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Leases

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Leases

Leases

Lessee Arrangements

The following table summarizes the balance sheet classification of the Company's lease assets and liabilities (in thousands):

									Years Ended December 31,
			Balance Sheet Classification						2020						2019
Assets
Operating leases			Operating lease assets						$	398,594					$	452,919
Finance leases			Property and equipment, net						$	73,201					$	23,061
Current liabilities
Operating leases			Other accrued liabilities						$	13,627					$	18,893
Finance leases			Other accrued liabilities						$	13,879					$	164
Non-current liabilities
Operating leases			Long-term operating lease liabilities						$	123,124					$	159,182
Finance leases			Other long-term liabilities						$	54,379					$	17,759

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 (dollars in thousands):

			Years Ended December 31,
			2020						2019
Lease cost:
Operating lease cost			$	29,574					$	33,126
Short-term lease cost			11,363						24,634
Amortization of leasehold interests in land			13,885						13,373
Variable lease cost			194						1,487
Finance lease interest cost			1,604						1,058
Total lease cost			$	56,620					$	73,678

			Years Ended December 31,
			2020						2019
Supplemental cash flow disclosures:
Operating lease liabilities arising from obtaining operating lease assets			$	11,625					$	45,435
Finance lease liabilities arising from obtaining finance lease assets			$	56,215					$	1,413
Cash paid for amounts included in the measurement of lease liabilities:
Cash used in operating activities - Operating leases			$	28,873					$	30,409
Cash used in financing activities - Finance leases			$	5,916					$	73

			Years Ended December 31,
			2020						2019
Other information:
Weighted-average remaining lease term - Operating leases			43.9 years						35.4 years
Weighted-average remaining lease term - Finance leases			13.6 years						42.8 years
Weighted-average discount rate - Operating leases			6.5		%				6.4		%
Weighted-average discount rate - Finance leases			4.5		%				6.2		%

The following table presents an analysis of lease liability maturities as of December 31, 2020 (in thousands):

Years Ending December 31,						Operating Leases						Finance Leases
2021						$	20,772					$	15,898
2022						16,849						15,898
2023						14,998						15,898
2024						10,857						9,618
2025						9,311						1,203
Thereafter						450,009						65,084
Total undiscounted cash flows						$	522,796					$	123,599
Present value
Short-term lease liabilities						$	13,627					$	13,879
Long-term lease liabilities						123,124						54,379
Total lease liabilities						$	136,751					$	68,258
Interest on lease liabilities						$	386,045					$	55,341

Ground Leases

Undeveloped Land - Las Vegas

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 per year until 2023 and total payments of $367.8 million thereafter. As of December 31, 2020 and 2019, the liability associated with this lease was $63.2 million and $62.6 million, respectively.

At December 31, 2020 and 2019, operating lease assets included approximately $85.8 million and $87.0 million, respectively, related to an amount allocated to the leasehold interest in land upon the acquisition of a group of assets in 2018. The Company expects that the amortization of this amount will be $1.1 million each year from 2021 through 2096 and $0.7 million in 2097.

Macau Land Concessions

Wynn Palace and Wynn Macau were built on land that is leased under Macau land concession contracts each with terms of 25 years from May 2012 and August 2004, respectively, which may be renewed with government approval for successive 10-year periods in accordance with Macau legislation. The land concession payments are expected to be $1.6 million per year through 2025 and total payments of $14.0 million thereafter through 2037. At December 31, 2020 and 2019, the total liability associated with these leases was $15.4 million and $16.0 million, respectively.

At December 31, 2020 and 2019, operating lease assets included $180.3 million and $188.6 million of leasehold interests in land related to the Wynn Palace and Wynn Macau land concessions. The Company expects that the amortization associated with these leasehold interests will be approximately $12.7 million per year from 2021 through 2028 and approximately $9.4 million per year thereafter through 2037.

Rent Expense

Rent expense for the year ended December 31, 2018 was $27.1 million.

Lessor Arrangements

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

			Years Ended December 31,
			2020						2019						2018
Minimum rental income (1)			$	77,946					$	136,612					$	126,192
Contingent rental income			56,889						57,807						52,347
Total rental income			$	134,835					$	194,419					$	178,539

(1) For the year ended December 31, 2020, reflects the impact of rent concessions provided to tenants.

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

Years Ending December 31,			Operating Leases
2021			$	98,604
2022			95,642
2023			80,334
2024			70,900
2025			54,300
Thereafter			103,879
Total future minimum rentals			$	503,659

Leases

Leases

Lessee Arrangements

The following table summarizes the balance sheet classification of the Company's lease assets and liabilities (in thousands):

									Years Ended December 31,
			Balance Sheet Classification						2020						2019
Assets
Operating leases			Operating lease assets						$	398,594					$	452,919
Finance leases			Property and equipment, net						$	73,201					$	23,061
Current liabilities
Operating leases			Other accrued liabilities						$	13,627					$	18,893
Finance leases			Other accrued liabilities						$	13,879					$	164
Non-current liabilities
Operating leases			Long-term operating lease liabilities						$	123,124					$	159,182
Finance leases			Other long-term liabilities						$	54,379					$	17,759

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 (dollars in thousands):

			Years Ended December 31,
			2020						2019
Lease cost:
Operating lease cost			$	29,574					$	33,126
Short-term lease cost			11,363						24,634
Amortization of leasehold interests in land			13,885						13,373
Variable lease cost			194						1,487
Finance lease interest cost			1,604						1,058
Total lease cost			$	56,620					$	73,678

			Years Ended December 31,
			2020						2019
Supplemental cash flow disclosures:
Operating lease liabilities arising from obtaining operating lease assets			$	11,625					$	45,435
Finance lease liabilities arising from obtaining finance lease assets			$	56,215					$	1,413
Cash paid for amounts included in the measurement of lease liabilities:
Cash used in operating activities - Operating leases			$	28,873					$	30,409
Cash used in financing activities - Finance leases			$	5,916					$	73

			Years Ended December 31,
			2020						2019
Other information:
Weighted-average remaining lease term - Operating leases			43.9 years						35.4 years
Weighted-average remaining lease term - Finance leases			13.6 years						42.8 years
Weighted-average discount rate - Operating leases			6.5		%				6.4		%
Weighted-average discount rate - Finance leases			4.5		%				6.2		%

The following table presents an analysis of lease liability maturities as of December 31, 2020 (in thousands):

Years Ending December 31,						Operating Leases						Finance Leases
2021						$	20,772					$	15,898
2022						16,849						15,898
2023						14,998						15,898
2024						10,857						9,618
2025						9,311						1,203
Thereafter						450,009						65,084
Total undiscounted cash flows						$	522,796					$	123,599
Present value
Short-term lease liabilities						$	13,627					$	13,879
Long-term lease liabilities						123,124						54,379
Total lease liabilities						$	136,751					$	68,258
Interest on lease liabilities						$	386,045					$	55,341

Ground Leases

Undeveloped Land - Las Vegas

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 per year until 2023 and total payments of $367.8 million thereafter. As of December 31, 2020 and 2019, the liability associated with this lease was $63.2 million and $62.6 million, respectively.

At December 31, 2020 and 2019, operating lease assets included approximately $85.8 million and $87.0 million, respectively, related to an amount allocated to the leasehold interest in land upon the acquisition of a group of assets in 2018. The Company expects that the amortization of this amount will be $1.1 million each year from 2021 through 2096 and $0.7 million in 2097.

Macau Land Concessions

Wynn Palace and Wynn Macau were built on land that is leased under Macau land concession contracts each with terms of 25 years from May 2012 and August 2004, respectively, which may be renewed with government approval for successive 10-year periods in accordance with Macau legislation. The land concession payments are expected to be $1.6 million per year through 2025 and total payments of $14.0 million thereafter through 2037. At December 31, 2020 and 2019, the total liability associated with these leases was $15.4 million and $16.0 million, respectively.

At December 31, 2020 and 2019, operating lease assets included $180.3 million and $188.6 million of leasehold interests in land related to the Wynn Palace and Wynn Macau land concessions. The Company expects that the amortization associated with these leasehold interests will be approximately $12.7 million per year from 2021 through 2028 and approximately $9.4 million per year thereafter through 2037.

Rent Expense

Rent expense for the year ended December 31, 2018 was $27.1 million.

Lessor Arrangements

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

			Years Ended December 31,
			2020						2019						2018
Minimum rental income (1)			$	77,946					$	136,612					$	126,192
Contingent rental income			56,889						57,807						52,347
Total rental income			$	134,835					$	194,419					$	178,539

(1) For the year ended December 31, 2020, reflects the impact of rent concessions provided to tenants.

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

Years Ending December 31,			Operating Leases
2021			$	98,604
2022			95,642
2023			80,334
2024			70,900
2025			54,300
Thereafter			103,879
Total future minimum rentals			$	503,659

Leases

Leases

Lessee Arrangements

The following table summarizes the balance sheet classification of the Company's lease assets and liabilities (in thousands):

									Years Ended December 31,
			Balance Sheet Classification						2020						2019
Assets
Operating leases			Operating lease assets						$	398,594					$	452,919
Finance leases			Property and equipment, net						$	73,201					$	23,061
Current liabilities
Operating leases			Other accrued liabilities						$	13,627					$	18,893
Finance leases			Other accrued liabilities						$	13,879					$	164
Non-current liabilities
Operating leases			Long-term operating lease liabilities						$	123,124					$	159,182
Finance leases			Other long-term liabilities						$	54,379					$	17,759

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 (dollars in thousands):

			Years Ended December 31,
			2020						2019
Lease cost:
Operating lease cost			$	29,574					$	33,126
Short-term lease cost			11,363						24,634
Amortization of leasehold interests in land			13,885						13,373
Variable lease cost			194						1,487
Finance lease interest cost			1,604						1,058
Total lease cost			$	56,620					$	73,678

			Years Ended December 31,
			2020						2019
Supplemental cash flow disclosures:
Operating lease liabilities arising from obtaining operating lease assets			$	11,625					$	45,435
Finance lease liabilities arising from obtaining finance lease assets			$	56,215					$	1,413
Cash paid for amounts included in the measurement of lease liabilities:
Cash used in operating activities - Operating leases			$	28,873					$	30,409
Cash used in financing activities - Finance leases			$	5,916					$	73

			Years Ended December 31,
			2020						2019
Other information:
Weighted-average remaining lease term - Operating leases			43.9 years						35.4 years
Weighted-average remaining lease term - Finance leases			13.6 years						42.8 years
Weighted-average discount rate - Operating leases			6.5		%				6.4		%
Weighted-average discount rate - Finance leases			4.5		%				6.2		%

The following table presents an analysis of lease liability maturities as of December 31, 2020 (in thousands):

Years Ending December 31,						Operating Leases						Finance Leases
2021						$	20,772					$	15,898
2022						16,849						15,898
2023						14,998						15,898
2024						10,857						9,618
2025						9,311						1,203
Thereafter						450,009						65,084
Total undiscounted cash flows						$	522,796					$	123,599
Present value
Short-term lease liabilities						$	13,627					$	13,879
Long-term lease liabilities						123,124						54,379
Total lease liabilities						$	136,751					$	68,258
Interest on lease liabilities						$	386,045					$	55,341

Ground Leases

Undeveloped Land - Las Vegas

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 per year until 2023 and total payments of $367.8 million thereafter. As of December 31, 2020 and 2019, the liability associated with this lease was $63.2 million and $62.6 million, respectively.

At December 31, 2020 and 2019, operating lease assets included approximately $85.8 million and $87.0 million, respectively, related to an amount allocated to the leasehold interest in land upon the acquisition of a group of assets in 2018. The Company expects that the amortization of this amount will be $1.1 million each year from 2021 through 2096 and $0.7 million in 2097.

Macau Land Concessions

Wynn Palace and Wynn Macau were built on land that is leased under Macau land concession contracts each with terms of 25 years from May 2012 and August 2004, respectively, which may be renewed with government approval for successive 10-year periods in accordance with Macau legislation. The land concession payments are expected to be $1.6 million per year through 2025 and total payments of $14.0 million thereafter through 2037. At December 31, 2020 and 2019, the total liability associated with these leases was $15.4 million and $16.0 million, respectively.

At December 31, 2020 and 2019, operating lease assets included $180.3 million and $188.6 million of leasehold interests in land related to the Wynn Palace and Wynn Macau land concessions. The Company expects that the amortization associated with these leasehold interests will be approximately $12.7 million per year from 2021 through 2028 and approximately $9.4 million per year thereafter through 2037.

Rent Expense

Rent expense for the year ended December 31, 2018 was $27.1 million.

Lessor Arrangements

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

			Years Ended December 31,
			2020						2019						2018
Minimum rental income (1)			$	77,946					$	136,612					$	126,192
Contingent rental income			56,889						57,807						52,347
Total rental income			$	134,835					$	194,419					$	178,539

(1) For the year ended December 31, 2020, reflects the impact of rent concessions provided to tenants.

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

Years Ending December 31,			Operating Leases
2021			$	98,604
2022			95,642
2023			80,334
2024			70,900
2025			54,300
Thereafter			103,879
Total future minimum rentals			$	503,659

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