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Leases

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Leases

Leases

Lessee Arrangements

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

									December 31,
			Balance Sheet Classification						2023						2022
Assets
Operating leases			Operating lease assets						$	1,832,896					$	1,853,164
Finance leases			Property and equipment, net						$	43,078					$	52,848
Current liabilities
Operating leases			Other accrued liabilities						$	9,295					$	9,905
Finance leases			Other accrued liabilities						$	13,412					$	18,416
Non-current liabilities
Operating leases			Long-term operating lease liabilities						$	1,631,749					$	1,615,157
Finance leases			Other long-term liabilities						$	24,028					$	29,407

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):

			Year Ended December 31,
			2023						2022						2021
Lease cost:
Operating lease cost			$	17,173					$	18,321					$	22,878
Triple-net operating lease cost related to Encore Boston Harbor			141,722						11,773						—
Short-term lease cost			27,468						21,060						16,224
Amortization of leasehold interests in land			13,666						13,728						13,862
Variable lease cost			1,868						1,081						911
Finance lease interest cost			2,363						2,131						2,216
Total lease cost			$	204,260					$	68,094					$	56,091

			Year Ended December 31,
			2023						2022						2021
Supplemental cash flow disclosures:
Operating lease liabilities arising from obtaining operating lease assets			$	26,657					$	1,519,628					$	3,761
Finance lease liabilities arising from obtaining finance lease assets			$	8,842					$	5,906					$	7,423
Cash paid for amounts included in the measurement of lease liabilities:
Cash used in operating activities - Operating leases			$	139,054					$	26,094					$	21,404
Cash used in financing activities - Finance leases			$	19,267					$	18,188					$	15,658

			Year Ended December 31,
			2023						2022						2021
Other information:
Weighted-average remaining lease term - Operating leases			30.1 years						31.1 years						46.5 years
Weighted-average remaining lease term - Finance leases			19.7 years						16.0 years						14.0 years
Weighted-average discount rate - Operating leases			8.0		%				8.0		%				6.6		%
Weighted-average discount rate - Finance leases			5.8		%				5.0		%				4.7		%

The following table presents an analysis of lease liability maturities as of December 31, 2023 (in thousands):

Year Ending December 31,						Operating Leases						Finance Leases
2024						$	142,219					$	15,064
2025						142,674						4,348
2026						142,954						4,016
2027						145,444						2,551
2028						146,561						989
Thereafter						3,836,365						61,796
Total undiscounted cash flows						$	4,556,217					$	88,764
Present value
Short-term lease liabilities						$	9,295					$	13,412
Long-term lease liabilities						1,631,749						24,028
Total lease liabilities						$	1,641,044					$	37,440
Interest on lease liabilities						$	2,915,173					$	51,324

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 per year, which increases at a fixed rate of 1.75% per year for the first ten years and the greater of 1.75% or change in consumer price index, subject to a cap of 2.5%, each year 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 $124.1 million in 2024, $126.4 million in 2025, $128.8 million in 2026, $131.3 million in 2027, $133.7 million in 2028, and $3.43 billion thereafter. At December 31, 2023, the total liability associated with the lease was $1.51 billion.

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 $4.0 million per year from 2024 to 2028 and total payments of $347.8 million thereafter. As of December 31, 2023 and 2022, the liability associated with this lease was $64.8 million and $64.3 million, respectively.

At December 31, 2023 and 2022, operating lease assets included approximately $82.5 million and $83.6 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 2024 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 $1.5 million per year through 2028 and total payments of $8.4 million thereafter through 2037. At December 31, 2023 and 2022, the total liability associated with these leases was $10.4 million and $13.6 million, respectively.

At December 31, 2023 and 2022, operating lease assets included $141.2 million and $154.1 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 $12.5 million per year from 2024 through 2028 and approximately $9.3 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):

			Year Ended December 31,
			2023						2022						2021
Minimum rental income			$	131,901					$	126,226					$	104,860
Contingent rental income			96,831						62,586						97,521
Total rental income			$	228,732					$	188,812					$	202,381

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

Year Ending December 31,			Operating Leases
2024			$	135,414
2025			120,675
2026			87,482
2027			69,912
2028			42,834
Thereafter			65,961
Total future minimum rentals			$	522,278

Leases

Leases

Lessee Arrangements

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

									December 31,
			Balance Sheet Classification						2023						2022
Assets
Operating leases			Operating lease assets						$	1,832,896					$	1,853,164
Finance leases			Property and equipment, net						$	43,078					$	52,848
Current liabilities
Operating leases			Other accrued liabilities						$	9,295					$	9,905
Finance leases			Other accrued liabilities						$	13,412					$	18,416
Non-current liabilities
Operating leases			Long-term operating lease liabilities						$	1,631,749					$	1,615,157
Finance leases			Other long-term liabilities						$	24,028					$	29,407

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):

			Year Ended December 31,
			2023						2022						2021
Lease cost:
Operating lease cost			$	17,173					$	18,321					$	22,878
Triple-net operating lease cost related to Encore Boston Harbor			141,722						11,773						—
Short-term lease cost			27,468						21,060						16,224
Amortization of leasehold interests in land			13,666						13,728						13,862
Variable lease cost			1,868						1,081						911
Finance lease interest cost			2,363						2,131						2,216
Total lease cost			$	204,260					$	68,094					$	56,091

			Year Ended December 31,
			2023						2022						2021
Supplemental cash flow disclosures:
Operating lease liabilities arising from obtaining operating lease assets			$	26,657					$	1,519,628					$	3,761
Finance lease liabilities arising from obtaining finance lease assets			$	8,842					$	5,906					$	7,423
Cash paid for amounts included in the measurement of lease liabilities:
Cash used in operating activities - Operating leases			$	139,054					$	26,094					$	21,404
Cash used in financing activities - Finance leases			$	19,267					$	18,188					$	15,658

			Year Ended December 31,
			2023						2022						2021
Other information:
Weighted-average remaining lease term - Operating leases			30.1 years						31.1 years						46.5 years
Weighted-average remaining lease term - Finance leases			19.7 years						16.0 years						14.0 years
Weighted-average discount rate - Operating leases			8.0		%				8.0		%				6.6		%
Weighted-average discount rate - Finance leases			5.8		%				5.0		%				4.7		%

The following table presents an analysis of lease liability maturities as of December 31, 2023 (in thousands):

Year Ending December 31,						Operating Leases						Finance Leases
2024						$	142,219					$	15,064
2025						142,674						4,348
2026						142,954						4,016
2027						145,444						2,551
2028						146,561						989
Thereafter						3,836,365						61,796
Total undiscounted cash flows						$	4,556,217					$	88,764
Present value
Short-term lease liabilities						$	9,295					$	13,412
Long-term lease liabilities						1,631,749						24,028
Total lease liabilities						$	1,641,044					$	37,440
Interest on lease liabilities						$	2,915,173					$	51,324

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 per year, which increases at a fixed rate of 1.75% per year for the first ten years and the greater of 1.75% or change in consumer price index, subject to a cap of 2.5%, each year 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 $124.1 million in 2024, $126.4 million in 2025, $128.8 million in 2026, $131.3 million in 2027, $133.7 million in 2028, and $3.43 billion thereafter. At December 31, 2023, the total liability associated with the lease was $1.51 billion.

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 $4.0 million per year from 2024 to 2028 and total payments of $347.8 million thereafter. As of December 31, 2023 and 2022, the liability associated with this lease was $64.8 million and $64.3 million, respectively.

At December 31, 2023 and 2022, operating lease assets included approximately $82.5 million and $83.6 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 2024 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 $1.5 million per year through 2028 and total payments of $8.4 million thereafter through 2037. At December 31, 2023 and 2022, the total liability associated with these leases was $10.4 million and $13.6 million, respectively.

At December 31, 2023 and 2022, operating lease assets included $141.2 million and $154.1 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 $12.5 million per year from 2024 through 2028 and approximately $9.3 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):

			Year Ended December 31,
			2023						2022						2021
Minimum rental income			$	131,901					$	126,226					$	104,860
Contingent rental income			96,831						62,586						97,521
Total rental income			$	228,732					$	188,812					$	202,381

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

Year Ending December 31,			Operating Leases
2024			$	135,414
2025			120,675
2026			87,482
2027			69,912
2028			42,834
Thereafter			65,961
Total future minimum rentals			$	522,278

Leases

Leases

Lessee Arrangements

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

									December 31,
			Balance Sheet Classification						2023						2022
Assets
Operating leases			Operating lease assets						$	1,832,896					$	1,853,164
Finance leases			Property and equipment, net						$	43,078					$	52,848
Current liabilities
Operating leases			Other accrued liabilities						$	9,295					$	9,905
Finance leases			Other accrued liabilities						$	13,412					$	18,416
Non-current liabilities
Operating leases			Long-term operating lease liabilities						$	1,631,749					$	1,615,157
Finance leases			Other long-term liabilities						$	24,028					$	29,407

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):

			Year Ended December 31,
			2023						2022						2021
Lease cost:
Operating lease cost			$	17,173					$	18,321					$	22,878
Triple-net operating lease cost related to Encore Boston Harbor			141,722						11,773						—
Short-term lease cost			27,468						21,060						16,224
Amortization of leasehold interests in land			13,666						13,728						13,862
Variable lease cost			1,868						1,081						911
Finance lease interest cost			2,363						2,131						2,216
Total lease cost			$	204,260					$	68,094					$	56,091

			Year Ended December 31,
			2023						2022						2021
Supplemental cash flow disclosures:
Operating lease liabilities arising from obtaining operating lease assets			$	26,657					$	1,519,628					$	3,761
Finance lease liabilities arising from obtaining finance lease assets			$	8,842					$	5,906					$	7,423
Cash paid for amounts included in the measurement of lease liabilities:
Cash used in operating activities - Operating leases			$	139,054					$	26,094					$	21,404
Cash used in financing activities - Finance leases			$	19,267					$	18,188					$	15,658

			Year Ended December 31,
			2023						2022						2021
Other information:
Weighted-average remaining lease term - Operating leases			30.1 years						31.1 years						46.5 years
Weighted-average remaining lease term - Finance leases			19.7 years						16.0 years						14.0 years
Weighted-average discount rate - Operating leases			8.0		%				8.0		%				6.6		%
Weighted-average discount rate - Finance leases			5.8		%				5.0		%				4.7		%

The following table presents an analysis of lease liability maturities as of December 31, 2023 (in thousands):

Year Ending December 31,						Operating Leases						Finance Leases
2024						$	142,219					$	15,064
2025						142,674						4,348
2026						142,954						4,016
2027						145,444						2,551
2028						146,561						989
Thereafter						3,836,365						61,796
Total undiscounted cash flows						$	4,556,217					$	88,764
Present value
Short-term lease liabilities						$	9,295					$	13,412
Long-term lease liabilities						1,631,749						24,028
Total lease liabilities						$	1,641,044					$	37,440
Interest on lease liabilities						$	2,915,173					$	51,324

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 per year, which increases at a fixed rate of 1.75% per year for the first ten years and the greater of 1.75% or change in consumer price index, subject to a cap of 2.5%, each year 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 $124.1 million in 2024, $126.4 million in 2025, $128.8 million in 2026, $131.3 million in 2027, $133.7 million in 2028, and $3.43 billion thereafter. At December 31, 2023, the total liability associated with the lease was $1.51 billion.

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 $4.0 million per year from 2024 to 2028 and total payments of $347.8 million thereafter. As of December 31, 2023 and 2022, the liability associated with this lease was $64.8 million and $64.3 million, respectively.

At December 31, 2023 and 2022, operating lease assets included approximately $82.5 million and $83.6 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 2024 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 $1.5 million per year through 2028 and total payments of $8.4 million thereafter through 2037. At December 31, 2023 and 2022, the total liability associated with these leases was $10.4 million and $13.6 million, respectively.

At December 31, 2023 and 2022, operating lease assets included $141.2 million and $154.1 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 $12.5 million per year from 2024 through 2028 and approximately $9.3 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):

			Year Ended December 31,
			2023						2022						2021
Minimum rental income			$	131,901					$	126,226					$	104,860
Contingent rental income			96,831						62,586						97,521
Total rental income			$	228,732					$	188,812					$	202,381

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

Year Ending December 31,			Operating Leases
2024			$	135,414
2025			120,675
2026			87,482
2027			69,912
2028			42,834
Thereafter			65,961
Total future minimum rentals			$	522,278

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The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability.

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-Topic 842
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+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-Topic 842
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