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Item 2. Management’s Discussion and Analysis

2022-08-09 compared with 2022-05-10 · 291 added, 107 removed, 335 unchanged (54% of the section changed)

Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with, and is qualified in its entirety by, the condensed consolidated financial statements and the notes thereto included elsewhere in this Form 10-Q and the consolidated financial statements appearing in our annual report on Form 10-K for the year ended December 31, 2021.

The following discussion should be read in conjunction with, and is qualified in its entirety by, the unaudited condensed consolidated financial statements and the notes thereto included elsewhere in this Form 10-Q and the audited consolidated financial statements appearing in our annual report on Form 10-K for the year ended December 31, 2021.

Unless the context otherwise requires, all references herein to the "Company," "we," "us," or "our," or similar terms, refer to Wynn Resorts, Limited, a Nevada corporation, and its consolidated subsidiaries.

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• pending or future claims and legal proceedings, regulatory or enforcement actions or probity investigations;

• our ability to maintain our gaming licenses and concessions, including the renewal or extension of the concession in Macau that expires on June 26, 2022 and the proposed amendments to the Macau gaming law;

• our ability to maintain our gaming licenses and concessions, including the renewal or extension of the concession in Macau that expires on December 31, 2022 and the amendments to the Macau gaming law;

• our dependence on key employees;

32 unchanged sentences

We refer to Wynn Las Vegas, Encore, an expansion at Wynn Las Vegas, and the Retail Joint Venture as our Las Vegas Operations.

In Everett, Massachusetts, we own 100% of and operates Encore Boston Harbor, an integrated resort.

In Everett, Massachusetts, we own 100% of and operate Encore Boston Harbor, an integrated resort.

We also hold an approximately 85% interest in, and consolidate, Wynn Interactive Ltd.

("Wynn Interactive"), through which we operate online sports betting and gaming businesses in the United States and the United Kingdom, as well as a social casino business.

("Wynn Interactive"), through which we operate online sports betting, gaming, and social casino businesses.

Recent Developments Related to COVID-19

Macau Operations

Visitation to Macau has fallen significantly since the outbreak of COVID-19, driven by the strong deterrent effect of the COVID-19 pandemic on travel and social activities, quarantine measures put in place in Macau and elsewhere, travel and entry restrictions and conditions in Macau, the PRC, Hong Kong and Taiwan involving COVID-19 testing, among other things, and the suspension or reduced accessibility of transportation to and from Macau.

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, and mandatory quarantine, among other things, and the suspension or reduced accessibility of transportation to and from Macau.

Although there have been periods during which certain restrictions and conditions were eased by the Macau government to allow for greater visitation and quarantine-free travel to Macau, adverse conditions and evolving conditions created by and in response to the COVID-19 pandemic may cause these restrictions and conditions to be reintroduced.

We are 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 our future results of operations, cash flows, or financial condition.

For example, in response to an outbreak in Macau which initially commenced in mid-June 2022, the Macau government extended its COVID-19 containment measures, including the closures of casino operations in full as well as all non-essential business as of July 11, 2022, and the closure and the limiting of the opening hours and/or operational capacity of various areas and facilities in Macau.

On July 23, 2022, casino operations at Wynn Palace and Wynn Macau resumed on a limited basis, and remain limited at the present time due to severely reduced visitation to Macau as a result of enhanced border controls.

On August 2, 2022, the Macau government lifted most of the remaining enhanced COVID-19 restrictions which went into effect in June and July and limited non-gaming operations at Wynn Palace and Wynn Macau began to resume.

Certain enhanced COVID-19 protective measures remain in effect at the present time with respect to gaming and non-gaming operations.

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 containment measures, management cannot predict whether future closures, in full or in part, will occur in our properties, and cannot reasonably estimate the impact to our future results of operations, cash flows, or financial condition.

Macau Gaming Concession

The term of our gaming concession agreement with the Macau government ends on June 26, 2022.

If the term of this concession agreement is not extended, renewed, or replaced by a new gaming concession, all of our gaming operations and related equipment in Macau will be automatically transferred to the Macau government without compensation on that date and we will cease to generate gaming revenues from its Macau Operations.

In addition, under the indentures governing our $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 we do not own or manage casino or gaming areas or operate casino games of fortune and chance in Macau in substantially the same manner and scope 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 us 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”).

In January 2022, the Macau government published a draft of its proposed revisions to the gaming law which is currently under review by the Macau Legislative Assembly.

On March 3, 2022, the Macau government announced its intention to extend the term of Macau’s six gaming concession and subconcession contracts until December 31, 2022 in order to ensure sufficient time to complete the amendment to the Macau gaming law and to conduct a public tender for the awarding of new gaming concessions contracts.

The Macau government invited Wynn Resorts (Macau) S.A.

("WRM") to submit a formal request for an extension along with a commitment to pay the Macau government approximately 47.0 million Macau pataca (MOP) (approximately $5.8 million) and provided a bank guarantee to secure the fulfillment of WRM’s payment obligations towards its employees should WRM be unsuccessful in tendering for a new concession contract after its concession expires.

WRM submitted a request for an extension of its concession agreement on March 11, 2022, which is subject to approval by the Macau government.

We are monitoring developments with respect to the Macau government’s concession extension and renewal process, and at this time believe that our concession agreement will be extended and renewed beyond June 26, 2022.

If we are unable to extend or renew our concession agreement or obtain a new gaming concession agreement, and an election by the WML Senior Note holders to exercise the Special Put Option and the triggering of the Property Mandatory Prepayment Event would have a material adverse effect on our business, financial condition, results of operations, and cash flows.

On June 23, 2022, Wynn Resorts (Macau) S.A.

("WRM") and the Macau government entered into a concession extension agreement (the "Concession Extension Agreement"), pursuant to which the expiration date of WRM's gaming concession was extended from June 26, 2022 to Decem ber 31, 2022.

Under the Concession Extension Agreement, WRM paid the Macau government MOP47.0 million (approximately $6.0 million) as a contract premium for the extension, and by no later than September 23, 2022 will provide a first demand bank guarantee of not less than MOP1,210.0 million (approximately $150.0 million) in favor of the Macau government for securing the fulfillment of its labor liabilities upon the expiration of the Concession Extension Agreement.

In order to enable WRM to fulfill the relevant requirements to become eligible to obtain a concession extension, each of WRM and Palo Real Estate Company Limited ("Palo") (the land concessionaires of Wynn Macau and Wynn Palace, respectively) entered into a letter of undertaking, pursuant to which each of WRM and Palo has undertaken, pursuant to Article 40 of the Macau gaming law and Clause 43 of the concession agreement, to revert to the Macau government relevant gaming equipment and gaming areas at Wynn Macau and Wynn Palace, without compensation and free of encumbrance upon the expiration of the concession agreement term, as amended by the Concession Extension Agreement.

Under the indentures governing our $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 we do not own or manage casino or gaming areas or operate casino games of fortune and chance in Macau in substantially the same manner and scope 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 us 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").

In June 2022, the Macau government published the amendments to the Macau gaming law approved by the Macau Legislative Assembly.

These amendments include, for example, the awarding of up to six gaming concessions with a term up to ten years with a maximum three-year extension possible, and an increase in the minimum capital requirement applicable to concession holders to MOP5.0 billion (approximately $625.0 million), an increase in the percentage of the share capital of the concessionaire that must be held by the local managing director to 15% from 10% and a prohibition on revenue sharing arrangements between gaming promoters and concession holders.

The Macau government also published the administrative regulations and related documents in relation to a public tender for the awarding of new gaming concessions in July 2022.

Upon the publication and entry into force of the revised gaming law on June 23, 2022, we are monitoring developments with respect to the Macau government's public tender process, including the adoption of additional administrative regulations, instructions, dispatches, and further adaptations to the current legal and regulatory system, and at this time believe that our concession agreement will be further extended, renewed or replaced by a new gaming concession agreement beyond December 31, 2022.

However, it is possible the Macau government could further change or interpret the associated gaming laws in a manner that could negatively impact the Company.

If we are unable to further extend or renew our concession agreement or obtain a new gaming concession agreement, an election by the WML Senior Notes holders to exercise the Special Put Option and the triggering of the Property Mandatory Prepayment Event would have a material adverse effect on our business, financial condition, results of operations, and cash flows.

Key Operating Measures

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• Table games win is the amount of table drop or turnover that is retained and recorded as casino revenues.

Table games win is before discounts, commissions and the allocation of casino revenues to rooms, food and beverage and other revenues for services provided to casino customers on a complimentary basis.

Table games win is before discounts, commissions and the allocation of casino revenues to rooms, food and

beverage and other revenues for services provided to casino customers on a complimentary basis.

Table games win does not include poker rake.

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It is customary in Macau to measure VIP play using this rolling chip method.

We expect our win as a percentage of turnover from these operations to be within the range of 3.1% to 3.4%.

We typically expect our win as a percentage of turnover from these operations to be within the range of 3.1% to 3.4%;

however, reduced gaming volumes as a result of COVID-19 containment measures implemented in Macau may cause volatility in our Macau Operations’ VIP win percentages.

In our mass market operations in Macau, customers may purchase cash chips at either the gaming tables or at the casino cage.

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Results of Operations

Summary of first quarter 2022 results

Summary of second quarter 2022 results

The following table summarizes our financial results for the periods presented (dollars in thousands, except per share data):

Three Months Ended March 31,

2022 2021 Increase/ (Decrease) Percent Change

Three Months Ended June 30, Six Months Ended June 30,

2022 2021 Increase/ (Decrease) Percent Change 2022 2021 Increase/ (Decrease) Percent Change

Operating revenues $ 908,832 $ 990,113 $ (81,281) (8.2) $ 1,862,166 $ 1,726,795 $ 135,371 7.8

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(1) See Item 1—"Financial Statements," Note 18, "Segment Information," for a reconciliation of Adjusted Property EBITDA to net loss attributable to Wynn Resorts, Limited.

The increase in operating revenues for the three months ended March 31, 2022 was primarily driven by increases of $262.5 million and $60.7 million from our Las Vegas Operations and Encore Boston Harbor, respectively, as a result of increased gaming volumes as well as increases in hotel occupancy, and covers at restaurants.

The results of our Las Vegas Operations and Encore Boston Harbor for the three months ended March 31, 2021 were impacted by certain COVID-19 pandemic related protective measures and operating schedule modifications, which were no longer in effect during the three months ended March 31, 2022.

The increase in operating revenues was partially offset by a decrease in operating revenues of $74.0 million and $44.6 million at Wynn Palace and Wynn Macau, respectively, resulting from decreased gaming volumes due to certain travel-related restrictions and conditions, including COVID-19 testing and other procedures related to the COVID-19 pandemic.

The decrease in net loss attributable to Wynn Resorts, Limited for the three months ended March 31, 2022 was primarily related to increased operating revenues at our Las Vegas Operations and Encore Boston Harbor, respectively, partially offset by increased operating expenses associated with higher business volumes at our Las Vegas Operations and Encore Boston Harbor.

The increase in Adjusted Property EBITDA for the three months ended March 31, 2022 was primarily driven by increased operating revenues at our Las Vegas Operations and Encore Boston Harbor, respectively, partially offset by an increase in operating expenses at our Las Vegas Operations and Encore Boston Harbor, respectively.

Adjusted Property EBITDA increased $131.3 million, $24.9 million, and $12.0 million at our Las Vegas Operations, Encore Boston Harbor, and Wynn Interactive, respectively, and decreased $28.2 million and $21.2 million at Wynn Palace and Wynn Macau, respectively.

Financial results for the three months ended March 31, 2022 compared to the three months ended March 31, 2021.

The decrease in operating revenues for the three months ended June 30, 2022 was primarily driven by decreases of $211.7 million and $125.4 million from Wynn Palace and and Wynn Macau, respectively, resulting from a decrease in gaming volumes due to certain travel-related restrictions and conditions, including COVID-19 testing and other procedures related to the COVID-19 pandemic.

The decrease in operating revenues was partially offset by an increase in operating revenues of $206.0 million and $44.9 million at our Las Vegas Operations and Encore Boston Harbor, respectively, resulting from increased gaming volumes as well as increases in hotel occupancy and covers at restaurants.

The results of our Las Vegas Operations and Encore Boston Harbor for the three months ended June 30, 2021 were impacted by certain COVID-19 pandemic related protective measures and operating schedule modifications, which were no longer in effect during the three months ended June 30, 2022.

The decrease in net loss attributable to Wynn Resorts, Limited for the three months ended June 30, 2022 was primarily related to increased operating revenues at our Las Vegas Operations and Encore Boston Harbor, respectively, partially offset by increased operating expenses associated with higher business volumes at our Las Vegas Operations and Encore Boston Harbor.

The decrease in Adjusted Property EBITDA for the three months ended June 30, 2022 was primarily driven by decreased gaming volumes at Wynn Palace and Wynn Macau, primarily due to certain travel-related restrictions and conditions, including COVID-19 testing and other procedures related to the COVID-19 pandemic, partially offset by increased operating revenues and operating expenses at our Las Vegas Operations and Encore Boston Harbor, respectively.

Adjusted Property EBITDA decreased $103.5 million and $54.5 million at Wynn Palace and Wynn Macau, respectively, and increased $93.5 million, $16.8 million, and $19.9 million at our Las Vegas Operations, Encore Boston Harbor, and Wynn Interactive, respectively.

Financial results for the three months ended June 30, 2022 compared to the three months ended June 30, 2021.

Operating revenues

The following table presents our operating revenues (dollars in thousands):

Three Months Ended March 31,

Three Months Ended June 30,

2022 2021 Increase/ (Decrease) Percent

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The following table presents our casino and non-casino operating revenues (dollars in thousands):

Three Months Ended March 31,

Three Months Ended June 30,

2022 2021 Increase/ (Decrease) Percent

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$ 908,832 $ 990,113 $ (81,281) (8.2)

Casino revenues for the three months ended March 31, 2022 were 51.4% of operating revenues, compared to 70.1% for the same period of 2021.

Non-casino revenues for the three months ended March 31, 2022 were 48.6% of operating revenues, compared to 29.9% for the same period of 2021.

Casino revenues for the three months ended June 30, 2022 were 39.6% of operating revenues, compared to 60.9% for the same period of 2021.

Non-casino revenues for the three months ended June 30, 2022 were 60.4% of operating revenues, compared to 39.1% for the same period of 2021.

Casino revenues

1 unchanged sentence

The table below sets forth our casino revenues and associated key operating measures (dollars in thousands, except for win per unit per day):

Three Months Ended March 31,

Three Months Ended June 30,

2022 2021 Increase/

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VIP turnover $ 344,462 $ 1,811,381 $ (1,466,919) (81.0)

VIP table games win $ 19,753 $ 96,456 $ (76,703) (79.5)

VIP win as a % of turnover 2.05 % 4.38 % (2.33)

Table games win per unit per day $ 3,280 $ 10,375 $ (7,095) (68.4)

VIP table games (loss) win $ (6,671) $ 71,570 $ (78,241) NM

VIP (loss) win as a % of turnover (1.94) % 3.95 % (5.89)

Table games (loss) win per unit per day $ (1,600) $ 8,346 $ (9,946) NM

Average number of table games 231 228 3 1.3

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Slot machine win per unit per day $ 105 $ 167 $ (62) (37.1)

Three Months Ended March 31,

Three Months Ended June 30,

2022 2021 Increase/

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Slot machine win per unit per day $ 393 $ 453 $ (60) (13.2)

Poker rake $ 1,241 $ — $ 1,241 NM

NM - Not meaningful.

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

This adjusted operating schedule remained in effect through the first quarter of 2021, and on April 8, 2021, Encore at Wynn Las Vegas resumed full operations.

On April 8, 2021, Encore at Wynn Las Vegas resumed full operations.

(2) On January 25, 2021, Encore Boston Harbor restored 24-hour casino operations and reopened its hotel tower on a Thursday through Sunday weekly schedule.

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The table below sets forth our room revenues and associated key operating measures:

Three Months Ended March 31,

Three Months Ended June 30,

2022 2021 Increase/

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REVPAR $ 368 $ 267 $ 101 37.8

(1) Encore Boston Harbor room statistics have been computed based on 36 days of operation in three months ended March 31, 2021, representing the number of nights hotel rooms were offered for sale to the public.

(1) Encore Boston Harbor room statistics have been computed based on 53 days of operation in three months ended June 30, 2021, representing the number of nights hotel rooms were offered for sale to the public.

Room revenues increased $63.5 million, primarily due to higher occupancy and ADR at our Las Vegas Operations and Encore Boston Harbor, respectively.

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Encore Boston Harbor reopened its hotel tower to seven days per week as of September 1, 2021.

Food and beverage revenues increased $105.5 million, primarily due to increased covers at our restaurants and an increase in nightlife revenues at our Las Vegas Operations as a result of ongoing recovery from the effects of COVID-19.

Entertainment, retail and other revenues increased $43.3 million, primarily due to an increase in visitation to our Las Vegas Operations as a result of ongoing recovery from the effects of COVID-19 and an increase of $12.0 million in revenues at Wynn Interactive primarily due to the continued expansion and ramp up of its operations.

Food and beverage revenues increased $80.7 million, primarily due to increased restaurant covers and nightlife revenues at our Las Vegas Operations.

Entertainment, retail and other revenues increased $17.7 million, primarily due to an increase in visitation to our Las Vegas Operations.

Operating expenses

The table below presents operating expenses (dollars in thousands):

Three Months Ended March 31,

Three Months Ended June 30,

2022 2021 Increase/ (Decrease) Percent Change

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General and administrative 200,378 197,545 2,833 1.4

Provision for credit losses 342 7,367 (7,025) (95.4)

Provision for credit losses (3,487) 441 (3,928) NM

Pre-opening 4,502 2,495 2,007 80.4

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Total operating expenses $ 960,860 $ 1,019,634 $ (58,774) (5.8)

Total operating expenses increased $135.8 million compared to the three months ended March 31, 2021, primarily due to increased room, food and beverage, entertainment, retail and other, general and administrative expenses, and property charges and other, partially offset by decreased casino and provision for credit losses expenses.

NM - Not meaningful.

Total operating expenses decreased $58.8 million compared to the three months ended June 30, 2021, primarily due to decreased casino, entertainment, retail and other, provision for credit losses, and depreciation and amortization expenses, partially offset by increased room, food and beverage, and property charges and other expenses.

Casino expenses decreased $99.0 million and $61.4 million at Wynn Palace and Wynn Macau, respectively.

These decreases were primarily due to reductions in gaming tax expense commensurate with the declines in casino revenues at each of Wynn Palace and Wynn Macau, resulting from the effects of the COVID-19 pandemic, partially offset by increased casino expenses of $19.9 million and $17.5 million at our Las Vegas Operations and Encore Boston Harbor, respectively, primarily due to increased gaming tax expense driven by the increase in casino revenues.

These decreases were primarily due to reductions in gaming tax expense driven by the declines in casino revenues at each of Wynn Palace and Wynn Macau, resulting from the effects of the COVID-19 pandemic, partially offset by increased casino expenses of $10.7 million and $12.2 million at our Las Vegas Operations and Encore Boston Harbor, respectively, primarily due to increased operating costs including gaming tax expense driven by the increase in casino revenues.

Room expenses increased $13.3 million and $4.2 million at our Las Vegas Operations and Encore Boston Harbor, respectively.

1 unchanged sentence

Food and beverage expenses increased $67.7 million and $6.7 million at our Las Vegas Operations and Encore Boston Harbor, respectively.

These increases were primarily a result of higher operating costs related to the increase in food and beverage revenues as well as higher nightlife entertainment costs.

Entertainment, retail and other expenses increased $14.5 million at our Las Vegas operations.

The increase was primarily a result of higher operating costs related to an increase in visitation.

General and administrative expenses increased primarily due to increases of $12.5 million and $5.8 million at our Las Vegas Operations and Encore Boston Harbor, respectively.

These increases were primarily attributable to increased payroll, operating costs, and general and administrative expenses required to support higher business volumes.

Provision for credit losses decreased $3.0 million, $2.4 million, and $1.5 million at Wynn Palace, our Las Vegas Operations, and Wynn Macau, respectively.

The decreases were primarily due to the impact of historical collection patterns and expectations of current and future collection trends, as well as the specific review of customer accounts, on our estimated credit loss for the respective periods.

Our property charges and other expenses for the quarter ended March 31, 2022 consisted primarily of impairment of goodwill of $30.3 million at Wynn Interactive, asset abandonments of $1.0 million and $2.1 million at our Las Vegas Operations and Wynn Interactive, respectively, and contract termination expenses of $9.6 million at Wynn Interactive.

Our property charges and other expenses for the quarter ended March 31, 2021 consisted primarily of asset abandonments of $2.1 million and $2.2 million at our Las Vegas Operations and Wynn Palace, respectively.

These increases were primarily a result of higher operating costs related to the increase in food and beverage revenues as well as higher nightlife entertainment costs associated with increased business volumes at our Las Vegas Operations' nightlife venues.

Entertainment, retail and other expenses decreased $18.9 million at Wynn Interactive, primarily due to decreased marketing costs, partially offset by an increase of $11.2 million at our Las Vegas operations, primarily due to higher operating associated with increased levels of business.

Provision for credit losses decreased $3.7 million and $3.0 million at our Las Vegas Operations and Wynn Macau, respectively and increased $2.1 million at Wynn Palace.

These changes were primarily due to the impact of historical collection patterns and expectations of current and future collection trends, as well as the specific review of customer accounts, on our estimated credit loss for the respective periods.

Depreciation and amortization decreased $14.5 million at Wynn Palace, primarily due to certain furniture, fixture and equipment assets reaching the end of their useful lives in the first quarter of 2022.

Our property charges and other expenses for the quarter ended June 30, 2022 consisted primarily of impairment of goodwill and other finite-lived intangible assets of $7.5 million and $10.3 million, respectively, and $7.6 million of other restructuring costs related to management's decision to cease the operations of BetBull, Limited ("BetBull"), a subsidiary of Wynn Interactive.

Our property charges and other expenses for the quarter ended June 30, 2021 consisted primarily of asset disposals, abandonments and retirements of $1.4 million, $1.2 million, and $1.0 million at our Las Vegas Operations, Wynn Macau, and Wynn Palace, respectively.

Interest expense, net of capitalized interest

The following table summarizes information related to interest expense (dollars in thousands):

Three Months Ended March 31,

Three Months Ended June 30,

2022 2021 Increase/ (Decrease) Percent

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Weighted average interest rate 5.14 % 4.97 %

Interest costs decreased primarily due to a decrease in the weighted average debt balance.

Interest costs increased primarily due to an increase in the weighted average interest rate.

Other non-operating income and expenses

We incurred a foreign currency remeasurement loss of $15.1 million and $11.1 million for the three months ended March 31, 2022 and 2021, respectively.

We incurred a foreign currency remeasurement loss of $10.1 million and a gain of $5.6 million for the three months ended June 30, 2022 and 2021, respectively.

The impact of the exchange rate fluctuation of the MOP, in relation to the U.S.

dollar, on the remeasurements of U.S.

dollar denominated debt and other obligations from our Macau-related entities drove the variability between periods.

We recorded a gain of $7.4 million and $4.4 million for the three months ended March 31, 2022 and 2021, respectively, from change in derivatives fair value.

We recorded a $1.3 million loss on extinguishment of debt for the three months ended March 31, 2021 related to the partial prepayment of the Wynn Macau Term Loan.

We recorded an income tax expense of $1.1 million and $0.5 million for the three months ended March 31, 2022 and 2021, respectively.

The income tax expense primarily related to the Macau dividend tax agreement that provides for an annual payment as complementary tax otherwise due by stockholders of WRM.

dollar denominated debt and other obligations from our Macau-related entities primarily drove the variability between periods.

We recorded a gain of $1.6 million and $1.0 million for the three months ended June 30, 2022 and 2021, respectively, from change in derivatives fair value.

We recorded an income tax expense of $0.7 million in each of the three months ended June 30, 2022 and 2021.

Income tax expense in both periods primarily related to the Macau dividend tax agreement that provides for an annual payment as complementary tax otherwise due by stockholders of WRM.

Net loss attributable to noncontrolling interests

Net loss attributable to noncontrolling interests was $71.3 million and $55.2 million for the three months ended March 31, 2022 and 2021, respectively.

Net loss attributable to noncontrolling interests was $83.4 million and $42.0 million for the three months ended June 30, 2022 and 2021, respectively.

These amounts are primarily related to the noncontrolling interests' share of net loss attributable to WML.

Financial results for the six months ended June 30, 2022 compared to the six months ended June 30, 2021.

Operating revenues

The following table presents our operating revenues (dollars in thousands):

Six Months Ended June 30,

2022 2021 Increase/ (Decrease) Percent Change

Operating revenues

Macau Operations:

Wynn Palace $ 221,976 $ 507,697 $ (285,721) (56.3)

Wynn Macau 193,683 363,679 (169,996) (46.7)

Total Macau Operations 415,659 871,376 (455,717) (52.3)

Las Vegas Operations 1,002,255 533,782 468,473 87.8

Encore Boston Harbor 400,950 295,331 105,619 35.8

Wynn Interactive 43,302 26,306 16,996 64.6

$ 1,862,166 $ 1,726,795 $ 135,371 7.8

The following table presents casino and non-casino operating revenues (dollars in thousands):

Six Months Ended June 30,

2022 2021 Increase/ (Decrease) Percent Change

Operating revenues

Casino revenues $ 849,447 $ 1,118,964 $ (269,517) (24.1)

Non-casino revenues:

Rooms 371,674 213,955 157,719 73.7

Food and beverage 403,836 217,651 186,185 85.5

Entertainment, retail and other 237,209 176,225 60,984 34.6

Total non-casino revenues 1,012,719 607,831 404,888 66.6

$ 1,862,166 $ 1,726,795 $ 135,371 7.8

Casino revenues for the six months ended June 30, 2022 were 45.6% of operating revenues, compared to 64.8% for the same period of 2021.

Non-casino revenues for the six months ended June 30, 2022 were 54.4% of operating revenues, compared to 35.2% for the same period of 2021.

Casino revenues

Casino revenues decreased primarily due to decreased VIP turnover and table games win and mass market table drop and table games win at our Macau Operations, partially offset by increased table drop, table games win and slot machine win at our Las Vegas Operations and Encore Boston Harbor, respectively.

The table below sets forth our casino revenues and associated key operating measures (dollars in thousands, except for win per unit per day):

Six Months Ended June 30,

2022 2021 Increase/(Decrease) Percent

Macau Operations:

Total casino revenues $ 141,607 $ 397,976 $ (256,369) (64.4)

Average number of table games 56 99 (43) (43.4)

VIP turnover $ 1,310,017 $ 4,011,563 $ (2,701,546) (67.3)

VIP table games win $ 13,082 $ 168,026 $ (154,944) (92.2)

VIP win as a % of turnover 1.00 % 4.19 % (3.19)

Table games win per unit per day $ 1,284 $ 9,402 $ (8,118) (86.3)

Average number of table games 232 225 7 3.1

Table drop $ 742,408 $ 1,315,012 $ (572,604) (43.5)

Table games win $ 152,755 $ 295,196 $ (142,441) (48.3)

Table games win % 20.6 % 22.4 % (1.8)

Table games win per unit per day $ 3,630 $ 7,249 $ (3,619) (49.9)

Average number of slot machines 652 707 (55) (7.8)

Slot machine handle $ 381,333 $ 780,041 $ (398,708) (51.1)

Slot machine win $ 17,571 $ 33,015 $ (15,444) (46.8)

Slot machine win per unit per day $ 149 $ 258 $ (109) (42.2)

Total casino revenues $ 142,389 $ 281,346 $ (138,957) (49.4)

Average number of table games 37 87 (50) (57.5)

VIP turnover $ 1,188,695 $ 3,294,294 $ (2,105,599) (63.9)

VIP table games win $ 48,475 $ 98,022 $ (49,547) (50.5)

VIP win as a % of turnover 4.08 % 2.98 % 1.10

Table games win per unit per day $ 7,181 $ 6,201 $ 980 15.8

Average number of table games 247 240 7 2.9

Table drop $ 685,292 $ 1,261,290 $ (575,998) (45.7)

Table games win $ 112,842 $ 234,104 $ (121,262) (51.8)

Table games win % 16.5 % 18.6 % (2.1)

Table games win per unit per day $ 2,521 $ 5,390 $ (2,869) (53.2)

Average number of slot machines 625 588 37 6.3

Slot machine handle $ 482,851 $ 601,794 $ (118,943) (19.8)

Slot machine win $ 16,941 $ 19,431 $ (2,490) (12.8)

Slot machine win per unit per day $ 150 $ 183 $ (33) (18.0)

Six Months Ended June 30,

2022 2021 Increase/(Decrease) Percent

Las Vegas Operations (1) :

Total casino revenues $ 259,616 $ 192,678 $ 66,938 34.7

Average number of table games 232 195 37 19.0

Table drop $ 1,112,898 $ 751,545 $ 361,353 48.1

Table games win $ 268,043 $ 175,674 $ 92,369 52.6

Table games win % 24.1 % 23.4 % 0.7

Table games win per unit per day $ 6,372 $ 4,979 $ 1,393 28.0

Average number of slot machines 1,720 1,631 89 5.5

Slot machine handle $ 2,504,162 $ 1,906,409 $ 597,753 31.4

Slot machine win $ 170,675 $ 129,379 $ 41,296 31.9

Slot machine win per unit per day $ 548 $ 438 $ 110 25.1

Poker rake $ 8,882 $ 5,794 $ 3,088 53.3

Encore Boston Harbor (2) :

Total casino revenues $ 305,835 $ 246,964 $ 58,871 23.8

Average number of table games 184 197 (13) (6.6)

Table drop $ 712,417 $ 540,632 $ 171,785 31.8

Table games win $ 157,054 $ 114,251 $ 42,803 37.5

Table games win % 22.0 % 21.1 % 0.9

Table games win per unit per day $ 4,716 $ 3,201 $ 1,515 47.3

Average number of slot machines 2,778 2,031 747 36.8

Slot machine handle $ 2,415,740 $ 2,007,973 $ 407,767 20.3

Slot machine win $ 194,720 $ 164,380 $ 30,340 18.5

Slot machine win per unit per day $ 387 $ 447 $ (60) (13.4)

Poker rake $ 2,026 $ — $ 2,026 NM

NM - Not meaningful.

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

On April 8, 2021, Encore at Wynn Las Vegas resumed full operations.

(2) On January 25, 2021, Encore Boston Harbor restored 24-hour casino operations and reopened its hotel tower on a Thursday through Sunday weekly schedule.

The property reopened its hotel tower to seven days per week as of September 1, 2021.

Non-casino revenues

The table below sets forth our room revenues and associated key operating measures:

Six Months Ended June 30,

2022 2021 Increase/(Decrease) Percent Change

Macau Operations:

Total room revenues (dollars in thousands) $ 20,839 $ 37,895 $ (17,056) (45.0)

Occupancy 37.7 % 65.6 % (27.9)

ADR $ 166 $ 179 $ (13) (7.3)

REVPAR $ 63 $ 118 $ (55) (46.6)

Total room revenues (dollars in thousands) $ 14,152 $ 28,129 $ (13,977) (49.7)

Occupancy 40.5 % 64.4 % (23.9)

ADR $ 174 $ 219 $ (45) (20.5)

REVPAR $ 70 $ 141 $ (71) (50.4)

Las Vegas Operations:

Total room revenues (dollars in thousands) $ 298,582 $ 133,546 $ 165,036 123.6

Occupancy 83.8 % 52.9 % 30.9

ADR $ 448 $ 332 $ 116 34.9

REVPAR $ 375 $ 176 $ 199 113.1

Encore Boston Harbor ( 1) :

Total room revenues (dollars in thousands) $ 38,101 $ 14,385 $ 23,716 164.9

Occupancy 87.4 % 81.1 % 6.3

ADR $ 360 $ 294 $ 66 22.4

REVPAR $ 315 $ 238 $ 77 32.4

(1) Encore Boston Harbor room statistics have been computed based on 89 days of operation in six months ended June 30, 2021, representing the number of nights hotel rooms were offered for sale to the public.

Room revenues increased $157.7 million, primarily due to higher occupancy and ADR at our Las Vegas Operations and Encore Boston Harbor, respectively.

The hotel tower at Encore Boston Harbor was closed pursuant to a COVID-19 related state directive from November 6, 2020 through January 25, 2021, when it reopened its hotel tower on a Thursday through Sunday weekly schedule.

Encore Boston Harbor reopened its hotel tower to seven days per week as of September 1, 2021.

Food and beverage revenues increased $186.2 million, primarily due to increased restaurant covers and nightlife revenues at our Las Vegas Operations.

Entertainment, retail and other revenues increased $61.0 million, primarily due to an increase in visitation to our Las Vegas Operations.

Operating expenses

The table below presents operating expenses (dollars in thousands):

Six Months Ended June 30,

2022 2021 Increase/ (Decrease) Percent Change

Operating expenses:

Casino $ 568,143 $ 733,581 $ (165,438) (22.6)

Rooms 123,785 84,087 39,698 47.2

Food and beverage 332,127 191,054 141,073 73.8

Entertainment, retail and other 163,889 154,381 9,508 6.2

General and administrative 397,158 377,319 19,839 5.3

Provision for credit losses (3,145) 7,808 (10,953) NM

Pre-opening 6,949 4,122 2,827 68.6

Depreciation and amortization 347,524 368,428 (20,904) (5.7)

Property charges and other 72,629 11,268 61,361 544.6

Total operating expenses $ 2,009,059 $ 1,932,048 $ 77,011 4.0

NM - Not meaningful.

Total operating expenses increased $77.0 million compared to the six months ended June 30, 2021, primarily due to increased room, food and beverage, entertainment, retail and other, general and administrative expenses, and property charges and other, partially offset by decreased casino, provision for credit losses, and depreciation and amortization expenses.

Casino expenses decreased $141.3 million and $84.3 million at Wynn Palace and Wynn Macau, respectively.

These decreases were primarily due to reductions in gaming tax expense driven by the declines in casino revenues at each of Wynn Palace and Wynn Macau, resulting from the effects of the COVID-19 pandemic, partially offset by increased casino expenses of $30.5 million and $29.7 million at our Las Vegas Operations and Encore Boston Harbor, respectively primarily due to increased operating costs including gaming tax expense driven by the increase in casino revenues.

Room expenses increased $34.5 million and $8.7 million at our Las Vegas Operations and Encore Boston Harbor, respectively.

These increases were primarily a result of higher operating costs related to the increase in occupancy.

Food and beverage expenses increased $132.4 million and $13.2 million at our Las Vegas Operations and Encore Boston Harbor, respectively.

Entertainment, retail and other expenses increased $25.6 million at our Las Vegas operations primarily due to higher operating costs associated with increased levels of business, partially offset by a decrease of $19.2 million at Wynn Interactive, primarily due to decreased marketing costs.

General and administrative expenses increased primarily due to increases of $24.8 million and $8.8 million at our Las Vegas Operations and Encore Boston Harbor, respectively.

These increases were primarily attributable to increased payroll, operating costs, and general and administrative expenses required to support higher business volumes, partially offset by decreased general and administrative expenses of $8.4 million and $6.9 million, at Wynn Palace and Wynn Macau, respectively, primarily due to decreased payroll and operating costs attributable to lower business volumes.

The provision for credit losses decreased $6.2 million and $4.5 million at our Las Vegas Operations and Wynn Macau, respectively.

For the six months ended June 30, 2022, pre-opening expenses totaled $6.9 million, which primarily related to reconfiguring the former Le Reve theater space at Wynn Las Vegas.

For the six months ended June 30, 2021, pre-opening expenses totaled $4.1 million, which primarily related to restaurant remodels at our Las Vegas Operations.

Depreciation and amortization decreased $31.0 million at Wynn Palace primarily due to certain furniture, fixture and equipment assets reaching the end of their useful lives in the first quarter of 2022.

Our property charges and other expenses for the six months ended June 30, 2022 consisted primarily of impairment of goodwill and other finite-lived intangible assets of $37.8 million and $10.3 million, respectively, and $7.6 million of restructuring costs related to Wynn Interactive's BetBull operations, as well as other contract termination expenses of $10.6 million and asset abandonments of $2.1 million related to Wynn Interactive.

Our property charges and other expenses for the six months ended June 30, 2021 consisted primarily of asset abandonments of $3.5 million and $3.2 million at our Las Vegas Operations and Wynn Palace, respectively.

Interest expense, net of capitalized interest

The following table summarizes information related to interest expense (dollars in thousands):

Six Months Ended June 30,

2022 2021 Increase/ (Decrease) Percent Change

Interest expense

Interest cost, including amortization of debt issuance costs and original issue discount and premium $ 306,988 $ 303,276 $ 3,712 1.2

Weighted average total debt balance $ 12,048,299 $ 12,365,615

Weighted average interest rate 5.09 % 4.90 %

Interest costs increased primarily due to an increase in the weighted average interest rate.

Other non-operating income and expenses

We incurred a foreign currency remeasurement loss of $25.2 million and $5.5 million for the six months ended June 30, 2022 and 2021, respectively.

The impact of the exchange rate fluctuation of the Macau pataca, in relation to the U.S.

dollar, on the remeasurements of U.S.

dollar denominated debt and other obligations from our Macau-related entities drove the variability between periods.

We recorded a gain of $9.0 million and $5.4 million for the six months ended June 30, 2022 and 2021, respectively, from change in derivatives fair value.

We recorded a $1.3 million loss on extinguishment of debt for the six months ended June 30, 2021 related to the partial prepayment of the Wynn Macau Term Loan.

We recorded an income tax expense of $1.9 million and $1.2 million for the six months ended June 30, 2022 and 2021, respectively.

The income tax expense in both periods primarily related to the Macau dividend tax agreement that provides for an annual payment as complementary tax otherwise due by stockholders of WRM.

Net loss attributable to noncontrolling interests

Net loss attributable to noncontrolling interests was $154.7 million and $97.2 million for the six months ended June 30, 2022 and 2021, respectively.

These amounts are primarily related to the noncontrolling interests' share of net loss from WML.

Adjusted Property EBITDA

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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.

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.

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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 following table summarizes Adjusted Property EBITDA (dollar in thousands) for Wynn Palace, Wynn Macau, Las Vegas Operations, and Encore Boston Harbor as reviewed by management and summarized in Item 1—"Notes to Condensed Consolidated Financial Statements," Note 17, "Segment Information." That footnote also presents a reconciliation of Adjusted Property EBITDA to net loss attributable to Wynn Resorts, Limited.

Three Months Ended March 31,

2022 2021 Increase/ (Decrease) Percent Change

Wynn Palace $ (864) $ 27,369 $ (28,233) (103.2)

Wynn Macau (4,682) 16,556 (21,238) (128.3)

The following table summarizes Adjusted Property EBITDA (dollars in thousands) for Wynn Palace, Wynn Macau, Las Vegas Operations, Encore Boston Harbor, and Wynn Interactive as reviewed by management and summarized in Item 1—"Notes to Condensed Consolidated Financial Statements," Note 18, "Segment Information." That footnote also presents a reconciliation of Adjusted Property EBITDA to net loss attributable to Wynn Resorts, Limited.

Three Months Ended June 30, Six Months Ended June 30,

2022 2021 Increase/ (Decrease) Percent Change 2022 2021 Increase/ (Decrease) Percent Change

Wynn Palace $ (49,950) $ 53,555 $ (103,505) NM $ (50,814) $ 80,924 $ (131,738) NM

Wynn Macau (40,390) 14,086 (54,476) NM (45,072) 30,642 (75,714) NM

Las Vegas Operations 226,706 133,222 93,484 70.2 386,084 161,303 224,781 139.4

1 unchanged sentence

Wynn Interactive (20,953) (40,899) 19,946 48.8 (52,454) (84,368) 31,914 37.8

Adjusted Property EBITDA at Wynn Palace and Wynn Macau decreased $28.2 million and $21.2 million for the three months ended March 31, 2022, respectively, primarily due to a decrease in operating revenues, partially offset by a decrease in operating expenses.

Our Macau Operations for the first quarter of 2022 continued to be negatively impacted by certain travel-related restrictions and conditions, including COVID-19 testing and other procedures related to the COVID-19 pandemic.

Adjusted Property EBITDA at our Las Vegas Operations increased $131.3 million for the three months ended March 31, 2022, primarily due to an increase in operating revenues, partially offset by an increase in operating expenses.

Our Las Vegas Operations for the first quarter of 2021 were negatively impacted by the limitation or suspension of certain offerings and certain capacity limitations related to the COVID-19 pandemic.

Adjusted Property EBITDA at Encore Boston Harbor increased $24.9 million for the three months ended March 31, 2022, primarily due to an increase in operating revenues, partially offset by an increase in operating expenses.

Operating revenue at Encore Boston Harbor for the first quarter of 2021 was negatively impacted by the limitation or suspension of certain offerings and certain capacity limitations related to the COVID-19 pandemic.

Adjusted Property EBITDA at Wynn Interactive was $(31.5) million for the three months ended March 31, 2022, primarily due to increased marketing and promotional expenses incurred in connection with the launch of its operations in New York and Louisiana, offset by increased operating revenues due to the continued expansion and ramp up of operations.

Adjusted Property EBITDA at Wynn Interactive was $(43.5) million for the three months ended March 31, 2021, primarily due to the ramp up of Wynn Interactive operations.

NM - Not meaningful.

Adjusted Property EBITDA at Wynn Palace and Wynn Macau decreased $103.5 million and $54.5 million for the three months ended June 30, 2022 and $131.7 million and $75.7 million for the six months ended June 30, 2022, respectively, primarily due to a decrease in operating revenues, partially offset by a decrease in operating expenses.

Our Macau Operations for the three and six months ended June 30, 2022 continued to be negatively impacted by certain travel-related restrictions and conditions, including COVID-19 testing and other procedures related to the COVID-19 pandemic.

Adjusted Property EBITDA at our Las Vegas Operations increased $93.5 million and $224.8 million for the three and six months ended June 30, 2022, primarily due to an increase in operating revenues, partially offset by an increase in operating expenses.

Our Las Vegas Operations for the three and six months ended June 30, 2021 were negatively impacted by the limitation or suspension of certain offerings and certain capacity limitations related to the COVID-19 pandemic.

Adjusted Property EBITDA at Encore Boston Harbor increased $16.8 million and $41.7 million for the three and six months ended June 30, 2022, primarily due to an increase in operating revenues, partially offset by an increase in operating expenses.

Operating revenue at Encore Boston Harbor for the three and six months ended June 30, 2021 was negatively impacted by the limitation or suspension of certain offerings and certain capacity limitations related to the COVID-19 pandemic.

Adjusted Property EBITDA at Wynn Interactive increased $19.9 million and $31.9 million for the three and six months ended June 30, 2022, primarily due to increased operating revenues due to the continued expansion and ramp up of operations and decreased marketing and promotional expenses.

Refer to the discussions above regarding the specific details of our results of operations.

1 unchanged sentence

Our cash flows were as follows (in thousands):

Three Months Ended March 31,

Six Months Ended June 30,

Cash Flows - Summary 2022 2021

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Repurchase of common stock (149,305) (4,563)

Finance lease payments (4,443) (3,881)

Proceeds from issuance of subsidiary common stock 2,895 4,662

Proceeds from sale of additional interest in joint venture 50,033 —

Distribution to noncontrolling interest (16,523) (6,479)

Contribution from noncontrolling interest 50,033 —

Dividends paid (1,291) (388)

Payments for debt financing costs (109) (2,154)

Net cash provided by (used in) financing activities 10,872 (285,440)

Finance lease payments (8,602) (7,784)

Payments for financing costs (3,113) (2,152)

Net cash used in financing activities (150,906) (329,849)

Effect of exchange rate on cash, cash equivalents and restricted cash (3,590) 1,641

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Accordingly, operating cash flows will be impacted by changes in operating income and accounts receivable, net.

During the three months ended March 31, 2022, the decrease in net cash used in operating activities was primarily due to increased operating revenues, partially offset by an increase in operating expenses.

During the three months ended March 31, 2021, the increase in net cash used in operating activities was primarily due to changes in working capital accounts.

During the six months ended June 30, 2022, the decrease in net cash used in operating activities was primarily due to increased revenues from our Las Vegas Operations and Encore Boston Harbor, which was partially offset by decreases in revenues from Wynn Palace and Wynn Macau.

During the six months ended June 30, 2021, the decrease in net cash used in operating activities was primarily due to increased operating revenues, partially offset by an increase in operating expenses and changes in working capital accounts.

Investing Activities

Our investing activities primarily consist of project capital expenditures and maintenance capital expenditures associated with maintaining and continually refining our world-class integrated resort properties.

During the three months ended March 31, 2022, we incurred capital expenditures of $67.8 million at our Las Vegas Operations primarily related to the Wynn Las Vegas room remodel, and $7.5 million at Encore Boston Harbor, $13.1 million at Wynn Palace, and $4.2 million at Wynn Macau, each primarily related to maintenance capital expenditures.

During the three months ended March 31, 2021, we incurred capital expenditures of $19.8 million at our Las Vegas Operations, and $6.3 million at Encore Boston Harbor, $7.4 million at Wynn Palace, and $4.8 million at Wynn Macau, each primarily related to maintenance capital expenditures.

During the six months ended June 30, 2022, we incurred capital expenditures of $140.8 million at our Las Vegas Operations primarily related to the Wynn Las Vegas room remodel and the reconfiguration of the former Le Reve theater space, and $10.6 million at Encore Boston Harbor, $22.3 million at Wynn Palace, and $7.7 million at Wynn Macau primarily related to maintenance capital expenditures.

During the six months ended June 30, 2021, we incurred capital expenditures of $54.6 million at our Las Vegas Operations primarily related to the Wynn Las Vegas room remodel, and $17.9 million at Encore Boston Harbor, $13.6 million at Wynn Palace, and $9.8 million at Wynn Macau primarily related to maintenance capital expenditures.

Financing Activities

During the three months ended March 31, 2022, we received a $50.0 million contribution from a noncontrolling interest holder in exchange for a 49.9% interest in certain retail space contributed by the Company to the Retail Joint Venture.

In addition, we made a $12.5 million quarterly amortization payment under the WRF Term Loan Facility.

During the three months ended March 31, 2021, we received proceeds of $841.9 million from our February 2021 equity offering and used $716.0 million of the proceeds from the equity offering to repay the outstanding borrowings under the WRF Revolver.

In addition, we borrowed $50.1 million under the Wynn Macau Revolver, made a $438.6 million prepayment of outstanding principal owed under the Wynn Macau Term Loan, and made a $12.5 million quarterly amortization payment under the WRF Term Loan.

During the six months ended June 30, 2022, we repurchased 2,381,928 shares of our common stock for approximately $137.4 million.

In addition, we received a $50.0 million contribution from a noncontrolling interest holder in exchange for a 49.9% interest in certain retail space contributed by the Company to the Retail Joint Venture, used cash of $16.5 million for distributions to noncontrolling interest holders of the Retail Joint Venture, and made quarterly amortization payments under the WRF Term Loan totaling $25.0 million.

During the six months ended June 30, 2021, we received proceeds of $841.9 million from our February 2021 equity offering and used $716.0 million of the proceeds from the equity offering to repay the outstanding borrowings under the WRF Revolver.

In addition, we borrowed $50.1 million under the Wynn Macau Revolver, paid $464.7 million of outstanding principal owed under the Wynn Macau Term Loan, and made quarterly amortization payments under the WRF Term Loan totaling $25.0 million.

Capital Resources

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and other global economies, which has had and will likely continue to have a negative impact on our operating income and could have a negative impact on our ability to access capital in the future.

The following table summarizes our unrestricted cash and cash equivalents and available revolver borrowing capacity under the Company as of March 31, 2022 (in thousands):

The following table summarizes our unrestricted cash and cash equivalents and available revolver borrowing capacity, excluding capacity under intercompany loan agreements, as of June 30, 2022 (in thousands):

Total Cash and Cash Equivalents Revolver Borrowing Capacity

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Wynn Macau, Limited and subsidiaries .

WML generates cash from our Macau Operations and may utilize proceeds from the WM Cayman II Revolver to fund working capital requirements as needed.

WML generates cash from our Macau Operations and may utilize proceeds from the WM Cayman II Revolver and its intercompany revolving loan facility with Wynn Resorts, Limited to fund working capital requirements as needed.

In July 2022, we drew $211.5 million on the WM Cayman II Revolver for general corporate purposes.

We expect to use this cash to fund working capital and capital expenditure requirements at WML and our Macau Operations, and to service our WML Senior Notes and WM Cayman II Revolver.

WML paid no dividends during 2021 or the first quarter of 2022.

The borrowings under the WM Cayman II Revolver bear interest at LIBOR or HIBOR plus a margin of 2.625% per annum until June 30, 2022, the date from which the margin will be 1.875% to 2.875% per annum based on WM Cayman II’s leverage ratio on a consolidated basis.

WML paid no dividends during 2021 or the first half of 2022.

The final maturity of all outstanding loans under the Revolving Facility is September 16, 2025.

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If our portion of our cash and cash equivalents were repatriated to the U.S.

on March 31, 2022, it would be subject to minimal U.S.

on June 30, 2022, it would be subject to minimal U.S.

taxes in the year of repatriation.

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The WRF Credit Agreement contains customary negative and financial covenants, including, but not limited to, covenants that restrict WRF's ability to pay dividends or distributions and incur additional indebtedness.

Wynn Las Vegas is currently undergoing its planned room remodel, which we temporarily postponed during 2020.

We expect to incur between $50 million and $60 million of remaining project costs related to this remodel, which we expect to complete during the second quarter of 2022.

In June 2022, Wynn Las Vegas completed its hotel room remodel for total project costs of $215.2 million, inclusive of approximately $16.0 million of remaining project costs.

We are currently reconfiguring the former Le Reve theater space at Wynn Las Vegas.

The specially redesigned theater will host an all-new, exclusive theatrical production.

We expect to incur between $55 million and $65 million of remaining project costs related to the reconfigured theater and theatrical production, which we anticipate will open during the third quarter of 2022.

We expect to incur between $40 million and $50 million of remaining project costs related to the reconfigured theater and theatrical production, which we anticipate will open during the fourth quarter of 2022.

As previously discussed, on February 15, 2022, we announced our entry into a sale-leaseback arrangement with respect to certain real estate assets related to Encore Boston Harbor.

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Wynn Resorts, Limited and other primarily generates cash from royalty and management agreements with our resorts, dividends and distributions from our subsidiaries, and the operations of the Retail Joint Venture of which we own 50.1%.

We expect to use this cash to service our Retail Term Loan, to fund working capital needs of Wynn Interactive, and for general corporate purposes.

We expect to use this cash to service our Retail Term Loan, to fund working capital needs of our subsidiaries, and for general corporate purposes.

Other Factors Affecting Liquidity

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For information regarding legal proceedings, see Note 16, "Commitments and Contingencies."

Our Board of Directors has authorized an equity repurchase program of up to $1.0 billion.

In April 2016, our Board of Directors has authorized an equity repurchase program of up to $1.0 billion.

Under the equity repurchase program, we may repurchase the Company's outstanding shares from time to time through open market purchases, in privately negotiated transactions, and under plans complying with Rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934, as amended (the "Exchange Act").

As of March 31, 2022, we had $800.1 million in repurchase authority remaining under the program.

We did not repurchase shares under the repurchase program during the three months ended March 31, 2022.

We repurchased 2,381,928 shares of our common stock at an average price of

$57.70 per share, for an aggregate cost of $137.4 million under this equity repurchase program during the three months ended June 30, 2022.

As of June 30, 2022, we had $662.7 million in repurchase authority remaining under the program.

We have in the past repurchased, and in the future, we may periodically consider repurchasing our outstanding notes for cash.

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A description of our critical accounting policies is included in Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2021.

There have been no significant changes to these policies for the three months ended March 31, 2022.

There have been no significant changes to these policies for the six months ended June 30, 2022.

Recently Adopted Accounting Standards and Accounting Standards Issued But Not Yet Adopted

See related disclosure in Note 2, "Basis of Presentation and Significant Accounting Policies."

See related disclosure in Note 2, "Basis of Presentation and Significant Accounting Policies" of Part I in this Quarterly Report on Form 10-Q.

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-Q

Item 2. Management’s Discussion and Analysis