Segment Information

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segment Information

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.

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 as presented below, including recasting of prior year periods.

Adjusted Property EBITDAR is the Company’s reportable segment GAAP measure, which management utilizes as the primary profit measure for its reportable segments and underlying operating segments. Adjusted Property 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, 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 real estate ventures, and property transactions, net, and also excludes corporate expense and stock compensation expense, which are not allocated to each operating segment, and rent expense related to the master lease with MGP that eliminates in consolidation.

The following tables present the Company’s segment information:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2020			2019			2020			2019
	(In thousands)
Net revenue
Las Vegas Strip Resorts
Casino	$	189,358		$	336,262		$	527,059		$	969,149
Rooms		137,869			469,145			526,838			1,407,733
Food and beverage		81,429			401,362			391,218			1,156,657
Entertainment, retail and other		72,762			300,679			320,920			868,441
		481,418			1,507,448			1,766,035			4,401,980
Regional Operations
Casino		464,789			660,748			1,078,596			1,888,852
Rooms		34,782			90,197			94,842			243,449
Food and beverage		38,646			126,625			138,052			368,374
Entertainment, retail and other		18,609			57,448			60,260			149,241
		556,826			935,018			1,371,750			2,649,916
MGM China
Casino		35,297			662,838			298,995			1,959,582
Rooms		2,800			36,294			19,344			105,171
Food and beverage		6,240			32,214			23,451			93,836
Entertainment, retail and other		2,530			6,409			10,162			19,459
		46,867			737,755			351,952			2,178,048
Reportable segment net revenues		1,085,111			3,180,221			3,489,737			9,229,944
Corporate and other		40,809			134,161			178,809			484,592
	$	1,125,920		$	3,314,382		$	3,668,546		$	9,714,536
Adjusted Property EBITDAR
Las Vegas Strip Resorts	$	15,125		$	441,281		$	178,277		$	1,263,271
Regional Operations		145,734			269,125			185,369			741,710
MGM China		(96,446	)		183,989			(234,724	)		549,603
Reportable segment Adjusted Property EBITDAR		64,413			894,395			128,922			2,554,584
Other operating income (expense)
Corporate and other		(113,190	)		(72,707	)		(374,769	)		(220,844	)
Preopening and start-up expenses		(11	)		(925	)		(51	)		(5,091	)
Property transactions, net		(4,116	)		(249,858	)		(85,440	)		(264,424	)
Gain on REIT transactions, net		—			—			1,491,945			—
Depreciation and amortization		(294,363	)		(322,009	)		(911,859	)		(973,211	)
CEO transition expense		—			—			(44,401	)		—
October 1 litigation settlement		—			—			(49,000	)		—
Restructuring		—			(2,491	)		(19,882	)		(86,579	)
Triple-net operating lease and ground lease rent expense		(189,602	)		(8,024	)		(521,087	)		(24,309	)
Income from unconsolidated affiliates related to real estate ventures		41,687			—			106,756			—
Operating income (loss)		(495,182	)		238,381			(278,866	)		980,126
Non-operating income (expense)
Interest expense, net of amounts capitalized		(173,808	)		(215,503	)		(487,701	)		(647,452	)
Non-operating items from unconsolidated affiliates		(23,604	)		(14,669	)		(79,986	)		(54,311	)
Other, net		13,889			(9,381	)		(102,054	)		(53,964	)
		(183,523	)		(239,553	)		(669,741	)		(755,727	)
Income (loss) before income taxes		(678,705	)		(1,172	)		(948,607	)		224,399
Benefit (provision) for income taxes		76,734			7,276			84,668			(75,969	)
Net income (loss)		(601,971	)		6,104			(863,939	)		148,430
Less: Net (income) loss attributable to noncontrolling interests		67,240			(43,237	)		278,820			(110,861	)
Net income (loss) attributable to MGM Resorts International	$	(534,731	)	$	(37,133	)	$	(585,119	)	$	37,569