Condensed Consolidating Financial Information

6 Months Ended

Jun. 30, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Condensed Consolidating Financial Information

NOTE 13 — CONDENSED CONSOLIDATING FINANCIAL INFORMATION

As of June 30, 2019, all of the Company’s principal debt arrangements are guaranteed by each of its material domestic subsidiaries, other than MGP and the Operating Partnership, MGM Grand Detroit, MGM National Harbor, MGM Springfield, and each of their respective subsidiaries. The Company’s international subsidiaries, including MGM China and its subsidiaries, are not guarantors of such indebtedness. Separate condensed financial statement information for the subsidiary guarantors and non-guarantors as of June 30, 2019 and December 31, 2018 and for the three and six months ended June 30, 2019 and 2018 are presented below. Within the Condensed Consolidating Statements of Cash Flows, the Company has presented net changes in intercompany accounts as investing activities if the applicable entities have a net asset in intercompany accounts and as a financing activity if the applicable entities have a net intercompany liability balance.

Certain of the Company’s subsidiaries collectively own Operating Partnership units and each subsidiary accounts for its respective investment under the equity method within the condensed consolidating financial information presented below. Prior to the adoption of ASC 842 on January 1, 2019, for these subsidiaries, such investment constituted continuing involvement, and accordingly, the sale and leaseback of the real estate assets under the master lease did not qualify for sale-leaseback accounting. The real estate assets were reflected in the balance sheets of the applicable MGM subsidiaries. In addition, such subsidiaries recognized finance liabilities within “Other long-term obligations” related to rent payments due under the master lease and recognized the related interest expense component of such payments. These real estate assets were also reflected on the balance sheet of the MGP subsidiary that received such assets. The condensed consolidating financial information presented below therefore included the accounting for such activity within the respective columns presented and in the elimination column. In connection with the adoption of ASC 842, the sale and leaseback of the real estate assets under the master lease now qualify as a passed sale and are determined to be operating leases. As such, the real estate assets, finance liabilities, and related interest expense component of rent payments are no longer reflected in the results of the applicable MGM subsidiaries. Instead, the real estate assets are now only reflected on the balance sheet of the MGP subsidiary that received such assets and the MGM subsidiaries have recorded operating lease liabilities and operating ROU assets with the related rental payment reflected within “general and administrative” expense within the condensed consolidating financial information.

CONDENSED CONSOLIDATING BALANCE SHEET INFORMATION

	At June 30, 2019
			Guarantor		Non-Guarantor Subsidiaries
	Parent		Subsidiaries		MGP		Other		Elimination			Consolidated
	(In thousands)
Current assets	$	70,483	$	1,133,672	$	65,035	$	787,973	$	(17,129	)	$	2,040,034
Property and equipment, net		—		5,429,353		10,975,999		4,660,957		(11,972	)		21,054,337
Investments in subsidiaries		23,393,617		3,811,326		—		—		(27,204,943	)		—
Investments in the MGP Operating Partnership		—		3,697,910		—		779,853		(4,477,763	)		—
Investments in and advances to unconsolidated affiliates		—		695,117		—		26,616		25,000			746,733
Intercompany accounts		—		8,154,239		—		—		(8,154,239	)		—
Other non-current assets		70,243		10,331,081		871,774		7,136,667		(11,437,154	)		6,972,611
	$	23,534,343	$	33,252,698	$	11,912,808	$	13,392,066	$	(51,278,200	)	$	30,813,715
Current liabilities	$	122,821	$	1,692,960	$	191,902	$	1,065,710	$	(286,854	)	$	2,786,539
Intercompany accounts		8,045,418		—		74		108,747		(8,154,239	)		—
Deferred income taxes, net		1,163,954		125,149		29,721		263,448		(29,720	)		1,552,552
Long-term debt, net		7,638,313		569		4,852,524		2,170,289		—			14,661,695
Other non-current liabilities		43,353		9,394,716		452,055		2,327,101		(11,459,603	)		757,622
Total liabilities		17,013,859		11,213,394		5,526,276		5,935,295		(19,930,416	)		19,758,408
Redeemable noncontrolling interests		—		—		—		100,586		—			100,586
MGM Resorts International stockholders' equity		6,520,484		22,037,881		4,353,312		4,956,591		(31,347,784	)		6,520,484
Noncontrolling interests		—		1,423		2,033,220		2,399,594		—			4,434,237
Total stockholders' equity		6,520,484		22,039,304		6,386,532		7,356,185		(31,347,784	)		10,954,721
	$	23,534,343	$	33,252,698	$	11,912,808	$	13,392,066	$	(51,278,200	)	$	30,813,715

	At December 31, 2018
			Guarantor		Non-Guarantor Subsidiaries
	Parent		Subsidiaries		MGP		Other		Elimination			Consolidated
	(In thousands)
Current assets	$	304,741	$	1,244,864	$	12,054	$	972,820	$	(7,701	)	$	2,526,778
Property and equipment, net		—		13,585,370		10,506,129		6,392,014		(9,753,625	)		20,729,888
Investments in subsidiaries		22,419,282		3,401,031		—		—		(25,820,313	)		—
Investments in the MGP Operating Partnership		—		3,434,602		—		831,494		(4,266,096	)		—
Investments in and advances to unconsolidated affiliates		—		678,748		—		29,119		25,000			732,867
Intercompany accounts		—		7,135,183		—		—		(7,135,183	)		—
Other non-current assets		67,214		1,186,666		77,436		4,932,872		(43,015	)		6,221,173
Assets held for sale		—		—		355,688		—		(355,688	)		—
	$	22,791,237	$	30,666,464	$	10,951,307	$	13,158,319	$	(47,356,621	)	$	30,210,706
Current liabilities	$	154,484	$	1,646,481	$	160,441	$	1,224,752	$	(237,276	)	$	2,948,882
Intercompany accounts		6,932,325		—		227		202,631		(7,135,183	)		—
Deferred income taxes, net		1,097,654		—		33,634		240,970		(29,720	)		1,342,538
Long-term debt, net		8,055,472		570		4,666,949		2,365,014		—			15,088,005
Other non-current liabilities		39,019		7,210,948		215,613		2,247,584		(9,453,924	)		259,240
Liabilities related to assets held for sale		—		—		28,937		—		(28,937	)		—
Total liabilities		16,278,954		8,857,999		5,105,801		6,280,951		(16,885,040	)		19,638,665
Redeemable noncontrolling interests		—		—		—		102,250		—			102,250
MGM Resorts International stockholders' equity		6,512,283		21,808,465		4,279,535		4,383,581		(30,471,581	)		6,512,283
Noncontrolling interests		—		—		1,565,971		2,391,537		—			3,957,508
Total stockholders' equity		6,512,283		21,808,465		5,845,506		6,775,118		(30,471,581	)		10,469,791
	$	22,791,237	$	30,666,464	$	10,951,307	$	13,158,319	$	(47,356,621	)	$	30,210,706

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) INFORMATION

	Three Months Ended June 30, 2019
				Guarantor			Non-Guarantor Subsidiaries
	Parent			Subsidiaries			MGP			Other			Elimination			Consolidated
	(In thousands)
Net revenues	$	—		$	2,075,487		$	225,759		$	1,147,755		$	(225,758	)	$	3,223,243
Equity in subsidiaries' earnings		247,282			26,291			—			—			(273,573	)		—
Expenses
Casino and hotel operations		2,058			1,188,214			—			714,548			—			1,904,820
General and administrative		4,361			569,622			5,918			188,511			(243,988	)		524,424
Corporate expense		44,914			54,037			3,960			5,150			—			108,061
Preopening and start-up expenses		—			943			—			(64	)		—			879
Property transactions, net		—			4,348			310			1,185			(53	)		5,790
Depreciation and amortization		—			106,683			79,543			147,159			1,403			334,788
		51,333			1,923,847			89,731			1,056,489			(242,638	)		2,878,762
Income (loss) from unconsolidated affiliates		—			31,357			—			(4,353	)		—			27,004
Operating income		195,949			209,288			136,028			86,913			(256,693	)		371,485
Interest expense, net of amounts capitalized		(118,410	)		(209	)		(63,977	)		(33,233	)		—			(215,829	)
Other non-operating, net		(22,485	)		24,356			(261	)		(13,033	)		(56,330	)		(67,753	)
Income before income taxes		55,054			233,435			71,790			40,647			(313,023	)		87,903
Benefit (provision) for income taxes		(11,649	)		(3	)		(4,021	)		3,939			—			(11,734	)
Net income		43,405			233,432			67,769			44,586			(313,023	)		76,169
Less: Net income attributable to noncontrolling interests		—			(1,422	)		(21,858	)		(9,891	)		407			(32,764	)
Net income attributable to MGM Resorts International	$	43,405		$	232,010		$	45,911		$	34,695		$	(312,616	)	$	43,405
Net income	$	43,405		$	233,432		$	67,769		$	44,586		$	(313,023	)	$	76,169
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment		14,754			14,754			—			26,380			(29,508	)		26,380
Unrealized loss on cash flow hedges		(16,651	)		—			(30,775	)		—			21,128			(26,298	)
Other comprehensive income (loss)		(1,897	)		14,754			(30,775	)		26,380			(8,380	)		82
Comprehensive income		41,508			248,186			36,994			70,966			(321,403	)		76,251
Less: Comprehensive income attributable to noncontrolling interests		—			—			(12,211	)		(22,532	)		—			(34,743	)
Comprehensive income attributable to MGM Resorts International	$	41,508		$	248,186		$	24,783		$	48,434		$	(321,403	)	$	41,508

	Six Months Ended June 30, 2019
				Guarantor			Non-Guarantor Subsidiaries
	Parent			Subsidiaries			MGP			Other			Elimination			Consolidated
	(In thousands)
Net revenues	$	—		$	4,079,614		$	429,182		$	2,320,540		$	(429,182	)	$	6,400,154
Equity in subsidiaries' earnings		509,471			66,388			—			—			(575,859	)		—
Expenses
Casino and hotel operations		4,517			2,337,515			—			1,436,186			(11,023	)		3,767,195
General and administrative		20,846			1,091,988			11,479			377,460			(452,237	)		1,049,536
Corporate expense		103,689			107,044			16,989			9,775			—			237,497
Preopening and start-up expenses		—			2,157			—			2,009			—			4,166
Property transactions, net		—			12,162			1,423			981			—			14,566
Depreciation and amortization		—			211,776			151,105			288,321			—			651,202
		129,052			3,762,642			180,996			2,114,732			(463,260	)		5,724,162
Income (loss) from unconsolidated affiliates		—			68,412			—			(2,659	)		—			65,753
Operating income		380,419			451,772			248,186			203,149			(541,781	)		741,745
Interest expense, net of amounts capitalized		(245,063	)		(417	)		(127,925	)		(58,544	)		—			(431,949	)
Other non-operating, net		(3,859	)		109,570			1,448			(10,569	)		(180,815	)		(84,225	)
Income from continuing operations before income taxes		131,497			560,925			121,709			134,036			(722,596	)		225,571
Provision for income taxes		(56,795	)		(8	)		(3,792	)		(22,650	)		—			(83,245	)
Income from continuing operations, net of tax		74,702			560,917			117,917			111,386			(722,596	)		142,326
Income from discontinued operations, net of tax		—			—			16,216			—			(16,216	)		—
Net income		74,702			560,917			134,133			111,386			(738,812	)		142,326
Less: Net income attributable to noncontrolling interests		—			(2,859	)		(41,813	)		(22,952	)		—			(67,624	)
Net income attributable to MGM Resorts International	$	74,702		$	558,058		$	92,320		$	88,434		$	(738,812	)	$	74,702
Net income	$	74,702		$	560,917		$	134,133		$	111,386		$	(738,812	)	$	142,326
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment		7,848			7,848			—			13,975			(15,696	)		13,975
Unrealized loss on cash flow hedges		(25,257	)		—			(46,387	)		—			32,023			(39,621	)
Other comprehensive income (loss)		(17,409	)		7,848			(46,387	)		13,975			16,327			(25,646	)
Comprehensive income		57,293			568,765			87,746			125,361			(722,485	)		116,680
Less: Comprehensive income attributable to noncontrolling interests		—			—			(27,449	)		(31,938	)		—			(59,387	)
Comprehensive income attributable to MGM Resorts International	$	57,293		$	568,765		$	60,297		$	93,423		$	(722,485	)	$	57,293

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS INFORMATION

	Six Months Ended June 30, 2019
				Guarantor			Non-Guarantor Subsidiaries
	Parent			Subsidiaries			MGP			Other			Elimination			Consolidated
	(In thousands)
Cash flows from operating activities
Net cash provided by (used in) operating activities	$	(284,892	)	$	1,142,767		$	(243,990	)	$	369,539		$	(15,591	)	$	967,833
Cash flows from investing activities
Capital expenditures, net of construction payable		—			(212,513	)		—			(109,117	)		12			(321,618	)
Dispositions of property and equipment		—			505			—			68			—			573
Acquisition of Empire City Casino, net of cash acquired		—			(535,681	)		—			—			—			(535,681	)
Investments in unconsolidated affiliates		—			(80,669	)		—			—			—			(80,669	)
Distributions from unconsolidated affiliates		—			90,000			—			—			—			90,000
Intercompany accounts		—			(1,018,976	)		—			—			1,018,976			—
Northfield OpCo transaction		—			(3,779	)		3,779			—			—			—
Other		—			(3,500	)		—			(26,670	)		—			(30,170	)
Net cash provided by (used in) investing activities		—			(1,764,613	)		3,779			(135,719	)		1,018,988			(877,565	)
Cash flows from financing activities
Net borrowings (repayments) under bank credit facilities – maturities of 90 days or less		310,000			245,950			(805,200	)		(1,730,706	)		—			(1,979,956	)
Issuance of long-term debt		1,000,000			—			750,000			1,500,000			—			3,250,000
Retirement of senior notes and senior debentures		(1,721,698	)		(38,228	)		—			—			—			(1,759,926	)
Debt issuance costs		(14,080	)		—			(9,983	)		(21,483	)		—			(45,546	)
Issuance of MGM Growth Properties Class A shares, net		—			—			613,299			—			—			613,299
Dividends paid to common shareholders		(138,215	)		—			—			—			—			(138,215	)
MGP dividends paid to consolidated subsidiaries		—			—			(184,537	)		—			184,537			—
Distributions to noncontrolling interest owners		—			—			(73,797	)		(28,621	)		—			(102,418	)
Purchases of common stock		(281,833	)		—			—			—			—			(281,833	)
Intercompany accounts		913,889			414,567			—			(124,943	)		(1,203,513	)		—
Other		(6,808	)		(43,411	)		—			(865	)		37,900			(13,184	)
Net cash provided by (used in) financing activities		61,255			578,878			289,782			(406,618	)		(981,076	)		(457,779	)
Effect of exchange rate on cash		—			—			—			1,340			—			1,340

Cash flows from (used in) discontinued operations
Cash flows from operating activities		—			—			15,591			—			(15,591	)		—
Cash flows used in investing activities		—			—			(12	)		—			12			—
Cash flows used in financing activities		—			—			(37,900	)		—			37,900			—
Net cash flows used in discontinued operations		—			—			(22,321	)		—			22,321			—

Change in cash and cash equivalents classified as assets held for sale		—			—			(22,321	)		—			22,321			—

Cash and cash equivalents
Net increase (decrease) for the period		(223,637	)		(42,968	)		49,571			(171,458	)		22,321			(366,171	)
Balance, beginning of period		259,738			445,423			3,995			817,606			—			1,526,762
Balance, end of period	$	36,101		$	402,455		$	53,566		$	646,148		$	22,321		$	1,160,591

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) INFORMATION

	Three Months Ended June 30, 2018
				Guarantor			Non-Guarantor Subsidiaries
	Parent			Subsidiaries			MGP			Other			Elimination			Consolidated
	(In thousands)
Net revenues	$	—		$	1,937,394		$	220,390		$	921,382		$	(220,471	)	$	2,858,695
Equity in subsidiaries' earnings		309,334			22,519			—			—			(331,853	)		—
Expenses
Casino and hotel operations		2,562			1,094,872			—			572,061			(81	)		1,669,414
General and administrative		2,408			315,659			27,219			120,386			(27,219	)		438,453
Corporate expense		39,707			53,652			10,746			5,192			(5,859	)		103,438
Preopening and start-up expenses		—			1,937			—			17,140			—			19,077
Property transactions, net		—			17,083			14,426			(113	)		(14,426	)		16,970
Depreciation and amortization		—			158,753			67,474			137,440			(67,459	)		296,208
		44,677			1,641,956			119,865			852,106			(115,044	)		2,543,560
Income (loss) from unconsolidated affiliates		—			48,294			—			(354	)		—			47,940
Operating income		264,657			366,251			100,525			68,922			(437,280	)		363,075
Interest expense, net of amounts capitalized		(115,531	)		(156	)		(49,276	)		(16,530	)		—			(181,493	)
Other non-operating, net		15,356			(118,368	)		(1,927	)		(49,288	)		136,778			(17,449	)
Income before income taxes		164,482			247,727			49,322			3,104			(300,502	)		164,133
Benefit (provision) for income taxes		(40,705	)		—			(1,263	)		18,258			—			(23,710	)
Net income		123,777			247,727			48,059			21,362			(300,502	)		140,423
Less: Net income attributable to noncontrolling interests		—			—			(13,146	)		(3,500	)		—			(16,646	)
Net income attributable to MGM Resorts International	$	123,777		$	247,727		$	34,913		$	17,862		$	(300,502	)	$	123,777
Net income	$	123,777		$	247,727		$	48,059		$	21,362		$	(300,502	)	$	140,423
Other comprehensive income, net of tax:
Foreign currency translation adjustment		583			583			—			1,400			(1,166	)		1,400
Unrealized gain on cash flow hedges		3,660			—			6,281			—			(4,606	)		5,335
Other comprehensive income		4,243			583			6,281			1,400			(5,772	)		6,735
Comprehensive income		128,020			248,310			54,340			22,762			(306,274	)		147,158
Less: Comprehensive income attributable to noncontrolling interests		—			—			(14,821	)		(4,317	)		—			(19,138	)
Comprehensive income attributable to MGM Resorts International	$	128,020		$	248,310		$	39,519		$	18,445		$	(306,274	)	$	128,020

	Six Months Ended June 30, 2018
				Guarantor			Non-Guarantor Subsidiaries
	Parent			Subsidiaries			MGP			Other			Elimination			Consolidated
	(In thousands)

Net revenues	$	—		$	3,827,187		$	436,229		$	1,854,329		$	(436,813	)	$	5,680,932
Equity in subsidiaries' earnings		637,601			67,054			—			—			(704,655	)		—
Expenses
Casino and hotel operations		5,277			2,144,891			—			1,155,040			(584	)		3,304,624
General and administrative		4,758			626,509			49,718			225,076			(49,718	)		856,343
Corporate expense		79,008			104,059			21,227			10,544			(11,891	)		202,947
Preopening and start-up expenses		—			8,679			—			77,315			—			85,994
Property transactions, net		—			22,225			18,512			643			(18,512	)		22,868
Depreciation and amortization		—			315,400			136,465			249,588			(136,423	)		565,030
		89,043			3,221,763			225,922			1,718,206			(217,128	)		5,037,806
Income (loss) from unconsolidated affiliates		—			79,926			—			(220	)		—			79,706
Operating income		548,558			752,404			210,307			135,903			(924,340	)		722,832
Interest expense, net of amounts capitalized		(225,089	)		(293	)		(98,506	)		(25,514	)		—			(349,402	)
Other non-operating, net		31,128			(226,318	)		(3,079	)		(95,975	)		265,869			(28,375	)
Income before income taxes		354,597			525,793			108,722			14,414			(658,471	)		345,055
Benefit (provision) for income taxes		(7,376	)		—			(2,494	)		71,539			—			61,669
Net income		347,221			525,793			106,228			85,953			(658,471	)		406,724
Less: Net income attributable to noncontrolling interests		—			—			(28,976	)		(30,527	)		—			(59,503	)
Net income attributable to MGM Resorts International	$	347,221		$	525,793		$	77,252		$	55,426		$	(658,471	)	$	347,221
Net income	$	347,221		$	525,793		$	106,228		$	85,953		$	(658,471	)	$	406,724
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment		(12,785	)		(12,785	)		—			(22,752	)		25,570			(22,752	)
Unrealized gain on cash flow hedges		13,158			—			22,636			—			(16,603	)		19,191
Other comprehensive income (loss)		373			(12,785	)		22,636			(22,752	)		8,967			(3,561	)
Comprehensive income		347,594			513,008			128,864			63,201			(649,504	)		403,163
Less: Comprehensive income attributable to noncontrolling interests		—			—			(35,009	)		(20,560	)		—			(55,569	)
Comprehensive income attributable to MGM Resorts International	$	347,594		$	513,008		$	93,855		$	42,641		$	(649,504	)	$	347,594

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS INFORMATION

	Six Months Ended June 30, 2018
				Guarantor			Non-Guarantor Subsidiaries
	Parent			Subsidiaries			MGP			Other			Elimination			Consolidated
	(In thousands)
Cash flows from operating activities
Net cash provided by (used in) operating activities	$	(224,359	)	$	624,484		$	284,333		$	408,693		$	—		$	1,093,151
Cash flows from investing activities
Capital expenditures, net of construction payable		—			(367,713	)		(190	)		(493,858	)		—			(861,761	)
Dispositions of property and equipment		—			435			—			5			—			440
Investments in unconsolidated affiliates		—			(2,503	)		—			—			—			(2,503	)
Distributions from unconsolidated affiliates		—			200,000			—			—			—			200,000
Intercompany accounts		—			(515,927	)		—			—			515,927			—
Other		—			(9,916	)		—			(5,693	)		—			(15,609	)
Net cash used in investing activities		—			(695,624	)		(190	)		(499,546	)		515,927			(679,433	)
Cash flows from financing activities
Net repayments under bank credit facilities - maturities of 90 days or less		(141,250	)		—			(13,000	)		(206,624	)		—			(360,874	)
Issuance of long-term debt		1,000,000			—			—			—			—			1,000,000
Retirement of senior notes and senior debentures		—			(2,265	)		—			—			—			(2,265	)
Debt issuance costs		(14,414	)		—			(17,490	)		(32,873	)		—			(64,777	)
MGP dividends paid to consolidated subsidiaries		—			—			(163,913	)		—			163,913			—
Dividends paid to common shareholders		(133,334	)		—			—			—			—			(133,334	)
Distributions to noncontrolling interest owners		—			—			(59,553	)		(41,854	)		—			(101,407	)
Purchases of common stock		(957,264	)		—			—			—			—			(957,264	)
Intercompany accounts		505,289			48,052			—			126,499			(679,840	)		—
Other		(9,393	)		(4,200	)		—			(4,637	)		—			(18,230	)
Net cash provided by (used in) financing activities		249,634			41,587			(253,956	)		(159,489	)		(515,927	)		(638,151	)
Effect of exchange rate on cash		—			—			—			(2,690	)		—			(2,690	)
Cash and cash equivalents
Net increase (decrease) for the period		25,275			(29,553	)		30,187			(253,032	)		—			(227,123	)
Balance, beginning of period		26,870			311,043			259,722			902,360			—			1,499,995
Balance, end of period	$	52,145		$	281,490		$	289,909		$	649,328		$	—		$	1,272,872