| Summary of Operations by Segment |
The Company’s segment information for its results of operations are as follows (in thousands): | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | 2014 | | 2013 | | 2014 | | 2013 | Net revenues | | | | | | | | Macau Operations | $ | 942,255 |
| | $ | 997,635 |
| | $ | 3,035,588 |
| | $ | 2,920,591 |
| Las Vegas Operations | 427,755 |
| | 392,477 |
| | 1,260,098 |
| | 1,180,448 |
| Total | $ | 1,370,010 |
|
| $ | 1,390,112 |
|
| $ | 4,295,686 |
|
| $ | 4,101,039 |
| Adjusted Property EBITDA (1) | | | | | | | | Macau Operations | $ | 325,529 |
| | $ | 329,106 |
| | $ | 1,016,858 |
| | $ | 949,905 |
| Las Vegas Operations | 133,250 |
| | 106,515 |
| | 403,962 |
| | 362,529 |
| Total | 458,779 |
|
| 435,621 |
|
| 1,420,820 |
|
| 1,312,434 |
| Other operating costs and expenses | | | | | | | | Pre-opening costs | 6,718 |
| | 706 |
| | 14,792 |
| | 1,592 |
| Depreciation and amortization | 79,027 |
| | 93,325 |
| | 234,037 |
| | 279,061 |
| Property charges and other | 1,640 |
| | 2,613 |
| | 13,674 |
| | 13,571 |
| Corporate expenses and other | 27,883 |
| | 19,507 |
| | 83,682 |
| | 60,609 |
| Stock-based compensation | 10,369 |
| | 5,204 |
| | 22,714 |
| | 35,072 |
| Equity in income from unconsolidated affiliates | 567 |
| | 288 |
| | 1,173 |
| | 879 |
| Total | 126,204 |
|
| 121,643 |
|
| 370,072 |
|
| 390,784 |
| Operating income | 332,575 |
| | 313,978 |
| | 1,050,748 |
| | 921,650 |
| Non-operating income and expenses | | | | | | | | Interest income | 5,814 |
| | 3,215 |
| | 16,072 |
| | 11,595 |
| Interest expense, net of capitalized interest | (79,048 | ) | | (73,549 | ) | | (236,069 | ) | | (222,690 | ) | Increase (decrease) in swap fair value | 2,360 |
| | (3,525 | ) | | (1,451 | ) | | 13,131 |
| Loss on extinguishment of debt | (3,573 | ) | | — |
| | (7,356 | ) | | (26,578 | ) | Equity in income from unconsolidated affiliates | 567 |
| | 288 |
| | 1,173 |
| | 879 |
| Other | (801 | ) | | 1,123 |
| | (405 | ) | | 4,385 |
| Total | (74,681 | ) |
| (72,448 | ) |
| (228,036 | ) |
| (219,278 | ) | Income before income taxes | 257,894 |
| | 241,530 |
| | 822,712 |
| | 702,372 |
| (Provision) benefit for income taxes | (4,888 | ) | | 7,281 |
| | (8,261 | ) | | 11,299 |
| Net income | $ | 253,006 |
|
| $ | 248,811 |
|
| $ | 814,451 |
|
| $ | 713,671 |
|
| | (1) | “Adjusted Property EBITDA” is earnings before interest, taxes, depreciation, amortization, pre-opening costs, property charges and other, corporate expenses, intercompany golf course and water rights leases, stock-based compensation, and other non-operating income and expenses and includes equity in income from unconsolidated affiliates. Adjusted Property EBITDA is presented exclusively as a supplemental disclosure because management believes that it is widely used to measure the performance, and as a basis for valuation, of gaming companies. Management uses Adjusted Property EBITDA as a measure of the operating performance of its segments and to compare the operating performance of its properties with those of its competitors. The Company also presents Adjusted Property EBITDA because it is used by some investors as a way to measure a company’s ability to incur and service debt, make capital expenditures and meet working capital requirements. Gaming companies have historically reported EBITDA as a supplement to financial measures in accordance with U.S. generally accepted accounting principles (“GAAP”). In order to view the operations of their casinos on a more stand-alone basis, gaming companies, including Wynn Resorts, Limited, have historically excluded from their EBITDA calculations pre-opening expenses, property charges, corporate expenses and stock-based compensation that do not relate to the management of specific casino properties. However, Adjusted Property EBITDA should not be considered as an alternative to operating income as an indicator of the Company’s performance, as an alternative to cash flows from operating activities as a measure of liquidity, or as an alternative to any other measure determined in accordance with GAAP. Unlike net income, Adjusted Property EBITDA does not include depreciation or interest expense and therefore does not reflect current or future capital expenditures or the cost of capital. The Company has significant uses of cash flows, including capital expenditures, interest payments, debt principal repayments, taxes and other non-recurring charges, which are not reflected in Adjusted Property EBITDA. Also, Wynn Resorts’ calculation of Adjusted Property EBITDA may be different from the calculation methods used by other companies and, therefore, comparability may be limited. |
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