Segment Information

6 Months Ended

Jun. 30, 2020

Segment InformationThe Company reviews the results of operations for each of its operating segments, and identifies reportable segments based upon factors such as geography, regulatory environment, and the Company's organizational and management reporting structure. Wynn Macau and Encore, an expansion at Wynn Macau, are managed as a single integrated resort and have been aggregated as one reportable segment ("Wynn Macau"). Wynn Palace is presented as a separate reportable segment and is combined with Wynn Macau for geographical presentation. Wynn Las Vegas, Encore, an expansion at Wynn Las Vegas, and the Retail Joint Venture are managed as a single integrated resort and have been aggregated as one reportable segment ("Las Vegas Operations"). On June 23, 2019, the Company opened Encore Boston Harbor, an integrated resort in Everett, Massachusetts. Encore Boston Harbor is presented as one reportable segment. Other Macau primarily represents the assets for the Company's Macau holding company.

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


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Operating revenues
Macau Operations:
Wynn Palace
Casino	$	(11,428)	$	528,545	$	196,148	$	1,151,720
Rooms	2,431		43,183		22,141		86,498
Food and beverage	4,231		28,810		17,529		57,434
Entertainment, retail and other (1)	13,484		28,378		32,413		59,886
	8,718		628,916		268,231		1,355,538
Wynn Macau
Casino	(3,524)		481,204		186,604		931,446
Rooms	2,631		26,465		18,542		55,331
Food and beverage	3,684		20,129		13,215		41,105
Entertainment, retail and other (1)	9,097		18,676		23,016		42,483
	11,888		546,474		241,377		1,070,365
Total Macau Operations	20,606		1,175,390		509,608		2,425,903

Las Vegas Operations:
Casino	24,365		119,753		95,660		231,437
Rooms	12,353		127,554		118,458		246,644
Food and beverage	16,092		165,197		122,071		288,816
Entertainment, retail and other (1)	12,076		51,638		52,521		98,278
Total Las Vegas Operations	64,886		464,142		388,710		865,175

Encore Boston Harbor:
Casino	—		13,001		101,790		13,001
Rooms	—		1,605		10,955		1,605
Food and beverage	—		3,886		20,606		3,886
Entertainment, retail and other (1)	206		308		7,745		308
Total Encore Boston Harbor	206		18,800		141,096		18,800

Total operating revenues	$	85,698	$	1,658,332	$	1,039,414	$	3,309,878


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Adjusted Property EBITDA (2)
Macau Operations:
Wynn Palace	$	(110,908)	$	167,165	$	(100,732)	$	389,751
Wynn Macau	(82,646)		175,873		(63,438)		339,762
Total Macau Operations	(193,554)		343,038		(164,170)		729,513
Las Vegas Operations (3)	(75,564)		137,399		(97,641)		245,701
Encore Boston Harbor (4)	(53,779)		146		(66,415)		146
Total	(322,897)		480,583		(328,226)		975,360
Other operating expenses
Pre-opening	2,186		69,883		4,737		97,596
Depreciation and amortization	179,266		140,269		358,012		276,826
Property charges and other	6,567		6,930		33,796		9,704
Corporate expenses and other (5)	(8,984)		35,295		15,208		97,844
Stock-based compensation (6)	21,084		9,490		30,448		19,498
Total other operating expenses	200,119		261,867		442,201		501,468
Operating income (loss)	(523,016)		218,716		(770,427)		473,892
Other non-operating income and expenses
Interest income	3,983		6,265		11,936		13,552
Interest expense, net of amounts capitalized	(133,218)		(93,149)		(262,045)		(186,329)
Change in derivatives fair value	(3,294)		(3,304)		(18,954)		(4,813)
Loss on extinguishment of debt	(619)		—		(1,462)		—
Other	2,233		11,715		12,568		5,357
Total other non-operating income and expenses	(130,915)		(78,473)		(257,957)		(172,233)
Income (loss) before income taxes	(653,931)		140,243		(1,028,384)		301,659
(Provision) benefit for income taxes	(80,938)		1,991		(156,738)		306
Net income (loss)	(734,869)		142,234		(1,185,122)		301,965
Net (income) loss attributable to noncontrolling interests	97,305		(47,683)		145,521		(102,542)
Net income (loss) attributable to Wynn Resorts, Limited	$	(637,564)	$	94,551	$	(1,039,601)	$	199,423

(1) Includes lease revenue accounted for under lease accounting guidance. For more information on leases, see Note 13, "Leases".

(2) "Adjusted Property EBITDA" is net income (loss) before interest, income taxes, depreciation and amortization, pre-opening expenses, property charges and other, management and license fees, corporate expenses and other (including intercompany golf course and water rights leases), stock-based compensation, change in derivatives fair value, loss on extinguishment of debt, and other non-operating income and expenses. Adjusted Property EBITDA is presented exclusively as a supplemental disclosure because management believes that it is widely used to measure the performance, and as a basis for valuation, of gaming companies. Management uses Adjusted Property EBITDA as a measure of the operating performance of its segments and to compare the operating performance of its properties with those of its competitors, as well as a basis for determining certain incentive compensation. We also present Adjusted Property EBITDA because it is used by some investors to measure a company's ability to incur and service debt, make capital expenditures and meet working capital requirements. Gaming companies have historically reported EBITDA as a supplement to GAAP. In order to view the operations of their casinos on a more stand-alone basis, gaming companies, including us, have historically excluded from their EBITDA calculations preopening expenses, property charges, corporate expenses and stock-based compensation, that do not relate to the management of specific casino properties. However, Adjusted Property EBITDA should not be considered as an alternative to operating income as an indicator of our performance, as an alternative to cash flows from operating activities as a measure of liquidity, or as an alternative to any other measure determined in accordance with GAAP. 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. We have significant uses of cash flows, including capital expenditures, interest payments, debt principal repayments, income taxes and other non-recurring charges, which are not reflected in Adjusted Property EBITDA. Also, our calculation of Adjusted Property EBITDA may be different from the calculation methods used by other companies and, therefore, comparability may be limited.

(3) For the three months ended June 30, 2020, excludes $56.4 million of expense accrued during the first quarter of 2020 related to the Company's commitment to pay salary, tips, and benefits continuation for all of our U.S. employees for the period from April 1 through May 15, 2020.

(4) For the three months ended June 30, 2020, excludes $19.3 million of expense accrued during the first quarter of 2020 related to the Company's commitment to pay salary, tips, and benefits continuation for all of our U.S. employees for the period from April 1 through May 15, 2020.

(5) For the three and six months ended June 30, 2020, includes a $27.7 million net gain recorded in relation to a derivative litigation settlement. For the six months ended June 30, 2019, includes a $35.0 million nonrecurring regulatory expense.

(6) Excludes $0.4 million and $0.7 million included in pre-opening expenses for the three and six months ended June 30, 2019, respectively.


	June 30, 2020		December 31, 2019
Assets
Macau Operations:
Wynn Palace	$	3,568,590	$	3,734,210
Wynn Macau	1,586,192		1,656,625
Other Macau	1,709,555		1,023,411
Total Macau Operations	6,864,337		6,414,246
Las Vegas Operations	3,060,303		2,806,972
Encore Boston Harbor	2,331,115		2,456,667
Corporate and other	2,629,920		2,193,396
Total	$	14,885,675	$	13,871,281