Segment Information

3 Months Ended

Mar. 31, 2019

NOTE 11 — SEGMENT INFORMATION

The Company’s management views each of its casino resorts as an operating segment. Operating segments are aggregated based on their similar economic characteristics, types of customers, types of services and products provided, the regulatory environments in which they operate and their management and reporting structure. The Company has aggregated its operating segments into the following reportable segments: Las Vegas Strip Resorts, Regional Operations and MGM China.

Las Vegas Strip Resorts. Las Vegas Strip Resorts consists of the following casino resorts: Bellagio, MGM Grand Las Vegas (including The Signature), Mandalay Bay (including Delano and Four Seasons), The Mirage, Luxor, New York-New York (including the Park), Excalibur, Park MGM (including NoMad Las Vegas) and Circus Circus Las Vegas.

Regional Operations. Regional Operations consists of the following casino resorts: MGM Grand Detroit in Detroit, Michigan; Beau Rivage in Biloxi, Mississippi; Gold Strike Tunica in Tunica, Mississippi; Borgata in Atlantic City, New Jersey; MGM National Harbor in Prince George’s County, Maryland; MGM Springfield in Springfield, Massachusetts (upon commencing operations in August 2018); and Empire City in Yonkers, New York (upon acquisition in January 2019).

MGM China. MGM China consists of MGM Macau and MGM Cotai.

The Company’s operations related to investments in unconsolidated affiliates, MGM Northfield Park (as the operations were owned by MGP until April 1, 2019), and certain other corporate operations and management services have not been identified as separate reportable segments; therefore, these operations are included in “Corporate and other” in the following segment disclosures to reconcile to consolidated results.

The Company’s management utilizes Adjusted Property EBITDA as the primary profit measure for its reportable segments and underlying operating segments. Adjusted Property EBITDA is a measure defined as Adjusted EBITDA before corporate expense and stock compensation expense, which are not allocated to each operating segment, and before rent expense related to the master lease with MGP that eliminates in consolidation. Adjusted EBITDA is a measure defined as earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening and start-up expenses, restructuring costs (which represents costs related to severance, accelerated stock compensation expense, and consulting fees directly related to the operating model component of the MGM 2020 Plan), and property transactions, net.

The following tables present the Company’s segment information:

	Three Months Ended
	March 31,
	2019			2018
	(In thousands)
Net revenue
Las Vegas Strip Resorts
Casino	$	324,704		$	372,820
Rooms		468,852			448,597
Food and beverage		365,522			339,509
Entertainment, retail and other		269,110			271,178
		1,428,188			1,432,104
Regional Operations
Casino		574,156			467,877
Rooms		71,798			71,049
Food and beverage		117,879			95,165
Entertainment, retail and other		40,112			32,477
		803,945			666,568
MGM China
Casino		663,565			550,595
Rooms		33,564			19,834
Food and beverage		30,713			20,737
Entertainment, retail and other		6,362			4,695
		734,204			595,861
Reportable segment net revenues		2,966,337			2,694,533
Corporate and other		210,574			127,704
	$	3,176,911		$	2,822,237
Adjusted Property EBITDA
Las Vegas Strip Resorts	$	403,527		$	449,154
Regional Operations		206,574			167,213
MGM China		190,790			151,751
Reportable segment Adjusted Property EBITDA		800,891			768,118

Other operating income (expense)
Corporate and other		(61,056	)		(66,724	)
Preopening and start-up expenses		(3,287	)		(66,917	)
Property transactions, net		(8,776	)		(5,898	)
Depreciation and amortization		(316,414	)		(268,822	)
Restructuring		(41,098	)		—
Operating income		370,260			359,757
Non-operating income (expense)
Interest expense, net of amounts capitalized		(216,120	)		(167,909	)
Non-operating items from unconsolidated affiliates		(18,165	)		(9,010	)
Other, net		1,693			(1,916	)
		(232,592	)		(178,835	)
Income before income taxes		137,668			180,922
Benefit (provision) for income taxes		(71,511	)		85,379
Net income		66,157			266,301
Less: Net income attributable to noncontrolling interests		(34,860	)		(42,857	)
Net income attributable to MGM Resorts International	$	31,297		$	223,444