EX-12 4 mgm-ex12_17.htm EX-12 mgm-ex12_17.htm

Exhibit 12

 

MGM RESORTS INTERNATIONAL

 

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(In thousands, except ratio data)

 

 

 

Years Ended December 31,

 

 

 

2017

 

 

2016

 

 

2015

 

 

2014

 

 

2013

 

 

 

(In thousands)

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes and (income) loss from unconsolidated affiliates

 

$

852,517

 

 

$

787,868

 

 

$

(1,224,189

)

 

$

435,761

 

 

$

202,550

 

Fixed charges (see below)

 

 

806,030

 

 

 

814,731

 

 

 

862,377

 

 

 

846,321

 

 

 

862,417

 

Distributed income from unconsolidated affiliates

 

 

13,050

 

 

 

16,905

 

 

 

29,333

 

 

 

15,568

 

 

 

17,038

 

Less: Preference security dividend requirements of consolidated subsidiaries (c)

 

 

(26,175

)

 

 

(546

)

 

 

—

 

 

 

—

 

 

 

—

 

Less: Capitalized interest

 

 

(111,110

)

 

 

(119,958

)

 

 

(64,798

)

 

 

(29,260

)

 

 

(5,070

)

    Total earnings

 

 

1,534,312

 

 

 

1,499,000

 

 

 

(397,277

)

 

 

1,268,390

 

 

 

1,076,935

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net (a)

 

$

668,745

 

 

$

694,773

 

 

$

797,579

 

 

$

817,061

 

 

$

857,347

 

Preference security dividend requirements of consolidated subsidiaries (c)

 

 

26,175

 

 

 

546

 

 

 

—

 

 

 

—

 

 

 

—

 

Capitalized interest

 

 

111,110

 

 

 

119,958

 

 

 

64,798

 

 

 

29,260

 

 

 

5,070

 

    Total fixed charges

 

 

806,030

 

 

 

815,277

 

 

 

862,377

 

 

 

846,321

 

 

 

862,417

 

Ratio of earnings to fixed charges

 

1.90x

 

 

1.84x

 

 

(b)

 

 

1.50x

 

 

1.25x

 

Deficiency

 

$

—

 

 

$

—

 

 

$

1,259,654

 

 

$

—

 

 

$

—

 

 

(a)

Interest expense does not include the interest factor of rental expense as these amounts are not material. 

(b)

Earnings were inadequate to cover fixed charges.

(c)  

Preference security dividend is the amount of pretax earnings that is required to pay the dividends as well as the accretion of the carrying value of redeemable noncontrolling interest, both relating to the non-voting economic interests of MGM National Harbor.