WYNN RESORTS LTD 10-Q

Item 1. Financial Statements WYNN RESORTS, LIMITED AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share data) June 30, 2024 December 31, 2023 (unaudited) ASSETS Current assets: Cash and cash equivalents $ 2,379,415 $ 2,879,186 Restricted cash — 18 Investments 500,000 845,192 Accounts receivable, net of allowance for credit losses of $ 39,491 and $ 40,075 , respectively 317,643 341,712 Inventories 72,152 75,552 Prepaid expenses and other 103,303 99,961 Total current assets 3,372,513 4,241,621 Property and equipment, net 6,492,579 6,688,479 Restricted cash 90,629 90,208 Goodwill and intangible assets, net 310,694 329,708 Operating lease assets 1,812,438 1,832,896 Deferred income taxes, net 478,570 500,877 Other assets 732,375 312,434 Total assets $ 13,289,798 $ 13,996,223 LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities: Accounts and construction payables $ 200,652 $ 208,263 Customer deposits 488,567 543,288 Gaming taxes payable 151,295 172,832 Accrued compensation and benefits 178,517 212,645 Accrued interest 138,808 141,902 Current portion of long-term debt 1,291,295 709,593 Other accrued liabilities 151,892 211,931 Total current liabilities 2,601,026 2,200,454 Long-term debt 9,739,417 11,028,744 Long-term operating lease liabilities 1,616,898 1,631,749 Other long-term liabilities 234,419 236,210 Total liabilities 14,191,760 15,097,157 Commitments and contingencies (Note 15) Stockholders' deficit: Preferred stock, par value $ 0.01 ; 40,000,000 shares authorized; zero shares issued and outstanding — — Common stock, par value $ 0.01 ; 400,000,000 shares authorized; 133,511,209 and 132,998,916 shares issued; 111,375,062 and 111,737,245 shares outstanding, respectively 1,335 1,330 Treasury stock, at cost; 22,136,147 and 21,261,671 shares, respectively ( 1,918,595 ) ( 1,836,326 ) Additional paid-in capital 3,672,049 3,647,161 Accumulated other comprehensive income 2,213 3,406 Accumulated deficit ( 1,866,826 ) ( 2,066,953 ) Total Wynn Resorts, Limited stockholders' deficit ( 109,824 ) ( 251,382 ) Noncontrolling interests ( 792,138 ) ( 849,552 ) Total stockholders' deficit ( 901,962 ) ( 1,100,934 ) Total liabilities and stockholders' deficit $ 13,289,798 $ 13,996,223 The accompanying notes are an integral part of these condensed consolidated financial statements. 3 Table of Contents WYNN RESORTS, LIMITED AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Operating revenues: Casino $ 1,008,946 $ 912,999 $ 2,130,412 $ 1,679,991 Rooms 304,521 276,505 631,935 549,034 Food and beverage 281,404 257,036 548,342 489,647 Entertainment, retail and other 138,061 149,282 285,152 300,829 Total operating revenues 1,732,932 1,595,822 3,595,841 3,019,501 Operating expenses: Casino 614,518 543,643 1,289,957 1,017,028 Rooms 80,538 73,783 162,615 146,485 Food and beverage 221,343 203,922 427,164 384,541 Entertainment, retail and other 62,941 85,999 133,953 178,481 General and administrative 264,727 257,321 536,343 517,093 Provision for credit losses 2,429 ( 6,640 ) 2,516 ( 7,184 ) Pre-opening 1,558 1,477 3,593 5,955 Depreciation and amortization 176,405 169,962 351,338 338,774 Property charges and other 38,815 16,019 55,763 18,477 Total operating expenses 1,463,274 1,345,486 2,963,242 2,599,650 Operating income 269,658 250,336 632,599 419,851 Other income (expense): Interest income 34,884 44,127 75,056 84,320 Interest expense, net of amounts capitalized ( 174,596 ) ( 190,243 ) ( 357,000 ) ( 377,983 ) Change in derivatives fair value 15,517 24,336 ( 2,397 ) 47,382 Loss on debt financing transactions — ( 3,375 ) ( 1,561 ) ( 15,611 ) Other 8,745 6,959 4,023 ( 23,655 ) Other income (expense), net ( 115,450 ) ( 118,196 ) ( 281,879 ) ( 285,547 ) Income before income taxes 154,208 132,140 350,720 134,304 Provision for income taxes ( 7,935 ) ( 4,305 ) ( 27,949 ) ( 5,323 ) Net income 146,273 127,835 322,771 128,981 Less: net income attributable to noncontrolling interests ( 34,330 ) ( 22,651 ) ( 66,612 ) ( 11,465 ) Net income attributable to Wynn Resorts, Limited $ 111,943 $ 105,184 $ 256,159 $ 117,516 Basic and diluted net income per common share: Net income attributable to Wynn Resorts, Limited: Basic $ 1.01 $ 0.93 $ 2.31 $ 1.04 Diluted $ 0.91 $ 0.84 $ 2.30 $ 0.84 Weighted average common shares outstanding: Basic 110,937 112,889 110,980 112,821 Diluted 111,175 113,198 111,222 113,143 The accompanying notes are an integral part of these condensed consolidated financial statements. 4 Table of Contents WYNN RESORTS, LIMITED AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in thousands) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net income $ 146,273 $ 127,835 $ 322,771 $ 128,981 Other comprehensive income (loss): Foreign currency translation adjustments, before and after tax ( 3,643 ) ( 3,595 ) ( 1,654 ) 11,568 Total comprehensive income 142,630 124,240 321,117 140,549 Less: comprehensive income attributable to noncontrolling interests ( 33,304 ) ( 21,615 ) ( 66,151 ) ( 14,713 ) Comprehensive income attributable to Wynn Resorts, Limited $ 109,326 $ 102,625 $ 254,966 $ 125,836 The accompanying notes are an integral part of these condensed consolidated financial statements. 5 Table of Contents WYNN RESORTS, LIMITED AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT (in thousands, except share data) (unaudited) For the three months ended June 30, 2024 Common stock Shares outstanding Par value Treasury stock Additional paid-in capital Accumulated other comprehensive income Accumulated deficit Total Wynn Resorts, Ltd. stockholders' deficit Noncontrolling interests Total stockholders' deficit Balances, April 1, 2024 112,071,149 $ 1,335 $ ( 1,849,172 ) $ 3,656,809 $ 4,830 $ ( 1,950,755 ) $ ( 136,953 ) $ ( 809,427 ) $ ( 946,380 ) Net income — — — — — 111,943 111,943 34,330 146,273 Currency translation adjustment — — — — ( 2,617 ) — ( 2,617 ) ( 1,026 ) ( 3,643 ) Exercise of stock options — — — — — — — — — Issuance of restricted stock 65,310 — — — — — — — — Cancellation of restricted stock ( 5,756 ) — — — — — — — — Shares repurchased by the Company and held as treasury shares ( 755,641 ) — ( 69,423 ) — — — ( 69,423 ) — ( 69,423 ) Cash dividends declared — — — — — ( 28,014 ) ( 28,014 ) ( 14,376 ) ( 42,390 ) Distribution to noncontrolling interest — — — — — — — ( 2,645 ) ( 2,645 ) Transactions with subsidiary minority shareholders — — — ( 74 ) — — ( 74 ) 74 — Stock-based compensation — — — 15,314 — — 15,314 932 16,246 Balances, June 30, 2024 111,375,062 $ 1,335 $ ( 1,918,595 ) $ 3,672,049 $ 2,213 $ ( 1,866,826 ) $ ( 109,824 ) $ ( 792,138 ) $ ( 901,962 ) For the three months ended June 30, 2023 Common stock Shares outstanding Par value Treasury stock Additional paid-in capital Accumulated other comprehensive income Accumulated deficit Total Wynn Resorts, Ltd. stockholders' deficit Noncontrolling interests Total stockholders' deficit Balances, April 1, 2023 113,808,044 $ 1,328 $ ( 1,634,706 ) $ 3,604,945 $ 10,475 $ ( 2,699,476 ) $ ( 717,434 ) $ ( 898,936 ) $ ( 1,616,370 ) Net income — — — — — 105,184 105,184 22,651 127,835 Currency translation adjustment — — — — ( 2,559 ) — ( 2,559 ) ( 1,036 ) ( 3,595 ) Exercise of stock options 7,000 — — 478 — — 478 — 478 Issuance of restricted stock 147,628 1 — ( 2 ) — — ( 1 ) — ( 1 ) Cancellation of restricted stock ( 8,209 ) — — — — — — — — Shares repurchased by the Company and held as treasury shares ( 11,528 ) — ( 1,260 ) — — — ( 1,260 ) — ( 1,260 ) Cash dividends declared — — — — — ( 28,481 ) ( 28,481 ) — ( 28,481 ) Distribution to noncontrolling interest — — — ( 2,994 ) — — ( 2,994 ) ( 1,449 ) ( 4,443 ) Stock-based compensation — — — 16,814 — — 16,814 1,859 18,673 Balances, June 30, 2023 113,942,935 $ 1,329 $ ( 1,635,966 ) $ 3,619,241 $ 7,916 $ ( 2,622,773 ) $ ( 630,253 ) $ ( 876,911 ) $ ( 1,507,164 ) The accompanying notes are an integral part of these condensed consolidated financial statements. 6 Table of Contents WYNN RESORTS, LIMITED AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT (in thousands, except share data) (unaudited) For the six months ended June 30, 2024 Common stock Shares outstanding Par value Treasury stock Additional paid-in capital Accumulated other comprehensive income Accumulated deficit Total Wynn Resorts, Ltd. stockholders' deficit Noncontrolling interests Total stockholders' deficit Balances, January 1, 2024 111,737,245 $ 1,330 $ ( 1,836,326 ) $ 3,647,161 $ 3,406 $ ( 2,066,953 ) $ ( 251,382 ) $ ( 849,552 ) $ ( 1,100,934 ) Net income — — — — — 256,159 256,159 66,612 322,771 Currency translation adjustment — — — — ( 1,193 ) — ( 1,193 ) ( 461 ) ( 1,654 ) Exercise of stock options 17,285 — — 1,017 — — 1,017 — 1,017 Issuance of restricted stock 504,978 5 — 8,010 — — 8,015 — 8,015 Cancellation of restricted stock ( 9,970 ) — — — — — — — — Shares repurchased by the Company and held as treasury shares ( 874,476 ) — ( 82,269 ) — — — ( 82,269 ) — ( 82,269 ) Cash dividends declared — — — — — ( 56,032 ) ( 56,032 ) ( 14,376 ) ( 70,408 ) Distribution to noncontrolling interest — — — — — — — ( 8,641 ) ( 8,641 ) Transactions with subsidiary minority shareholders — — — ( 11,947 ) — — ( 11,947 ) 11,947 — Stock-based compensation — — — 27,808 — — 27,808 2,333 30,141 Balances, June 30, 2024 111,375,062 $ 1,335 $ ( 1,918,595 ) $ 3,672,049 $ 2,213 $ ( 1,866,826 ) $ ( 109,824 ) $ ( 792,138 ) $ ( 901,962 ) For the six months ended June 30, 2023 Common stock Shares outstanding Par value Treasury stock Additional paid-in capital Accumulated other comprehensive income Accumulated deficit Total Wynn Resorts, Ltd. stockholders' deficit Noncontrolling interests Total stockholders' deficit Balances, January 1, 2023 113,369,439 $ 1,323 $ ( 1,623,872 ) $ 3,583,923 $ ( 404 ) $ ( 2,711,808 ) $ ( 750,838 ) $ ( 889,527 ) $ ( 1,640,365 ) Net income — — — — — 117,516 117,516 11,465 128,981 Currency translation adjustment — — — — 8,320 — 8,320 3,248 11,568 Exercise of stock options 32,284 — — 1,965 — — 1,965 — 1,965 Issuance of restricted stock 668,329 6 — 6,632 — — 6,638 — 6,638 Cancellation of restricted stock ( 14,589 ) — — — — — — — — Shares repurchased by the Company and held as treasury shares ( 118,709 ) — ( 12,094 ) — — — ( 12,094 ) — ( 12,094 ) Cash dividends declared — — — — — ( 28,481 ) ( 28,481 ) — ( 28,481 ) Distribution to noncontrolling interest — — — ( 2,994 ) — — ( 2,994 ) ( 5,951 ) ( 8,945 ) Transactions with subsidiary minority shareholders 6,181 — — ( 754 ) — — ( 754 ) 754 — Stock-based compensation — — — 30,469 — — 30,469 3,100 33,569 Balances, June 30, 2023 113,942,935 $ 1,329 $ ( 1,635,966 ) $ 3,619,241 $ 7,916 $ ( 2,622,773 ) $ ( 630,253 ) $ ( 876,911 ) $ ( 1,507,164 ) The accompanying notes are an integral part of these condensed consolidated financial statements. 7 Table of Contents WYNN RESORTS, LIMITED AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Six Months Ended June 30, 2024 2023 Cash flows from operating activities: Net income $ 322,771 $ 128,981 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 351,338 338,774 Deferred income taxes 22,307 ( 1,371 ) Stock-based compensation expense 30,536 32,995 Amortization of debt issuance costs 20,675 19,095 Loss on debt financing transactions 1,561 15,611 Provision for credit losses 2,516 ( 7,184 ) Change in derivatives fair value 2,397 ( 47,382 ) Property charges and other 46,927 42,132 Increase (decrease) in cash from changes in: Receivables, net 21,633 ( 9,489 ) Inventories, prepaid expenses and other 9,829 ( 407 ) Customer deposits ( 55,056 ) ( 6,465 ) Accounts payable and accrued expenses ( 109,580 ) 25,449 Net cash provided by operating activities 667,854 530,739 Cash flows from investing activities: Capital expenditures, net of construction payables and retention ( 191,337 ) ( 215,299 ) Investment in unconsolidated affiliates ( 428,964 ) ( 31,193 ) Purchase of investments — ( 286,519 ) Proceeds from maturity of investments 350,000 — Purchase of intangible and other assets ( 2,614 ) ( 11,740 ) Proceeds from sale of assets and other 1,289 490 Net cash used in investing activities ( 271,626 ) ( 544,261 ) Cash flows from financing activities: Proceeds from issuance of long-term debt 412,000 1,200,000 Repayments of long-term debt ( 1,129,136 ) ( 1,112,500 ) Repurchase of common stock ( 80,798 ) ( 12,094 ) Proceeds from exercise of stock options 1,017 1,965 Distribution to noncontrolling interest ( 8,641 ) ( 8,945 ) Dividends paid ( 70,126 ) ( 28,709 ) Finance lease payments ( 9,163 ) ( 9,731 ) Payments for financing costs ( 6,458 ) ( 41,020 ) Other ( 4,486 ) ( 7,773 ) Net cash used in financing activities ( 895,791 ) ( 18,807 ) Effect of exchange rate on cash, cash equivalents and restricted cash 195 ( 2,864 ) Cash, cash equivalents and restricted cash: Decrease in cash, cash equivalents and restricted cash ( 499,368 ) ( 35,193 ) Balance, beginning of period 2,969,412 3,782,990 Balance, end of period $ 2,470,044 $ 3,747,797 The accompanying notes are an integral part of these condensed consolidated financial statements. 8 Table of Contents WYNN RESORTS, LIMITED AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 1 - Organization Wynn Resorts, Limited, a Nevada corporation (together with its subsidiaries, "Wynn Resorts" or the "Company"), is a designer, developer, and operator of integrated resorts featuring luxury hotel rooms, high-end retail space, an array of dining and entertainment options, meeting and convention facilities, and gaming. In the Macau Special Administrative Region of the People's Republic of China ("Macau"), the Company owns approximately 72 % of Wynn Macau, Limited ("WML"), which includes the operations of the Wynn Palace and Wynn Macau resorts. The Company refers to Wynn Palace and Wynn Macau as its Macau Operations. In Las Vegas, Nevada, the Company operates and, with the exception of certain retail space, owns 100 % of Wynn Las Vegas. The Company is a 50.1 % owner and managing member of a joint venture that owns and leases certain retail space at Wynn Las Vegas (the "Retail Joint Venture"). The Company refers to Wynn Las Vegas, Encore, an expansion at Wynn Las Vegas, and the Retail Joint Venture as its Las Vegas Operations. In Everett, Massachusetts, the Company operates Encore Boston Harbor, an integrated resort. The Company has a 40 % equity interest in Island 3 AMI FZ-LLC ("Island 3"), an unconsolidated affiliate, which is constructing an integrated resort property ("Wynn Al Marjan Island") in Ras Al Khaimah, United Arab Emirates, currently expected to open in 2027. Note 2 - Basis of Presentation and Significant Accounting Policies Basis of Presentation The accompanying condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP") have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures herein are adequate to make the information presented not misleading. In the opinion of management, the accompanying condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary to a fair presentation of the results for the interim periods presented. The results for the three and six months ended June 30, 2024 are not necessarily indicative of results to be expected for any other interim period or the full fiscal year ending December 31, 2024. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto in the Company's Annual Report on Form 10-K for the year ended December 31, 2023. Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company, its majority-owned subsidiaries, and entities the Company identifies as variable interest entities ("VIEs") of which the Company is determined to be the primary beneficiary. For information on the Company's VIEs, see Note 16, "Retail Joint Venture." 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. During the three months ended March 31, 2024, Wynn Interactive Ltd. no longer met the requirements for a reportable segment. As a result, its assets and results of operations are presented in Corporate and other and previous period amounts have been reclassified to be consistent with the current period presentation of the Company's reportable segments. These reclassifications had no effect on the previously reported net income or operating income. For information on the Company's reportable segments, see Note 17, "Segment Information." Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates and assumptions reflected in the financial statements relate to and include, but are not limited to, inputs into the Company's estimated allowance for deferred tax assets and credit losses, estimates regarding the useful lives and recoverability of long-lived and intangible assets, valuations of derivatives, and litigation and contingency estimates. 9 Table of Contents WYNN RESORTS, LIMITED AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) Gaming Taxes The Company is subject to taxes based on gross gaming revenues in the jurisdictions in which it operates, subject to applicable jurisdictional adjustments. These gaming taxes are recorded as casino expenses in the accompanying Condensed Consolidated Statements of Income. These taxes totaled $ 436.9 million and $ 391.4 million for the three months ended June 30, 2024 and 2023, respectively, and $ 925.6 million and $ 701.8 million for the six months ended June 30, 2024 and 2023, respectively. Investments As of June 30, 2024, the Company held $ 500.0 million in fixed deposits, recorded at fair value. The Company received proceeds of $ 300.0 million upon the maturity of its investments in debt securities and $ 50.0 million upon the maturity of its investments in fixed deposits during the three months ended June 30, 2024. As of December 31, 2023, the Company held $ 550.0 million in fixed deposits, recorded at fair value, and $ 295.2 million in debt securities, recorded at amortized cost within Investments on the Condensed Consolidated Balance Sheets. The estimated fair value of the Company's debt securities as of December 31, 2023 was approximately $ 294.8 million and the gross unrecognized holding loss was $ 0.4 million. As of December 31, 2023, the Company had $ 8.7 million in accrued interest on its debt securities, recorded in Investments on the Condensed Consolidated Balance Sheets. As of the balance sheet date, the Company evaluates whether the unrealized losses are attributable to credit losses or other factors. The Company considers the severity of the decline in value, creditworthiness of the issuer and other relevant factors and records an allowance for credit losses, limited to the excess of amortized cost over fair value, with a corresponding charge to earnings. The allowance may be subsequently increased or decreased based on the prevailing facts and circumstances. During the three and six months ended June 30, 2024 and 2023, no impairment was recognized. Goodwill 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 impairment testing annually, or more frequently if events or changes in circumstances indicate that this asset may be impaired. As of June 30, 2024 and December 31, 2023, the Company had a goodwill balance of $ 18.5 million, recorded in Goodwill and intangible assets, net on the Condensed Consolidated Balance Sheets. During the three and six months ended June 30, 2024, no impairment was recognized. Investment in Unconsolidated Affiliate The Company accounts for its investment in Island 3 using the equity method. Under the equity method, the investment's carrying value is adjusted for the Company’s share of the investee's earnings and losses, capital contributions to and distributions from the investee, and capitalization of interest cost incurred by the Company during the investee's initial development period. As of June 30, 2024 and December 31, 2023, the Company had an investment in unconsolidated affiliate of $ 517.6 million and $ 90.9 million, respectively, recorded in noncurrent other assets in the accompanying Condensed Consolidated Balance Sheets. Recently Issued Accounting Standards The Company’s management has evaluated the recently issued, but not yet effective, accounting standards that have been issued or proposed by the Financial Accounting Standards Board or other standard-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. 10 Table of Contents WYNN RESORTS, LIMITED AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) Note 3 - Cash, Cash Equivalents and Restricted Cash Cash, cash equivalents and restricted cash consisted of the following (in thousands): June 30, 2024 December 31, 2023 Cash and cash equivalents: Cash (1) $ 1,137,449 $ 1,076,474 Cash equivalents (2) 1,241,966 1,802,712 Total cash and cash equivalents 2,379,415 2,879,186 Restricted cash (3) 90,629 90,226 Total cash, cash equivalents and restricted cash $ 2,470,044 $ 2,969,412 (1) Cash consists of cash on hand and bank deposits. (2) Cash equivalents consist of bank time deposits and money market funds. (3) Restricted cash consists of cash subject to certain contractual restrictions, cash collateral associated with obligations, cash held in trusts in accordance with WML's share award plans, and as of June 30, 2024 and December 31, 2023 included $ 87.0 million in the form of a first demand bank guarantee in favor of the Macau government to support the legal and contractual obligations of Wynn Resorts (Macau) S.A. ("Wynn Macau SA") through the term of Wynn Macau SA's gaming concession contract. The following table presents the supplemental cash flow disclosures of the Company (in thousands): Six Months Ended June 30, 2024 2023 Cash paid for interest, net of amounts capitalized $ 342,525 $ 346,055 Liability settled with shares of common stock $ 8,015 $ 6,639 Accounts and construction payables related to property and equipment $ 59,245 $ 49,014 Other liabilities related to intangible assets (1) $ 200,251 $ 205,875 Net settlement of liabilities in connection with an asset sale $ 27,665 $ — Finance lease liabilities arising from obtaining finance lease assets $ 4,669 $ 657 (1) For the six months ended June 30, 2024 and 2023, included $ 198.8 million and $ 201.5 million, respectively, related to the Macau gaming premium in connection with Wynn Macau SA's gaming concession contract. Note 4 - Receivables, net Accounts Receivable and Credit Risk Receivables, net consisted of the following (in thousands): June 30, 2024 December 31, 2023 Casino $ 183,958 $ 218,694 Hotel 45,267 54,596 Other 127,909 108,497 357,134 381,787 Less: allowance for credit losses ( 39,491 ) ( 40,075 ) $ 317,643 $ 341,712 As of June 30, 2024 and December 31, 2023, approximately 75.4 % and 68.2 %, respectively, of the Company's markers were due from customers residing outside the United States, primarily in Asia. Business or economic conditions or other significant events in the countries in which the Company's customers reside could affect the collectability of such receivables. The Company’s allowance for casino credit losses was 18.0 % and 15.9 % of gross casino receivables as of June 30, 2024 and December 31, 2023, respectively. Although the Company believes that its allowance is adequate, it is possible the estimated amounts of cash collections with respect to receivables could change. The Company’s allowance for credit losses from its hotel and other receivables is not material. 11 Table of Contents WYNN RESORTS, LIMITED AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) The following table shows the movement in the Company's allowance for credit losses recognized for receivables that occurred during the periods presented (in thousands): June 30, 2024 2023 Balance at beginning of year $ 40,075 $ 78,842 Provision for credit losses 2,516 ( 7,184 ) Write-offs ( 6,377 ) ( 22,862 ) Recoveries of receivables previously written off 3,261 8,655 Effect of exchange rate 16 ( 190 ) Balance at end of period $ 39,491 $ 57,261 Note 5 - Property and Equipment, net Property and equipment, net consisted of the following (in thousands): June 30, 2024 December 31, 2023 Buildings and improvements $ 8,490,529 $ 8,459,085 Land and improvements 1,234,583 1,228,652 Furniture, fixtures and equipment 3,366,334 3,311,478 Airplanes 110,623 110,623 Construction in progress 169,259 162,592 13,371,328 13,272,430 Less: accumulated depreciation ( 6,878,749 ) ( 6,583,951 ) $ 6,492,579 $ 6,688,479 As of June 30, 2024 and December 31, 2023, construction in progress consisted primarily of costs capitalized for various capital enhancements at the Company's properties. During the three months ended June 30, 2024, the Company expensed $ 61.5 million of project costs related to a discontinued development project, inclusive of $ 4.7 million of internally allocated overhead, that had been previously capitalized. The expense was recorded in Property charges and other in the accompanying Condensed Consolidated Statements of Income. Depreciation expense for the three months ended June 30, 2024 and 2023 was $ 162.2 million and $ 154.8 million, respectively, and depreciation expense for the six months ended June 30, 2024 and 2023 was $ 320.3 million and $ 308.9 million, respectively. 12 Table of Contents WYNN RESORTS, LIMITED AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) Note 6 - Long-Term Debt Long-term debt consisted of the following (in thousands): June 30, 2024 December 31, 2023 Macau Related: WM Cayman II Revolver, due 2025 (1) $ 1,186,448 $ 1,497,610 WML 4 7/8% Senior Notes, due 2024 600,000 600,000 WML 5 1/2% Senior Notes, due 2026 1,000,000 1,000,000 WML 5 1/2% Senior Notes, due 2027 750,000 750,000 WML 5 5/8% Senior Notes, due 2028 1,350,000 1,350,000 WML 5 1/8% Senior Notes, due 2029 1,000,000 1,000,000 WML 4 1/2% Convertible Bonds, due 2029 (2) 600,000 600,000 U.S. and Corporate Related: WRF Credit Facilities (3) : WRF Term Loan, due 2024 71,794 73,683 WRF Term Loan, due 2027 711,956 730,692 WLV 5 1/2% Senior Notes, due 2025 583,310 1,380,001 WLV 5 1/4% Senior Notes, due 2027 880,000 880,000 WRF 5 1/8% Senior Notes, due 2029 750,000 750,000 WRF 7 1/8% Senior Notes, due 2031 1,000,000 600,000 Retail Term Loan, due 2025 (4) 615,000 615,000 11,098,508 11,826,986 WML Convertible Bond Conversion Option Derivative 72,039 73,744 Less: Unamortized debt issuance costs and original issue discounts and premium, net ( 139,835 ) ( 162,393 ) 11,030,712 11,738,337 Less: Current portion of long-term debt ( 1,291,295 ) ( 709,593 ) Total long-term debt, net of current portion $ 9,739,417 $ 11,028,744 (1) As of June 30, 2024, the borrowings under the WM Cayman II Revolver bear interest at the term secured overnight financing rate ("Term SOFR") plus a credit adjustment spread of 0.10 % or HIBOR, in each case plus a margin of 1.875 % to 2.875 % per annum based on WM Cayman II’s leverage ratio on a consolidated basis. Approximately $ 247.4 million and $ 939.1 million of the WM Cayman II Revolver bears interest at a rate of Term SOFR plus 1.975 % per year and HIBOR plus 1.875 % per year, respectively. As of June 30, 2024, the weighted average interest rate was approximately 6.66 %. As of June 30, 2024, the available borrowing capacity under the WM Cayman II Revolver was $ 312.2 million. In July 2024, the Company repaid approximately $40.0 million of outstanding WM Cayman II Revolver borrowings. (2) As of June 30, 2024, the net carrying amount of the WML Convertible Bonds was $ 488.8 million, with unamortized debt discount and debt issuance costs of $ 111.2 million. The Company recorded contractual interest expense of $ 6.8 million and $ 6.8 million and amortization of discounts and issuance costs of $ 4.7 million and $ 4.3 million during the three months ended June 30, 2024 and 2023, respectively, and contractual interest expense of $ 13.5 million and $ 8.6 million and amortization of discounts and issuance costs of $ 9.2 million and $ 5.4 million during the six months ended June 30, 2024 and 2023, respectively. (3) The WRF Credit Facilities bear interest at a rate of Term SOFR plus 1.85 % per year. As of June 30, 2024, the weighted average interest rate was approximately 7.19 %. Additionally, as of June 30, 2024, the available borrowing capacity under the WRF Revolver was $ 735.3 million, net of $ 14.7 million in outstanding letters of credit. (4) The Retail Term Loan bears interest at a rate of adjusted daily simple secured overnight financing rate ("SOFR") plus 1.80 % per year. As of June 30, 2024, the interest rate was 5.47 %. WRF Senior Notes In February 2024, Wynn Resorts Finance, LLC ("WRF") and its subsidiary, Wynn Resorts Capital Corp., issued an additional $ 400.0 million aggregate principal amount of 7 1/8% Senior Notes due 2031 (the "2031 WRF Add-On Senior Notes," and collectively with the 7 1/8% Senior Notes due 2031 (the "2031 WRF Senior Notes") and 5 1/8% Senior Notes due 2029 (the "2029 WRF Senior Notes"), the "WRF Senior Notes") pursuant to a supplemental indenture to the 2031 Senior Notes indenture dated as of February 16, 2023. The 2031 WRF Add-On Senior Notes were issued at a price equal to 103.00 % of the principal amount plus accrued interest, resulting in net proceeds of $ 409.5 million. The net proceeds from the 2031 WRF Add-On Senior Notes, together with cash held by Wynn Resorts, were used to repurchase an aggregate $ 796.7 million of the 13 Table of Contents WYNN RESORTS, LIMITED AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) outstanding principal amount of the 2025 WLV Senior Notes (as defined below) and to pay the applicable tender premium and related fees and expenses. In connection with the issuance of the 2031 WRF Add-On Senior Notes and the repurchase of the 2025 WLV Senior Notes (as further discussed below), the Company recognized a loss on debt financing transactions of $ 1.6 million within the accompanying Condensed Consolidated Statements of Income, and the Company recorded debt issuance costs of $ 5.6 million within the accompanying Condensed Consolidated Balance Sheet. WLV Senior Notes In February and March 2024, Wynn Las Vegas repurchased $ 800.0 million aggregate principal amount of its 5 1/2% Senior Notes due 2025 (the "2025 WLV Senior Notes"), which consisted of i) $ 681.0 million aggregate principal amount of validly tendered notes repurchased at a price equal to 97.2 % of the principal amount, plus accrued interest and an early tender premium of $ 20.3 million, and ii) $ 119.0 million aggregate principal amount of notes repurchased on a pro-rata basis at a price equal of 100 % of the principal amount, plus accrued interest, under the terms of its indenture. Included in the $ 119.0 million repurchase was $ 3.3 million aggregate principal amount of 2025 WLV Senior Notes held by Wynn Resorts. The Company used the net proceeds from the 2031 WRF Add-On Senior Notes and cash held by WRF to purchase such validly tendered 2025 WLV Senior Notes and to pay the early tender premium and related fees and expenses. Debt Covenant Compliance As of June 30, 2024, management believes the Company was in compliance with all debt covenants. Fair Value of Long-Term Debt The estimated fair value of the Company's long-term debt as of June 30, 2024 and December 31, 2023 was approximately $ 10.85 billion and $ 11.49 billion, respectively, compared to its carrying value, excluding debt issuance costs and original issue discount and premium, of $ 11.10 billion and $ 11.83 billion, respectively. The estimated fair value of the Company's long-term debt is based on recent trades, if available, and indicative pricing from market information (Level 2 inputs). Note 7 - WML Convertible Bond Conversion Option Derivative The conversion feature contained within the WML Convertible Bonds (the "WML Convertible Bond Conversion Option Derivative") is not indexed to WML's equity and, as such, is required to be bifurcated from the debt host contract and accounted for as a free-standing derivative, reported at fair value as of the end of each reporting period, with changes recognized in the Condensed Consolidated Statements of Income. The following table sets forth the inputs to the lattice models that were used to value the WML Convertible Bond Conversion Option Derivative: June 30, 2024 December 31, 2023 WML stock price HK$ 6.40 HK$ 6.43 Estimated volatility 34.0 % 34.0 % Risk-free interest rate 3.8 % 3.3 % Expected term (years) 4.7 5.2 Dividend yield (1) 0.0 % 0.0 % (1) Dividend yield is assumed to be zero in the lattice model used to value the WML Convertible Bond Conversion Option Derivative, due to a dividend protection feature in the WML Convertible Bond Agreement. As of June 30, 2024 and December 31, 2023, the estimated fair value of the embedded derivative was a liability of $ 72.0 million and $ 73.7 million, respectively, recorded in Long-term debt in the accompanying Condensed Consolidated Balance Sheets. In connection with the change in fair value, the Company recorded a gain of $ 18.0 million and $ 21.6 million for the three months ended June 30, 2024 and 2023, respectively, and a gain of $ 1.7 million and $ 46.5 million for the six months ended June 30, 2024 and 2023, respectively, within Change in derivative fair value in the accompanying Condensed Consolidated Statements of Income. 14 Table of Contents WYNN RESORTS, LIMITED AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) Note 8 - Stockholders' 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. Any shares repurchased pursuant to the equity repurchase program are held as treasury shares. During the three and six months ended June 30, 2024, the Company repurchased 741,340 shares of its common stock at an average price of $ 91.72 per share, for an aggregate cost of $ 68.0 million under the equity repurchase program. No shares were repurchased during the three and six months ended June 30, 2023. As of June 30, 2024, the Company had $ 365.4 million in repurchase authority remaining under the program. Dividends The Company paid a cash dividend of $ 0.25 per share in each of the quarters ended March 31, 2024 and June 30, 2024 and recorded $ 28.0 million in each period against accumulated deficit. On August 6, 2024, the Company's Board of Directors declared a cash dividend of $ 0.25 per share on its common stock, payable on August 30, 2024 to stockholders of record as of August 19, 2024. Noncontrolling Interests Wynn Macau, Limited On June 19, 2024, WML paid a cash dividend of HK$ 0.075 per share for a total U.S. dollar equivalent of approximately $ 50.4 million. The Company's share of this dividend was $ 36.0 million, and the noncontrolling interest holders' share of this dividend was $ 14.4 million. WML Securities Lending Agreement In connection with the offering of the WML Convertible Bonds, WM Cayman Holdings I Limited ("WM Cayman I"), a wholly owned subsidiary of the Company and holder of our approximate 72 % ownership interest in WML, entered into a stock borrowing and lending agreement with Goldman Sachs International (the "WML Stock Borrower") on March 2, 2023 (as amended on March 30, 2023, the "Securities Lending Agreement"), pursuant to which WM Cayman I has agreed to lend to the WML Stock Borrower up to 459,774,985 of its ordinary share holdings in WML, upon and subject to the terms and conditions in the Securities Lending Agreement. WM Cayman I may, at its sole discretion, terminate any stock loan by giving the WML Stock Borrower no less than five business days' notice. The Securities Lending Agreement terminates on the date on which the WML Convertible Bonds have been redeemed, or converted in full, whichever is the earlier. As of the date of this report, the WML Stock Borrower held 179,774,985 WML shares under the Securities Lending Agreement. Retail Joint Venture During the six months ended June 30, 2024 and 2023, the Retail Joint Venture made aggregate distributions of approximately $ 8.6 million and $ 8.9 million, respectively, to its non-controlling interest holder. For more information on the Retail Joint Venture, see Note 16, "Retail Joint Venture." 15 Table of Contents WYNN RESORTS, LIMITED AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) Note 9 - Fair Value Measurements The following tables present assets and liabilities carried at fair value (in thousands): Fair Value Measurements Using: June 30, 2024 Quoted Market Prices in Active Markets (Level 1) Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Assets: Cash equivalents $ 1,241,966 $ — $ 1,241,966 $ — Restricted cash $ 90,629 $ 2,204 $ 88,425 $ — Fixed deposits $ 500,000 $ — $ 500,000 $ — Interest rate collar $ 1,668 $ — $ 1,668 $ — Liabilities: WML Convertible Bond Conversion Option Derivative (see Note 7) $ 72,039 $ — $ — $ 72,039 Fair Value Measurements Using: December 31, 2023 Quoted Market Prices in Active Markets (Level 1) Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Assets: Cash equivalents $ 1,802,712 $ — $ 1,802,712 $ — Restricted cash $ 90,226 $ 2,170 $ 88,056 $ — Fixed deposits $ 550,000 $ — $ 550,000 $ — Interest rate collar $ 5,769 $ — $ 5,769 $ — Liabilities: WML Convertible Bond Conversion Option Derivative (see Note 7) $ 73,744 $ — $ — $ 73,744 16 Table of Contents WYNN RESORTS, LIMITED AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) Note 10 - Customer Contract Liabilities In providing goods and services to its customers, there is often a timing difference between the Company receiving cash and the Company recording revenue for providing services or holding events. The Company's primary liabilities associated with customer contracts are as follows (in thousands): June 30, 2024 December 31, 2023 Increase / (decrease) June 30, 2023 December 31, 2022 Increase / (decrease) Casino outstanding chips and front money deposits (1) $ 405,153 $ 433,269 $ ( 28,116 ) $ 398,100 $ 390,531 $ 7,569 Advance room deposits and ticket sales (2) 71,214 89,640 ( 18,426 ) 73,517 85,019 ( 11,502 ) Other gaming-related liabilities (3) 14,710 24,964 ( 10,254 ) 29,047 31,265 ( 2,218 ) Loyalty program and related liabilities (4) 28,616 31,106 ( 2,490 ) 37,799 35,083 2,716 $ 519,693 $ 578,979 $ ( 59,286 ) $ 538,463 $ 541,898 $ ( 3,435 ) (1) Casino outstanding chips generally represent amounts owed to gaming promoters and customers for chips in their possession, and casino front money deposits represent funds deposited by customers before gaming play occurs. These amounts are included in customer deposits on the Condensed Consolidated Balance Sheets and may be recognized as revenue or redeemed for cash in the future. (2) Advance room deposits and ticket sales represent cash received in advance for goods or services to be provided in the future. These amounts are included in customer deposits on the Condensed Consolidated Balance Sheets and will be recognized as revenue when the goods or services are provided or the events are held. Decreases in this balance generally represent the recognition of revenue and increases in the balance represent additional deposits made by customers. The deposits are expected to primarily be recognized as revenue within one year. (3) Other gaming-related liabilities generally represent unpaid wagers primarily in the form of unredeemed slot, race and sportsbook tickets or wagers for future sporting events. The amounts are included in other accrued liabilities on the Condensed Consolidated Balance Sheets. (4) Loyalty program and related liabilities represent the deferral of revenue until the loyalty points or other complimentaries are redeemed. The amounts are included in other accrued liabilities on the Condensed Consolidated Balance Sheets and are expected to be recognized as revenue within one year of being earned by customers. Note 11 - Stock-Based Compensation The total compensation cost for stock-based compensation plans was recorded as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Casino $ 791 $ 512 $ 1,466 $ 989 Rooms 268 195 496 $ 401 Food and beverage 577 393 989 $ 802 Entertainment, retail and other 694 2,846 1,440 $ 5,885 General and administrative 13,837 14,339 26,145 $ 24,918 Total stock-based compensation expense 16,167 18,285 30,536 32,995 Total stock-based compensation capitalized $ 1,319 1,368 2,621 2,134 Total stock-based compensation costs $ 17,486 $ 19,653 $ 33,157 $ 35,129 Note 12 - Income Taxes The Company recorded an income tax expense of $ 7.9 million and $ 4.3 million for the three months ended June 30, 2024 and 2023, respectively, and an income tax expense of $ 27.9 million and $ 5.3 million for the six months ended June 30, 2024 and 2023, respectively, primarily related to its U.S.-based operating profits. The difference between the statutory tax rate of 21 % and the effective tax rate of 8.0 % is due to the exemption from Macau’s 12 % Complementary Tax on casino gaming profits that Wynn Macau SA received. 17 Table of Contents WYNN RESORTS, LIMITED AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) Note 13 - Earnings Per Share Basic earnings per share ("EPS") is computed by dividing net income attributable to Wynn Resorts by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income attributable to Wynn Resorts, adjusted for the potential dilutive impact assuming that the conversion of the WML Convertible Bonds occurred at the later of the date of issuance or beginning of the period presented under the if-converted method, by the weighted average number of common shares outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potential dilutive securities had been issued, to the extent such impact is not anti-dilutive. Other potentially dilutive securities include outstanding stock options and unvested restricted stock. The weighted average number of common and common equivalent shares used in the calculation of basic and diluted EPS consisted of the following (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Numerator: Net income attributable to Wynn Resorts, Limited - basic $ 111,943 $ 105,184 $ 256,159 $ 117,516 Effect of dilutive securities of Wynn Resorts, Limited subsidiaries: Assumed conversion of WML Convertible Bonds ( 10,586 ) ( 10,629 ) — ( 22,600 ) Net income attributable to Wynn Resorts, Limited - diluted $ 101,357 $ 94,555 $ 256,159 $ 94,916 Denominator: Weighted average common shares outstanding 110,937 112,889 110,980 112,821 Potential dilutive effect of stock options, nonvested, and performance nonvested shares 238 309 242 322 Weighted average common and common equivalent shares outstanding 111,175 113,198 111,222 113,143 Net income attributable to Wynn Resorts, Limited per common share, basic $ 1.01 $ 0.93 $ 2.31 $ 1.04 Net income attributable to Wynn Resorts, Limited per common share, diluted $ 0.91 $ 0.84 $ 2.30 $ 0.84 Anti-dilutive stock options, nonvested, and performance nonvested shares excluded from the calculation of diluted net income per share 339 321 325 344 Note 14 - Leases Lessor Arrangements The following table presents the minimum and contingent operating lease income for the periods presented (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Minimum rental income $ 33,838 $ 31,811 $ 68,008 $ 65,649 Contingent rental income 16,233 25,206 36,872 53,970 Total rental income $ 50,071 $ 57,017 $ 104,880 $ 119,619 18 Table of Contents WYNN RESORTS, LIMITED AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) Note 15 - Commitments and Contingencies Litigation In addition to the actions noted below, the Company and its affiliates are involved in litigation arising in the normal course of business. In the opinion of management, such litigation is not expected to have a material effect on the Company's financial condition, results of operations, and cash flows. 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. Ferris and Joann M. Ferris on behalf of all persons who purchased the Company's common stock between February 28, 2014 and January 25, 2018. The complaint alleges, among other things, certain violations of federal securities laws and seeks to recover unspecified damages as well as attorneys' fees, costs and related expenses for the plaintiffs. On April 15, 2019, the Company filed a motion to dismiss, which the court granted on May 27, 2020, with leave to amend. On July 1, 2020, the plaintiffs filed an amended complaint. On August 14, 2020, the Company filed a motion to dismiss the amended complaint. On July 28, 2021, the court granted in part, and denied in part, the Company's motion to dismiss the amended complaint, dismissing certain of plaintiffs' claims, including all claims against current CEO Craig Billings and the individual directors, and allowing other claims to proceed against the Company and several of the Company's former executive officers, including Matthew Maddox, Stephen A. Wynn, Kimmarie Sinatra, and Steven Cootey. On March 2, 2023, the court granted the plaintiffs' motion for class certification and appointed lead counsel. The parties are now proceeding with discovery. 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 From time to time, the Company receives regulatory inquiries about compliance with anti-money laundering laws. The Company received requests for information from the U.S. Attorney’s Office for the Southern District of California relating to its anti-money laundering policies and procedures, and beginning in 2020 received several grand jury subpoenas regarding various transactions at Wynn Las Vegas relating to certain patrons and agents who reside or operate in foreign jurisdictions. The Company continues to cooperate with the U.S. Attorney's Office in its investigation, which remains ongoing. Because no charges or claims have been brought, the Company is unable to predict the outcome of the investigation, the extent of the materiality of the outcome, or reasonably estimate the possible range of loss, if any, which could be associated with the resolution of any possible charges or claims that may be brought against the Company. Note 16 - Retail Joint Venture As of June 30, 2024 and December 31, 2023, the Retail Joint Venture had total assets of $ 104.3 million and $ 102.5 million, respectively, and total liabilities of $ 621.8 million and $ 621.9 million, respectively. As of June 30, 2024 and December 31, 2023, the Retail Joint Venture's liabilities included long-term debt of $ 614.4 million and $ 614.1 million, respectively, net of debt issuance costs, related to the outstanding borrowings under the Retail Term Loan. 19 Table of Contents WYNN RESORTS, LIMITED AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) Note 17 - Segment Information The Company has identified its reportable segments based on factors such as geography, regulatory environment, the information reviewed by its chief operating decision maker, and the Company's organizational and management reporting structure. The Company has identified the following reportable segments: (i) Wynn Macau, representing the aggregate of Wynn Macau and Encore, an expansion at Wynn Macau, which are managed as a single integrated resort; (ii) Wynn Palace; (iii) Las Vegas Operations, representing the aggregate of Wynn Las Vegas, Encore, an expansion at Wynn Las Vegas, and the Retail Joint Venture, which are managed as a single integrated resort; and (iv) Encore Boston Harbor. For geographical reporting purposes, Wynn Macau, Wynn Palace, and Other Macau (which represents the assets of the Company's Macau holding company and other ancillary entities) have been aggregated into Macau Operations. The assets and results of operations of Wynn Interactive are presented in Corporate and other. 20 Table of Contents WYNN RESORTS, LIMITED AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) The following tables present the Company's segment information (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Operating revenues Macau Operations: Wynn Palace Casino $ 444,964 $ 365,277 $ 918,745 $ 635,964 Rooms 50,206 50,092 104,142 97,002 Food and beverage 29,829 25,260 61,899 48,813 Entertainment, retail and other (1) 23,050 27,721 50,164 55,934 548,049 468,350 1,134,950 837,713 Wynn Macau Casino 280,717 242,950 627,070 419,333 Rooms 23,742 26,130 52,361 48,101 Food and beverage 20,003 14,666 41,022 28,968 Entertainment, retail and other (1) 12,807 17,847 28,560 35,917 337,269 301,593 749,013 532,319 Total Macau Operations 885,318 769,943 1,883,963 1,370,032 Las Vegas Operations: Casino 129,674 137,946 264,837 292,476 Rooms 205,872 177,765 429,948 362,874 Food and beverage 208,418 195,146 402,028 367,629 Entertainment, retail and other (1) 84,690 67,215 168,389 141,857 Total Las Vegas Operations 628,654 578,072 1,265,202 1,164,836 Encore Boston Harbor: Casino 153,591 166,826 319,760 332,218 Rooms 24,701 22,518 45,484 41,057 Food and beverage 23,154 21,964 43,393 44,237 Entertainment, retail and other (1) 11,162 10,624 21,755 20,726 Total Encore Boston Harbor 212,608 221,932 430,392 438,238 Corporate and other: Entertainment, retail and other 6,352 25,875 16,284 46,395 Total Corporate and other 6,352 25,875 16,284 46,395 Total operating revenues $ 1,732,932 $ 1,595,822 $ 3,595,841 $ 3,019,501 (1) Includes lease revenue accounted for under lease accounting guidance. For more information on leases, see Note 14, "Leases." 21 Table of Contents WYNN RESORTS, LIMITED AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Adjusted Property EBITDAR (1) Macau Operations: Wynn Palace $ 184,459 $ 156,607 $ 386,829 $ 267,665 Wynn Macau 95,911 89,590 233,097 134,335 Total Macau Operations 280,370 246,197 619,926 402,000 Las Vegas Operations 230,333 224,121 476,595 455,718 Encore Boston Harbor 62,131 69,104 125,266 132,518 Corporate and other ( 1,179 ) ( 14,964 ) ( 3,597 ) ( 36,032 ) Total 571,655 524,458 1,218,190 954,204 Other operating expenses Pre-opening 1,558 1,477 3,593 5,955 Depreciation and amortization 176,405 169,962 351,338 338,774 Property charges and other (2) 38,815 16,019 55,763 18,477 Corporate expenses and other 33,710 32,748 73,615 67,238 Stock-based compensation 16,167 18,285 30,536 32,995 Triple-net operating lease rent expense 35,342 35,631 70,746 70,914 Total other operating expenses 301,997 274,122 585,591 534,353 Operating income 269,658 250,336 632,599 419,851 Other non-operating income and expenses Interest income 34,884 44,127 75,056 84,320 Interest expense, net of amounts capitalized ( 174,596 ) ( 190,243 ) ( 357,000 ) ( 377,983 ) Change in derivatives fair value 15,517 24,336 ( 2,397 ) 47,382 Loss on debt financing transactions — ( 3,375 ) ( 1,561 ) ( 15,611 ) Other 8,745 6,959 4,023 ( 23,655 ) Total other non-operating income and expenses ( 115,450 ) ( 118,196 ) ( 281,879 ) ( 285,547 ) Income before income taxes 154,208 132,140 350,720 134,304 Provision for income taxes ( 7,935 ) ( 4,305 ) ( 27,949 ) ( 5,323 ) Net income 146,273 127,835 322,771 128,981 Net income attributable to noncontrolling interests ( 34,330 ) ( 22,651 ) ( 66,612 ) ( 11,465 ) Net income attributable to Wynn Resorts, Limited $ 111,943 $ 105,184 $ 256,159 $ 117,516 (1) "Adjusted Property EBITDAR" is net income before interest, income taxes, depreciation and amortization, pre-opening expenses, 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 debt financing transactions, and other non-operating income and expenses. 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 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, 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, interest payments, 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. (2) For each of the three and six months ended June 30, 2024, includes $ 61.5 million of expensed project costs related to a discontinued development project, partially offset by a gain of $ 24.6 million related to the sale of certain Wynn Interactive assets, both included in Corporate and other. 22 Table of Contents WYNN RESORTS, LIMITED AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) June 30, 2024 December 31, 2023 Assets Macau Operations: Wynn Palace $ 2,849,362 $ 2,936,264 Wynn Macau 1,848,162 1,864,211 Other Macau 761,612 886,175 Total Macau Operations 5,459,136 5,686,650 Las Vegas Operations 3,073,105 3,173,247 Encore Boston Harbor 1,957,746 2,006,565 Corporate and other 2,799,811 3,129,761 Total $ 13,289,798 $ 13,996,223 23 Table of Contents