The Company leases the land underlying certain of its properties, real estate, and various equipment under operating and, to a lesser extent, finance lease arrangements. The master lease agreement with MGP is eliminated in consolidation and, accordingly is not included within the disclosures below; refer to Note 18 for further discussion of the master lease with MGP.

Land. The Company is a lessee of land underlying MGM National Harbor and a portion of the land underlying Borgata and Beau Rivage. The Company is obligated to make lease payments through the non-cancelable term of the ground leases, which is through 2066 for Beau Rivage, through 2070 for Borgata, and through 2082 for MGM National Harbor. Additionally, the Company has MGM Macau and MGM Cotai land concession contracts, each with an initial 25-year contract term ending in April 2031 and January 2038, respectively. The Company’s land leases are classified as operating leases.

Bellagio real estate assets. Pursuant to a lease agreement between a subsidiary of the Company and the Bellagio BREIT Venture, the Company leases the real estate assets of Bellagio from the Bellagio BREIT venture. The Bellagio lease has an initial term of 30 years with two subsequent ten-year renewal periods, exercisable at the Company’s option. The lease provides for an initial annual rent for the lease year beginning November 15, 2019 and ending November 30, 2020 of $245 million with a fixed 2% escalator for the first ten years and, thereafter, an escalator equal to the greater of 2% and the CPI increase during the prior year, subject to a cap of 3% during the 11th through 20th years and 4% thereafter. Annual cash rent payments for the second lease year that commenced on

December 1, 2020 increased to $250 million. The Company does not consider the renewal options reasonably certain of being exercised and, accordingly, has determined the lease term to be 30 years. In consideration of such, the Company determined that the expected lease term of 30 years to be less than 75% of the economic useful live of the real estate assets of Bellagio. Further, the Bellagio BREIT Venture provided its implicit rate to the Company, with which the Company determined that the present value of the future lease payments is less than 90% of the fair market value of the Bellagio real estate assets. Accordingly, in consideration of these lease classification tests as well as that the lease does not transfer ownership of the assets back to the Company at the end of the lease term or grant the Company a purchase option and the real estate assets have alternative uses at the end of the lease term, the Company classified Bellagio lease as an operating lease.

In addition, the lease obligates the Company to spend a specified percentage of net revenues at the property on capital expenditures and that the Company comply with certain financial covenants, which, if not met, would require the Company to maintain cash security or provide one or more letters of credit in favor of the landlord in an amount equal to rent for the succeeding two-year period. The Company was in compliance with its applicable covenants as of December 31, 2020.

Mandalay Bay and MGM Grand Las Vegas real estate assets. Pursuant to a lease agreement between a subsidiary of the Company and MGP BREIT Venture, the Company leases the real estate assets of Mandalay Bay and MGM Grand Las Vegas from the MGP BREIT Venture. The Mandalay Bay and MGM Grand Las Vegas lease has an initial term of 30 years with two subsequent ten-year renewal periods, exercisable at the Company’s option. The lease provides for an initial annual rent for the lease year beginning February 14, 2020 and ending February 28, 2021 of $292 million with a fixed 2% escalator for the first fifteen years and, thereafter, an escalator equal to the greater of 2% and the CPI increase during the prior year, subject to a cap of 3%. The Company does not consider the renewal options reasonably certain of being exercised and, accordingly, has determined the lease term to be 30 years. In consideration of such, the Company determined the expected lease term of 30 years to be less than 75% of the economic useful life of the real estate assets of Mandalay Bay and MGM Grand Las Vegas. Further, the MGP BREIT Venture provided its implicit rate to the Company, with which the Company determined that the present value of the future lease payments is less than 90% of the fair market value of the Mandalay Bay and MGM Grand Las Vegas real estate assets. Accordingly, in consideration of these lease classification tests, as well as the fact that the lease does not transfer ownership of the assets back to the Company at the end of the lease term or grant the Company a purchase option and the real estate assets have alternative uses at the end of the lease term, the Company classified the Mandalay Bay and MGM Grand Las Vegas lease as an operating lease.

In addition, the lease obligates the Company to spend a specified percentage of net revenues at the properties on capital expenditures and that the Company comply with certain financial covenants, which, if not met, will require the Company to maintain cash security or provide one or more letters of credit in favor of the landlord in an amount equal to the rent for the succeeding one-year period. The Company was in compliance with its applicable covenants as of December 31, 2020.

Other information. Components of lease costs and other information related to the Company’s leases was as follows:

	Year Ended December 31,
	2020			2019
	(In thousands)
Operating lease cost, primarily classified within "General and administrative"⁽¹⁾	$	751,002		$	143,954

Finance lease costs
Interest expense⁽²⁾	$	(21,320	)	$	1,164
Amortization expense		70,476			13,341
Total finance lease costs	$	49,156		$	14,505

	December 31,
	2020		2019
Supplemental balance sheet information	(In thousands)
Operating leases
Operating lease right-of-use assets, net⁽¹⁾	$	8,286,694	$	4,392,481
Operating lease liabilities - current, classified within "Other accrued liabilities"	$	31,843	$	67,473
Operating lease liabilities - long-term⁽²⁾		8,390,117		4,277,970
Total operating lease liabilities	$	8,421,960	$	4,345,443

Finance leases
Finance lease right-of-use assets, net, classified within "Property and equipment, net"	$	200,980	$	93,437
Finance lease liabilities - current, classified within "Other accrued liabilities"	$	80,193	$	27,975
Finance lease liabilities - long-term, classified within "Other long-term obligations"		134,287		67,182
Total finance lease liabilities	$	214,480	$	95,157

Weighted average remaining lease term (years)
Operating leases		30		31
Finance leases		3		4

Weighted average discount rate (%)
Operating leases		8		7
Finance leases		3		3

	Year Ended December 31,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities	(In thousands)
Operating cash outflows from operating leases	$	572,186	$	117,072
Operating cash outflows from finance leases		2,956		1,164
Financing cash outflows from finance leases⁽¹⁾		34,494		10,311

ROU assets obtained in exchange for new lease liabilities
Operating leases	$	4,120,955	$	3,814,115
Finance leases		177,085		84,934

	Operating Leases			Finance Leases
Year ending December 31,	(In thousands)
2021	$	612,823		$	84,853
2022		616,235			72,524
2023		625,365			63,717
2024		635,755			1,033
2025		644,804			517
Thereafter		19,801,073			—
Total future minimum lease payments		22,936,055			222,644
Less: Amount of lease payments representing interest		(14,514,095	)		(8,164	)
Present value of future minimum lease payments		8,421,960			214,480
Less: Current portion		(31,843	)		(80,193	)
Long-term portion of lease liabilities	$	8,390,117		$	134,287