2021, the Company repaid in full the then-outstanding principal amount of $1.26 billion owed under Wynn Macau Credit Facilities.

(3) The WRF Credit Facilities bear interest at a rate of LIBOR plus 1.75 % per year.

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(4) The Retail Term Loan bears interest at a rate of LIBOR plus 1.70 % per year.

As of December 31, 2020 and 2019, the effective interest rate was 2.70 % and 3.41 %, respectively.

As of December 31, 2021 and 2020, the effective interest rate was 2.70 % for both years.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

1 unchanged sentence

Macau Related Debt

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.

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 $ 30.3 million, of which $ 29.2 million was recorded as debt issuance costs within the 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.

Wynn Macau Credit Facilities

The Company's Wynn Macau credit facilities consist of an approximately $ 1.27 billion equivalent senior secured term loan facility (the "Wynn Macau Term Loan") and an approximately $ 751 million equivalent senior secured revolving credit facility (the "Wynn Macau Revolver" and together with the Wynn Macau Term Loan, the "Wynn Macau Credit Facilities").

The borrower is Wynn Resorts (Macau) S.A.

The Company's Wynn Macau credit facilities consisted of an approximately $ 1.27 billion equivalent senior secured term loan facility (the "Wynn Macau Term Loan") and an approximately $ 751 million equivalent senior secured revolving credit facility (the "Wynn Macau Revolver" and together with the Wynn Macau Term Loan, the "Wynn Macau Credit Facilities").

The borrower was Wynn Resorts (Macau) S.A.

("Wynn Macau SA"), an indirect subsidiary of WML.

Wynn Macau SA borrows and repays its revolving credit facility from time to time as cash needs permit.

The Wynn Macau Term Loan is repayable in graduating installments of between 2.875 % to 4.50 % of the principal amount on a quarterly basis commencing September 30, 2020, with a final installment of 75 % of the principal amount repayable in June 2022;

and the final maturity of any outstanding borrowings from the Wynn Macau Revolver is in June 2022.

The Company prepaid $ 938.2 million, excluding contractual amortization payments of $ 100.7 million, on the Wynn Macau Term Loan during 2020 using the proceeds from issuances of WML Senior Notes and operating cash.

During 2020, the Company prepaid $ 938.2 million, excluding contractual amortization payments of $ 100.7 million, on the Wynn Macau Term Loan using the proceeds from issuances of WML Senior Notes and operating cash.

In January 2021, the Company prepaid $ 412.5 million of the Wynn Macau Term Loan, and accordingly, has presented that amount as a current liability on the accompany Consolidated Balance Sheet as of December 31, 2020.

The commitment fee required to be paid for unborrowed amounts under the Wynn Macau Revolver, if any, is between 0.52 % and 0.79 %, per annum, based on Wynn Macau SA's Leverage Ratio.

The annual commitment fee is payable quarterly in arrears and is calculated based on the daily average of the unborrowed amounts.

The Wynn Macau Credit Facilities contain a requirement that Wynn Macau SA must make mandatory repayments of indebtedness from specified percentages of excess cash flow.

If Wynn Macau SA's Leverage Ratio is greater than 4.5 to 1, then 25 % of Excess Cash Flow (as defined in the Wynn Macau Credit Facilities) must be used for prepayment of indebtedness and cancellation of available borrowings under the Wynn Macau Credit Facilities.

There is no mandatory prepayment in respect of Excess Cash Flow if Wynn Macau SA's Leverage Ratio is equal to or less than 4.5 to 1.

The Wynn Macau Credit Facilities contain customary covenants restricting certain activities including, but not limited to:

the incurrence of additional indebtedness, the incurrence or creation of liens on any of its property, sale and leaseback transactions, the ability to dispose of assets, and making loans or other investments.

In addition, Wynn Macau SA is required by the financial covenants to maintain a Leverage Ratio of not greater than 4.00 to 1 for the fiscal year ending December 31, 2020 and thereafter, and an Interest Coverage Ratio (as defined in the Wynn Macau Credit Facilities) of not less than 2.00 to 1 at any time.

Borrowings under the Wynn Macau Credit Facilities are guaranteed by Palo Real Estate Company Limited ("Palo"), a subsidiary of Wynn Macau SA, and by certain subsidiaries of the Company that own equity interests in Wynn Macau SA, and are secured by substantially all of the assets of Wynn Macau SA and Palo, and the equity interests in Wynn Macau SA.

Borrowings under the Wynn Macau Credit Facilities are not guaranteed by the Company or WML.

As discussed above, in September 2021, the Wynn Macau Credit Facilities were repaid in full along with related financing costs.

WML Senior Notes

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will be effectively subordinated to all of WML's future secured indebtedness to the extent of the value of the assets securing such debt;

and will be structurally subordinated to all existing and future obligations of WML's subsidiaries, including the Wynn Macau Credit Facilities.

and will be structurally subordinated to all existing and future obligations of WML's subsidiaries, including the WM Cayman II Revolver.

The WML Senior Notes are not registered under the Securities Act of 1933, as amended (the "Securities Act") and the WML Notes are subject to restrictions on transferability and resale.

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Therefore, the WRF Senior Notes may not be offered or sold within the United States to, or for the account or benefit of, any United States person unless the offer or sale would qualify for a registration exemption from the Securities Act and applicable state securities laws.

Redemption Price Promissory Note

On February 18, 2012, pursuant to its articles of incorporation, the Company redeemed and canceled all Aruze USA, Inc.'s ("Aruze") 24,549,222 shares of Wynn Resorts' common stock.

The Redemption Note was recorded at fair value in accordance with applicable accounting guidance.

The Company repaid the principal amount in full on March 30, 2018.

On March 30, 2018, the Company also paid an additional $ 463.6 million in settlement of certain legal claims concerning the Redemption Note, which is recorded as a Litigation settlement expense on the Consolidated Statements of Operations for the year ended December 31, 2018.

WLV Senior Notes

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As of December 31, 2021, Wynn Resorts holds this debt and has not contributed it to its wholly owned subsidiary, Wynn Las Vegas, LLC.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

The WLV Issuers and certain of their subsidiaries will guarantee and secure their obligation under the WRF Credit Facilities with liens on substantially all of their assets, with such liens limiting the amount of such obligations secured to 15 % of their total assets.

2 unchanged sentences

Therefore, the WLV Senior Notes may not be offered or sold within the United States to, or for the account or benefit of, any United States person unless the offer or sale would qualify for a registration exemption from the Securities Act and applicable state securities laws.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Retail Term Loan

16 unchanged sentences

On May 5, 2020, the Retail Borrowers entered into an amendment (the "Retail Term Loan Agreement Amendment") to its existing retail term loan agreement (the "Retail Term Loan Agreement").

The Retail Term Loan Agreement Amendment amends the Retail Term Loan Agreement to, among other things, temporarily suspend the requirement to maintain certain financial ratios to avoid triggering excess cash sweep provisions from the first quarter of 2020 through the fourth quarter of 2021.

The Retail Term Loan Agreement Amendment amended the Retail Term Loan Agreement to, among other things, temporarily suspend the requirement to maintain certain financial ratios to avoid triggering excess cash sweep provisions from the first quarter of 2020 through the fourth quarter of 2021.

Debt Covenant Compliance

8 unchanged sentences

2025 4,282,766

2026 1,000,000

Thereafter 4,730,000

Unamortized debt issuance costs and original issue discounts and premium, net ( 65,720 )

(1) Includes $ 412.5 million related to the prepayment of the Wynn Macau Term Loan paid in January 2021.

The remaining contractual amortization payments were reduced on a pro rata basis by $ 412.5 million.

Fair Value of Long-Term Debt

2 unchanged sentences

Note 8 - Stockholders' Equity (Deficit)

Equity Offerings

On April 3, 2018, the Company completed a registered public offering of 5,300,000 newly issued shares of its common stock, par value $ 0.01 per share, at a price of $ 175 per share for proceeds of $ 915.2 million, net of $ 11.7 million in underwriting discounts and $ 0.6 million in offering expenses.

The Company used the net proceeds from this equity offering to repay all amounts borrowed under a Wynn Resorts bridge facility, together with all interest accrued thereon, and used the remaining net proceeds to repay certain other indebtedness of the Company in April 2018.

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 and commissions.

The Company intends to use the net proceeds from this equity offering for general corporate purposes, including the repayment of debt.

The Company used the net proceeds from this equity offering for general corporate purposes, including the repayment of debt.

The Company's board of directors has authorized an equity repurchase program of up to $ 1.0 billion, which may include repurchases from time to time through open market purchases or negotiated transactions, depending on market conditions.

During the year ended December 31, 2020, the Company did not repurchase any of its shares under the program.

During the years ended December 31, 2019 and December 31, 2018, the Company repurchased 413,439 and 1,478,552 shares, respectively, at a net cost of $ 43.2 million and $ 156.7 million, respectively, under the equity repurchase program.

During the years ended December 31, 2021 and 2020, the Company did not repurchase any of its shares under the program.

During the year ended December 31, 2019, the Company repurchased 413,439 shares at a net cost of $ 43.2 million under the equity repurchase program.

As of December 31, 2021, the Company had $ 800.1 million in repurchase authority under the program.

During the years ended December 31, 2021, 2020, and 2019, the Company withheld a total of 140,363 shares, 120,513 shares, and 176,989 shares, respectively, in satisfaction of tax withholding obligations on vested restricted stock and stock option exercises.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

During the first quarter of 2020, the Company paid a cash dividend of $ 1.00 per share.

1 unchanged sentence

During the first quarter of 2019, the Company paid a cash dividend of $ 0.75 per share and $ 1.00 per share for each of the the three subsequent quarters, for annual cash dividends of $ 3.75 per share.

During the first quarter of 2018, the Company paid a cash dividend of $ 0.50 per share and $ 0.75 per share for each of the three subsequent quarters, for annual cash dividends of $ 2.75 per share.

During the years ended December 31, 2020, 2019 and 2018, the Company recorded $ 107.5 million, $ 403.0 million, and $ 294.9 million, respectively, as a reduction of retained earnings from cash dividends declared.

During the years ended December 31, 2020 and 2019, the Company recorded $ 107.5 million and $ 403.0 million, respectively, as a reduction of retained earnings from cash dividends declared.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Noncontrolling Interests

Wynn Interactive Ltd

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.

Wynn Macau, Limited

In October 2009, WML, the developer, owner and operator of Wynn Macau and Wynn Palace, listed its ordinary shares of common stock on The Stock Exchange of Hong Kong Limited through an initial public offering.

1 unchanged sentence

The shares of WML were not and will not be registered under the Securities Act and may not be offered or sold in the United States absent a registration under the Securities Act, or an applicable exception from such registration requirements.

The WML board of directors concluded not to recommend the payment of a dividend with respect to the year ended December 31, 2019 due to the financial impact of the COVID-19 pandemic.

The WML board of directors concluded not to recommend the payment of a dividend with respect to the years ended December 31, 2021, 2020 and 2019 due to the financial impact of the COVID-19 pandemic.

As such, WML paid no dividends during 2021 and 2020.

On September 16, 2019, WML paid a cash dividend of HK$ 0.45 per share for a total of $ 298.0 million.

2 unchanged sentences

The Company's share of this dividend was $ 215.0 million with a reduction of $ 83.0 million to noncontrolling interest in the accompanying Consolidated Balance Sheet.

On October 5, 2018, WML paid a cash dividend of HK$ 0.75 per share for a total of $ 496.6 million.

The Company's share of this dividend was $ 358.3 million with a reduction of $ 138.3 million to noncontrolling interest in the accompanying Consolidated Balance Sheet.

On April 25, 2018, WML paid a cash dividend of HK$ 0.75 per share for a total of $ 497.1 million.

The Company's share of this dividend was $ 358.8 million with a reduction of $ 138.3 million to noncontrolling interest in the accompanying Consolidated Balance Sheet.

During the years ended December 31, 2020 and 2019, the Retail Joint Venture made aggregate distributions of $ 6.2 million and $ 7.7 million, respectively to its non-controlling interest holder made in the normal course of business.

During the year ended December 31, 2018, the Retail Joint Venture made aggregate distributions of $ 305.4 million to its non-controlling interest holder in connection with the distribution of the net proceeds of the Retail Term Loan and distributions made in the normal course of business.

Retail Joint Venture

During the years ended December 31, 2021, 2020 and 2019, the Retail Joint Venture made aggregate distributions of $ 18.8 million, $ 6.2 million and $ 7.7 million, respectively, to its non-controlling interest holder.

For more information on the Retail Joint Venture, see Note 18, "Retail Joint Venture".

Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss)

The following tables presents the changes by component, net of tax and noncontrolling interests, in accumulated other comprehensive loss of the Company (in thousands):

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

translation Unrealized

loss on investment

securities Redemption Note Total

January 1, 2018 $ ( 553 ) $ ( 1,292 ) $ — $ ( 1,845 )

Cumulative credit risk adjustment (1)

— — ( 9,211 ) ( 9,211 )

Change in net unrealized gain (loss) ( 1,397 ) ( 1,510 ) 7,690 4,783

Amounts reclassified to net income (2)

— 2,802 1,521 4,323

Other comprehensive income (loss) ( 1,397 ) 1,292 9,211 9,106

December 31, 2018 ( 1,950 ) — — ( 1,950 )

Change in net unrealized gain 271 — — 271

Other comprehensive income 271 — — 271

December 31, 2019 ( 1,679 ) — — ( 1,679 )

Change in net unrealized gain 5,283 — — 5,283

Other comprehensive income 5,283 — — 5,283

December 31, 2020 $ 3,604 $ — $ — $ 3,604

(1) On January 1, 2018, the Company adopted Accounting Standards Update ("ASU") No.

2016-01, Financial Instruments.

The adjustment to the beginning balance represents the cumulative effect of the change in instrument-specific credit risk on the Redemption Note.

(2) The amounts reclassified to net income include $ 1.8 million for other-than-temporary impairment losses and $ 1.0 million in realized losses, both related to investment securities, and a $ 1.5 million realized gain related to the repayment of the Redemption Note.

Note 9 - Fair Value Measurements

14 unchanged sentences

Interest rate collar $ 16,908 $ — $ 16,908 $ —

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Note 10 - Benefit Plans

4 unchanged sentences

The Company matches 50 % of employee contributions, up to 6 % of employees' eligible compensation.

During the year ended December 31, 2020, the Company did not match employee contributions.

During the years ended December 31, 2019 and 2018, the Company recorded matching contribution expenses of $ 6.9 million, and $ 6.4 million, respectively.

During the year ended December 31, 2021, the Company recorded matching contribution expenses of $ 8.0 million.

During the year ended December 31, 2020, the Company did no t match employee contributions.

During the year ended December 31, 2019, the Company recorded matching contribution expenses of $ 6.9 million.

Wynn Macau SA also operates a defined contribution retirement benefit plan (the "Wynn Macau Plan").

1 unchanged sentence

On July 1 2019, the Company offered the option for the eligible Macau resident employees to join the non-mandatory central provident fund (the "CPF") system.

Eligible Macau resident employees joining the Company from July 1, 2019 onwards will enroll in the CPF system while the Company's existing Macau resident employees who are currently members of the Wynn Macau Plan will be provided with the option of joining the CPF system or staying in the existing Wynn Macau Plan, which will continue to be in effect in parallel.

Eligible Macau resident employees joining the Company from July 1, 2019 onwards have the option of enrolling in the CPF system while the Company's existing Macau resident employees who are currently members of the Wynn Macau Plan will be provided with the option of joining the CPF system or staying in the existing Wynn Macau Plan, which will continue to be in effect in parallel.

The CPF system allows eligible employees to contribute 5 % or more of their base salary to the CPF while the Company matches with a 5 % of such salary as employer's contribution to the CPF.

The Company's matching contributions vest to the employee at 10 % per year with full vesting in ten years .

The assets of the Wynn Macau Plan and the CPF are held separately from those of the Company in independently administered funds, and the assets of the CPF are also overseen by the Macau government.

The assets of the Wynn Macau Plan and the CPF are held separately from those of the Company in independently administered funds and overseen by the Macau government.

Forfeitures of unvested contributions are used to reduce the Company's liability for its contributions payable.

During the years ended December 31, 2021, 2020 and 2019, the Company recorded matching contribution expenses of $ 17.2 million, $ 19.5 million, and $ 17.8 million, respectively.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Multi-Employer Pension Plan

14 unchanged sentences

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.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

The Company's primary liabilities associated with customer contracts are as follows (in thousands):

11 unchanged sentences

These amounts are included in customer deposits on the Consolidated Balance Sheets and may be recognized as revenue or redeemed for cash in the future.

As of December 31, 2021, the Company had no agreements in place with gaming promoters.

(2) Advance room deposits and ticket sales represent cash received in advance for goods or services to be provided in the future.

6 unchanged sentences

The amounts are included in other accrued liabilities on the Consolidated Balance Sheets and are expected to be recognized as revenue within one year of being earned by customers.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Note 12 - Stock-Based Compensation

16 unchanged sentences

As of December 31, 2021, there were 501,735,860 shares available for issuance under the WML Share Option Plan.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

WML Employee Share Ownership Scheme (the "WML Share Award Plan")

8 unchanged sentences

As of December 31, 2021, there were 14,660 shares available to grant under the WIL Omnibus Plan.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Stock Options

20 unchanged sentences

Granted 5,297 $ 760.79

Assumed in business combination 9,452 $ 264.00

Exercised — $ —

Forfeited or expired ( 4,961 ) $ 593.15

29 unchanged sentences

The fair value of stock options granted under the WIL Omnibus Plan was estimated on the date of grant using the following weighted average assumptions:

Year Ended December 31,

Years Ended December 31,

Expected dividend yield — % — %

19 unchanged sentences

Nonvested as of December 31, 2021 10,024,737 $ 2.06

WIL Omnibus Plan

Nonvested as of January 1, 2021 — $ —

Granted 4,094 $ 3,150.00

Forfeited ( 54 ) $ 3,150.00

Nonvested as of December 31, 2021 4,040 $ 3,150.00

Certain members of the executive management team receive grants of nonvested share awards that are subject to service and performance conditions.

Generally, these awards vest if certain revenue and Adjusted Property EBITDA fair share metrics (as approved by the Company's Compensation Committee of the Board of Directors) are attained over a three-year performance period.

The Company records expense for these awards if it determines that vesting is probable.

13 unchanged sentences

As of December 31, 2021, there was $ 8.5 million of unamortized compensation expense, which is expected to be recognized over a weighted average period of 2.14 years under the WML Share Award Plan.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Annual Incentive Bonus

2 unchanged sentences

As the number of shares is variable, the Company records a liability for the fixed monetary amount over the service period.

The Company recorded stock-based compensation expense associated with these awards of $ 5.7 million for the year ended December 31, 2020, and $ 6.7 million for each of the years ended December 31, 2019 and 2018.

The Company settled its

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

obligations for the 2020, 2019, and 2018 annual incentive bonuses by issuing 58,058 , 44,788 , 58,783 of vested shares with a weighted-average grant date fair value of $ 108.03 , $ 150.03 , and $ 113.55 , in January of the respective following year.

The Company recorded stock-based compensation expense associated with these awards of $ 9.3 million, $ 5.7 million and $ 6.7 million for each of the years ended December 31, 2021, 2020 and 2019, respectively.

The Company settled its obligations for the 2021, 2020, and 2019 annual incentive bonuses by issuing 108,224 , 58,058 , 44,788 of vested shares with a weighted-average grant date fair value of $ 85.80 , $ 108.03 , and $ 150.03 , in January of the respective following year.

Compensation Cost

6 unchanged sentences

Entertainment, retail and other (2)

19,978 432 174

General and administrative 56,572 48,477 28,772

Pre-opening — — 670

Property charges and other (2)

— — ( 2,201 )

Total stock-based compensation expense 95,238 62,254 40,372

2 unchanged sentences

(1) In 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) In 2018, reflects the reversal of compensation cost previously recognized for awards forfeited in connection with the departure of an employee.

(2) In 2021, reflects compensation cost of $ 2.7 million recognized in connection with the vesting of restricted stock performance awards.

During the years ended December 31, 2021, 2020 and 2019, the Company recognized income tax benefits in the Consolidated Statements of Operations of $ 14.9 million, $ 9.3 million, and $ 5.8 million, respectively, related to stock-based compensation expense.

24 unchanged sentences

Federal statutory rate 21.0 % 21.0 % 21.0 %

State Tax 1.6 % — % — %

Foreign tax credits, net of valuation allowance 0.7 % ( 31.8 ) % 13.1 %

6 unchanged sentences

Wynn Macau SA received a five year exemption from Macau's 12 % Complementary Tax on casino gaming profits through December 31, 2020.

For the years ended December 31, 2019 and 2018, the Company was exempt from the payment of such taxes totaling $ 77.7 million and $ 96.8 million or $ 0.73 and $ 0.90 per diluted share, respectively.

For the year ended December 31, 2020, the Company did not have any casino gaming profits in Macau.

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 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 years ended December 31, 2021 and 2020, the Company did not have any casino gaming profits exempt from the Macau Complementary Tax.

Wynn Macau SA also entered into an agreement with the Macau government 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 on dividend distributions through 2020.

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.

As a result of the stockholder dividend tax agreements, income tax expense includes $1.6 million for each of the years ended December 31, 2021, 2020, and 2019.

In March 2020, Wynn Macau SA applied for an extension of this agreement for an additional five years through 2025.

The extension is subject to approval and may only extend through June 26, 2022, the expiration date of the gaming concession agreement.

The Macau special gaming tax is 35 % of gross gaming revenue.

1 unchanged sentence

In February 2010, the Company and the IRS entered into a Pre-Filing Agreement ("PFA") providing that the Macau special gaming tax qualifies as a tax paid in lieu of an income tax and could be claimed as a U.S.

During the year ended December 31, 2020, the Company did not recognize any tax benefits for FTCs generated by the earnings of Wynn Macau SA.

During the years ended December 31, 2019 and 2018, the Company recognized tax benefits of

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

$ 32.9 million and $ 82.8 million, respectively (net of valuation allowance and uncertain tax positions) for FTCs generated from the earnings of Wynn Macau SA.

During the years ended December 31, 2021 and 2020, the Company did not recognize any tax benefits for FTCs generated by the earnings of Wynn Macau SA.

During the year ended December 31, 2019, the Company recognized tax benefits of $ 32.9 million (net of valuation allowance and uncertain tax positions) for FTCs generated from the earnings of Wynn Macau SA.

Accounting standards require recognition of a future tax benefit to the extent that realization of such benefit is more likely than not;

otherwise, a valuation allowance is applied.

During the years ended December 31, 2020 and 2019, the aggregate valuation allowance for deferred tax assets increased by $ 227.3 million and $ 115.5 million, respectively.

During the years ended December 31, 2021 and 2020, the aggregate valuation allowance for deferred tax assets decreased $ 485.4 million and increased $ 227.3 million, respectively.

The 2021 decrease is primarily related to the expiration of FTCs.

The 2020 increase is primarily related to the realizability of FTCs, intangible assets, U.S.

loss carryforwards and other U.S.

deferred tax assets.

The 2019 increase is primarily related to the realizability of deferred tax assets related to disallowed interest expense carryforwards.

loss carryforwards and other deferred tax assets.

The Company recorded tax benefits resulting from the exercise of nonqualified stock options and the value of vested restricted stock and accrued dividends of $ 1.9 million, $ 1.2 million, and $ 5.7 million for the years ended December 31, 2021, 2020, and 2019, respectively, in excess of the amounts reported for such items as compensation costs under accounting standards related to stock-based compensation.

33 unchanged sentences

( 3,429 ) ( 6,636 )

Net deferred tax (liability) asset $ ( 1,371 ) $ 562,262

Net deferred tax asset (liability) $ 1,333 $ ( 1,371 )

FTC carryforwards of $ 533.6 million expired on December 31, 2021.

As of December 31, 2021, the Company had FTC carryforwards (net of uncertain tax positions) of $ 2.0 billion.

Of this amount, $ 540.3 million will expire in 2021, $ 756.0 million in 2023, $ 710.7 million in 2024, $ 47.2 million in 2025 and $ 486.2 million in 2027.

Of this amount,$ 756.0 million will expire in 2023, $ 710.7 million in 2024, $ 47.2 million in 2025 and $ 486.2 million in 2027.

The Company has a disallowed interest carryforward of $ 674.9 million which does not expire.

1 unchanged sentence

federal tax loss carryforwards of $ 343.1 million and state tax loss carryforwards of $ 74.4 million.

federal tax loss carryforwards do not expire.

The majority of state tax loss carryforwards expire in 2040.

The Company incurred foreign tax losses of $ 394.1 million, $ 378.6 million and $ 376.8 million during the tax years ended December 31, 2021, 2020 and 2019, respectively.

3 unchanged sentences

In assessing the need for a valuation allowance, the Company considers whether it is more likely than not that the deferred tax assets will be realized.

The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income.

In the assessment of

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

the valuation allowance, appropriate consideration is given to all positive and negative evidence including recent operating profitability, forecast of future earnings, ability to carryback, the reversal of net taxable temporary differences, the duration of statutory carryforward periods and tax planning strategies.

For the year ended December 31, 2019, the Company relied on the forecast of future taxable income and tax planning strategies in assessing the need for a valuations allowance.Due to recent tax legislation that reduces future sources of taxable income as well as the uncertainty caused by the COVID-19 pandemic, the Company relies solely on the reversal of net taxable temporary differences in assessing the need for a valuation allowance in the current year.

The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income.

In the assessment of the valuation allowance, appropriate consideration is given to all positive and negative evidence including recent operating profitability, forecast of future earnings, ability to carryback, the reversal of net taxable temporary differences, the duration of statutory carryforward periods and tax planning strategies.

For the year ended December 31, 2019, the Company relied on the forecast of future taxable income and tax planning strategies in assessing the need for a valuations allowance.

Due to tax legislation that reduces future sources of taxable income as well as the uncertainty caused by the COVID-19 pandemic, the Company relied solely on the reversal of net taxable temporary differences in assessing the need for a valuation allowance in the years ended December 31, 2021 and 2020.

As of December 31, 2021 and 2020, the Company had valuation allowances provided on its deferred tax assets as follows (in thousands):

11 unchanged sentences

Increases based on tax positions of the current year 14,079 7,061 8,986

Increases based on tax positions of prior years 66,043 — —

Reductions based on tax positions of prior years ( 35,633 ) — —

Reductions due to lapse in statutes of limitations (10,635) (3,695) (4,161)

4 unchanged sentences

The Company recognizes penalties and interest related to unrecognized tax benefits in the provision for income taxes.

During the each of the years ended December 31, 2020, 2019 and 2018, the Company recognized no interest and penalties.

During each of the years ended December 31, 2021, 2020 and 2019, the Company recognized no interest and penalties.

The Company anticipates that the 2017 statute of limitations will expire in the next 12 months for certain foreign tax jurisdictions.

Also, the Company's unrecognized tax benefits include certain income tax accounting methods, which govern the timing and deductibility of income tax deductions.

As a result, the Company's unrecognized tax benefits could increase up to $ 1.4 million over the next 12 months.

As a result, the Company's unrecognized tax benefits could decrease up to $ 0.9 million over the next 12 months.

The Company files income tax returns in the U.S.

4 unchanged sentences

The Company's 2017 to 2020 Macau income tax returns remain subject to examination by the Financial Services Bureau.

The Company has participated in the IRS Compliance Assurance Program ("CAP") for the 2012 through 2020 tax years and will continue to participate in the IRS CAP for the 2021 tax year.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

In February 2018, May 2019, and July 2020, the Company received notification that the IRS completed its examination of the Company's 2016, 2017, and 2018 U.S.

The Company has participated in the IRS Compliance Assurance Program ("CAP") for the 2012 through 2021 tax years and will continue to participate in the IRS CAP for the 2022 tax year.

In May 2019, July 2020, and February 2021, the Company received notification that the IRS completed its examination of the Company's 2017, 2018, and 2019 U.S.

income tax returns, respectively.

In February 2021, the Company received notification that the IRS completed its examination of the Company's 2019 U.S.

income tax return.

There were no changes in its unrecognized tax benefits as a result of the completion of these examinations.

On December 31, 2019, 2020 and 2021, the statute of limitations for the 2014, 2015, and 2016 Macau Complementary tax return expired, respectively.

As a result of the expiration of the statute of limitations for the Macau Complementary Tax return, the total amount of unrecognized tax benefits decreased by $ 4.2 million, $ 3.7 million, and $ 10.6 million, respectively.

In July 2018, the Financial Services Bureau issued final tax assessments for the Company's Macau income tax returns of Wynn Macau SA for the years 2013 and 2014.

While no additional tax was due, adjustments were made to the Company's tax loss carryforwards.

In February 2018, the Financial Services Bureau concluded its examination of the 2013 and 2014 Macau income tax returns of Palo with no changes.

In January of 2020, the Financial Services Bureau commenced an examination of the 2015 and 2016 Macau income tax returns of Palo.

1 unchanged sentence

In July 2020, the Financial Services Bureau issued final tax assessments for the Company's Macau income tax returns of Wynn Macau SA for the years 2015 and 2016, while no additional tax was due, adjustments were made to the Company's tax loss carryforwards.

In March 2021, the Financial Services Bureau concluded its review of the 2017 and 2018 Macau income tax returns of Palo with no changes.

In January 2022, the Financial Services Bureau issued final tax assessments for the Company’s Macau income tax returns of Wynn Macau SA for the years 2017 and 2018, while no additional tax was due, adjustments were made to the Company’s tax loss carryforwards.

Note 14 - Earnings Per Share

Basic earnings per share ("EPS") is computed by dividing net income attributable to Wynn Resorts by the weighted average number of common shares outstanding during the year.

Diluted EPS is computed by dividing net income 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.

Basic earnings per share ("EPS") is computed by dividing net income (loss) attributable to Wynn Resorts by the weighted average number of common shares outstanding during the year.

Diluted EPS is computed by dividing net income (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.

14 unchanged sentences

The following table summarizes the balance sheet classification of the Company's lease assets and liabilities (in thousands):

Years Ended December 31,

Balance Sheet Classification 2021 2020

7 unchanged sentences

Finance leases Other long-term liabilities $ 44,018 $ 54,379

The following tables disclose the components of the Company's lease cost, supplemental cash flow disclosures, and other information regarding the Company's lease arrangements (dollars in thousands):

The following tables disclose the components of the Company's lease cost, supplemental cash flow disclosures, and other information regarding the Company's lease arrangements (in thousands):

Years Ended December 31,

2021 2020 2019

Operating lease cost $ 22,878 $ 29,574 $ 33,126

5 unchanged sentences

Years Ended December 31,

2021 2020 2019

Supplemental cash flow disclosures:

7 unchanged sentences

Years Ended December 31,

2021 2020 2019

Other information:

Weighted-average remaining lease term - Operating leases 43.9 years 35.4 years

Weighted-average remaining lease term - Finance leases 13.6 years 42.8 years

Weighted-average remaining lease term - Operating leases 46.5 years 43.9 years 35.4 years

Weighted-average remaining lease term - Finance leases 14.0 years 13.6 years 42.8 years

Weighted-average discount rate - Operating leases 6.6 % 6.5 % 6.4 %

17 unchanged sentences

The Company leases approximately 16 acres of undeveloped land on Las Vegas Boulevard directly across from Wynn Las Vegas in Las Vegas, Nevada, pursuant to a lease agreement which expires in 2097.

The ground lease payments, which increase at a fixed rate over the term of the lease, are $ 3.8 million per year until 2023 and total payments of $ 367.8 million thereafter.

The ground lease payments, which increase at a fixed rate over the term of the lease, are $3.8 million in 2022, $3.9 million in 2023, $4.0 million per year from 2024 to 2026 and total payments of $ 355.8 million thereafter.

As of December 31, 2021 and 2020, the liability associated with this lease was $ 63.7 million and $ 63.2 million, respectively.

6 unchanged sentences

At December 31, 2021 and 2020, operating lease assets included $ 166.7 million and $ 180.3 million of leasehold interests in land related to the Wynn Palace and Wynn Macau land concessions.

The Company expects that the amortization associated with these leasehold interests will be approximately $ 12.7 million per year from 2021 through 2028 and approximately $ 9.4 million per year thereafter through 2037.

The Company expects that the amortization associated

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Rent expense for the year ended December 31, 2018 was $ 27.1 million.

with these leasehold interests will be approximately $ 12.6 million per year from 2022 through 2028 and approximately $ 9.3 million per year thereafter through 2037.

Lessor Arrangements

19 unchanged sentences

In addition, Ms.

Chen has the option to purchase the home for no further consideration at any time before the expiration of her employment contract.

Chen has an option to purchase the home for no further consideration at any time before the expiration of this option arrangement.

Cooperation Agreement

2 unchanged sentences

Satre to the Company's Board of Directors, standstill restrictions, releases, non-disparagement, reimbursement of expenses and the grant of certain complimentary privileges.

The term of the Cooperation Agreement expires on the later of (i) the date that Mr.

Satre no longer serves as Chair of the Board and (ii) the day after the conclusion of the 2020 annual meeting of the Company's stockholders, unless earlier terminated pursuant to the circumstances described in the Cooperation Agreement.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

The term of the Cooperation Agreement expires on the date that Mr.

Satre no longer serves as Chair of the Board, unless earlier terminated pursuant to the circumstances described in the Cooperation Agreement.

Amounts Due to Officers, Directors and Former Directors

2 unchanged sentences

As of December 31, 2021 and 2020, these net deposit balances with the Company were immaterial, as were the services provided.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Note 17 - Commitments and Contingencies

3 unchanged sentences

Certain of the executives are also entitled to a separation payment if terminated without "cause" or upon voluntary termination of employment for "good reason" following a "change of control" (as these terms are defined in the employment contracts).

As of December 31, 2020, the Company was obligated to make future payments of $ 54.1 million, $ 28.3 million, $ 6.8 million, $ 1.0 million, $ 0.4 million, and $ 2.0 million during the years ending December 31, 2021, 2022, 2023, 2024, 2025, and thereafter, respectively.

As of December 31, 2021, the Company was obligated to make future payments of $ 62.2 million, $ 41.5 million, $ 15.0 million, $ 0.9 million, and $ 0.2 million during the years ending December 31, 2022, 2023, 2024, 2025 and 2026, respectively.

There are no employment agreement obligations after December 31, 2026.

Other Commitments

9 unchanged sentences

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.

Macau Litigation Related to Dore

Wynn Macau SA has been named as a defendant in lawsuits filed in the Macau Court of First Instance by individuals who claim to be investors in or persons with credit in accounts maintained by Dore Entertainment Company Limited (“Dore”), an independent, Macau registered and licensed company that operated a gaming promoter business at Wynn Macau.

In connection with the alleged theft, embezzlement, fraud and/or other crime(s) perpetrated by a former employee of Dore (the “Dore Incident”), the plaintiffs of the lawsuits allege that Dore failed to honor withdrawal of funds deposited with Dore as investments or gaming deposits that allegedly resulted in certain losses for these individuals.

The principal allegations common to the lawsuits are that Wynn Macau SA, as a gaming concessionaire, should be held responsible for Dore’s conduct on the basis that Wynn Macau SA is responsible for the supervision of Dore’s activities at Wynn Macau that resulted in the purported losses.

On November 19, 2021, the Macau Court of Final Appeal issued a final ruling (the “Ruling”) with respect to one such lawsuit that Wynn Macau SA was held jointly liable to a plaintiff.

Pursuant to the Ruling, Wynn Macau SA was required to pay approximately $ 1.2 million, inclusive of accumulated interest, to such plaintiff.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

The Company believes most remaining cases are without merit and unfounded and intends to vigorously defend against the remaining claims pleaded against Wynn Macau SA in these lawsuits.

The Company has made estimates for potential litigation costs based upon its assessment of the likely outcome and has recorded provisions for such amounts in the accompanying consolidated financial statements for the year ended December 31, 2021.

No assurances can be provided as to the outcome of the pending Dore cases, and actual results may differ from these estimates.

Massachusetts Gaming License Related Actions

1 unchanged sentence

On November 7, 2014, the gaming license became effective.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Revere Action

6 unchanged sentences

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.

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.

Mohegan and the MGC engaged in supplemental briefing on Mohegan’s still-pending Motion for Judgment Against the MGC and Individual Commissioners, which concluded in April 2021.

On February 16, 2022, the court denied Mohegan’s motion, and ordered that judgment shall enter for the MGC and Individual Commissioners on all remaining claims asserted in the action.

Wynn MA was not a party to and was not named in the Revere Action.

Derivative Litigation

10 unchanged sentences

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 accompanying Consolidated Statements of Operations for the nine months ended September 30, 2020.

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 Consolidated Statements of Operations for the year ended December 31, 2020.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

In 2018, several actions filed in the United States District Court, District of Nevada were consolidated as In re Wynn Resorts, Ltd.

3 unchanged sentences

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 identical 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 June 10, 2019, the Company filed a motion to dismiss, or alternatively to consolidate this action into the Federal Derivative Case.

On March 23, 2020, the court denied the Company’s motion to dismiss as moot 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.

Absent an appeal of the court’s decision, this matter is resolved.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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.

Individual Stockholder Actions

A number of stockholders filed individual actions in the Eighth Judicial District Court of Clark County, Nevada against certain current and former members of the Company's Board of Directors and certain of the Company's current and former officers ("Individual Stockholder Actions").

Each of the complaints alleged that defendants, among other things, breached their fiduciary duties in failing to detect, prevent and remedy alleged inappropriate personal conduct by Stephen A.

Wynn in the workplace causing injury to each of the individual stockholders.

On January 29, 2019, the defendants filed motions to dismiss each of the Individual Stockholder Actions.

On December 12, 2019, the district court entered an order denying the motions to dismiss, which the defendants appealed to the Nevada Supreme Court on December 24, 2019.

On July 27, 2020, the Supreme Court issued an order mandating that the district court dismiss the actions.

As of September 2, 2020, all of the Individual Stockholder Actions have been dismissed.

Securities Action

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On July 1, 2020, the plaintiffs filed an amended complaint.

On August 14, 2020, the Company filed a motion to dismiss the amended complaint, which is pending decision from the court.

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 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.

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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.

Attorney’s Office for the Southern District of California relating to its anti-money laundering policies and procedures, and beginning in 2020 received several 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.

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The Company's responsibilities with respect to the Retail Joint Venture include day-to-day business operations, property management services and a role in the leasing decisions of the retail space.

The Company assessed its ownership in the Retail Joint Venture based on consolidation accounting guidance with an evaluation being performed to determine if the Retail Joint Venture is a VIE, if the Company has a variable interest in the Retail Joint Venture and if the Company is the primary beneficiary of the Retail Joint Venture.

The primary beneficiary is the party who has the power to direct the activities of a VIE that most significantly impact the entity's economic performance and who

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

has an obligation to absorb losses of the entity or a right to receive benefits from the entity that could potentially be significant to the entity.

The primary beneficiary is the party who has the power to direct the activities of a VIE that most significantly impact the entity's economic performance and who has an obligation to absorb losses of the entity or a right to receive benefits from the entity that could potentially be significant to the entity.

The Company concluded that the Retail Joint Venture is a VIE and the Company is the primary beneficiary based on its involvement in the leasing activities of the Retail Joint Venture.

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On October 23, 2020, the Company acquired a controlling interest in Wynn Interactive, which was formed in stages through the merger of Wynn Resorts' digital gaming businesses and BetBull (the “BetBull Acquisition”).

BetBull is licensed to operate online sports and casino wagering in the United Kingdom and develops mobile applications for that purpose.

This acquisition provides the Company with access to the online market in the United Kingdom, synergies in mobile application development, and digital gaming operations expertise.

As part of the BetBull Acquisition, BetBull shareholders, which included Wynn Resorts, exchanged their shares in BetBull for shares of Wynn Interactive, and Wynn Resorts exchanged its membership interests in its subsidiaries that operated its existing digital and social casino businesses ("WSI" and "WSG", respectively) for a controlling interest in Wynn Interactive.

Prior to the BetBull Acquisition, the Company held a 22.5 % interest in BetBull, which was accounted for as a cost method investment.

Immediately prior to the BetBull Acquisition, the book and fair values of this cost method investment were $ 21.5 million and $ 37.2 million, respectively.

Total consideration (including the fair value of noncontrolling interest) in order to compute goodwill related to the business combination was $ 164.7 million, which included the following:

• The acquisition date fair value of Wynn Resorts' previously held minority equity interest in BetBull of $ 37.3 million.

Immediately prior to the BetBull Acquisition, the book value of this cost method investment was $ 21.5 million.

The Company recorded a gain of $ 15.7 million to reflect the fair value of its interest at the date of acquisition, which was recorded in Other non-operating income (expense) on the Consolidated Statement of Operations for the year ended December 31, 2020.

As consideration for a controlling interest in Wynn Interactive, the Company contributed its interests in WSI US, LLC (“WSI”) and Wynn Social Gaming, LLC (“Wynn Social”) both of which make up the Company’s existing digital operations.

The fair value of the combined interests contributed totaled $ 49.5 million.

Consideration also included the settlement of transactions from the Company’s pre-existing relationship with BetBull and the fair value of vested replacement stock options, all of which totaled $ 6.0 million.

The fair value of non-controlling interest at the consummation of the BetBull Acquisition was approximately $ 72.0 million.

The fair values of WSI, Wynn Social and BetBull were all determined using the market approach given the early stages of each of the businesses.

The income approach was also used as a cross-check to determine the reasonableness of the market approach as well as to determine the fair value of BetBull immediately prior to the BetBull Acquisition.

• The acquisition date fair value of the non-controlling interests in WSI and WSG that Wynn Resorts transferred to legacy BetBull shareholders in exchange for a controlling interest in BetBull, totaling $ 49.5 million.

• The settlement of transactions from Wynn Resorts' pre-existing relationship with BetBull and the fair value of vested replacement stock options, all of which totaled $ 5.9 million.

• The fair value of BetBull’s noncontrolling interest totaling $ 72.0 million.

The fair values of WSI, WSG, and BetBull were all determined using the market approach given the early stages of each of the businesses.

The settlement of pre-existing transactions was valued based on the contractual amounts owed to either party.

Wynn Resorts' contribution of its remaining, controlling membership interests in WSI and WSG were accounted for as a transfer of businesses between entities under the common control of Wynn Resorts and therefore transferred at Wynn Resorts' carrying value.

BetBull is licensed to operate online sports and casino wagering in the United Kingdom and develops mobile applications for that purpose.

This acquisition provides the Company with access to the online market in the United Kingdom, synergies in mobile application development, and digital gaming operations expertise.

The BetBull Acquisition was accounted for as a business combination.

The assets acquired and liabilities assumed were recognized at their fair values at the acquisition date, which was estimated using both level 2 (observable) and level 3 (unobservable) inputs.

The following table sets forth the preliminary purchase price allocation (in thousands):

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

The following table sets forth the final purchase price allocation (in thousands):

Consideration

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The estimated useful lives approximate the pattern in which the economic benefits of the intangible assets and software are expected to be realized.

The purchase price allocation is preliminary as the Company is determining its final deferred tax assets and working capital adjustments.

Immediately after the BetBull Acquisition, the Company contributed $ 78.0 million to Wynn Interactive and purchased approximately $ 33.6 million of Wynn Interactive shares from non-controlling shareholders (the "Secondary Transaction").

After the BetBull Acquisition and the Secondary Transaction, the Company holds an approximately 72 % interest in Wynn Interactive, which owns 100 % of BetBull, WSI, and Wynn Social.

Immediately after the BetBull Acquisition and the Secondary Transaction, the Company held an approximately 72 % interest in Wynn Interactive, which owns 100 % of BetBull, WSI, and WSG.

The Secondary Transaction was recorded as an adjustment to Stockholders’ equity (deficit) on the Consolidated Balance Sheet as the Company had a controlling interest in BetBull at the time of the transaction.

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Note 20 - 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").

On June 23, 2019, the Company opened Encore Boston Harbor, an integrated resort in Everett, Massachusetts.

Encore Boston Harbor is presented as one reportable segment.

The Company has identified its reportable segments based on factors such as geography, regulatory environment, the information reviewed by its chief operating decision maker, and the Company's organizational and management reporting structure.

The Company has identified the following reportable segments:

(i) Wynn Macau, representing the aggregate of Wynn Macau and Encore, an expansion at Wynn Macau, which are managed as a single integrated resort;

(ii) Wynn Palace;

(iii) Las Vegas Operations, representing the aggregate of Wynn Las Vegas, Encore, an expansion at Wynn Las Vegas, and the Retail Joint Venture, which are managed as a single integrated resort;

(iv) Encore Boston Harbor;

and (v) Wynn Interactive.

For geographical reporting purposes, Wynn Macau, Wynn Palace, and Other Macau (which represents the assets of the Company's Macau holding company and other ancillary entities) have been aggregated into Macau Operations.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

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Total Encore Boston Harbor 691,523 361,666 363,919

Corporate and other:

Wynn Interactive:

Entertainment, retail and other 59,438 6,171 —

Total Corporate and other 6,171 — —

Total Wynn Interactive 59,438 6,171 —

Total operating revenues $ 3,763,664 $ 2,095,861 $ 6,611,099

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Encore Boston Harbor 210,068 ( 23,762 ) 23,150

Corporate and other ( 7,351 ) — —

Wynn Interactive ( 267,360 ) ( 7,351 ) —

Total 569,441 ( 324,305 ) 1,815,408

Other operating expenses

Litigation settlement — — 463,557

Pre-opening 6,821 6,506 102,009

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Change in derivatives fair value 11,360 ( 13,060 ) ( 3,228 )

Change in Redemption Note fair value — — ( 69,331 )

(Loss) gain on extinguishment of debt ( 2,060 ) ( 4,601 ) ( 12,437 )

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Income (loss) before income taxes ( 1,011,516 ) ( 1,762,275 ) 488,218

(Provision) benefit for income taxes ( 564,671 ) ( 176,840 ) 497,344

Provision for income taxes ( 474 ) ( 564,671 ) ( 176,840 )

Net income (loss) ( 1,011,990 ) ( 2,326,946 ) 311,378

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For more information on leases, see Note 15, "Leases".

(2) "Adjusted Property EBITDA" is net income (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 and water rights leases), stock-based compensation, change in derivatives fair value, loss on extinguishment of debt, and other non-operating income and expenses.

(2) "Adjusted Property EBITDA" is net income (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.

We use Adjusted Property EBITDA to manage the operating results of our segments.

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.

The Company also presents 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.

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 pre-opening 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 the Company's 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 (loss), 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.

The Company has 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, the Company's 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 year ended December 31, 2020, includes a $ 30.2 million net gain recorded in relation to a derivative litigation settlement.

For the year ended December 31, 2019, includes a $ 35.0 million nonrecurring regulatory expense.

(4) Excludes $ 0.7 million included in pre-opening expenses for the years ended December 31, 2019 and 2018.

Excludes a credit of $ 2.2 million included in property charges and other expenses in 2018.

(4) Excludes $ 0.7 million included in pre-opening expenses for the year ended December 31, 2019.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

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Encore Boston Harbor 38,730 61,342 471,381

Wynn Interactive 13,624 5,603 —

Corporate and other 7,097 40,726 286,327

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Encore Boston Harbor 2,193,117 2,300,016 2,456,667

Wynn Interactive 287,805 265,945 —

Corporate and other 1,657,149 1,688,119 2,193,396

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The following tables (in thousands, except per share data) present selected quarterly financial information for 2021 and 2020, as previously reported.

Because income (loss) per share amounts are calculated using the weighted average number of common and dilutive common equivalent shares outstanding during each quarter, the sum of the per share amounts for the four quarters may not equal the total income per share amounts for the year.

quarters may not equal the total income per share amounts for the year.

Year Ended December 31, 2021

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Operating revenues $ 953,716 $ 85,698 $ 370,452 $ 685,995 $ 2,095,861

Operating income $ 255,176 $ 218,716 $ 177,835 $ 226,578 $ 878,305

Net income (loss) $ 159,731 $ 142,234 $ 26,883 $ (17,470) $ 311,378

Net income (loss) attributable to Wynn Resorts, Limited $ 104,872 $ 94,551 $ (3,496) $ (72,942) $ 122,985

Basic income (loss) per share $ 0.98 $ 0.88 $ (0.03) $ (0.68) $ 1.15

Diluted income (loss) per share $ 0.98 $ 0.88 $ (0.03) $ (0.68) $ 1.15

Operating loss $ (247,411) $ (523,016) $ (283,007) $ (178,611) $ (1,232,045)

Net loss $ (450,253) $ (734,869) $ (831,533) $ (310,291) $ (2,326,946)

Net loss attributable to Wynn Resorts, Limited $ (402,037) $ (637,564) $ (758,142) $ (269,502) $ (2,067,245)

Basic loss per share $ (3.77) $ (5.97) $ (7.10) $ (2.53) $ (19.37)

Diluted loss per share $ (3.77) $ (5.97) $ (7.10) $ (2.53) $ (19.37)

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data