XML 115 R25.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Segment Information | 12 Months Ended
--- | ---
Dec. 31, 2019
Segment Reporting [Abstract] |
Segment Information | NOTE 17 — 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 (until the sale of such property in December 2019). 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; Empire City in Yonkers, New York (upon acquisition in January 2019); and MGM Northfield Park in Northfield Park, Ohio (upon MGM’s acquisition of the operations from MGP in April 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 (prior to April 1, 2019 as the operations were owned by MGP until that date), 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. In 2019, the Company changed its segment measure of profit and loss from Adjusted Property EBITDA to Adjusted Property EBITDAR. As discussed in Note 2, prior to the adoption of ASC 842 on January 1, 2019, the master lease between subsidiaries of the Company and MGP was accounted for as a failed sale of the real estate assets due to the subsidiaries’ investments in the Operating Partnership, which constituted continuing involvement. As such, the real estate assets were reflected in the balance sheets of the applicable MGM subsidiaries as well as the associated finance lease liability. 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. Accordingly, the real estate assets are now only reflected on the balance sheet of MGP and the MGM subsidiaries have recorded operating lease liabilities and operating ROU assets and also now record rent expense instead of depreciation and interest expense. The master lease and its related accounting eliminates in consolidation. Further, as a result of the Bellagio transaction in the fourth quarter of 2019, the Company records rent expense associated with the triple-net operating lease with Bellagio BREIT Venture. In order to present profit and loss of each reportable segment on a similar economic basis, the rent expense associated with the triple net operating leases and ground leases is added back within the financial information reviewed by the chief operating decision maker and as presented below, including recasting of prior year periods. Adjusted Property EBITDAR is a measure defined as Adjusted EBITDAR 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 EBITDAR is a measure defined as earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening and start-up expenses, gain on Bellagio transaction, 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), rent expense associated with triple net operating and ground leases, income from unconsolidated affiliates related to investments in REITs, NV Energy exit expense, and property transactions, net. The following tables present the Company’s segment information:
|  | Year Ended December 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
|  | (In thousands) |
Net Revenues |  |  |  |  |  |  |  |  |  |  |  |
Las Vegas Strip Resorts |  |  |  |  |  |  |  |  |  |  |  |
Casino |  | $ | 1,296,170 |  |  | $ | 1,407,733 |  |  | $ | 1,436,830 |
Rooms |  |  | 1,863,521 |  |  |  | 1,776,029 |  |  |  | 1,778,869 |
Food and beverage |  |  | 1,517,745 |  |  |  | 1,402,378 |  |  |  | 1,410,496 |
Entertainment, retail and other |  |  | 1,153,615 |  |  |  | 1,130,532 |  |  |  | 1,119,928 |
|  |  | 5,831,051 |  |  |  | 5,716,672 |  |  |  | 5,746,123 |
Regional Operations |  |  |  |  |  |  |  |  |  |  |  |
Casino |  |  | 2,537,780 |  |  |  | 2,026,925 |  |  |  | 1,834,803 |
Rooms |  |  | 316,753 |  |  |  | 318,017 |  |  |  | 319,049 |
Food and beverage |  |  | 494,243 |  |  |  | 428,934 |  |  |  | 410,143 |
Entertainment, retail and other |  |  | 201,008 |  |  |  | 160,645 |  |  |  | 145,725 |
|  |  | 3,549,784 |  |  |  | 2,934,521 |  |  |  | 2,709,720 |
MGM China |  |  |  |  |  |  |  |  |  |  |  |
Casino |  |  | 2,609,806 |  |  |  | 2,195,144 |  |  |  | 1,741,635 |
Rooms |  |  | 142,306 |  |  |  | 118,527 |  |  |  | 54,824 |
Food and beverage |  |  | 127,152 |  |  |  | 114,862 |  |  |  | 51,330 |
Entertainment, retail and other |  |  | 26,158 |  |  |  | 21,424 |  |  |  | 10,371 |
|  |  | 2,905,422 |  |  |  | 2,449,957 |  |  |  | 1,858,160 |
Reportable segment net revenues |  |  | 12,286,257 |  |  |  | 11,101,150 |  |  |  | 10,314,003 |
Corporate and other |  |  | 613,415 |  |  |  | 661,946 |  |  |  | 483,476 |
|  | $ | 12,899,672 |  |  | $ | 11,763,096 |  |  | $ | 10,797,479 |
Adjusted Property EBITDAR |  |  |  |  |  |  |  |  |  |  |  |
Las Vegas Strip Resorts |  | $ | 1,643,122 |  |  | $ | 1,706,315 |  |  | $ | 1,781,390 |
Regional Operations |  |  | 969,866 |  |  |  | 781,854 |  |  |  | 754,597 |
MGM China |  |  | 734,729 |  |  |  | 574,333 |  |  |  | 535,524 |
Reportable segment Adjusted Property EBITDAR |  |  | 3,347,717 |  |  |  | 3,062,502 |  |  |  | 3,071,511 |
Other operating income (expense) |  |  |  |  |  |  |  |  |  |  |  |
Corporate and other |  |  | (331,621 | ) |  |  | (224,800 | ) |  |  | (213,908 | )
NV Energy exit expense |  |  | — |  |  |  | — |  |  |  | 40,629 |
Preopening and start-up expenses |  |  | (7,175 | ) |  |  | (151,392 | ) |  |  | (118,475 | )
Property transactions, net |  |  | (275,802 | ) |  |  | (9,147 | ) |  |  | (50,279 | )
Gain on Bellagio transaction |  |  | 2,677,996 |  |  |  | — |  |  |  | — |
Depreciation and amortization |  |  | (1,304,649 | ) |  |  | (1,178,044 | ) |  |  | (993,480 | )
Restructuring |  |  | (92,139 | ) |  |  | — |  |  |  | — |
Triple net operating lease and ground lease rent expense |  |  | (74,656 | ) |  |  | (29,633 | ) |  |  | (23,471 | )
Income from unconsolidated affiliates related to investments in REITs |  |  | 544 |  |  |  | — |  |  |  | — |
Operating income |  |  | 3,940,215 |  |  |  | 1,469,486 |  |  |  | 1,712,527 |
Non-operating income (expense) |  |  |  |  |  |  |  |  |  |  |  |
Interest expense, net of amounts capitalized |  |  | (847,932 | ) |  |  | (769,513 | ) |  |  | (668,745 | )
Non-operating items from unconsolidated affiliates |  |  | (62,296 | ) |  |  | (47,827 | ) |  |  | (34,751 | )
Other, net |  |  | (183,262 | ) |  |  | (18,140 | ) |  |  | (48,241 | )
|  |  | (1,093,490 | ) |  |  | (835,480 | ) |  |  | (751,737 | )
Income before income taxes |  |  | 2,846,725 |  |  |  | 634,006 |  |  |  | 960,790 |
Benefit (provision) for income taxes |  |  | (632,345 | ) |  |  | (50,112 | ) |  |  | 1,127,394 |
Net income |  |  | 2,214,380 |  |  |  | 583,894 |  |  |  | 2,088,184 |
Less: Net income attributable to noncontrolling interests |  |  | (165,234 | ) |  |  | (117,122 | ) |  |  | (136,132 | )
Net income attributable to MGM Resorts International |  | $ | 2,049,146 |  |  | $ | 466,772 |  |  | $ | 1,952,052 |
|  | Year Ended December 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
Capital expenditures: |  | (In thousands) |
Las Vegas Strip Resorts |  | $ | 285,863 |  |  | $ | 501,044 |  |  | $ | 419,983 |
Regional Operations |  |  | 187,489 |  |  |  | 72,865 |  |  |  | 66,628 |
MGM China |  |  | 145,634 |  |  |  | 390,212 |  |  |  | 923,346 |
Reportable segment capital expenditures |  |  | 618,986 |  |  |  | 964,121 |  |  |  | 1,409,957 |
Corporate and other |  |  | 120,020 |  |  |  | 537,347 |  |  |  | 469,053 |
Eliminated in consolidation |  |  | — |  |  |  | (14,625 | ) |  |  | (14,928 | )
|  | $ | 739,006 |  |  | $ | 1,486,843 |  |  | $ | 1,864,082 |
Total assets are not allocated to segments for internal reporting presentations or when determining the allocation of resources and, accordingly, are not presented. Long-lived assets, which includes property and equipment, net, operating and finance lease right-of-use assets, net, goodwill, and other intangibles, net, presented by geographic region in which the Company holds assets are presented below:
|  | December 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
Long-lived assets: |  | (In thousands) |
United States |  | $ | 20,582,055 |  |  | $ | 18,228,939 |  |  | $ | 16,863,222 |
China and all other foreign countries |  |  | 8,007,449 |  |  |  | 8,266,804 |  |  |  | 8,456,728 |
|  | $ | 28,589,504 |  |  | $ | 26,495,743 |  |  | $ | 25,319,950 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration