Segment Information

3 Months Ended

Mar. 31, 2020

NOTE 10 — 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.

The Company’s management utilizes Adjusted Property EBITDAR as the primary profit measure for its reportable segments and underlying operating segments. 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 REIT transactions, net, CEO transition expense, 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, and property transactions, net.

The following tables present the Company’s segment information:

	Three Months Ended
	March 31,
	2020			2019
	(In thousands)
Net revenue
Las Vegas Strip Resorts
Casino	$	274,673		$	324,704
Rooms		362,864			468,852
Food and beverage		288,763			365,522
Entertainment, retail and other		207,506			269,110
		1,133,806			1,428,188
Regional Operations
Casino		536,630			574,156
Rooms		55,879			71,798
Food and beverage		95,092			117,879
Entertainment, retail and other		38,059			40,112
		725,660			803,945
MGM China
Casino		240,414			663,565
Rooms		15,209			33,564
Food and beverage		12,780			30,713
Entertainment, retail and other		3,484			6,362
		271,887			734,204
Reportable segment net revenues		2,131,353			2,966,337
Corporate and other		121,464			210,574
	$	2,252,817		$	3,176,911
Adjusted Property EBITDAR
Las Vegas Strip Resorts	$	267,599		$	403,651
Regional Operations		151,720			211,797
MGM China		(21,990	)		192,811
Reportable segment Adjusted Property EBITDAR		397,329			808,259

Other operating income (expense)
Corporate and other		(102,237	)		(60,531	)
Preopening and start-up expenses		(122	)		(3,287	)
Property transactions, net		(54,975	)		(8,776	)
Gain on REIT transactions, net		1,491,945			—
Depreciation and amortization		(318,290	)		(316,414	)
CEO transition expense		(44,401	)		—
Restructuring		—			(41,098	)
Triple net operating lease and ground lease rent expense		(141,918	)		(7,893	)
Income from unconsolidated affiliates related to investments in REITs		23,514			—
Operating income		1,250,845			370,260
Non-operating income (expense)
Interest expense, net of amounts capitalized		(157,137	)		(216,120	)
Non-operating items from unconsolidated affiliates		(32,621	)		(18,165	)
Other, net		(124,264	)		1,693
		(314,022	)		(232,592	)
Income before income taxes		936,823			137,668
Provision for income taxes		(262,304	)		(71,511	)
Net income		674,519			66,157
Less: Net (income) loss attributable to noncontrolling interests		132,350			(34,860	)
Net income attributable to MGM Resorts International	$	806,869		$	31,297