Segment Information (Tables)

3 Months Ended

Mar. 31, 2014

The Company’s total assets by segment are as follows (in thousands):



	March 31, 2014		December 31, 2013
Assets
Macau Operations	$	4,828,933	$	3,918,163
Las Vegas Operations	3,515,731		3,576,648
Corporate and other	768,557		882,219
	$	9,113,221	$	8,377,030

Summary of Operations by Segment

The Company’s segment information for its results of operations are as follows (in thousands):



	Three Months Ended March 31,
	2014			2013
Net revenues
Macau Operations	$	1,132,698		$	992,065
Las Vegas Operations	380,915			386,589
Total	$	1,513,613		$	1,378,654
Adjusted Property EBITDA (1)
Macau Operations	$	384,328		$	330,711
Las Vegas Operations	110,288			120,357
Total	494,616			451,068
Other operating costs and expenses
Pre-opening costs	3,073			452
Depreciation and amortization	76,659			92,518
Property charges and other	9,934			5,346
Corporate expenses and other	23,890			17,782
Stock-based compensation	3,921			1,122
Equity in income from unconsolidated affiliates	308			200
Total	117,785			117,420
Operating income	376,831			333,648
Non-operating costs and expenses
Interest income	4,753			4,222
Interest expense, net of capitalized interest	(75,256		)	(75,377		)
Increase in swap fair value	842			3,144
Loss on extinguishment of debt	(1,529		)	—
Equity in income from unconsolidated affiliates	308			200
Other	(297		)	1,165
Total	(71,179		)	(66,646		)
Income before income taxes	305,652			267,002
(Provision) benefit for income taxes	(2,609		)	5,142
Net income	$	303,043		$	272,144

(1)

“Adjusted Property EBITDA” is earnings before interest, taxes, depreciation, amortization, pre-opening costs, property charges and other, corporate expenses, intercompany golf course and water rights leases, stock-based compensation, and other non-operating income and expenses and includes equity in income from unconsolidated affiliates. 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. The Company also presents Adjusted Property EBITDA because it is used by some investors as a way 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 financial measures in accordance with U.S. generally accepted accounting principles (“GAAP”). In order to view the operations of their casinos on a more stand-alone basis, gaming companies, including Wynn Resorts, Limited, 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, 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, taxes and other non-recurring charges, which are not reflected in Adjusted Property EBITDA. Also, Wynn Resorts’ calculation of Adjusted Property EBITDA may be different from the calculation methods used by other companies and, therefore, comparability may be limited.