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Item 8. Financial Statements and Supplementary Data

2023-02-27 compared with 2022-02-28 · 342 added, 433 removed, 1194 unchanged (39% of the section changed)

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Consolidated Statements of Operations

Consolidated Statements of Comprehensive Income (Loss)

Consolidated Statements of Comprehensive Loss

Consolidated Statements of Stockholders’ Equity (Deficit)

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Quarterly Consolidated Financial Information (Unaudited)

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

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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, 2022, based on the COSO criteria.

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.

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, 2022 and 2021, the related consolidated statements of operations, comprehensive loss, stockholders' equity (deficit) and cash flows for each of the three years in the period ended December 31, 2022, and the related notes and financial statement schedule listed in the Index at Item 15(a)2 and our report dated February 27, 2023 expressed an unqualified opinion thereon.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management Report on Internal Control Over Financial Reporting.

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control Over Financial Reporting.

Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit.

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February 27, 2023

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

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Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Wynn Resorts, Limited and subsidiaries (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 (collectively referred to as the “consolidated financial statements”).

We have audited the accompanying consolidated balance sheets of Wynn Resorts, Limited and subsidiaries (the Company) as of December 31, 2022 and 2021, the related consolidated statements of operations, comprehensive loss, stockholders' equity (deficit) and cash flows for each of the three years in the period ended December 31, 2022, and the related notes and financial statement schedule listed in the Index at Item 15(a)2 (collectively referred to as the “consolidated financial statements”).

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2022 and 2021, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2022, in conformity with U.S.

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(1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments.

The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosure to which it relates.

Allowance for Credit Losses on 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.

The Company records an estimated allowance for credit losses to reduce the Company’s receivables to their carrying amount, which reflects the net amount the Company expects to collect.

The Company estimates the allowance based on specific review of customer and outstanding gaming promoter accounts taking into consideration the amount due from the patron and gaming promoters, the age of the account, the customer’s financial condition, as well as management’s experience with historical and current collection trends, current economic and business conditions, and management’s expectations of future economic and business conditions and forecasts.

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.

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.

To test the allowance for credit losses, our audit procedures included, among others:

testing management’s historical collections analysis by obtaining evidence related to the original issuance of the credit to patrons on a sample of casino accounts receivable and examining support for subsequent settlement, if any;

corroborating management’s representations for specific provisions made for certain individual casino patrons with internal data and examination of publicly available information of the customers’ financial condition;

evaluating management’s assumptions regarding future collectability in comparison to current business trends, third-party macroeconomic data and peer data;

and evaluating management’s use of this information in establishing the allowance for credit losses as of December 31, 2021.

In addition, we performed sensitivity analyses over the Company's significant assumptions and evaluated the overall allowance for credit losses by performing a retrospective analysis of the Company’s historical estimates, which consisted of comparing the Company’s estimates to subsequent settlements and write-offs.

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Accounting for the sale and leaseback of real estate assets

Description of the Matter As described in Notes 1, 5 and 15 to the Company’s consolidated financial statements, the Company closed on a sale-leaseback arrangement with respect to certain real estate assets related to Encore Boston Harbor (the "EBH Transaction") during the year ended December 31, 2022.

Upon closing of the EBH Transaction, the Company received cash proceeds of approximately $1.7 billion in exchange for the sale of such real estate assets, recognized a gain on sale of $182.0 million, and concurrently entered into a lease agreement with respect to the sold assets for the purpose of continuing to operate the Encore Boston Harbor integrated resort.

Upon entering into the lease agreement, the Company recognized an operating lease asset and a corresponding operating lease liability of $1.5 billion.

Auditing management’s evaluation of the EBH Transaction was especially challenging due to the complexity in management’s assessment of (i) whether control of the underlying real estate assets was transferred by the Company and (ii) the lease classification as an operating or a finance lease.

Auditing these assessments made by management involved especially challenging auditor judgment, including the need to involve our valuation specialists.

How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over management’s assessment of the accounting for the EBH transaction, including controls over the significant judgments made in the assessment, estimates used in the assessment and the completeness and accuracy of data used by management.

To test the accounting for the EBH Transaction, our audit procedures included, among others, (i) inspection of the sale and leaseback agreements, (ii) evaluating the significant judgments made by management in the accounting assessment (e.g.

when control of the asset transferred to the buyer-lessor), and (iii) evaluating the classification of the lease under ASC 842, including evaluating the completeness and accuracy of the underlying data used by management.

With the assistance of our valuation specialists, we also tested the fair value of the property sold and the incremental borrowing rate used in the lease classification test by developing a range of independent estimates and comparing those to the estimates selected by management.

/s/ Ernst & Young LLP

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February 27, 2023

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WYNN RESORTS, LIMITED AND SUBSIDIARIES

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Additional paid-in capital 3,583,923 3,502,715

Accumulated other comprehensive income 6,004 3,604

Accumulated other comprehensive income (loss) ( 404 ) 6,004

Accumulated deficit ( 2,711,808 ) ( 2,288,078 )

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

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WYNN RESORTS, LIMITED AND SUBSIDIARIES

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(in thousands, except per share data)

Years Ended December 31,

Year Ended December 31,

2022 2021 2020

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Depreciation and amortization 692,318 715,962 725,502

Gain on EBH Transaction, net ( 181,989 ) — —

Property charges and other 113,152 50,762 67,455

Total operating expenses 3,857,501 4,158,205 3,327,906

Operating income (loss) ( 394,541 ) ( 1,232,045 ) 878,305

Operating loss ( 100,676 ) ( 394,541 ) ( 1,232,045 )

Other income (expense):

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Other income (expense), net ( 599,360 ) ( 616,975 ) ( 530,230 )

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

Loss before income taxes ( 700,036 ) ( 1,011,516 ) ( 1,762,275 )

Provision for income taxes ( 9,332 ) ( 474 ) ( 564,671 )

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

net (income) loss attributable to noncontrolling interests 256,204 259,701 ( 188,393 )

Net income (loss) attributable to Wynn Resorts, Limited $ ( 755,786 ) $ ( 2,067,245 ) $ 122,985

Basic and diluted net income (loss) per common share:

Net income (loss) attributable to Wynn Resorts, Limited:

Net loss ( 709,368 ) ( 1,011,990 ) ( 2,326,946 )

net loss attributable to noncontrolling interests 285,512 256,204 259,701

Net loss attributable to Wynn Resorts, Limited $ ( 423,856 ) $ ( 755,786 ) $ ( 2,067,245 )

Basic and diluted net loss per common share:

Net loss attributable to Wynn Resorts, Limited:

Basic $ ( 3.73 ) $ ( 6.64 ) $ ( 19.37 )

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

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WYNN RESORTS, LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(in thousands)

Years Ended December 31,

Year Ended December 31,

2022 2021 2020

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

Other comprehensive income:

Net loss $ ( 709,368 ) $ ( 1,011,990 ) $ ( 2,326,946 )

Other comprehensive income (loss):

Foreign currency translation adjustments, before and after tax ( 8,849 ) 3,477 7,367

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

comprehensive (income) loss attributable to noncontrolling interests 255,127 257,617 ( 188,498 )

Comprehensive income (loss) attributable to Wynn Resorts, Limited $ ( 753,386 ) $ ( 2,061,962 ) $ 123,256

Total comprehensive loss ( 718,217 ) ( 1,008,513 ) ( 2,319,579 )

comprehensive loss attributable to noncontrolling interests 287,953 255,127 257,617

Comprehensive loss attributable to Wynn Resorts, Limited $ ( 430,264 ) $ ( 753,386 ) $ ( 2,061,962 )

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

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WYNN RESORTS, LIMITED AND SUBSIDIARIES

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Balances, January 1, 2020 107,363,943 $ 1,228 $ ( 1,410,998 ) $ 2,512,676 $ ( 1,679 ) $ 641,818 $ 1,743,045 $ ( 201,573 ) $ 1,541,472

Net 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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Currency translation adjustment — — — — ( 6,408 ) — ( 6,408 ) ( 2,441 ) ( 8,849 )

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 797,419 9 — 9,279 — — 9,288 — 9,288

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Shares repurchased by the Company and held as treasury shares ( 3,151,883 ) — ( 187,499 ) — — — ( 187,499 ) — ( 187,499 )

Cash dividends declared — — — — — 128 128 21 149

Wynn Interactive transactions — — — ( 20,211 ) — — ( 20,211 ) 25,372 5,161

Distribution to noncontrolling interest — — — — — — — ( 27,744 ) ( 27,744 )

Contribution from noncontrolling interest — — — 48,559 — — 48,559 1,474 50,033

Transactions with subsidiary minority shareholders 124,481 1 — ( 14,053 ) — — ( 14,052 ) 14,052 —

Subsidiary equity issuance — — — ( 18,717 ) — — ( 18,717 ) 21,613 2,896

Stock-based compensation — — — 56,139 — 126 56,265 10,828 67,093

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

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WYNN RESORTS, LIMITED AND SUBSIDIARIES

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(in thousands)

Years Ended December 31,

Year Ended December 31,

2022 2021 2020

Cash flows from operating activities:

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

Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:

Net loss $ ( 709,368 ) $ ( 1,011,990 ) $ ( 2,326,946 )

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization 692,318 715,962 725,502

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Change in derivatives fair value ( 15,956 ) ( 11,360 ) 13,060

Gain on EBH Transaction, net ( 181,989 ) — —

Property charges and other 107,341 74,688 38,933

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Accounts payable and accrued expenses ( 97,238 ) 117,801 ( 162,475 )

Net cash (used in) provided by operating activities ( 222,591 ) ( 1,072,425 ) 901,070

Net cash used in operating activities ( 71,272 ) ( 222,591 ) ( 1,072,425 )

Cash flows from investing activities:

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Cash acquired from business combination — — 4,604

Proceeds from EBH Transaction 1,700,000 — —

Proceeds from sale of assets and other 1,471 4,268 19,752

Net cash used in investing activities ( 342,423 ) ( 265,759 ) ( 1,068,598 )

Net cash provided by (used in) investing activities 1,348,967 ( 342,423 ) ( 265,759 )

Cash flows from financing activities:

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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 )

Finance lease payments ( 15,658 ) ( 5,916 ) ( 73 )

Proceeds from exercise of stock options — — 70

Shares of subsidiary repurchased for share award plan — — ( 5,384 )

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

Repurchase of common stock ( 187,499 ) ( 13,842 ) ( 11,533 )

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

Proceeds from sale of noncontrolling interest in subsidiary 50,033 — —

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

Distribution to noncontrolling interest ( 27,744 ) ( 18,761 ) ( 6,238 )

Dividends paid ( 1,445 ) ( 1,553 ) ( 108,777 )

Finance lease payments ( 18,188 ) ( 15,658 ) ( 5,916 )

Payments for financing costs ( 3,165 ) ( 31,193 ) ( 27,339 )

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Cash, cash equivalents and restricted cash:

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

Increase (decrease) in cash, cash equivalents and restricted cash 1,251,923 ( 955,317 ) 1,128,092

Balance, beginning of period 2,531,067 3,486,384 2,358,292

Balance, end of period $ 3,782,990 $ 2,531,067 $ 3,486,384

Supplemental cash flow disclosures

Cash paid for interest, net of amounts capitalized $ 581,650 $ 463,458 $ 373,052

Capitalized stock-based compensation $ 5,058 $ 2,212 $ 350

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

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

Accounts and construction payables related to property and equipment $ 52,647 $ 62,956 $ 163,471

Other liabilities related to intangible assets $ 5,417 $ 13,822 $ 13,945

Financing costs included in accounts payable and other liabilities $ 290 $ 3,116 $ 1,857

Dividends payable on unvested restricted stock included in other accrued liabilities $ 1,846 $ 3,564 $ 6,690

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

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The Company refers to Wynn Las Vegas, Encore, an expansion at Wynn Las Vegas, and the Retail Joint Venture as its Las Vegas Operations.

On June 23, 2019, the Company opened Encore Boston Harbor, an integrated resort in Everett, Massachusetts, that is owned 100% by the Company.

In October 2020, Wynn Interactive Ltd.

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

In Everett, Massachusetts, the Company operates Encore Boston Harbor, an integrated resort.

The Company also holds an approximately 97 % interest in, and consolidates, Wynn Interactive Ltd.

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

Macau Operations

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 Palace features a luxury hotel tower with 1,706 guest rooms, suites and villas, approximately 468,000 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 294,000 square feet of casino space, 14 food and beverage outlets, approximately 31,000 square feet of meeting and convention space, approximately 64,300 square feet of retail space, a performance lake, a rotunda show and recreation and leisure facilities.

On December 16, 2022, Wynn Resorts (Macau), S.A.

("Wynn Macau SA"), an indirect subsidiary of the Company, entered into a definitive gaming concession contract (the "Gaming Concession Contract") with the Macau government, pursuant to which Wynn Macau SA was granted a 10-year gaming concession commencing on January 1, 2023 and expiring on December 31, 2032, to operate games of chance at Wynn Palace and Wynn Macau.

Las Vegas Operations

Wynn Las Vegas features two luxury hotel towers with a total of 4,748 guest rooms, suites and villas, approximately 194,000 square feet of casino space, 32 food and beverage outlets, approximately 513,000 square feet of meeting and convention space, approximately 155,000 square feet of retail space (the majority of which is owned and operated under a joint venture of which the Company owns 50.1 %), as well as two theaters, three nightclubs and a beach club and recreation and leisure facilities.

Wynn Las Vegas features two luxury hotel towers with a total of 4,748 guest rooms, suites and villas, approximately 194,000 square feet of casino space, 34 food and beverage outlets, approximately 513,000 square feet of meeting and convention space, approximately 174,000 square feet of retail space (the majority of which is owned and operated under a joint venture of which the Company owns 50.1 %), as well as two theaters, two nightclubs and a beach club and recreation and leisure facilities.

Encore Boston Harbor

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 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.

Encore Boston Harbor, an integrated resort in Everett, Massachusetts, adjacent to Boston along the Mystic River, features a luxury hotel tower with a total of 671 guest rooms and suites, approximately 213,000 square feet of casino space, 16 food and beverage outlets, one nightclub, approximately 71,000 square feet of meeting and convention space, and approximately 9,000 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.

On December 1, 2022, the Company closed on a sale-leaseback arrangement with respect to certain real estate assets related to Encore Boston Harbor (the "EBH Transaction").

Upon closing of the EBH Transaction, the Company received cash proceeds of approximately $ 1.70 billion in exchange for the sale of such real estate assets, and concurrently entered into a lease agreement for the purpose of continuing to operate the Encore Boston Harbor integrated resort.

For more information on the EBH Transaction, see Note 5, "Property and Equipment, net" and Note 15, "Leases."

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Wynn Interactive

Wynn Interactive's subsidiary operates the digital sports betting and casino gaming business known as WynnBET in Arizona, Colorado, Indiana, Louisiana, Michigan, New Jersey, New York, Tennessee, and Virginia.

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

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.

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

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)

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.

Since the outbreak of COVID-19, visitation to Macau has fallen significantly, 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, periods of mandatory closure of certain businesses and facilities, including gaming operations, and the suspension or reduced accessibility of transportation to and from Macau.

Over the course of December 2022 and January 2023, Macau authorities relaxed or eliminated most COVID-19 related protective measures, and as of February 27, 2023, there are no remaining entry restrictions or mandatory quarantine requirements in place for travelers to Macau, and testing requirements for inbound travelers from the PRC, Hong Kong, and Taiwan have been discontinued.

Nevertheless, given the inherent uncertainty around the likelihood, extent, and timing of a potential reimposition of restrictions on the general public, travel, or certain activities, management is unable to reasonably predict whether such restrictions would impact the Company's properties in the future, or the extent such restrictions, if reimposed, would impact the Company's results of operations, cash flows, or financial condition.

As of December 31, 2022, the Company had total cash and cash equivalents, excluding restricted cash, of $ 3.65 billion, and had access to $ 837.0 million of available borrowing capacity from the WRF Revolver.

As of December 31, 2022, the WM Cayman II Revolver was fully drawn.

As a result of the negative impact the COVID-19 pandemic has had, and may continue to have, on our operating income, the Company has suspended its dividend program.

Given the Company's liquidity position as of December 31, 2022, the Company believes it will be able to support continuing operations and respond to any potential reimposition of COVID-19 related restrictions on the general public, travel, or certain activities and their related economic disruptions.

Note 2 - Basis of Presentation and Significant Accounting Policies

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generally accepted accounting principles ("GAAP") and include the accounts of the Company, its majority-owned subsidiaries, and entities the Company identifies as variable interest entities ("VIEs") of which the Company is determined to be the primary beneficiary.

For information on the Company's VIEs, see Note 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.

For information on the Company's VIEs, see Note 18, "Retail Joint Venture." If the entity does not qualify for consolidation and the Company has significant influence over the operating and financial decisions of the entity, the Company accounts for the entity under the equity method.

All significant intercompany accounts and transactions have been eliminated.

Use of Estimates

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dollar-denominated and foreign currency-denominated securities.

Cash equivalents are carried at cost, which approximates fair value.

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

Cash equivalents are carried at cost,

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

which approximates fair value.

Restricted cash consists of cash collateral associated with obligations and cash held in a trust in accordance with WML's share award plan, and as of December 31, 2022 includes an amount held in the form of a first demand bank guarantee in favor of the Macau government to support Wynn Macau SA's legal and contractual obligations under the Gaming Concession Contract.

Accounts Receivable and Credit Risk

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

Casino receivables primarily consist of credit issued to patrons in the form of markers and advances paid to gaming promoters.

Casino receivables primarily consist of credit issued to patrons in the form of markers.

The Company issues credit based on factors such as level of play and financial resources, following background and credit checks.

The casino credit extended by the Company is generally unsecured and due on demand.

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.

The allowance estimate reflects specific review of customer accounts and outstanding gaming promoter accounts taking into consideration the amount owed, the age of the account, the customer's financial condition, management's experience with historical and current collection trends, current economic and business conditions, and management's expectations of future economic and business conditions and forecasts.

The allowance estimate reflects specific review of customer accounts taking into consideration the amount owed, the age of the account, the customer's financial condition, management's experience with historical and current collection trends, current economic and business conditions, and management's expectations of future economic and business conditions and forecasts.

Accounts are written off when management deems them to be uncollectible.

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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The cost and accumulated depreciation of property and equipment retired or otherwise disposed of are eliminated from the respective accounts and any resulting gain or loss is included in property charges and other.

Capitalized Interest

The interest cost associated with major development and construction projects is capitalized and included in the cost of the project.

Interest capitalization ceases once a project is substantially complete or no longer undergoing construction activities to prepare it for its intended use.

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.

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

The Company allocates the fair value of purchase consideration to the tangible assets acquired, liabilities assumed, and intangible assets acquired based on their estimated fair values in accordance with the applicable accounting standards.

The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill.

When determining the fair values of assets acquired and liabilities assumed, management makes estimates and assumptions to determine the fair value of intangible assets.

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.

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.

During the measurement period, which is not to exceed one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill.

Upon the conclusion of the measurement period, any subsequent adjustments are recorded to the Consolidated Statements of Operations.

Goodwill represents the excess of the purchase price in a business combination over the fair value of the tangible and intangible assets acquired and the liabilities assumed.

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

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.

If qualitative factors indicate that the fair value of the reporting unit is more likely than not less than its carrying amount, then a quantitative goodwill impairment test is performed.

If qualitative factors indicate that the fair value of the reporting unit is more likely than not less than its carrying amount, then a quantitative goodwill impairment test is

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

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

The Company determines if an arrangement is or contains a lease at inception or modification of the arrangement.

An arrangement is or contains a lease if there are identified assets and the right to control the use of an identified asset is conveyed for a period of time in exchange for consideration.

Control over the use of the identified asset means the lessee has both the right to obtain substantially all of the economic benefits from the use of the asset and the right to direct the use of the asset.

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 leases with a term of less than one year.

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

Lease terms include options to extend the lease when it is reasonably certain that such option will be exercised.

The Company’s triple-net operating lease related to Encore Boston Harbor contains a renewal period at the Company’s option, which is not considered to be reasonably certain of being exercised.

Many of the Company’s leases include fixed rental escalation clauses that are factored into the determination of lease payments.

A lessee is required to classify a lease as a finance lease if, among other factors, (1) the term is for the major part of the remaining economic life of the underlying asset or 2) the present value of the sum of the lease payments equals or exceeds substantially all of the fair value of the underlying asset.

For operating leases, lease expense for minimum lease payments is recognized on a straight-line basis over the expected lease term.

For finance leases, the Company records depreciation of the lease asset on a straight-line basis over the shorter of the lease term or useful life of the lease asset, and the lease liability accretes interest using the discount rate determined at lease commencement.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.

For sale-leaseback arrangements, such as the EBH Transaction, the Company is required to determine whether the transaction qualifies as a sale, which includes assessing whether a contract exists and if so, whether control has passed to the counterparty in the contract.

Control indicators include, but are not limited to, whether the entity has a present right to payment for the asset, whether the customer has legal title to the asset, whether the entity has transferred physical possession of the asset, whether the customer has significant risks and rewards of ownership of the asset, and whether the customer has accepted the asset.

If it is determined that a sale has occurred, the Company recognizes an operating or finance lease based on the factors outline in the preceding paragraph.

A finance lease would preclude sale accounting.

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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.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Debt Issuance Costs

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After allocating amounts to the complimentary goods or services provided and to the points earned under the Company's loyalty programs, the residual amount is recorded as casino revenue when the wager is settled.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

The transaction price for rooms, food and beverage, entertainment, retail and other transactions is the net amount collected from the customer for such goods and services and is recorded as revenue when the goods are provided, services are performed or events are held.

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

These taxes totaled $ 526.3 million, $ 830.4 million, and $ 527.5 million for the years ended December 31, 2022, 2021, and 2020, 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 year ended December 31, 2022, the Company incurred pre-opening expenses primarily in connection with reconfiguring the theater space at Wynn Las Vegas to host an all-new, exclusive theatrical production, Awakening , which premiered in November 2022.

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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As applicable, the Company will recognize accrued penalties and interest related to unrecognized tax benefits in the provision for income taxes.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Foreign Currency

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Balance sheet accounts are translated at the exchange rate in effect at each balance sheet date and income statement accounts are translated at the average rate of exchange prevailing during the year.

Translation adjustments resulting from this process are charged or credited to other comprehensive income (loss).

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

Comprehensive income (loss) includes net income (loss) and all other non-stockholder changes in equity or other comprehensive income (loss).

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)

Translation adjustments resulting from this process are charged or credited to other comprehensive loss.

Comprehensive Loss and Accumulated Other Comprehensive Income (Loss)

Comprehensive loss includes net loss and all other non-stockholder changes in equity or other comprehensive loss.

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

Fair Value Measurements

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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.

The Company’s management has evaluated all of the recently issued, but not yet effective, accounting standards that have been issued or proposed by the Financial Accounting Standards Board ("FASB") or other standards-setting bodies through the filing date of these financial statements and does not believe the future adoption of any such pronouncements will have a material effect on the Company’s financial position, results of operations and cash flows.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

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Restricted cash (3)

132,550 8,537

Total cash, cash equivalents and restricted cash $ 3,782,990 $ 2,531,067

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

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

(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, and as of December 31, 2022 includes $ 124.5 million in the form of a first demand bank guarantee in favor of the Macau government to support Wynn Macau SA's legal and contractual obligations through the term of the Gaming Concession Contract.

The following table disclose the supplemental cash flow disclosures of the Company (in thousands):

Year Ended December 31,

2022 2021 2020

Cash paid for interest, net of amounts capitalized $ 618,395 $ 581,650 $ 463,458

Capitalized stock-based compensation $ 3,246 $ 5,058 $ 2,212

Cash paid for income taxes $ 5,290 $ 1,749 $ 1,433

Finance lease liabilities arising from obtaining finance lease assets $ 5,906 $ 7,423 $ 56,215

Liability settled with shares of common stock $ 9,287 $ 6,272 $ 6,720

Accounts and construction payables related to property and equipment $ 64,861 $ 52,647 $ 62,956

Other liabilities related to intangible assets $ 4,220 $ 5,417 $ 13,822

Financing costs included in accounts payable and other liabilities $ — $ 290 $ 3,116

Dividends payable on unvested restricted stock included in other accrued liabilities $ 229 $ 1,846 $ 3,564

Note 4 - Receivables, net

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The Company’s allowance for credit losses from its hotel and other receivables is not material.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

The following table shows the movement in the Company's allowance for credit losses recognized for receivables that occurred during the period (in thousands):

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Balance at end of period $ 78,842 $ 111,319

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Note 5 - Property and Equipment, net

8 unchanged sentences

$ 6,896,060 $ 8,765,308

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.

As of December 31, 2022, construction in progress consisted primarily of costs capitalized for various capital enhancements at the Company's properties.

As of December 31, 2021, 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, 2022, 2021 and 2020 was $ 652.1 million, $ 685.7 million, and $ 699.6 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.

Encore Boston Harbor Real Estate Sale

Upon closing of the EBH Transaction in December 2022, the Company received cash proceeds of approximately $ 1.70 billion in exchange for the sale of certain real estate assets associated with Encore Boston Harbor.

In connection with the sale, the Company recognized a gain of $ 182.0 million in the fourth quarter of 2022.

Macau Operations Property Transfer Agreements

In December 2022, in accordance with the requirements of the Macau Gaming Law, Wynn Macau SA and Palo Real Estate Company Limited ("Palo"), a subsidiary of Wynn Macau SA, entered into agreements (collectively, the "Property Transfer Agreements") with the Macau government, pursuant to which Wynn Macau SA and Palo transferred the casino areas and gaming equipment of the Company's Macau Operations to the Macau government without compensation on December 31, 2022, and the Macau government agreed to transfer such casino areas and gaming equipment back to Wynn Macau SA as of January 1, 2023, for its use in the operation of games of chance at Wynn Macau and Wynn Palace as permitted under the Gaming Concession Contract through December 31, 2032.

In exchange for the use of such assets, Wynn Macau SA has agreed to make certain payments as outlined in Note 17, "Commitments and Contingencies." As the Company expects to continue to operate the casino areas and gaming equipment at its Macau Operations in the same manner as under the previous concession, obtain substantially all of the economic benefits, and bear all of the risks arising from the use of these assets, and believes it will be awarded a new concession upon the expiration of the Gaming Concession Contract, the Company will continue to recognize the casino areas and gaming equipment as property and equipment over their remaining estimated useful lives.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

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Balance at beginning of year 129,738 144,095

Acquisitions — 121,039

Foreign currency translation ( 1,457 ) ( 4,103 )

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$ 245,253 $ 307,578

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 $ 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.

The Company expects that amortization of the Massachusetts gaming license will be $ 7.8 million each year from 2023 through 2033, and $ 3.7 million in 2034.

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 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.

Other finite-lived intangible assets primarily consist of market access fees and gaming license fees.

Market access fees relate to fees paid to gaming operators and other strategic partners that are approved or pending regulatory approval by a state's regulator to operate online casino wagering and online sports betting in certain jurisdictions.

The Company amortizes market access fees over their stated contractual term, which is typically ten years.

The Company expects that amortization of Other intangible assets will be $ 6.2 million in 2023, $ 4.9 million each year in 2024 and 2025, $ 4.1 million in 2026, $ 3.9 million in 2027, and $ 15.1 million thereafter.

During the year ended December 31, 2022, as a result of changes in forecasts and other industry-specific factors and management's decision to cease the operations of Betbull Limited ("BetBull"), a subsidiary of Wynn Interactive, the Company recognized impairment of goodwill and other finite-lived intangible assets of $ 37.8 million and $ 10.3 million, respectively.

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

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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.

value of the reporting units comprising Wynn Interactive based on a combination of the income and market approaches, recognized goodwill impairment of $ 10.3 million during the year ended December 31, 2021.

Impairment of goodwill and intangible assets is recorded in Property charges and other in the accompanying Consolidated Statements of Operations.

Note 7 - Long-Term Debt

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$ 1,500,473 $ 1,287,766

Wynn Macau Credit Facilities (2) :

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

Wynn Macau Revolver, due 2022 — 407,443

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

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WRF Term Loan, due 2024 837,500 887,500

WRF Revolver, due 2024 — 716,000

WLV 4 1/4% Senior Notes, due 2023 500,000 500,000

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Total long-term debt, net of current portion $ 11,569,316 $ 11,884,546

(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.

(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, subject to a floor on the interest rate margin of 2.625 % per annum through June 30, 2023.

Approximately $ 312.5 million and $ 1.19 billion of the WM Cayman II Revolver bears interest at a rate of LIBOR plus 2.875 % per year and HIBOR plus 2.875 % 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.

As of December 31, 2022 and 2021, the weighted average interest rate was approximately 7.30 % and 2.80 %, respectively.

As of December 31, 2022, the WM Cayman II Revolver was fully drawn.

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

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

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

As of December 31, 2022 and 2021, the effective interest rate was 5.45 % and 2.70 %, respectively.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

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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 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.

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.

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

The final maturity of all outstanding loans under the WM Cayman II Revolver is September 16, 2025, by which time any outstanding borrowings from the WM Cayman II Revolver must be repaid.

On May 5, 2022, WM Cayman II and its lenders agreed to waive certain financial covenants in the Facility Agreement under the WM Cayman II Revolver in respect of the relevant periods ending on the following applicable test dates:

(a) June 30, 2022;

(b) September 30, 2022;

and (d) March 31, 2023;

and to provide for a floor on the interest rate margin of 2.625 % per annum through June 30, 2023.

WML , as guarantor, may be subject to certain restrictions on payments of dividends or distributions to its shareholders, unless certain financial criteria have been satisfied through the Facility Agreement.

WML Senior Notes

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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.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

The WML Senior Notes were issued pursuant to indentures between WML and Deutsche Bank Trust Company Americas, as trustee (the "WML Senior Notes Indentures").

8 unchanged sentences

If WML undergoes a Change of Control (as defined in the WML Senior Notes Indentures), it must offer to repurchase the WML Senior Notes at a price equal to 101 % of the aggregate principal amount thereof, plus accrued and unpaid interest.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

and Corporate Related Debt

Refinancing Transactions

On September 20, 2019, WRF and its subsidiary Wynn Resorts Capital Corp.

(collectively with WRF, the "WRF Issuers"), each an indirect wholly owned subsidiary of the Company, issued $ 750.0 million aggregate principal amount of 5 1/8% Senior Notes due 2029 (the "2029 WRF Senior Notes") pursuant to an indenture (the "2029 Indenture") among the WRF Issuers, the guarantors party thereto, and U.S.

Bank National Association, as trustee (the "Trustee").

Concurrently with the issuance of the 2029 WRF Senior Notes, WRF entered into a credit agreement (the "WRF Credit Agreement") providing for a new first lien term loan facility in an aggregate principal amount of $ 1.0 billion (the "WRF Term Loan") and a new first lien revolving credit facility in an aggregate principal amount of $ 850.0 million (the "WRF Revolver" and together with the WRF Term Loan, the "WRF Credit Facilities") (the WRF Credit Facilities and 2029 WRF Notes are collectively referred to as the "Refinancing Transactions").

WRF used the net proceeds from the Refinancing Transactions to refinance the existing Wynn America credit facilities and the Wynn Resorts term loan and to pay related fees and expenses totaling $ 19.3 million, of which $ 15.1 million was recorded as debt issuance costs within the Consolidated Balance Sheet.

The Company recognized the Refinancing Transactions primarily as a modification of existing debt with the related unamortized debt issuance costs reallocated to the new debt instruments.

For those components of debt that were deemed extinguished, the Company recognized a loss on extinguishment of debt of $ 12.4 million.

WRF Credit Facilities

During 2019, WRF entered into a credit agreement (the "WRF Credit Agreement") providing for a first lien term loan facility in an aggregate principal amount of $ 1.00 billion (the "WRF Term Loan") and a first lien revolving credit facility in an aggregate principal amount of $ 850.0 million (the "WRF Revolver" and together with the WRF Term Loan, the "WRF Credit Facilities").

WRF used the net proceeds from the WRF Term Loan and the 2029 WRF Senior Notes (as defined below) to refinance the existing Wynn America credit facilities and the Wynn Resorts term loan and to pay related fees and expenses.

Subject to certain exceptions, the WRF Credit Facilities bear interest at LIBOR plus 1.75 % per annum.

The annual fee required to pay for unborrowed amounts under the WRF Revolver, if any, is 0.25 % per annum.

The Company is required to make quarterly repayments on the WRF Term Loan of $ 12.5 million beginning in the fourth quarter of 2019, with any remaining principal amount outstanding repayable in full on September 20, 2024.

The Company is required to make quarterly repayments on the WRF Term Loan of $ 12.5 million, with any remaining principal amount outstanding repayable in full on September 20, 2024.

The WRF Credit Agreement contains customary representations and warranties, events of default and negative and affirmative covenants, including, but not limited to, covenants that restrict our ability to pay dividends or distributions to any direct or indirect subsidiaries, to incur and/or repay indebtedness, to make certain restricted payments, and to enter into mergers and acquisitions, negative pledges, liens, transactions with affiliates, and sales of assets.

In addition, WRF is subject to financial covenants, including maintaining a Consolidated First Lien Net Leverage Ratio, as defined in the WRF Credit Agreement.

Commencing with the fourth quarter of 2019, the Consolidated Senior Secured Net Leverage Ratio is not to exceed 3.75 to 1.00.

The Consolidated Senior Secured Net Leverage Ratio is not to exceed 3.75 to 1.00.

The WRF Credit Facilities are guaranteed by each of WRF's existing and future wholly owned domestic restricted subsidiaries (the "Guarantors"), subject to certain exceptions, and are secured by a first priority lien on substantially all of WRF's and each of the guarantors' existing and future property and assets, subject to certain exceptions, including a limitation on the amount of collateral granted by Wynn Las Vegas, LLC ("WLV") and its subsidiaries so as to not violate the indenture governing WLV's outstanding senior notes.

On April 10, 2020 and November 27, 2020, the WRF Credit Agreement was amended to, among other things, implement a financial covenant relief period (the "Financial Covenant Relief Period") through April 1, 2022 and implement a financial covenant increase period (the "Financial Covenant Increase Period") commencing on the first day after the expiration of the Financial Covenant Relief Period and ending on the first day of the fourth fiscal quarter after the expiration of the Financial Covenant Relief Period, unless earlier terminated by WRF.

During the Financial Covenant Relief Period, the existing consolidated first lien net leverage ratio financial covenant was replaced with a minimum liquidity financial covenant that required WRF and its restricted subsidiaries to maintain liquidity of at least $ 325.0 million at all times (with liquidity being the sum of unrestricted operating cash, as defined in the WRF Credit Agreement, and the available borrowing capacity under the WRF Revolver).

WRF terminated the Financial Covenant Relief Period during the first quarter of 2022.

Following the termination of the Financial Covenant Relief Period, WRF may not permit the consolidated first lien net leverage ratio as of the last day of any fiscal quarter to exceed 3.75 to 1.00.

WRF Senior Notes

During 2020 and 2019, WRF and its subsidiary Wynn Resorts Capital Corp.

(collectively with WRF, the "WRF Issuers"), each an indirect wholly owned subsidiary of the Company issued $ 600.0 million aggregate principal amount of 7 3/4% Senior Notes due 2025 (the "2025 WRF Senior Notes") and $ 750.0 million aggregate principal amount of 5 1/8% Senior Notes due 2029 (the "2029 WRF Senior Notes"), respectively.

The Company used the proceeds from the 2025 Senior Notes for general corporate purposes.

WRF used the net proceeds from the 2029 WRF Senior Notes to refinance the existing Wynn America credit facilities and the Wynn Resorts term loan and to pay related fees and expenses.

On February 16, 2023, the WRF Issuers issued $ 600.0 million aggregate principal amount of 7 1/8% Senior Notes due 2031 (the "2031 WRF Senior Notes," and collectively with the 2025 WRF Senior Notes and 2029 Senior Notes, the "WRF Senior Notes") pursuant to an indenture among the WRF Issuers, the guarantors party thereto, and the Trustee, in a private offering.

The 2031 WRF Senior Notes were issued at par, for proceeds of $ 596.2 million, net of $ 3.8 million of related fees and expenses.

Also on February 16, 2023, the WRF Issuers completed a cash tender offer for any and all of the outstanding principal amount of the 2025 WRF Senior Notes, and accepted for purchase valid tenders with respect to $ 506.5 million and paid a tender premium of $ 12.4 million.

The Company used a portion of the net proceeds from the offering of the 2031 WRF

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

WRF's and each of the guarantors' existing and future property and assets, subject to certain exceptions, including a limitation on the amount of collateral granted by Wynn Las Vegas, LLC ("WLV") and its subsidiaries so as to not violate the indenture governing WLV's outstanding senior notes.

On April 10, 2020 and November 27, 2020, the WRF Credit Agreement was collectively amended to, among other things, implement a financial covenant relief period (the "Financial Covenant Relief Period") through April 1, 2022 (unless earlier terminated by WRF), implement a financial covenant increase period (the "Financial Covenant Increase Period") commencing on the first day after the expiration of the Financial Covenant Relief Period and ending on the first day of the fourth fiscal quarter after the expiration of the Financial Covenant Relief Period (unless earlier terminated by WRF), amend the definition of "Consolidated EBITDA" in the WRF Credit Agreement during the Financial Covenant Increase Period, amend WRF's financial reporting obligations (including extensions to certain deadlines), add certain restrictions on restricted payments (including restrictions on a portion of dividends received from WRF's subsidiaries) during the Financial Covenant Relief Period and the Financial Covenant Increase Period, and amend the definition of "Material Adverse Effect" in the WRF Credit Agreement to take into consideration COVID-19.

During the Financial Covenant Relief Period, the existing consolidated first lien net leverage ratio financial covenant was replaced with a minimum liquidity financial covenant that requires WRF and its restricted subsidiaries to maintain liquidity of at least $ 325.0 million at all times (with liquidity being the sum of unrestricted operating cash, as defined in the WRF Credit Agreement, and the available borrowing capacity under the WRF Revolver).

Following the Financial Covenant Relief Period and for as long as the Financial Covenant Increase Period is in effect, WRF may not permit the consolidated first lien net leverage ratio as of the last day of any fiscal quarter to exceed for the first fiscal quarter of the Financial Covenant Increase Period, 4.50 to 1.00, for the second fiscal quarter of the Financial Covenant Increase Period, 4.25 to 1.00, for the third fiscal quarter of the Financial Covenant Increase Period, 4.00 to 1.00, and for each subsequent fiscal quarter thereafter (including from and including the first fiscal quarter during which the Financial Covenant Increase Period has been terminated by WRF), 3.75 to 1.00.

WRF Senior Notes

On April 14, 2020, the WRF Issuers issued $ 600.0 million aggregate principal amount of 7 3/4% Senior Notes due 2025 (the "2025 WRF Senior Notes" and collectively with the 2029 WRF Senior Notes, the “WRF Senior Notes”) pursuant to an indenture (the "2025 Indenture" and collectively with the 2029 Indenture, the “WRF Indentures”) among the WRF Issuers, the guarantors party thereto, and the Trustee.

The Company intends to use the proceeds from the 2025 Senior Notes for general corporate purposes.

Senior Notes to purchase such tendered 2025 WRF Senior Notes and to pay related fees and expenses, and intends to use the remaining net proceeds for general corporate purposes.

The WRF Senior Notes were issued pursuant to indentures (the "WRF Indentures") among the WRF Issuers, the guarantors party thereto, and U.S.

Bank National Association, as trustee (the "Trustee").

The WRF Senior Notes bear interest at each of their respective interest rates and interest is payable semi-annually.

In connection with the issuance of the 2025 WRF Senior Notes and the 2029 WRF Senior Notes, the Company paid fees and expenses totaling $ 13.5 million, which were recorded as debt issuance costs within the Consolidated Balance Sheets.

The WRF Senior Notes are the WRF Issuers' senior unsecured obligations and rank pari passu in right of payment with the WLV Senior Notes (as defined below), and rank equally in right of payment with Wynn Las Vegas' guarantee of the WRF Credit Facilities, and rank senior in right of payment to all of the WRF Issuers' existing and future subordinated debt.

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The WRF Indentures also contain customary events of default, including, but not limited to, failure to make required payments, failure to comply with certain covenants, certain events of bankruptcy and insolvency, and failure to pay certain judgments.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

The WRF Senior Notes were offered pursuant to an exemption under the Securities Act of 1933, as amended (the "Securities Act").

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The guarantees rank equally in right of payment with all existing and future liabilities of the guarantors that are not so subordinated and will be effectively subordinated in right of payment to all of such guarantors' existing and future secured debt (to the extent of the collateral securing such debt).

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

The WLV Indentures contain covenants limiting the WLV Issuers' and the guarantors' ability to create liens on assets to secure debt;

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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

On July 25, 2018, Wynn/CA Plaza Property Owner, LLC and Wynn/CA Property Owner, LLC (collectively, the "Retail Borrowers"), subsidiaries of the Retail Joint Venture, entered into a term loan agreement (the "Retail Term Loan Agreement").

On July 25, 2018, and as amended on May 5, 2020, Wynn/CA Plaza Property Owner, LLC and Wynn/CA Property Owner, LLC (collectively, the "Retail Borrowers"), subsidiaries of the Retail Joint Venture, entered into a term loan agreement (as amended, the "Retail Term Loan Agreement").

The Retail Term Loan Agreement provides for a term loan facility to the Retail Borrowers of $ 615.0 million (the "Retail Term Loan").

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The Retail Borrowers distributed approximately $ 589 million of the net proceeds of the Retail Term Loan to their members on a proportionate basis to each member's ownership percentage.

At any time subsequent to July 25, 2019, the Retail Borrowers may prepay the Retail Term Loan, in whole or in part, with no premium above the principal amount.

The Retail Borrowers may prepay the Retail Term Loan, in whole or in part, at any time with no premium above the principal amount.

The Retail Term Loan Agreement contains customary representations and warranties, events of default and affirmative and negative covenants for debt facilities of this type, including, among other things, limitations on leasing matters, incurrence of indebtedness, distributions and transactions with affiliates.

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The interest rate collar establishes a range whereby the Retail Borrowers will pay the counterparty if one-month LIBOR falls below the established floor rate of 1.00 %, and the counterparty will pay the Retail Borrowers if one-month LIBOR exceeds the ceiling rate of 3.75 %.

The interest rate collar settles monthly commencing in August 2019 through the termination date in August 2024.

The interest rate collar settles monthly through the termination date in August 2024.

No payments or receipts are exchanged on interest rate collar contracts unless interest rates rise above or fall below the pre-determined ceiling or floor rate, respectively.

The Company measures the fair value of the interest rate collar at each balance sheet date based on a Black-Scholes option pricing model, which incorporates observable market inputs such as market volatility and interest rates, with changes in fair value recorded in earnings.

As of December 31, 2022, the fair value of the interest rate collar was an asset of $ 10.4 million, of

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

which $ 6.7 million was recorded in Prepaid expenses and other, and $ 3.7 million was recorded in Other assets in the accompanying Consolidated Balance Sheets.

As of December 31, 2021, the fair value of the interest rate collar was a liability of $ 5.5 million, of which $ 3.9 million was recorded in Other accrued liabilities and $ 1.6 million was recorded in Other long-term liabilities in the accompanying Consolidated Balance Sheets.

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 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

As of December 31, 2022, management believes the Company was in compliance with all debt covenants.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Scheduled Maturities of Long-Term Debt

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2026 1,000,000

2027 1,630,000

Thereafter 3,100,000

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Note 8 - Stockholders' Equity (Deficit)

Equity Repurchase Program

In April 2016, the Company's board of directors authorized an equity repurchase program of up to $ 1.00 billion, which may include repurchases by the Company of its common stock from time to time through open market purchases, privately negotiated transactions, and under plans complying with Rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934, as amended.

During the year ended December 31, 2022, the Company repurchased 2,956,331 shares of its common stock at average prices of $ 57.95 per share for an aggregate cost of $ 171.3 million under the equity repurchase program.

Any shares repurchased pursuant to the equity repurchase program are held as treasury shares.

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

As of December 31, 2022, the Company had $ 628.8 million in repurchase authority remaining under the program.

Equity Offering

On February 11, 2021, the Company completed a registered public offering of 7,475,000 newly issued shares of its common stock, par value $ 0.01 per share, at a price of $ 115.00 per share for proceeds of $ 841.9 million, net of $ 17.7 million in underwriting discounts and commissions.

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 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.

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

On May 6, 2020, the Company announced that it had suspended its quarterly dividend program due to the financial impact of the COVID-19 pandemic.

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 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)

During the year ended December 31, 2020, the Company recorded $ 107.5 million as a reduction of retained earnings from cash dividends declared.

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

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As such, WML paid no dividends during 2022, 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.

The Company's share of this dividend was $ 215.1 million with a reduction of $ 82.9 million to noncontrolling interest in the accompanying Consolidated Balance Sheet.

On June 19, 2019, WML paid a cash dividend of HK$ 0.45 per share for a total of $ 298.0 million.

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.

Retail Joint Venture

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

During the year ended December 31, 2022, in exchange for cash consideration of $ 50.0 million, the Company sold to Crown Acquisitions Inc.

a 49.9 % interest in certain additional retail space contributed by the Company to the Retail Joint Venture.

In connection with this transaction, the Company recorded $ 48.6 million of additional paid-in capital and $ 1.5 million of noncontrolling interest, within Contribution from noncontrolling interest in the accompanying Consolidated Statement of Stockholders' Deficit for the year ended December 31, 2022.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

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

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.

During the year ended December 31, 2022, 2021 and 2020, the Company recorded matching contribution expenses of $ 8.7 million, $ 8.0 million, and no contributions, respectively.

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

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Multi-Employer Pension Plan

Wynn Las Vegas, LLC contributes to a multi-employer defined benefit pension plan for certain of its union employees under the terms of the Southern Nevada Culinary and Bartenders Union collective-bargaining agreement, which expires in July 2023.

The term of the collective bargaining agreement was extended through Memoranda of Agreement ("MOA") that the Company and the Culinary and Bartenders’ Unions entered into in April 2020 and January 2021, respectively.

The MOA further provided for a partial deferral of the 2020 and 2021 contractual wage increases until 2023, and allowed the Company additional flexibility in scheduling during the pandemic.

Wynn Las Vegas, LLC contributes to a multi-employer defined benefit pension plan for certain of its union employees under the terms of the collective-bargaining agreement with the Culinary Workers Union, Local 226, and Bartenders Union, Local 165, which expires July 31, 2023.

The term of the collective-bargaining agreement was extended through Memoranda of Agreement that the Company and the Culinary and Bartenders' Unions entered into in April 2020 and January 2021, respectively.

The legal name of the multi-employer pension plan is the Southern Nevada Culinary and Bartenders Pension Plan (the "Plan") (EIN:

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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.

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Options Weighted

Term (in years) Aggregate

WRL Omnibus Plan

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The following is provided for stock options under the Company's stock-based compensation plans (in thousands, except weighted average grant date fair value):

Years Ended December 31,

Year Ended December 31,

2022 2021 2020

WRL Omnibus Plan (1)

Intrinsic value of stock options exercised $ — $ — $ 24,731

Cash received from the exercise of stock options $ — $ — $ 14,696

Weighted average grant date fair value $ 18.56 $ — $ —

WML Share Option Plan (2)

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Weighted average grant date fair value $ 35.36 $ 159.51 $ 146.97

Intrinsic value of stock options exercised $ 1,241 $ — $ —

(1) As of December 31, 2022, there was no unamortized compensation expense related to stock options.

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Option Valuation Inputs

There were no stock options granted under the WRL Omnibus Plan during the years ended December 31, 2021, 2020, and 2019.

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

Year Ended December 31,

2022 2021 2020

Expected dividend yield — % — % — %

Expected volatility 56.9 % — % — %

Risk-free interest rate 2.7 % — % — %

Expected term (years) 1.8 — —

The fair value of stock options granted under WML's Share Option Plan was estimated on the date of grant using the following weighted average assumptions:

Years Ended December 31,

Year Ended December 31,

2022 2021 2020

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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:

Years Ended December 31,

Year Ended December 31,

2022 2021 2020

Expected dividend yield — % — % — %

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Granted 16,669 $ 449.92

Vested ( 3,899 ) $ 508.97

Forfeited ( 5,924 ) $ 1,361.38

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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 one-, two-, or three-year performance period.

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

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

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The following is provided for the share awards under the Company's stock-based compensation plans (in thousands, except weighted average grant date fair value):

Years Ended December 31,

Year Ended December 31,

2022 2021 2020

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The Company recorded stock-based compensation expense associated with these awards of $ 6.6 million, $ 9.3 million and $ 5.7 million for each of the years ended December 31, 2022, 2021 and 2020, 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.

The Company settled its obligations for the 2022, 2021, and 2020 annual incentive bonuses by issuing 67,320 , 108,224 , and 58,058 of vested shares with a weighted-average grant date fair value of $ 98.61 , $ 85.80 , and $ 108.03 , in January of the respective following year.

Compensation Cost

The total compensation cost for stock-based compensation plans was recorded as follows (in thousands):

Years Ended December 31,

Year Ended December 31,

2022 2021 2020

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General and administrative 40,593 56,572 48,477

Pre-opening — — 670

Total stock-based compensation expense 67,627 95,238 62,254

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Consolidated income (loss) before taxes for United States ("U.S.") and foreign operations consisted of the following (in thousands):

Years Ended December 31,

Year Ended December 31,

2022 2021 2020

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Foreign tax rate differential ( 17.0 ) % ( 9.4 ) % ( 5.3 ) %

Global intangible low-taxed income — % — % 10.1 %

Valuation allowance, other ( 3.1 ) % ( 6.8 ) % ( 11.1 ) %

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

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.

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.

In September 2022, Wynn Macau SA received an extension of the exemption from the Complementary Tax on casino gaming profits through December 31, 2022.

In December 2022, the Wynn Macau SA applied for an exemption from Complementary Tax on casino gaming profits commencing January 1, 2023.

The application is subject to approval.

For the years ended December 31, 2022 and 2021, the Company did not have any casino gaming profits exempt from the Macau Complementary Tax.

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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.

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.

In December 2022, Wynn Macau SA applied for an extension of this agreement from June 27, 2022 through December 31, 2022, the date Concession Extension Agreement expired.

The extension is subject to approval.

As a result of the stockholder dividend tax agreements, income tax expense includes $ 1.6 million for each of the years ended December 31, 2022, 2021, and 2020.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

During the years ended December 31, 2022 and 2021, the aggregate valuation allowance for deferred tax assets decreased $ 64.1 million and $ 485.4 million, respectively.

The 2022 decrease is primarily related to utilization of FTCs and expiration of NOL carryforwards.

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 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 $ 0.7 million, $ 1.9 million, and $ 1.2 million for the years ended December 31, 2022, 2021, and 2020, respectively, in excess of the amounts reported for such items as compensation costs under accounting standards related to stock-based compensation.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

The tax effects of significant temporary differences representing net deferred tax assets and liabilities consisted of the following (in thousands):

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Deferred tax liabilities—U.S.:

Property and equipment ( 1,217 ) —

Lease asset ( 22,021 ) ( 22,826 )

Leased asset ( 366,519 ) ( 22,021 )

Prepaid insurance, maintenance and taxes ( 14,138 ) ( 14,271 )

Property and equipment ( 194 ) ( 1,217 )

Other ( 7,612 ) ( 1,749 )

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Net deferred tax asset (liability) $ ( 1,905 ) $ 1,333

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

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

As of December 31, 2022, the Company had FTC carryforwards (net of uncertain tax positions) of $ 1.9 billion.

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The Company has a disallowed interest carryforward of $ 719.2 million which does not expire.

The Company has U.S.

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

As of December 31, 2022, the Company had U.S.

federal tax loss carryforwards of $ 417.3 million.

As of December 31, 2021, the Company had U.S.

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

federal tax loss carryforwards do not expire.

The majority of state tax loss carryforwards expire in 2040.

The Company incurred foreign tax losses of $ 424.2 million, $ 394.1 million and $ 378.6 million during the tax years ended December 31, 2022, 2021 and 2020, respectively.

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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.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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.

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, 2022 and 2021.

As of December 31, 2022 and 2021, the Company had valuation allowances provided on its deferred tax assets as follows (in thousands):

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The Company anticipates that the 2018 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.

Also, the Company's unrecognized tax benefits include certain income tax accounting methods, which govern the

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

timing and deductibility of income tax deductions.

As a result, the Company's unrecognized tax benefits could decrease up to $ 4.3 million over the next 12 months.

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The Company's 2018 to 2021 Macau income tax returns remain subject to examination by the Financial Services Bureau.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

The Company has participated in the IRS Compliance Assurance Program ("CAP") for the 2012 through 2022 tax years and will continue to participate in the IRS CAP for the 2023 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.

On December 31, 2020, 2021 and 2022, the statute of limitations for the 2015, 2016, and 2017 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 $ 3.7 million, $ 10.6 million, and $ 15.0 million, respectively.

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

In July 2020, the Financial Services Bureau issued final tax assessments for Palo for the years 2015 and 2016 and the examination resulted in no change to the tax returns.

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

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The weighted average number of common and common equivalent shares used in the calculation of basic and diluted EPS consisted of the following (in thousands, except per share amounts):

Years Ended December 31,

Year Ended December 31,

2022 2021 2020

Net income (loss) attributable to Wynn Resorts, Limited $ ( 755,786 ) $ ( 2,067,245 ) $ 122,985

Net loss attributable to Wynn Resorts, Limited $ ( 423,856 ) $ ( 755,786 ) $ ( 2,067,245 )

Weighted average common shares outstanding 113,623 113,760 106,745

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Weighted average common and common equivalent shares outstanding 113,623 113,760 106,745

Net income (loss) attributable to Wynn Resorts, Limited per common share, basic $ ( 6.64 ) $ ( 19.37 ) $ 1.15

Net income (loss) attributable to Wynn Resorts, Limited per common share, diluted $ ( 6.64 ) $ ( 19.37 ) $ 1.15

Net loss attributable to Wynn Resorts, Limited per common share, basic $ ( 3.73 ) $ ( 6.64 ) $ ( 19.37 )

Net loss attributable to Wynn Resorts, Limited per common share, diluted $ ( 3.73 ) $ ( 6.64 ) $ ( 19.37 )

Anti-dilutive stock options, nonvested, and performance nonvested shares excluded from the calculation of diluted net income per share 895 925 1,044

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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,

Year Ended December 31,

2022 2021 2020

Operating lease cost $ 18,321 $ 22,878 $ 29,574

Triple-net operating lease cost related to Encore Boston Harbor 11,773 — —

Short-term lease cost 21,060 16,224 11,363

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Total lease cost $ 68,094 $ 56,091 $ 56,620

Years Ended December 31,

Year Ended December 31,

2022 2021 2020

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Years Ended December 31,

Year Ended December 31,

2022 2021 2020

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The following table presents an analysis of lease liability maturities as of December 31, 2022 (in thousands):

Years Ending December 31, Operating Leases Finance Leases

Year Ending December 31, Operating Leases Finance Leases

2023 $ 136,924 $ 19,913

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Interest on lease liabilities $ 3,006,977 $ 51,756

Encore Boston Harbor Lease

The Company leases the real estate assets of Encore Boston Harbor pursuant to a triple-net operating lease agreement with an initial term of 30 years from December 2022 to November 2052, which may be renewed for one additional thirty-year term.

The lease has an initial base rent of $ 100 million, which increases at a fixed rate of 1.75 % for the first ten years and the greater of 1.75 % or change in consumer price index, subject to a cap of 2.5 %, for the remaining term of the lease.

In addition, certain fixed payments in lieu of taxes ("PILOT") made on behalf of the lessor are included in lease payments for the purpose of measuring the associated operating lease assets and liabilities.

The lease payments, inclusive of PILOT payments, are $ 120.1 million in 2023, $ 123.7 million in 2024, $ 126.1 million in 2025, $ 128.5 million in 2026, $ 130.9 million in 2027, and $ 3.56 billion thereafter.

At December 31, 2022, the total liability associated with the lease was $ 1.51 billion.

Ground Leases

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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 in 2022, $3.9 million in 2023, $4.0 million per year from 2024 to 2026 and total payments of $ 355.8 million thereafter.

The ground lease payments, which increase at a fixed rate over the term of the lease, are $ 3.9 million in 2023, $ 4.0 million per year from 2024 to 2027 and total payments of $ 351.8 million thereafter.

As of December 31, 2022 and 2021, the liability associated with this lease was $ 64.3 million and $ 63.7 million, respectively.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

At December 31, 2022 and 2021, operating lease assets included approximately $ 83.6 million and $ 84.7 million, respectively, related to an amount allocated to the leasehold interest in land upon the acquisition of a group of assets in 2018.

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At December 31, 2022 and 2021, operating lease assets included $ 154.1 million and $ 166.7 million of leasehold interests in land related to the Wynn Palace and Wynn Macau land concessions.

The Company expects that the amortization associated

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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.

The Company expects that the amortization associated with these leasehold interests will be approximately $ 12.5 million per year from 2023 through 2028 and approximately $ 9.4 million per year thereafter through 2037.

Lessor Arrangements

The following table presents the minimum and contingent operating lease income for the periods presented (in thousands):

Years Ended December 31,

Year Ended December 31,

2022 2021 2020

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The following table presents the future minimum rentals to be received under operating leases (in thousands):

Years Ending December 31, Operating Leases

Year Ending December 31, Operating Leases

2023 $ 120,786

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Home Purchase

In May 2010, the Company entered into an employment agreement with Linda Chen ("Ms.

Chen"), who is the President and Executive Director of Wynn Macau SA.

Under the terms of the employment agreement, the Company purchased a home in Macau for use by Ms.

Chen and has made renovations to the home with a total cost of $ 11.0 million.

In addition, Ms.

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

In 2022, Linda Chen, President and Executive Director of Wynn Macau SA exercised an option to purchase a home provided by the Company for her use for no consideration, as provided by the terms of her employment agreement.

Based on a third-party appraisal as of the date of option exercise, the estimated fair value of the home was $ 6.4 million.

The home purchase closed during the third quarter of 2022.

Cooperation Agreement

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Wynn regarding the composition of the Company's Board of Directors and certain other matters, including, among other things, the appointment of Mr.

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

Satre to the Company's Board of Directors, standstill restrictions, releases, non-disparagement,

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

reimbursement of expenses and the grant of certain complimentary privileges.

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

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As of December 31, 2022 and 2021, these net deposit balances with the Company were immaterial, as were the services provided.

Note 17 - Commitments and Contingencies

Macau Gaming Concession

Wynn Macau SA committed to make the following payments throughout the term of the Gaming Concession Contract:

(i) Gaming premium - The gaming premium is composed of (a) a fixed portion in an amount equal to MOP 30.0 million (approximately $ 3.7 million) per year;

and (b) a variable annual portion of (1) MOP 300,000 (approximately $ 37 thousand) per gaming table located in special gaming halls reserved exclusively to particular games or players;

(2) MOP 150,000 (approximately $ 19 thousand) per gaming table that is not reserved exclusively to particular games or players;

and (3) MOP 1,000 (approximately $ 125 ) per gaming machine, including slot machines, operated by Wynn Macau SA.

The amount of the variable portion of the premium cannot be less than the amount that would result from the permanent operation of 500 gaming tables and 1,000 gaming machines, i.e., MOP 76.0 million (approximately $ 9.5 million).

A minimum average annual gross gaming revenue of MOP 7.0 million (approximately $ 0.9 million) per gaming table and MOP 300,000 (approximately $ 37 thousand) per gaming machine has been set by Macau government.

If Wynn Macau SA fails to reach such minimum gross gaming revenue, Wynn Macau SA will be required to pay a special premium equal to the difference between the special gaming tax calculated based on the actual gross gaming revenue and that of such minimum gross gaming revenue;

(ii) Special levies, totaling 5 % of gross gaming revenues.

The Macau government may reduce the special levies payable by Wynn Macau SA (1) based on Wynn Macau SA’s contribution to the attraction of tourists who enter Macau for tourism and business purposes and hold travel documents issued by countries or regions other than the People’s Republic of China;

(2) if Wynn Macau SA’s operations are adversely affected by abnormal, unpredictable or force majeure circumstances associated with the prevailing economic conditions of Macau;

or (3) factors as determined by the Chief Executive of Macau;

(iii) Special gaming tax assessed at the rate of 35 % of gross gaming revenues.

In accordance with the terms of the Property Transfer Agreements (as defined in Note 5, "Property and Equipment, net"), Wynn Macau SA will pay the Macau government an annual amount of MOP 53.1 million (approximately $ 6.6 million) during each of the years ending December 31, 2023, 2024, and 2025, and an annual amount of MOP 177.0 million (approximately $ 22.0 million) during each of the remaining years of the term of the Gaming Concession Contract through December 31, 2032;

subject to adjustment in each year based on the average price index in Macau.

Pursuant to the Gaming Concession Contract, Wynn Macau SA will revert to Macau government the casino areas and gaming equipment, without compensation and free of encumbrance upon the rescission or termination of the gaming concession on December 31, 2032.

Wynn Macau SA also committed to make certain non-gaming and gaming investments in the amount of MOP 17.73 billion (approximately $ 2.21 billion) over the course of the ten-year term of the Gaming Concession Contract.

MOP 16.50 billion (approximately $ 2.05 billion) of the committed investment will be used for non-gaming capital projects and event programming in connection with, among others, attraction of foreign tourists, conventions and exhibitions, entertainment performances, sports events, culture and art, health and wellness, themed amusement, gastronomy, community tourism and maritime tourism.

Wynn Macau SA will be required to increase its investment in non-gaming projects by 20 % in the following year if market-wide gross gaming revenues increase to MOP 180.00 billion (approximately $ 22.41 billion) in any one year (the "Trigger Event").

The required increase will be reduced to 16 %, 12 %, 8 %, 4 % or 0 %, respectively, if the Trigger Event occurs during the sixth, seventh, eighth, ninth or tenth year of the concession period, respectively.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Note 17 - Commitments and Contingencies

Employment Agreements

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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, 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.

As of December 31, 2022, the Company was obligated to make future payments of $ 77.6 million, $ 52.9 million, $ 18.7 million, $ 2.2 million, $ 1.6 million and $ 3.9 million during the years ending December 31, 2023, 2024, 2025, 2026, 2027 and thereafter, respectively.

Other Commitments

The Company has additional commitments for gaming tax payments in Macau, open purchase orders, construction contracts, payment obligations to communities surrounding Encore Boston Harbor, and performance and other miscellaneous contracts.

The Company has additional commitments for open purchase orders, construction contracts, payment obligations to communities surrounding Encore Boston Harbor, and performance and other miscellaneous contracts.

As of December 31, 2022, the Company was obligated under these arrangements to make future minimum payments as follows (in thousands):

Years Ending December 31,

Year Ending December 31,

2023 $ 344,283

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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.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

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.

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

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

On September 17, 2014, the Massachusetts Gaming Commission ("MGC") designated Wynn MA the award winner of the Greater Boston (Region A) gaming license (the "Boston area license").

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

Revere Action

On October 16, 2014, the City of Revere, the host community to the unsuccessful bidder for the Boston area license, the International Brotherhood of Electrical Workers, Local 103, and several individuals, filed a complaint against the MGC and its gaming commissioners in Suffolk Superior Court in Boston, Massachusetts (the "Revere Action").

Mohegan Sun ("Mohegan"), the other applicant for the Boston area license, joined the lawsuit and challenged the MGC's award of the Boston area license.

On December 3, 2015, the court granted the MGC's motion to dismiss the claims asserted in the Revere Action and the court dismissed all claims except Mohegan's claim alleging procedural error by the MGC in granting the license to Wynn MA.

The plaintiffs appealed.

After multiple appeals and cross appeals, only two claims remained:

(1) individual plaintiffs' claim for violation of the open meeting laws;

and (2) Mohegan's claim for procedural error.

On July 12, 2019, the Suffolk Superior Court granted the MGC's motion for summary judgment and dismissed the open meeting law claim, leaving only Mohegan's procedural claim for procedural error.

On August 2, 2019, Mohegan filed a motion to file a second amended complaint, to add new claims related to the MGC's allegedly inadequate 2013 investigation.

On October 15, 2019, the court granted Mohegan's motion to amend and allowed it to file a second amended intervenor's complaint.

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

A number of stockholder derivative actions were filed in state and federal court located in Clark County, Nevada against certain current and former members of the Company's Board of Directors and, in some cases, the Company's current and former officers.

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

Wynn in the workplace.

The actions filed in the Eighth Judicial District Court of Clark County, Nevada were consolidated as In re Wynn Resorts, Ltd.

Derivative Litigation ("State Derivative Case").

On June 3, 2019, a separate stockholder derivative action was filed in the Eighth Judicial District Court of Clark County, Nevada alleging substantially similar causes of action as the State Derivative Case with the additional allegation that various of the Company's attorneys committed professional malpractice, and certain current and former executives also breached fiduciary duties and aided and abetted the breach of fiduciary duties, in connection with the alleged inappropriate personal conduct by Stephen A.

Wynn in the workplace.

This case was consolidated in September 2019 into the State Derivative Case.

On November 27, 2019, the State Derivative Case parties agreed to terms of a settlement agreement.

The court approved the settlement agreement on February 12, 2020, and entered a written order approving the settlement on March 10, 2020.

Following the Nevada Supreme Court’s dismissal of the only appeal, the settlement agreement became effective and final.

Following the dismissal, the Company received net proceeds of $ 30.2 million, which has been recognized as a reduction of general and administrative expense within the Consolidated Statements of Operations for the year ended December 31, 2020.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

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.

Derivative Litigation ("Federal Derivative Case"), which also claim corporate waste and violation of Section 14(a) of the Exchange Act.

In June 2018, the Company filed a motion to dismiss and a motion to stay pending resolution of the Securities Action (described below).

On March 29, 2019, the Court granted the Company's request for a stay.

On March 25, 2020, the parties stipulated to dismiss the Federal Derivative Case given the approved settlement in the State Derivative Case.

On March 25, 2019, a separate stockholder derivative action was filed in the United States District Court, District of Nevada alleging similar causes of action as the Federal Derivative Case with the additional allegation that the Board of Directors improperly refused the stockholder's demand to commence litigation against the officers and directors of the Company.

On April 30, 2020, the Company filed a motion for summary judgment, seeking dismissal of the claims given the approved settlement in the State Derivative Case.

On January 12, 2021, the court granted the Company’s motion for summary judgment of this action and denied the stockholder’s request to vacate the parties' stipulation to dismiss the Federal Derivative Case.

On February 11, 2021, the stockholder filed a notice of appeal to the United States Court of Appeals for the Ninth Circuit.

On May 12, 2021, the parties stipulated to dismiss the appeal.

Each of the actions sought to recover for the Company unspecified damages, including restitution and disgorgement of profits, and also sought to recover attorneys' fees, costs and related expenses for the plaintiff.

Securities Action

Securities Class Action

On February 20, 2018, a putative securities class action was filed against the Company and certain current and former officers of the Company in the United States District Court, Southern District of New York (which was subsequently transferred to the United States District Court, District of Nevada) by John V.

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Wynn, Kimmarie Sinatra, and Steven Cootey.

The defendants in these actions will vigorously defend against the claims pleaded against them.

These actions are in preliminary stages and management has determined that based on proceedings to date, it is currently unable to determine the probability of the outcome of these actions or the range of reasonably possible loss, if any.

The defendants in this action intend to vigorously defend against the claims pleaded against them and believe that the claims are without merit.

This action is in the preliminary stages and the Company has determined that based on proceedings to date, it is currently unable to determine the probability of the outcome of these actions or reasonably estimate the range of possible loss, if any.

Federal Investigation

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("Crown") to own and operate approximately 88,000 square feet of existing retail space at Wynn Las Vegas.

In November 2017, the Company contributed approximately 74,000 square feet of additional retail space to the Retail Joint Venture.

The Company opened the additional retail space during the fourth quarter of 2018.

In November 2017 and March 2022, the Company contributed approximately 74,000 square feet and 70,000 square feet of additional retail space to the Retail Joint Venture.

The Company maintains a 50.1 % ownership in the Retail Joint Venture and is the managing member.

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.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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.

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As of December 31, 2022 and 2021, the Retail Joint Venture had total assets of $ 102.9 million and $ 98.0 million, respectively, and total liabilities of $ 620.9 million and $ 624.4 million, respectively.

The Retail Joint Venture's total liabilities as of December 31, 2021 included long-term debt of $ 612.9 million, net of debt issuance costs, related to the outstanding borrowings under the Retail Term Loan.

Note 19 - Business Combination

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”).

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.

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.

• 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 Retail Joint Venture's total liabilities as of December 31, 2022 and 2021 included long-term debt of $ 613.5 million and $ 612.9 million, respectively, net of debt issuance costs, related to the outstanding borrowings under the Retail Term Loan.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

Consideration

Total consideration $ 164,672

Cash acquired 4,604

Total consideration, net of cash acquired 160,068

Identifiable assets acquired and liabilities assumed

Other current assets 1,484

Property and equipment 33,179

Intangible assets other than goodwill 16,462

Goodwill 120,092

Deferred tax liabilities ( 905 )

Liabilities assumed ( 10,244 )

Total identifiable assets acquired and liabilities assumed $ 160,068

Acquired intangible assets included in the above table are being amortized on a straight-line basis over their estimated useful life of ten years for trademarks and three years for customer lists.

In addition, the Company acquired software totaling $ 31.5 million, which is included in Property and equipment in the table above and is being amortized over an estimated useful life of three years .

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

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").

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.

Pro forma results of operations for this acquisition have not been presented because they are not material to the consolidated statements of operations.

Note 19 - Segment Information

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The following tables present the Company's segment information (in thousands):

Years Ended December 31,

Year Ended December 31,

2022 2021 2020

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Years Ended December 31,

Year Ended December 31,

2022 2021 2020

Adjusted Property EBITDA (2)

Adjusted Property EBITDAR (2)

Macau Operations:

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Depreciation and amortization 692,318 715,962 725,502

Gain on EBH Transaction, net ( 181,989 ) — —

Property charges and other 113,152 50,762 67,455

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Stock-based compensation 67,627 95,238 62,254

95,238 62,254 39,702

Triple-net operating lease rent expense 11,773 — —

Total other operating expenses 826,063 963,982 907,740

Operating income (loss) ( 394,541 ) ( 1,232,045 ) 878,305

Operating loss ( 100,676 ) ( 394,541 ) ( 1,232,045 )

Other non-operating income and expenses

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Change in derivatives fair value 15,956 11,360 ( 13,060 )

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

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

Other 5,811 ( 23,926 ) 28,521

Total other non-operating income and expenses ( 599,360 ) ( 616,975 ) ( 530,230 )

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

Loss before income taxes ( 700,036 ) ( 1,011,516 ) ( 1,762,275 )

Provision for income taxes ( 9,332 ) ( 474 ) ( 564,671 )

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

Net income (loss) attributable to noncontrolling interests 256,204 259,701 ( 188,393 )

Net income (loss) attributable to Wynn Resorts, Limited $ ( 755,786 ) $ ( 2,067,245 ) $ 122,985

Net loss ( 709,368 ) ( 1,011,990 ) ( 2,326,946 )

Net loss attributable to noncontrolling interests 285,512 256,204 259,701

Net loss attributable to Wynn Resorts, Limited $ ( 423,856 ) $ ( 755,786 ) $ ( 2,067,245 )

(1) Includes lease revenue accounted for under lease accounting guidance.

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, 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.

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 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.

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.

(2) "Adjusted Property EBITDAR" is net income (loss) before interest, income taxes, depreciation and amortization, pre-opening expenses, gain on EBH Transaction, net, property charges and other, triple-net operating lease rent expense related to Encore Boston Harbor, 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 EBITDAR to manage the operating results of our segments.

Adjusted Property EBITDAR 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 EBITDAR 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.

The Company also presents Adjusted Property EBITDAR 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 EBITDAR 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 EBITDAR 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 EBITDAR should not be considered as an alternative to operating income (loss) 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 EBITDAR does not include depreciation or interest expense and therefore does not reflect current or future capital expenditures or the cost of capital.

The Company has significant uses of cash flows, including capital expenditures, triple-net operating lease rent expense related to Encore Boston Harbor, debt principal repayments, income taxes and other non-recurring charges, which are not reflected in Adjusted Property EBITDAR.

Also, the Company's calculation of Adjusted Property EBITDAR 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 year ended December 31, 2019.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Years Ended December 31,

Year Ended December 31,

2022 2021 2020

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The following tables (in thousands, except per share data) present selected quarterly financial information for 2022 and 2021, 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.

Year Ended December 31, 2022

1 unchanged sentence

Operating revenues $ 953,334 $ 908,832 $ 889,722 $ 1,004,937 $ 3,756,825

Operating loss $ (175,732) $ (29,521) $ (83,664) $ (105,624) $ (394,541)

Operating income (loss) $ (94,865) $ (52,028) $ (52,991) $ 99,208 $ (100,676)

Net loss $ (254,610) $ (213,422) $ (207,791) $ (33,545) $ (709,368)

Net loss attributable to Wynn Resorts, Limited $ (280,978) $ (131,369) $ (166,249) $ (177,190) $ (755,786)

Basic loss per share $ (2.53) $ (1.15) $ (1.45) $ (1.54) $ (6.64)

Diluted loss per share $ (2.53) $ (1.15) $ (1.45) $ (1.54) $ (6.64)

Net income (loss) attributable to Wynn Resorts, Limited $ (183,324) $ (130,051) $ (142,892) $ 32,411 $ (423,856)

Basic income (loss) per share $ (1.59) $ (1.14) $ (1.27) $ 0.29 $ (3.73)

Diluted income (loss) per share $ (1.59) $ (1.14) $ (1.27) $ 0.29 $ (3.73)

Year Ended December 31, 2021

8 unchanged sentences

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