Segment Information

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company reviews the results of operations for each of its operating segments. Wynn Macau and Encore at Wynn Macau are managed as a single integrated resort and aggregated as one reportable segment ("Macau Operations"). Wynn Las Vegas and Encore at Wynn Las Vegas are managed as a single integrated resort and have been aggregated as one reportable segment ("Las Vegas Operations"). The Company identifies each integrated resort as a reportable segment considering operations within each integrated resort have similar economic characteristics, type of customers, types of services and products, the regulatory environment of the operations and the Company's organizational and management reporting structure. The Company also reviews construction and development activities for each of its projects under development, in addition to its reportable segments. The Company's projects under development are Wynn Palace and the Wynn resort in Massachusetts. In the following tables the assets and capital expenditures of the Wynn resort in Massachusetts are included in Corporate and Other. Other Macau primarily represents cash and investment securities held at the Company's Macau holding company.

The following tables present the Company's segment information (in thousands):

	Years Ended December 31,
	2014			2013			2012
Net revenues
Macau Operations	$	3,796,750		$	4,040,526		$	3,667,454
Las Vegas Operations	1,636,911			1,580,410			1,486,830
Total	$	5,433,661		$	5,620,936		$	5,154,284
Adjusted Property EBITDA(1)
Macau Operations	$	1,258,082		$	1,324,119		$	1,167,340
Las Vegas Operations	515,196			486,682			408,472
Total	1,773,278			1,810,801			1,575,812
Other operating costs and expenses
Pre-opening costs	30,146			3,169			466
Depreciation and amortization	314,119			371,051			373,199
Property charges and other	10,437			17,138			39,978
Corporate expenses and other	111,795			88,729			112,159
Stock-based compensation	39,154			39,538			19,648
Equity in income from unconsolidated affiliates	1,349			1,085			1,086
Total other operating costs and expenses	507,000			520,710			546,536
Operating income	1,266,278			1,290,091			1,029,276
Non-operating costs and expenses
Interest income	20,441			15,713			12,543
Interest expense, net of amounts capitalized	(315,062		)	(299,022		)	(288,759		)
(Decrease) increase in swap fair value	(4,393		)	14,235			991
Loss from extinguishment of debt	(9,569		)	(40,435		)	(25,151		)
Equity in income from unconsolidated affiliates	1,349			1,085			1,086
Other	(182		)	4,856			3,012
Total other non-operating costs and expenses	(307,416		)	(303,568		)	(296,278		)
Income before income taxes	958,862			986,523			732,998
Benefit (provision) for income taxes	3,782			17,634			(4,299		)
Net income	$	962,644		$	1,004,157		$	728,699

(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, which 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.

The Company has reclassified the prior periods to conform with the current presentation of segment information.

	Years ended December 31,
	2014		2013
Capital expenditures
Macau
Macau Operations	$	89,039	$	60,488
Wynn Palace	937,501		381,786
Total Macau	1,026,540		442,274
Las Vegas Operations	58,813		63,872
Corporate and other	41,662		640
	$	1,127,015	$	506,786

	As of December 31,
	2014		2013		2012
Assets
Macau
Macau Operations	$	1,520,098	$	2,510,444	$	2,439,886
Wynn Palace	1,854,521		755,452		320,158
Other Macau	974,170		652,267		244,614
Total Macau	4,348,789		3,918,163		3,004,658
Las Vegas Operations	3,472,931		3,576,649		3,669,881
Corporate and other	1,241,141		882,218		602,055
	$	9,062,861	$	8,377,030	$	7,276,594

	As of December 31,
	2014		2013		2012
Long-lived assets
Macau	$	2,799,781	$	1,732,485	$	1,343,381
United States	3,268,576		3,292,965		3,483,745
	$	6,068,357	$	5,025,450	$	4,827,126