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EX-32.2 - EX-32.2 - MGM Resorts Internationalmgm-ex322_6.htm
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EX-10.1 - EX-10.1 - MGM Resorts Internationalmgm-ex101_632.htm

 

 

UNITED STATES

SECURITIES & EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2017

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from            to            

Commission File No. 001-10362

 

MGM Resorts International

(Exact name of registrant as specified in its charter)

 

 

Delaware

88-0215232

(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer
Identification No.)

3600 Las Vegas Boulevard South, Las Vegas, Nevada 89109

(Address of principal executive offices)

(702) 693-7120

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days:   Yes       No  

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files):   Yes       No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

 

Large accelerated filer

Accelerated filer

 

Non-accelerated filer

  

Smaller reporting company

 

Emerging growth company

  

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act: Yes    No   

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act):   Yes       No  

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

 

 Class 

 

 Outstanding at November 6, 2017 

Common Stock, $.01 par value

 

566,138,245 shares

 

 

 

 

 

 


 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

 

FORM 10-Q

 

I N D E X

 

 

 

Page

PART I.

FINANCIAL INFORMATION

 

 

 

 

Item 1.

Financial Statements (Unaudited)

1

 

 

Consolidated Balance Sheets at September 30, 2017 and December 31, 2016

1

 

 

Consolidated Statements of Operations for the Three Months and Nine Months Ended September 30, 2017 and September 30, 2016

2

 

 

Consolidated Statements of Comprehensive Income for the Three Months and Nine Months Ended September 30, 2017 and September 30, 2016

3

 

 

Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2017 and September 30, 2016

4

 

 

Condensed Notes to Consolidated Financial Statements

5

Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

29

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

47

Item 4.

 

Controls and Procedures

47

 

PART II.

OTHER INFORMATION

 

Item 1.

 

Legal Proceedings

49

Item 1A.

 

Risk Factors

50

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

51

Item 6.

 

Exhibits

52

 

SIGNATURES

53

 

 

 

 


 

Part I. FINANCIAL INFORMATION

 

Item 1.

Financial Statements

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)

 

 

September 30,

 

 

December 31,

 

 

2017

 

 

2016

 

 

 

 

 

 

 

 

 

ASSETS

 

Current assets

 

 

 

 

 

 

 

Cash and cash equivalents

$

1,986,688

 

 

$

1,446,581

 

Accounts receivable, net

 

515,423

 

 

 

542,924

 

Inventories

 

101,242

 

 

 

97,733

 

Prepaid expenses and other

 

191,183

 

 

 

142,349

 

Total current assets

 

2,794,536

 

 

 

2,229,587

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

19,134,748

 

 

 

18,425,023

 

 

 

 

 

 

 

 

 

Other assets

 

 

 

 

 

 

 

Investments in and advances to unconsolidated affiliates

 

1,007,584

 

 

 

1,220,443

 

Goodwill

 

1,807,009

 

 

 

1,817,119

 

Other intangible assets, net

 

3,924,566

 

 

 

4,087,706

 

Other long-term assets, net

 

433,447

 

 

 

393,423

 

Total other assets

 

7,172,606

 

 

 

7,518,691

 

 

$

29,101,890

 

 

$

28,173,301

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

Current liabilities

 

 

 

 

 

 

 

Accounts payable

$

242,604

 

 

$

250,477

 

Construction payable

 

238,086

 

 

 

270,361

 

Income tax payable

 

6,013

 

 

 

10,654

 

Current portion of long-term debt, net

 

466,375

 

 

 

8,375

 

Accrued interest on long-term debt

 

121,650

 

 

 

159,028

 

Other accrued liabilities

 

1,661,032

 

 

 

1,594,526

 

Total current liabilities

 

2,735,760

 

 

 

2,293,421

 

 

 

 

 

 

 

 

 

Deferred income taxes, net

 

2,668,864

 

 

 

2,551,228

 

Long-term debt, net

 

13,026,927

 

 

 

12,979,220

 

Other long-term obligations

 

286,262

 

 

 

325,981

 

Commitments and contingencies (Note 7)

 

 

 

 

 

 

 

Redeemable noncontrolling interest

 

59,337

 

 

 

54,139

 

Stockholders' equity

 

 

 

 

 

 

 

Common stock, $.01 par value: authorized 1,000,000,000 shares, issued and outstanding 565,493,891 and 574,123,706 shares

 

5,655

 

 

 

5,741

 

Capital in excess of par value

 

5,390,071

 

 

 

5,653,575

 

Retained earnings

 

922,657

 

 

 

545,811

 

Accumulated other comprehensive income (loss)

 

(9,840

)

 

 

15,053

 

Total MGM Resorts International stockholders' equity

 

6,308,543

 

 

 

6,220,180

 

Noncontrolling interests

 

4,016,197

 

 

 

3,749,132

 

Total stockholders' equity

 

10,324,740

 

 

 

9,969,312

 

 

$

29,101,890

 

 

$

28,173,301

 

 

 

 

 

 

 

 

 

The accompanying condensed notes are an integral part of these consolidated financial statements.

 

 

 

1


 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Casino

$

1,543,693

 

 

$

1,307,827

 

 

$

4,454,145

 

 

$

3,569,587

 

Rooms

 

564,476

 

 

 

530,331

 

 

 

1,669,213

 

 

 

1,518,721

 

Food and beverage

 

481,656

 

 

 

448,666

 

 

 

1,392,671

 

 

 

1,238,537

 

Entertainment

 

149,536

 

 

 

140,151

 

 

 

418,244

 

 

 

380,330

 

Retail

 

59,141

 

 

 

52,724

 

 

 

163,947

 

 

 

150,629

 

Other

 

162,318

 

 

 

148,470

 

 

 

464,260

 

 

 

400,115

 

Reimbursed costs

 

102,380

 

 

 

99,316

 

 

 

301,888

 

 

 

301,160

 

 

 

3,063,200

 

 

 

2,727,485

 

 

 

8,864,368

 

 

 

7,559,079

 

Less: Promotional allowances

 

(236,460

)

 

 

(212,370

)

 

 

(687,712

)

 

 

(564,776

)

 

 

2,826,740

 

 

 

2,515,115

 

 

 

8,176,656

 

 

 

6,994,303

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Casino

 

822,103

 

 

 

696,329

 

 

 

2,389,957

 

 

 

1,957,203

 

Rooms

 

157,293

 

 

 

148,317

 

 

 

464,864

 

 

 

435,311

 

Food and beverage

 

269,170

 

 

 

252,108

 

 

 

780,510

 

 

 

712,856

 

Entertainment

 

118,234

 

 

 

108,464

 

 

 

326,791

 

 

 

299,579

 

Retail

 

28,129

 

 

 

27,105

 

 

 

78,515

 

 

 

73,191

 

Other

 

95,971

 

 

 

93,880

 

 

 

281,859

 

 

 

260,901

 

Reimbursed costs

 

102,380

 

 

 

99,316

 

 

 

301,888

 

 

 

301,160

 

General and administrative

 

402,134

 

 

 

371,950

 

 

 

1,145,432

 

 

 

1,001,900

 

Corporate expense

 

88,506

 

 

 

87,782

 

 

 

241,087

 

 

 

240,833

 

NV Energy exit expense

 

 

 

 

139,335

 

 

 

(40,629

)

 

 

139,335

 

Preopening and start-up expenses

 

29,349

 

 

 

31,660

 

 

 

65,508

 

 

 

78,444

 

Property transactions, net

 

7,711

 

 

 

(1,268

)

 

 

22,650

 

 

 

4,717

 

Gain on Borgata transaction

 

 

 

 

(429,778

)

 

 

 

 

 

(429,778

)

Depreciation and amortization

 

249,600

 

 

 

209,737

 

 

 

744,123

 

 

 

616,475

 

 

 

2,370,580

 

 

 

1,834,937

 

 

 

6,802,555

 

 

 

5,692,127

 

Income from unconsolidated affiliates

 

37,701

 

 

 

32,577

 

 

 

117,987

 

 

 

495,588

 

Operating income

 

493,861

 

 

 

712,755

 

 

 

1,492,088

 

 

 

1,797,764

 

Non-operating income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net of amounts capitalized

 

(163,287

)

 

 

(168,048

)

 

 

(511,404

)

 

 

(533,069

)

Non-operating items from unconsolidated affiliates

 

(8,825

)

 

 

(11,132

)

 

 

(26,302

)

 

 

(45,229

)

Other, net

 

(30,138

)

 

 

(17,310

)

 

 

(31,706

)

 

 

(67,715

)

 

 

(202,250

)

 

 

(196,490

)

 

 

(569,412

)

 

 

(646,013

)

Income before income taxes

 

291,611

 

 

 

516,265

 

 

 

922,676

 

 

 

1,151,751

 

Benefit (provision) for income taxes

 

(115,115

)

 

 

44,995

 

 

 

(251,551

)

 

 

15,205

 

Net income

 

176,496

 

 

 

561,260

 

 

 

671,125

 

 

 

1,166,956

 

Less: Net income attributable to noncontrolling interests

 

(27,381

)

 

 

(25,641

)

 

 

(104,552

)

 

 

(90,185

)

Net income attributable to MGM Resorts International

$

149,115

 

 

$

535,619

 

 

$

566,573

 

 

$

1,076,771

 

Net income per share of common stock attributable to MGM Resorts International

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.26

 

 

$

0.94

 

 

$

0.99

 

 

$

1.90

 

Diluted

$

0.26

 

 

$

0.93

 

 

$

0.97

 

 

$

1.88

 

Weighted average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

573,527

 

 

 

568,125

 

 

 

574,262

 

 

 

566,220

 

Diluted

 

580,676

 

 

 

573,812

 

 

 

580,941

 

 

 

571,350

 

Dividends declared per common share

$

0.11

 

 

$

 

 

$

0.33

 

 

$

 

 

The accompanying condensed notes are an integral part of these consolidated financial statements.

 

 

2


 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

(Unaudited)

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Net income

$

176,496

 

 

$

561,260

 

 

$

671,125

 

 

$

1,166,956

 

Other comprehensive income (loss), net of tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

(3,004

)

 

 

1,734

 

 

 

(41,313

)

 

 

(4,402

)

Unrealized gain (loss) on cash flow hedges

 

1,316

 

 

 

 

 

 

(2,641

)

 

 

 

Other comprehensive income (loss)

 

(1,688

)

 

 

1,734

 

 

 

(43,954

)

 

 

(4,402

)

Comprehensive income

 

174,808

 

 

 

562,994

 

 

 

627,171

 

 

 

1,162,554

 

Less: Comprehensive income attributable to noncontrolling interests

 

(26,495

)

 

 

(26,456

)

 

 

(85,600

)

 

 

(88,078

)

Comprehensive income attributable to MGM Resorts International

$

148,313

 

 

$

536,538

 

 

$

541,571

 

 

$

1,074,476

 

 

The accompanying condensed notes are an integral part of these consolidated financial statements.

 

 

3


 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

Nine Months Ended

 

 

September 30,

 

 

2017

 

 

2016

 

Cash flows from operating activities

 

 

 

 

 

 

 

Net income

$

671,125

 

 

$

1,166,956

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

 

744,123

 

 

 

616,475

 

Amortization of debt discounts, premiums and issuance costs

 

25,931

 

 

 

31,661

 

Loss on retirement of long-term debt

 

31,345

 

 

 

66,904

 

Provision for doubtful accounts

 

13,764

 

 

 

2,984

 

Stock-based compensation

 

46,306

 

 

 

38,877

 

Property transactions, net

 

22,650

 

 

 

4,717

 

Gain on Borgata transaction

 

 

 

 

(429,778

)

Income from unconsolidated affiliates

 

(91,685

)

 

 

(447,191

)

Distributions from unconsolidated affiliates

 

10,450

 

 

 

14,016

 

Deferred income taxes

 

95,672

 

 

 

(89,658

)

Change in operating assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable

 

13,534

 

 

 

24,740

 

Inventories

 

(3,598

)

 

 

11,135

 

Income taxes receivable and payable, net

 

(4,639

)

 

 

2,073

 

Prepaid expenses and other

 

(50,253

)

 

 

(15,619

)

Prepaid Cotai land concession premium

 

(9,492

)

 

 

(24,113

)

Accounts payable and accrued liabilities

 

3,120

 

 

 

88,630

 

Other

 

(6,444

)

 

 

(13,804

)

Net cash provided by operating activities

 

1,511,909

 

 

 

1,049,005

 

Cash flows from investing activities

 

 

 

 

 

 

 

Capital expenditures, net of construction payable

 

(1,399,278

)

 

 

(1,590,308

)

Dispositions of property and equipment

 

371

 

 

 

3,290

 

Proceeds from partial disposition of investment in unconsolidated affiliate

 

 

 

 

15,000

 

Acquisition of Borgata, net of cash acquired

 

 

 

 

(550,975

)

Investments in unconsolidated affiliates

 

(5,921

)

 

 

(1,555

)

Distributions from unconsolidated affiliates in excess of cumulative earnings

 

300,000

 

 

 

543,036

 

Other

 

(21,786

)

 

 

(8,257

)

Net cash used in investing activities

 

(1,126,614

)

 

 

(1,589,769

)

Cash flows from financing activities

 

 

 

 

 

 

 

Net borrowings under bank credit facilities – maturities of 90 days or less

 

618,734

 

 

 

298,448

 

Borrowings under bank credit facilities – maturities longer than 90 days

 

 

 

 

1,845,375

 

Repayments under bank credit facilities – maturities longer than 90 days

 

 

 

 

(1,845,375

)

Issuance of long term debt

 

350,000

 

 

 

2,050,000

 

Retirement of senior notes

 

(502,669

)

 

 

(2,258,053

)

Repayment of Borgata credit facility

 

 

 

 

(583,598

)

Debt issuance costs

 

(9,760

)

 

 

(138,454

)

Issuance of MGM Growth Properties common shares in public offering

 

404,685

 

 

 

1,207,500

 

MGM Growth Properties common share issuance costs

 

(17,137

)

 

 

(75,032

)

Acquisition of MGM China shares

 

 

 

 

(100,000

)

Dividends paid to common shareholders

 

(189,726

)

 

 

 

Distributions to noncontrolling interest owners

 

(139,670

)

 

 

(78,690

)

Purchases of common stock

 

(327,500

)

 

 

 

Other

 

(28,937

)

 

 

(4,409

)

Net cash provided by financing activities

 

158,020

 

 

 

317,712

 

Effect of exchange rate on cash

 

(3,208

)

 

 

(1,102

)

Cash and cash equivalents

 

 

 

 

 

 

 

Net increase (decrease) for the period

 

540,107

 

 

 

(224,154

)

Balance, beginning of period

 

1,446,581

 

 

 

1,670,312

 

Balance, end of period

$

1,986,688

 

 

$

1,446,158

 

Supplemental cash flow disclosures

 

 

 

 

 

 

 

Interest paid, net of amounts capitalized

$

522,851

 

 

$

551,345

 

Federal, state and foreign income taxes paid, net of refunds

 

158,537

 

 

 

63,322

 

Non-cash investing and financing activities

 

 

 

 

 

 

 

Common stock issued for acquisition of MGM China shares

 

 

 

 

174,041

 

Deferred cash payment for acquisition of MGM China shares

 

 

 

 

42,612

 

 

The accompanying condensed notes are an integral part of these consolidated financial statements.

 

 

4


 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)  

 

NOTE 1 — ORGANIZATION

 

Organization. MGM Resorts International (together with its consolidated subsidiaries, unless otherwise indicated or unless the context requires otherwise, the “Company”) is a Delaware corporation that acts largely as a holding company and, through subsidiaries, owns and operates casino resorts. As discussed further below, the Company leases certain of its real estate assets from MGM Growth Properties Operating Partnership LP (the “Operating Partnership”), which is a consolidated subsidiary.

 

The Company owns and operates the following integrated casino, hotel and entertainment resorts in Las Vegas, Nevada: Bellagio, MGM Grand Las Vegas, The Mirage, Mandalay Bay, Luxor, New York-New York, Monte Carlo, Excalibur and Circus Circus Las Vegas. Operations at MGM Grand Las Vegas include management of The Signature at MGM Grand Las Vegas, a condominium-hotel consisting of three towers. The Company operates and, along with local investors, owns MGM Grand Detroit in Detroit, Michigan and MGM National Harbor in Prince George’s County, Maryland. The Company also owns and operates the Borgata Hotel Casino & Spa (“Borgata”), located on Renaissance Pointe in the Marina area of Atlantic City, New Jersey and the following resorts in Mississippi: Beau Rivage in Biloxi and Gold Strike in Tunica. Additionally, the Company owns and operates The Park, a dining and entertainment district located between New York-New York and Monte Carlo, Shadow Creek, an exclusive world-class golf course located approximately ten miles north of its Las Vegas Strip resorts, Primm Valley Golf Club at the California/Nevada state line and Fallen Oak golf course in Saucier, Mississippi.

 

MGM Growth Properties LLC (“MGP”), a consolidated subsidiary of the Company, is organized as an umbrella partnership REIT (commonly referred to as an “UPREIT”) structure in which substantially all of its assets are owned by and substantially all of its businesses are conducted through its Operating Partnership subsidiary. MGP has two classes of authorized and outstanding voting common shares (collectively, the “shares”): Class A shares and a single Class B share. The Company owns MGP’s Class B share, which does not provide its holder any rights to profits or losses or any rights to receive distributions from operations of MGP or upon liquidation or winding up of MGP. MGP’s Class A shareholders are entitled to one vote per share, while the Company, as the owner of the Class B share, is entitled to an amount of votes representing a majority of the total voting power of MGP’s shares so long as the Company and its controlled affiliates’ (excluding MGP) aggregate beneficial ownership of the combined economic interests in MGP and the Operating Partnership does not fall below 30%. The Operating Partnership units held by the Company are exchangeable into Class A shares of MGP on a one-to-one basis, or cash at the fair value of a Class A share. The determination of settlement method is at the option of MGP’s independent conflicts committee. Subsequent to MGP closing its public offering of 13,225,000 Class A shares in September 2017, the Company indirectly owned 72.3% of the partnership units in the Operating Partnership, and MGP owned the remaining 27.7% ownership interest in the Operating Partnership. Prior to September 2017, the Company owned 76.3% of the Operating Partnership units and MGP owned the remaining 23.7% ownership interest in the Operating Partnership. MGP owns 100% of the general partner of the Operating Partnership. See Note 9 for additional information pertaining to the public offering of MGP’s Class A shares. In addition, as discussed further in Note 11, the Company indirectly acquired additional partnership units in connection with the closing of the National Harbor transaction in October 2017 and subsequently holds a 73.4% ownership interest in the Operating Partnership.

 

Pursuant to a master lease agreement between a subsidiary of the Company (the “Tenant”) and a subsidiary of the Operating Partnership (the “Landlord”), the Company leases the real estate assets of The Mirage, Mandalay Bay, Luxor, New York-New York, Monte Carlo, Excalibur, The Park, Borgata, Gold Strike Tunica, MGM Grand Detroit and Beau Rivage from subsidiaries of the Operating Partnership. As discussed further in Note 11, MGP acquired the long-term leasehold interest and real property associated with MGM National Harbor from a subsidiary of the Company in October 2017. An amendment to the master lease agreement executed in October 2017 provides for the Company to lease the real estate assets of MGM National Harbor from a subsidiary of the Operating Partnership. See Note 11 for additional information related to MGP and certain of the Company’s related intercompany agreements with MGP or the Operating Partnership.

 

The Company has an approximately 56% controlling interest in MGM China, which owns MGM Grand Paradise, S.A. (“MGM Grand Paradise”), the Macau company that owns and operates the MGM Macau resort and casino and the related gaming subconcession and land concessions, and is in the process of developing an 18 acre site on the Cotai Strip in Macau (“MGM Cotai”). MGM Cotai will be an integrated casino, hotel and entertainment resort with capacity for up to 500 gaming tables and up to 1,500 slots, and featuring approximately 1,400 hotel rooms. The actual number of gaming tables allocated to MGM Cotai will be determined by the Macau government prior to opening, and such allocation is expected to be less than MGM Cotai’s 500 gaming table capacity. The total estimated project budget increased to $3.4 billion excluding development fees eliminated in consolidation, capitalized interest and land related costs as a result of the damage and delays caused by Typhoon Hato in August 2017.

 

The Company owns 50% of and manages CityCenter Holdings, LLC (“CityCenter”), located between Bellagio and Monte Carlo. The other 50% of CityCenter is owned by Infinity World Development Corp, a wholly owned subsidiary of Dubai World, a

5


 

Dubai, United Arab Emirates government decree entity. CityCenter consists of Aria, an integrated casino, hotel and entertainment resort; Mandarin Oriental Las Vegas, a non-gaming boutique hotel; and Vdara, a luxury condominium-hotel. In addition, CityCenter features residential units in the Residences at Mandarin Oriental and Veer. See Note 4 for additional information related to CityCenter.

 

The Company and a subsidiary of Anschutz Entertainment Group, Inc. (“AEG”) each own 42.5% of the Las Vegas Arena Company, LLC (“Las Vegas Arena Company”), the entity which owns the T-Mobile Arena, and Athena Arena, LLC owns the remaining 15%. The Company manages the T-Mobile Arena, which is located on a parcel of the Company’s land between Frank Sinatra Drive and New York-New York, adjacent to the Las Vegas Strip. The T-Mobile Arena is a 20,000 seat venue designed to host world-class events – from mixed martial arts, boxing, basketball and bull riding, to high profile awards shows and top-name concerts, and is the home of the Vegas Golden Knights of the National Hockey League. Additionally, the Company leases the MGM Grand Garden Arena, located adjacent to the MGM Grand Las Vegas, to the Las Vegas Arena Company. See Note 4 for additional information regarding the Company’s investment in the Las Vegas Arena Company.

 

The Company also has a 50% interest in Grand Victoria. Grand Victoria is a riverboat casino in Elgin, Illinois; an affiliate of Hyatt Gaming owns the other 50% of Grand Victoria and also operates the resort. See Note 4 for additional information regarding the Company’s investment in Grand Victoria.

 

A subsidiary of the Company was awarded a casino license to build and operate MGM Springfield in Springfield, Massachusetts. MGM Springfield will be developed on approximately 14 acres of land in downtown Springfield. The Company’s plans for the resort currently include a casino with approximately 2,550 slots and 120 table games including poker; a 250-room hotel; 100,000 square feet of retail and restaurant space; 44,000 square feet of meeting and event space; and a 3,500 space parking garage, with an expected development and construction cost of approximately $960 million, excluding capitalized interest and land related costs.  

 

The Company has two reportable segments: domestic resorts and MGM China. See Note 10 for additional information about the Company’s segments.

 

NOTE 2 — BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

 

Basis of presentation. As permitted by the rules and regulations of the Securities and Exchange Commission, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted. These consolidated financial statements should be read in conjunction with the Company’s 2016 annual consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.

 

In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s interim financial statements. The results for such periods are not necessarily indicative of the results to be expected for the full year.

 

Principles of consolidation. For entities not determined to be a variable interest entity (“VIE”), the Company consolidates such entities in which the Company owns 100% of the equity. For entities in which the Company owns less than 100% of the equity interest, the Company consolidates the entity if it has the direct or indirect ability to control the entities’ activities based upon the terms of the respective entities’ ownership agreements. For these entities, the Company records a noncontrolling interest in the consolidated balance sheets. The Company’s investments in unconsolidated affiliates which are 50% or less owned are accounted for under the equity method when the Company can exercise significant influence over or has joint control of the unconsolidated affiliate. All intercompany balances and transactions are eliminated in consolidation.

 

The Company evaluates entities for which control is achieved through means other than voting rights to determine if it is the primary beneficiary of a VIE. A VIE is an entity in which either (i) the equity investors as a group, if any, lack the power through voting or similar rights to direct the activities of such entity that most significantly impact such entity’s economic performance or (ii) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support. The Company identifies the primary beneficiary of a VIE as the enterprise that has both of the following characteristics: (i) the power to direct the activities of the VIE that most significantly impact the entity’s economic performance; and (ii) the obligation to absorb losses or receive benefits of the VIE that could potentially be significant to the entity. The Company consolidates its investment in a VIE when it determines that it is its primary beneficiary. For these VIEs, the Company records a noncontrolling interest in the consolidated balance sheets. The Company may change its original assessment of a VIE upon subsequent events such as the modification of contractual arrangements that affect the characteristics or adequacy of the entity’s equity investments at risk and the disposition of all or a portion of an interest held by the primary beneficiary. The Company performs this analysis on an ongoing basis.

 

Management has determined that MGP is a VIE because the Class A equity investors as a group lack the power through voting or similar rights to direct the activities of such entity that most significantly impact such entity’s economic performance. The

6


 

Company has determined that it is the primary beneficiary of MGP and consolidates MGP because (i) its ownership of MGP’s single Class B share entitles it to a majority of the total voting power of MGP’s shares, and (ii) the exchangeable nature of the Operating Partnership units owned provide the Company the right to receive benefits from MGP that could potentially be significant to MGP. The Company has recorded MGP’s ownership interest in the Operating Partnership (27.7% as of September 30, 2017) as noncontrolling interest in the Company’s consolidated financial statements. As of September 30, 2017 and December 31, 2016, on a consolidated basis, MGP had total assets of $10.1 billion and $9.5 billion, respectively, primarily related to its real estate investments, and total liabilities of $4.3 billion and $3.9 billion, respectively, primarily related to its indebtedness.  

 

Fair value measurements. Fair value measurements affect the Company’s accounting and impairment assessments of its long-lived assets, investments in unconsolidated affiliates, cost method investments, assets acquired and liabilities assumed in an acquisition, and goodwill and other intangible assets. Fair value measurements also affect the Company’s accounting for certain of its financial assets and liabilities. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and is measured according to a hierarchy that includes: Level 1 inputs, such as quoted prices in an active market; Level 2 inputs, which are observable inputs for similar assets; or Level 3 inputs, which are unobservable inputs. The Company used the following inputs in its fair value measurements:

 

 

Level 1 and Level 2 inputs for its long-term debt fair value disclosures (see Note 5); and

 

Level 2 inputs when measuring the fair value of its interest rate swaps (see Note 6).

 

Property and equipment. Property and equipment are stated at cost. A significant amount of the Company’s property and equipment was acquired through business combinations and therefore recognized at fair value at the acquisition date. Gains and losses on dispositions of property and equipment are included in the determination of income or loss. Maintenance costs are expensed as incurred. As of September 30, 2017 and December 31, 2016, the Company had accrued $11 million and $36 million, respectively, for property and equipment within accounts payable and $34 million and $32 million, respectively, related to construction retention in other long-term liabilities.

 

Income tax provision. For interim income tax reporting the Company estimates its annual effective tax rate and applies it to its year-to-date ordinary income. The tax effects of unusual or infrequently occurring items, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, are reported in the interim period in which they occur. The Company’s effective income tax rate was 39.5% and 27.3% for the three and nine months ended September 30, 2017, respectively.

The Company recognizes deferred tax assets, net of applicable reserves, related to tax loss and credit carryforwards and other temporary differences with a future tax benefit to the extent that realization of such benefit is more likely than not. Otherwise, a valuation allowance is applied.

The Company has generated significant excess foreign tax credits that are attributable to the Macau Special Gaming Tax, which is 35% of gross gaming revenue in Macau. Because MGM Grand Paradise is presently exempt from the Macau 12% complementary tax on gaming profits, the Company believes that payment of the Macau Special Gaming Tax qualifies as a tax paid in lieu of an income tax that is creditable against U.S. taxes. As long as the exemption from Macau’s 12% complementary tax on gaming profits continues and the Company continues to receive distributions from MGM China, the Company expects that it will generate excess foreign tax credits in most years and that most of the excess foreign credits will not be utilized before the exemption expires. On September 7, 2016, MGM Grand Paradise was granted an additional extension of the complementary tax exemption through March 31, 2020, concurrent with the end of the term of its current gaming subconcession. A competitor of MGM Grand Paradise subsequently received an additional extension of its exemption through March 31, 2020, which also runs concurrent with the end of the term of its current gaming concession. Based upon these developments and the uncertainty concerning taxation after the concession renewal process, the Company has assumed that MGM Grand Paradise will pay the Macau 12% complementary tax on gaming profits for all periods beyond March 31, 2020 and it will thus not be able to credit the Macau Special Gaming Tax in such years, and has factored that assumption into its assessment of the realization of the foreign tax credit deferred tax asset and the measurement of Macau deferred tax liabilities.

MGM Grand Paradise’s exemption from the Macau 12% complementary tax on gaming profits does not apply to dividend distributions of such profits to MGM China. However, MGM Grand Paradise has had an agreement with the Macau government to settle the 12% complementary tax that would otherwise be due by its shareholder, MGM China, on distributions of its gaming profits by paying a flat annual payment (“annual fee arrangement”) regardless of the amount of distributable dividends. Such annual fee arrangement was effective for distributions of profits earned through December 31, 2016. MGM China was not subject to the complementary tax on distributions covered by the annual fee arrangement. Annual payments of $2 million were required under the annual fee arrangement. MGM Grand Paradise has requested an extension of this agreement to cover distributions of profits earned through December 31, 2021. However, no assurance can be given that an extension will be granted or that the terms, if granted, will not be less favorable than the prior agreement. Since 2017 earnings are not currently covered by an annual fee arrangement, the

7


 

Company is providing deferred taxes on such earnings in estimating its annual effective tax rate for 2017. If an extension is granted in a future period, the Company will reverse all associated deferred taxes, which total $28 million as of September 30, 2017, resulting in a reduction in provision for income taxes in such period.

The Company’s assessment of realization of its foreign tax credit deferred tax asset is based on available evidence, including assumptions about future profitability of and distributions from MGM China, as well as its assumption concerning renewals of the exemption from Macau’s 12% complementary tax on gaming profits and future profitability of its U.S. operations. As a result, significant judgment is required in assessing the possible need for and amount of valuation allowance and changes to such assumptions may have a material impact on the amount of the valuation allowance. For example, should the Company in a future period actually receive or be able to assume an additional five-year exemption, an additional valuation allowance would likely need to be provided on some portion or all of the foreign tax credit deferred tax asset, resulting in an increase in the provision for income taxes in such period, and such increase may be material. In addition, a change to forecasts of future profitability of, and distributions from, MGM China could also result in a material change in the valuation allowance with a corresponding impact on the provision for income taxes in such period.

 

Recently issued accounting standards. In 2015 and 2016, the FASB issued the following ASUs related to revenue recognition, effective for fiscal years beginning after December 15, 2017, pursuant to ASU 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date”:  

 

 

ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” (“ASU 2014-09”) outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. ASU 2014-09 provides for a new revenue recognition model which includes a five-step analysis in determining when and how revenue is recognized, including identification of separate performance obligations for each contract with a customer. Additionally, the new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services;

 

ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” (“ASU 2016-08”) clarifies the implementation guidance on principal versus agent considerations as it relates to ASU 2014-09. ASU 2016-08 provides guidance related to the assessment an entity is required to perform to determine whether the nature of its promise is to provide the specified good or service itself (that is, the entity is a principal) or to arrange for that good or service to be provided by the other party (that is, the entity is an agent) when another party is involved in providing goods or services to a customer;

 

ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing,” (“ASU 2016-10”) clarifies guidance related to identifying performance obligations and licensing implementation guidance as it relates to ASU 2014-09. ASU 2016-10 includes targeted improvements based on input the FASB received from the Transition Resource Group for Revenue Recognition and other stakeholders. It seeks to proactively address areas in which diversity in practice potentially could arise, as well as to reduce the cost and complexity of applying certain aspects of the guidance both at implementation and on an ongoing basis; and

 

ASU 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients,” (“ASU 2016-12”) addresses narrow-scope improvements to the guidance on collectability, noncash consideration and completed contracts at transition as it relates to ASU 2014-09. ASU 2016-12 provides for a practical expedient for contract modifications at transition and an accounting policy election related to the presentation of sales taxes and other similar taxes collected from customers.

The Company is currently assessing the impact that the adoption of the above ASUs related to revenue recognition will have on its consolidated financial statements and footnote disclosures. However, the Company has identified a few significant impacts. Under the new guidance, the Company expects it will no longer be permitted to recognize revenues for goods and services provided to customers for free as an inducement to gamble as gross revenue with a corresponding offset to promotional allowances to arrive at net revenues. The Company expects the majority of such amounts will offset casino revenues. In addition, accounting for Express Comps granted under the Company’s M life Rewards program will also change. Under the new guidance, Express Comps earned by customers through past revenue transactions will be identified as separate performance obligations and recorded as a reduction in gaming revenues when earned at the retail value of such benefits owed to the customer (less estimated breakage). When customers redeem such benefits and the performance obligation is fulfilled by the Company, revenue will be recognized in the department that provides the goods or services (i.e., hotel, food and beverage, or entertainment). The Company also expects impacts related to its loyalty programs and gaming promoter incentive programs at MGM Macau, which will affect classification of revenues and expenses. The Company expects to adopt the above ASUs on a full retrospective basis.

8


 

In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842),” (“ASU 2016-02”), which replaces the existing guidance in Accounting Standards Codification (“ASC”) 840, “Leases.” ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. ASU 2016-02 requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of-use (“ROU”) asset and a corresponding lease liability. For finance leases, the lessee would recognize interest expense and amortization of the ROU asset and for operating leases the lessee would recognize a straight-line total lease expense. The Company is currently assessing the impact the adoption of ASU 2016-02 will have on its consolidated financial statements and footnote disclosures.

In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force),” (“ASU 2016-15”), effective for fiscal years beginning after December 15, 2017. ASU 2016-15 amends the guidance of ASC 230 on the classification of certain cash receipts and payments in the statement of cash flows. The primary purpose of ASU 2016-15 is to reduce the diversity in practice that has resulted from the lack of consistent principles, specifically clarifying the guidance on eight cash flow issues. The Company does not expect the adoption of ASU 2016-15 to have a material effect on its consolidated financial statements.

In January 2017, the Company adopted ASU No. 2016-09, “Compensation – Stock Compensation (Topic 718),” (“ASU 2016-09”). ASU 2016-09 simplifies the accounting for share-based payment transactions, including the income tax consequences, accounting for forfeitures, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 has separate transition guidance for each element of the new standard. The adoption of ASU 2016-09 did not have a material effect on the Company’s consolidated financial statements and footnote disclosures.

In January 2017, the Company adopted ASU No. 2016-17, “Consolidation (Topic 810): Interests Held Through Related Parties that are Under Common Control,” (“ASU 2016-17”). The amendments affect the evaluation of whether to consolidate a VIE in certain situations involving entities under common control. Specifically, the amendments change the evaluation of whether an entity is the primary beneficiary of a VIE for an entity that is a single decision-maker of a variable interest by changing how an entity treats indirect interests in the VIE held through related parties that are under common control with the reporting entity. The guidance in ASU 2016-17 must be applied retrospectively to all relevant periods. The adoption of ASU 2016-17 did not have a material effect on the Company’s consolidated financial statements and footnote disclosures.

In January 2017, the Company early adopted ASU No. 2017-04, “IntangiblesGoodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”). ASU 2017-04 simplifies the subsequent measurement of goodwill by eliminating step two from the goodwill impairment test. Under the amended guidance, the Company will perform its annual goodwill impairment tests (and interim tests if any are determined to be necessary) by comparing the fair value of its reporting units with their carrying value, and an impairment charge, if any, will be recognized for the amount by which the carrying value exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to that reporting unit. The adoption of ASU 2017-04 did not have a material effect on the Company’s consolidated financial statements and footnote disclosures.

 

NOTE 3 — BORGATA ACQUISITION

 

On August 1, 2016, the Company completed the acquisition of Boyd Gaming Corporation’s (“Boyd Gaming”) ownership interest in Borgata. Following the completion of the acquisition of Boyd Gaming’s interest, MGP acquired Borgata’s real property from the Company and leased back the real property to a subsidiary of the Company.

 

As part of the purchase and sale agreement to acquire Borgata, the Company agreed to pay Boyd Gaming half of any net amount received or utilized by the Company as it relates to the Atlantic City property tax refund owed to Borgata at the time of the transaction. Pursuant to tax court judgments, The City of Atlantic City, New Jersey (“Atlantic City”) owed Borgata property tax refunds of approximately $106 million, plus interest, related to the over-assessment of property values for the 2009-2012 tax years. As a result of funding shortfalls, the City of Atlantic City did not pay the refunds due to Borgata. See Note 7 for information regarding the property tax reimbursement agreement Borgata entered into in February 2017 with the Department of Community Affairs of the State of New Jersey and Atlantic City, and the subsequent receipt of the settlement amount in June 2017.

 

Through the acquisition of Boyd Gaming’s interest in Borgata, the Company obtained 100% of the equity interests in Borgata and therefore consolidated Borgata as of August 1, 2016. The Company recognized 100% of the assets and liabilities of Borgata at fair value at the date of the acquisition. Prior to the acquisition, the Company held a 50% ownership interest in Borgata, which was accounted for under the equity method.

 

Pro forma information. The operating results for Borgata are included in the accompanying consolidated statements of operations from the date of acquisition. The following unaudited pro forma consolidated financial information for the Company has been prepared assuming the Company’s acquisition of its controlling interest had occurred as of January 1, 2015. The unaudited pro

9


 

forma financial information below is not necessarily indicative of either future results of operations or results that might have been achieved had the acquisition been consummated as of January 1, 2015.

 

Nine Months Ended

 

 

September 30,

 

 

2016

 

 

(In thousands, except

per share data)

 

 

(unaudited)

 

Net revenues

$

7,479,356

 

Net income attributable to MGM Resorts International

 

790,834

 

Basic net income per share

$

1.40

 

Diluted net income per share

$

1.38

 

 

 

NOTE 4 — INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED AFFILIATES

 

Investments in and advances to unconsolidated affiliates consisted of the following:

 

 

September 30,

 

 

December 31,

 

 

2017

 

 

2016

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

CityCenter Holdings, LLC – CityCenter (50%)

$

793,156

 

 

$

1,007,358

 

Elgin Riverboat Resort–Riverboat Casino – Grand Victoria (50%)

 

123,008

 

 

 

123,585

 

Las Vegas Arena Company, LLC (42.5%)

 

77,011

 

 

 

80,339

 

Other

 

14,409

 

 

 

9,161

 

 

$

1,007,584

 

 

$

1,220,443

 

 

The Company recorded its share of net income (loss) from unconsolidated affiliates, including adjustments for basis differences, as follows:

  

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

Income from unconsolidated affiliates

$

37,701

 

 

$

32,577

 

 

$

117,987

 

 

$

495,588

 

Preopening and start-up expenses

 

 

 

 

(81

)

 

 

 

 

 

(3,168

)

Non-operating items from unconsolidated affiliates

 

(8,825

)

 

 

(11,132

)

 

 

(26,302

)

 

 

(45,229

)

 

$

28,876

 

 

$

21,364

 

 

$

91,685

 

 

$

447,191

 

 

CityCenter

 

Summarized balance sheet information for CityCenter is as follows:

 

 

September 30,

 

 

December 31,

 

 

2017

 

 

2016

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

Current assets

$

309,444

 

 

$

394,283

 

Property and other long-term assets, net

 

6,612,062

 

 

 

6,704,485

 

Current liabilities

 

289,038

 

 

 

295,822

 

Long-term debt, net and other long-term obligations

 

1,561,018

 

 

 

1,248,916

 

Equity

 

5,071,450

 

 

 

5,554,030

 

 

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Summarized income statement information for CityCenter is as follows:

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

Net revenues

$

322,271

 

 

$

308,467

 

 

$

962,027

 

 

$

898,994

 

Operating expenses

 

(271,162

)

 

 

(301,240

)

 

 

(797,105

)

 

 

(919,329

)

Operating income (loss)

 

51,109

 

 

 

7,227

 

 

 

164,922

 

 

 

(20,335

)

Non-operating expenses

 

(15,971

)

 

 

(14,582

)

 

 

(47,502

)

 

 

(49,739

)

Net income (loss) from continuing operations

 

35,138

 

 

 

(7,355

)

 

 

117,420

 

 

 

(70,074

)

Discontinued operations

 

 

 

 

(521

)

 

 

 

 

 

399,514

 

Net income (loss)

$

35,138

 

 

$

(7,876

)

 

$

117,420

 

 

$

329,440

 

 

Crystals sale. In April 2016, CityCenter closed the sale of Crystals for approximately $1.1 billion. During the nine months ended September 30, 2016, CityCenter recognized a gain on the sale of Crystals of $392 million and the Company recognized a $397 million gain, which included $196 million representing its 50% share of the gain recorded by CityCenter and $201 million representing the reversal of certain basis differences. The basis differences primarily related to other-than-temporary impairment charges recorded on the Company’s investment in CityCenter that were allocated to Crystals’ building assets. The results of Crystals are classified as discontinued operations in the summarized income statement information.

 

CityCenter credit facility. In April 2017, CityCenter completed a refinancing of its senior credit facility. The new senior credit facility consists of a $1.6 billion term loan B facility maturing in April 2024 and a $125 million revolving credit facility maturing in April 2022. The term loan B was issued at 99.5% and bears interest at LIBOR plus 2.50% with a LIBOR floor of 0.75%. The revolving facility bears interest at LIBOR plus 2.00%.

 

CityCenter distributions. In April 2017, CityCenter paid a $600 million dividend, consisting of a $350 million dividend using proceeds from the upsized senior credit facilities and a $250 million dividend from cash on hand, of which $78 million was part of its annual dividend policy. MGM Resorts received its 50% share, or $300 million. In March 2016, a $90 million distribution was declared in accordance with CityCenter’s annual distribution policy and in April 2016, CityCenter declared a $990 million special distribution in connection with the Crystals sale. The Company’s $540 million share of such distributions was paid in May 2016.

 

Borgata

 

Borgata transaction. As discussed in Note 3, the Company acquired Boyd Gaming’s ownership interest in Borgata on August 1, 2016, and therefore began to consolidate Borgata beginning on that date. Prior thereto, the Company’s investment in Borgata was accounted for under the equity method.

 

Las Vegas Arena Company, LLC

 

Athena Arena transaction. On September 1, 2016, the Company and AEG each sold a 7.5% membership interest in the Las Vegas Arena Company, LLC to Athena Arena, LLC. As a result of this transaction, the Company received $15 million in proceeds and recorded a $3 million gain in “Property transactions, net” in the three and nine months ended September 30, 2016.

 

 

11


 

NOTE 5 — LONG-TERM DEBT

 

Long-term debt consisted of the following:

 

 

September 30,

 

 

December 31,

 

 

2017

 

 

2016

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

Senior credit facility

$

540,625

 

 

$

250,000

 

MGM Growth Properties senior credit facility

 

2,099,750

 

 

 

2,133,250

 

MGM China credit facility

 

2,251,771

 

 

 

1,933,313

 

MGM National Harbor credit facility

 

478,000

 

 

 

450,000

 

$475 million 11.375% senior notes, due 2018

 

 

 

 

475,000

 

$850 million 8.625% senior notes, due 2019

 

850,000

 

 

 

850,000

 

$500 million 5.25% senior notes, due 2020

 

500,000