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Leases
 12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Leases LEASES
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 MGP master lease, which is further discussed in Note 18, eliminates in consolidation and, accordingly, is not included within the disclosures below.

Land. The Company, through MGP, is a lessee of land underlying MGM National Harbor and a portion of the land underlying Borgata and Beau Rivage. MGP is obligated to make lease payments through the non-cancelable term of the ground leases, which is through 2051 for Beau Rivage, through 2070 for Borgata, and through 2082 for MGM National Harbor. Additionally, MGM Grand Paradise 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 land leases are classified as operating leases.

Real Estate Assets. The Company leases the real estate assets of Bellagio, Mandalay Bay and MGM Grand Las Vegas, and Aria (including Vdara) pursuant to triple-net lease agreements, which are classified as operating leases. Each of the leases 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, 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 1 year of rent under the Mandalay Bay and MGM Grand lease and Aria lease and 2 years of rent under the Bellagio lease. The Company was in compliance with its applicable covenants as of December 31, 2021.

Bellagio lease. The Company leases the real estate assets of Bellagio from Bellagio BREIT Venture. The Bellagio lease has an initial term of 30 years with two 10-year renewal periods, exercisable at the Company’s option, with a fixed 2% rent escalator for the first 10 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 third lease year that commenced on December 1, 2021 increased to $255 million as a result of the second 2% fixed annual escalator.

Mandalay Bay and MGM Grand Las Vegas lease. The Company leases the real estate assets of Mandalay Bay and MGM Grand Las Vegas from MGP BREIT Venture. The Mandalay Bay and MGM Grand Las Vegas lease has an initial term of 30 years with two 10-year renewal periods, exercisable at the Company’s option, with a fixed 2% rent escalator for the first 15 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%. Annual cash rent payments for the second lease year that commenced on March 1, 2021 increased to $298 million as a result of the first 2% fixed annual escalator.
Aria lease. The Company leases the real estate assets of Aria (including Vdara) from funds managed by Blackstone. The Aria lease has an initial term of 30 years with three 10-year renewal periods, exercisable at the Company's option, with a fixed 2% rent escalator for the first 15 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%. Annual cash rent payments for the first lease year that commenced on September 28, 2021 was $215 million.

Other information. Components of lease costs and other information related to the Company’s leases was:
 
Year Ended December 31,
 2021 20202019
 (In thousands)
Operating lease cost, primarily classified within "General and administrative"(1)
$870,779 $751,002 $143,954 
 
Finance lease costs
Interest expense(2)
$2,354 $(21,320)$1,164 
Amortization expense73,475 70,476 13,341 
Total finance lease costs$75,829 $49,156 $14,505 

(1)The Bellagio lease and the Mandalay Bay and MGM Grand Las Vegas lease are held with related parties, as further discussed in Note 18. Operating lease cost includes $331 million for each of the years ended December 31, 2021 and 2020, and $42 million for the year ended December 31, 2019, related to the Bellagio lease. Operating lease cost includes $395 million, $347 million, and $0 for the years ended December 31, 2021, 2020, and December 31, 2019, respectively, related to the Mandalay Bay and MGM Grand Las Vegas lease.
(2)For the years ended December 31, 2021 and 2020, interest expense includes the effect of COVID-19 related rent concessions, which was recognized as negative variable rent expense.


 December 31,
 20212020
Supplemental balance sheet information(In thousands)
Operating leases  
Operating lease right-of-use assets, net(1)
$11,492,805$8,286,694
Operating lease liabilities - current, classified within "Other accrued liabilities"
$31,706$31,843
Operating lease liabilities - long-term(2)
11,802,4648,390,117
Total operating lease liabilities$11,834,170$8,421,960
 
Finance leases
Finance lease right-of-use assets, net, classified within "Property and equipment, net"
$151,909$200,980
Finance lease liabilities - current, classified within "Other accrued liabilities"
$87,665$80,193
Finance lease liabilities - long-term, classified within "Other long-term obligations"
75,560134,287
Total finance lease liabilities$163,225$214,480
 
Weighted average remaining lease term (years)
Operating leases2930
Finance leases23
 
Weighted average discount rate (%)
Operating leases7 8 
Finance leases3 3 

(1)As of December 31, 2021 and 2020, operating lease right-of-use assets, net included $3.6 billion and $3.7 billion related to the Bellagio lease, respectively and $4.0 billion related to the Mandalay Bay and MGM Grand Las Vegas lease for each of the respective periods.
(2)As of December 31, 2021 and 2020, operating lease liabilities – long-term included $3.8 billion related to the Bellagio lease for each of the respective periods, and $4.2 billion and $4.1 billion related to the Mandalay Bay and MGM Grand Las Vegas lease, respectively.
 
Year Ended December 31,
 2021 20202019
Cash paid for amounts included in the measurement of lease liabilities(In thousands)
Operating cash outflows from operating leases$669,681 $572,186 $117,072 
Operating cash outflows from finance leases4,761 2,956 1,164 
Financing cash outflows from finance leases(1)
73,257 34,494 10,311 
 
ROU assets obtained in exchange for new lease liabilities
Operating leases$3,388,120 $4,120,955 $3,814,115 
Finance leases24,433 177,085 84,934 

(1)Included within “Other” within cash flows from financing activities on the consolidated statements of cash flows.

Maturities of lease liabilities were as follows:
 Operating Leases  Finance Leases
Year ending December 31,
(In thousands)
2022$838,062 $90,633 
2023850,305 73,568 
2024862,796 1,747 
2025876,046 1,253 
2026885,863 24 
Thereafter26,660,145 — 
Total future minimum lease payments30,973,217 167,225 
Less: Amount of lease payments representing interest(19,139,047)(4,000)
Present value of future minimum lease payments11,834,170 163,225 
Less: Current portion(31,706)(87,665)
Long-term portion of lease liabilities$11,802,464 $75,560