Segment Information

The Company reviews the results of operations for each of its operating segments. Wynn Macau and Encore, an expansion at Wynn Macau, are managed as a single integrated resort and have been aggregated as one reportable segment ("Wynn Macau"). Wynn Palace is presented as a separate reportable segment and is combined with Wynn Macau for geographical presentation. Wynn Las Vegas, Encore, an expansion at Wynn Las Vegas, and the Retail Joint Venture are managed as a single integrated resort and have been aggregated as one reportable segment ("Las Vegas Operations"). The Company identifies each resort as a reportable segment considering operations within each 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 separately identifies capital expenditures and assets for its Encore Boston Harbor development project. Other Macau primarily represents the Company's Macau holding company.

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



	Years Ended December 31,
	2018			2017			2016
Operating revenues
Macau Operations:
Wynn Palace	$	2,757,566		$	2,030,287		$	555,574
Wynn Macau	2,294,525			2,336,910			2,150,721
Total Macau Operations	5,052,091			4,367,197			2,706,295
Las Vegas Operations	1,665,569			1,702,963			1,639,502
Total	$	6,717,660		$	6,070,160		$	4,345,797
Adjusted Property EBITDA (1)
Macau Operations:
Wynn Palace	$	843,902		$	527,583		$	103,036
Wynn Macau	733,238			760,752			681,509
Total Macau Operations	1,577,140			1,288,335			784,545
Las Vegas Operations	467,273			522,397			474,782
Total	2,044,413			1,810,732			1,259,327
Other operating expenses
Litigation settlement	463,557			—			—
Pre-opening	53,490			26,692			154,717
Depreciation and amortization	550,596			552,368			404,730
Property charges and other	60,256			29,576			54,822
Corporate expenses and other	144,479			102,560			80,178
Stock-based compensation (2)	36,491			43,971			43,218
Total other operating expenses	1,308,869			755,167			737,665
Operating income	735,544			1,055,565			521,662
Other non-operating income and expenses
Interest income	29,866			31,193			13,536
Interest expense, net of amounts capitalized	(381,849		)	(388,664		)	(289,365		)
Change in derivatives fair value	(4,520		)	(1,056		)	433
Change in Redemption Note fair value	(69,331		)	(59,700		)	65,043
Gain (loss) on extinguishment of debt	104			(55,360		)	—
Other	(4,074		)	(21,709		)	(712		)
Total other non-operating income and expenses	(429,804		)	(495,296		)	(211,065		)
Income before income taxes	305,740			560,269			310,597
Benefit (provision) for income taxes	497,344			328,985			(8,128		)
Net income	803,084			889,254			302,469
Net income attributable to noncontrolling interests	(230,654		)	(142,073		)	(60,494		)
Net income attributable to Wynn Resorts, Limited	$	572,430		$	747,181		$	241,975

(1)

"Adjusted Property EBITDA" is net income before interest, income taxes, depreciation and amortization, litigation settlement expense, pre-opening expenses, property charges and other, management and license fees, corporate expenses and other (including intercompany golf course and water rights leases), stock-based compensation, gain (loss) on extinguishment of debt, change in derivatives fair value, change in Redemption Note fair value and other non-operating income and expenses. 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, as well as a basis for determining certain incentive compensation. 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 GAAP. In order to view the operations of their casinos on a more stand-alone basis, gaming companies, including us, 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, income 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.


(2)	Excludes $0.7 million and $0.5 million included in pre-opening expenses, respectively, for the year ended December 31, 2018 and 2016. Pre-opening expenses did not include any stock-based compensation during 2017. Excludes a credit of $2.2 million included in property charges and other expenses in 2018.



	Years ended December 31,
	2018		2017		2016
Capital expenditures
Macau Operations:
Wynn Palace	$	89,617	$	107,405	$	838,271
Wynn Macau	62,542		43,510		43,548
Total Macau Operations	152,159		150,915		881,819
Las Vegas Operations	73,029		139,893		106,373
Encore Boston Harbor	791,250		572,825		212,197
Corporate and other	459,534		71,841		25,554
	$	1,475,972	$	935,474	$	1,225,943



	December 31,
	2018		2017		2016
Assets
Macau Operations:
Wynn Palace	$	3,858,904	$	4,017,494	$	4,317,458
Wynn Macau	1,903,921		1,271,544		1,161,670
Other Macau	68,487		174,769		28,927
Total Macau Operations	5,831,312		5,463,807		5,508,055
Las Vegas Operations	2,792,508		3,266,390		3,275,780
Encore Boston Harbor	1,865,286		1,060,530		419,001
Corporate and other	2,727,163		2,891,012		2,750,721
	$	13,216,269	$	12,681,739	$	11,953,557



	December 31,
	2018		2017		2016
Long-lived assets
Macau	$	4,387,051	$	4,613,950	$	4,973,854
United States	5,166,537		4,083,555		3,442,842
	$	9,553,588	$	8,697,505	$	8,416,696