UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


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

For the quarterly period ended ~~June 30, 2020~~March 31, 2021


☐			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. 000-50028

WYNN RESORTS, LIMITED

(Exact name of registrant as specified in its charter)


Nevada						46-0484987
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

3131 Las Vegas Boulevard South - Las Vegas, Nevada 89109

(Address of principal executive offices) (Zip Code)

(702) 770-7555

(Registrant's telephone number, including area code)

N/A

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

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock, par value $0.01

WYNN

Nasdaq Global Select Market

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 every Interactive Data File required to be submitted 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 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. ☐

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 ~~July 27, 2020~~April 30, 2021
Common stock, par value $0.01						~~107,847,969~~115,658,123

Table of Contents

WYNN RESORTS, LIMITED AND SUBSIDIARIES

FORM 10-Q

INDEX


Part I.	Financial Information
Item 1.	Financial Statements
	Condensed Consolidated Balance Sheets - ~~June 30~~March 3 1 , ~~2020~~ 202 1 (unaudited) and December 31, ~~2019~~2 020	3
	Condensed Consolidated Statements of Operations (unaudited) - Three an ~~d Six~~Months Ended ~~June 30~~March 3 1 , ~~2020~~202 1 and ~~2019~~2 02 0	4
	Condensed Consolidated Statements of Comprehensive ~~Income (Loss)~~Loss (unaudited) - Three ~~and Six~~Months Ended ~~June 30~~March 3 1 , ~~2020~~202 1 and ~~2019~~20 20	5
	Condensed Consolidated Statements of Stockholders’ Equity (Deficit) (unaudited) - Three ~~and Six~~ Months Ended ~~June 30~~March 3 1 , ~~2020~~202 1 and ~~2019~~20 20	6
	Condensed Consolidated Statements of Cash Flows (unaudited) - ~~Six~~ Three Months Ended ~~June 30~~March 3 1 , ~~2020~~202 1 and ~~2019~~20 20	87
	Notes to Condensed Consolidated Financial Statements (unaudited)	98
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	2723
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	4738
Item 4.	Controls and Procedures	4839

Part II.	Other Information
Item 1.	Legal Proceedings	4940
Item 1A.	Risk Factors	4940
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	5140
Item 5.	Other Information	5140
Item 6.	Exhibits	5241
Signature			5342

Table of Contents

Part I. FINANCIAL INFORMATION

Item 1. Financial Statements

WYNN RESORTS, LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)


		June 30, 2020		December 31, 2019			March 31, 2021		December 31, 2020
		(unaudited)					(unaudited)
ASSETS	ASSETS									ASSETS
Current assets:	Current assets:					Current assets:
Cash and cash equivalents	Cash and cash equivalents	$	3,797,740	$	2,351,904	Cash and cash equivalents	$	2,890,407	$	3,482,032
Accounts receivable, net of allowance for credit losses of $88,319 and $39,317		296,318		346,429
Restricted cash						Restricted cash	2,813		0
Accounts receivable, net of allowance for credit losses of $102,412 and $100,329						Accounts receivable, net of allowance for credit losses of $102,412 and $100,329	215,337		200,158
Inventories	Inventories	84,779		88,519		Inventories	65,252		66,285
Prepaid expenses and other	Prepaid expenses and other	57,544		69,485		Prepaid expenses and other	75,957		64,672
Total current assets	Total current assets	4,236,381		2,856,337		Total current assets	3,249,766		3,813,147
Property and equipment, net	Property and equipment, net	9,415,313		9,623,832		Property and equipment, net	9,050,178		9,196,644
Restricted cash	Restricted cash	4,847		6,388		Restricted cash	4,051		4,352
Intangible assets, net		141,299		146,414
Goodwill and intangible assets, net						Goodwill and intangible assets, net	287,836		278,195
Operating lease assets	Operating lease assets	440,075		452,919		Operating lease assets	390,601		398,594
Deferred income taxes, net		406,947		562,262
Other assets	Other assets	240,813		223,129		Other assets	184,479		178,615
Total assets	Total assets	$	14,885,675	$	13,871,281	Total assets	$	13,166,911	$	13,869,547
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)						LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:	Current liabilities:					Current liabilities:
Accounts and construction payables	Accounts and construction payables	$	215,832	$	262,437	Accounts and construction payables	$	133,212	$	148,478
Customer deposits	Customer deposits	954,074		824,269		Customer deposits	514,199		646,856
Gaming taxes payable	Gaming taxes payable	7,484		168,043		Gaming taxes payable	64,711		66,346
Accrued compensation and benefits	Accrued compensation and benefits	157,911		180,140		Accrued compensation and benefits	126,830		126,846
Accrued interest	Accrued interest	82,655		73,136		Accrued interest	143,686		136,421
Current portion of long-term debt	Current portion of long-term debt	298,050		323,876		Current portion of long-term debt	198,465		596,408
Other accrued liabilities	Other accrued liabilities	153,845		150,983		Other accrued liabilities	188,779		159,533
Total current liabilities	Total current liabilities	1,869,851		1,982,884		Total current liabilities	1,369,882		1,880,888
Long-term debt	Long-term debt	12,477,183		10,079,983		Long-term debt	11,755,169		12,469,362
Long-term operating lease liabilities	Long-term operating lease liabilities	154,392		159,182		Long-term operating lease liabilities	120,950		123,124
Other long-term liabilities	Other long-term liabilities	110,051		107,760		Other long-term liabilities	123,849		133,490
Total liabilities	Total liabilities	14,611,477		12,329,809		Total liabilities	13,369,850		14,606,864
Commitments and contingencies (Note 14)
Stockholders' equity:
Commitments and contingencies (Note 15)						Commitments and contingencies (Note 15)	0		0
Stockholders' equity (deficit):						Stockholders' equity (deficit):
Preferred stock, par value $0.01; 40,000,000 shares authorized; 0 shares issued and outstanding	Preferred stock, par value $0.01; 40,000,000 shares authorized; 0 shares issued and outstanding	—		—		Preferred stock, par value $0.01; 40,000,000 shares authorized; 0 shares issued and outstanding	0		0
Common stock, par value $0.01; 400,000,000 shares authorized; 123,425,898 and 122,837,930 shares issued; 107,869,865 and 107,363,943 shares outstanding, respectively		1,234		1,228
Treasury stock, at cost; 15,556,033 and 15,473,987 shares, respectively		(1,419,435)		(1,410,998)
Common stock, par value $0.01; 400,000,000 shares authorized; 131,280,022 and 123,482,836 shares issued; 115,647,328 and 107,888,336 shares outstanding, respectively						Common stock, par value $0.01; 400,000,000 shares authorized; 131,280,022 and 123,482,836 shares issued; 115,647,328 and 107,888,336 shares outstanding, respectively	1,313		1,235
Treasury stock, at cost; 15,632,694 and 15,594,500 shares, respectively						Treasury stock, at cost; 15,632,694 and 15,594,500 shares, respectively	(1,426,887)		(1,422,531)
Additional paid-in capital	Additional paid-in capital	2,543,718		2,512,676		Additional paid-in capital	3,466,073		2,598,115
Accumulated other comprehensive loss		(908)		(1,679)
Retained earnings (accumulated deficit)		(505,090)		641,818
Total Wynn Resorts, Limited stockholders' equity		619,519		1,743,045
Accumulated other comprehensive income						Accumulated other comprehensive income	6,501		3,604
Accumulated deficit						Accumulated deficit	(1,813,317)		(1,532,420)
Total Wynn Resorts, Limited stockholders' equity (deficit)						Total Wynn Resorts, Limited stockholders' equity (deficit)	233,683		(351,997)
Noncontrolling interests	Noncontrolling interests	(345,321)		(201,573)		Noncontrolling interests	(436,622)		(385,320)
Total stockholders' equity		274,198		1,541,472
Total liabilities and stockholders' equity		$	14,885,675	$	13,871,281
Total stockholders' deficit						Total stockholders' deficit	(202,939)		(737,317)
Total liabilities and stockholders' deficit						Total liabilities and stockholders' deficit	$	13,166,911	$	13,869,547

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

Table of Contents

WYNN RESORTS, LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)


		Three Months Ended June 30,						Six Months Ended June 30,							Three Months Ended March 31,
		2020		2019		2020		2019			2021		2020
Operating revenues:	Operating revenues:									Operating revenues:
Casino	Casino	$	9,413	$	1,142,503	$	580,202	$	2,327,604	Casino	$	516,218	$	570,789
Rooms	Rooms	17,415		198,807		170,096		390,077		Rooms	76,190		152,681
Food and beverage	Food and beverage	24,007		218,022		173,421		391,241		Food and beverage	68,509		149,414
Entertainment, retail and other	Entertainment, retail and other	34,863		99,000		115,695		200,956		Entertainment, retail and other	64,866		80,832
Total operating revenues	Total operating revenues	85,698		1,658,332		1,039,414		3,309,878		Total operating revenues	725,783		953,716
Operating expenses:	Operating expenses:									Operating expenses:
Casino	Casino	131,138		724,987		573,828		1,475,058		Casino	351,966		442,690
Rooms	Rooms	30,367		66,148		103,847		129,854		Rooms	33,535		73,480
Food and beverage	Food and beverage	61,889		182,080		237,799		330,841		Food and beverage	73,948		175,910
Entertainment, retail and other	Entertainment, retail and other	16,873		43,514		62,453		87,558		Entertainment, retail and other	62,560		45,580
General and administrative	General and administrative	152,081		202,224		386,409		419,546		General and administrative	179,774		234,328
Provision for credit losses	Provision for credit losses	28,347		3,581		48,960		9,003		Provision for credit losses	7,367		20,613
Pre-opening	Pre-opening	2,186		69,883		4,737		97,596		Pre-opening	1,627		2,551
Depreciation and amortization	Depreciation and amortization	179,266		140,269		358,012		276,826		Depreciation and amortization	185,121		178,746
Property charges and other	Property charges and other	6,567		6,930		33,796		9,704		Property charges and other	5,617		27,229
Total operating expenses	Total operating expenses	608,714		1,439,616		1,809,841		2,835,986		Total operating expenses	901,515		1,201,127
Operating income (loss)		(523,016)		218,716		(770,427)		473,892
Operating loss										Operating loss	(175,732)		(247,411)
Other income (expense):	Other income (expense):									Other income (expense):
Interest income	Interest income	3,983		6,265		11,936		13,552		Interest income	904		7,953
Interest expense, net of amounts capitalized	Interest expense, net of amounts capitalized	(133,218)		(93,149)		(262,045)		(186,329)		Interest expense, net of amounts capitalized	(152,852)		(128,827)
Change in derivatives fair value	Change in derivatives fair value	(3,294)		(3,304)		(18,954)		(4,813)		Change in derivatives fair value	4,409		(15,660)
Loss on extinguishment of debt	Loss on extinguishment of debt	(619)		—		(1,462)		—		Loss on extinguishment of debt	(1,322)		(843)
Other	Other	2,233		11,715		12,568		5,357		Other	(11,093)		10,335
Other income (expense), net	Other income (expense), net	(130,915)		(78,473)		(257,957)		(172,233)		Other income (expense), net	(159,954)		(127,042)
Income (loss) before income taxes		(653,931)		140,243		(1,028,384)		301,659
(Provision) benefit for income taxes		(80,938)		1,991		(156,738)		306
Net income (loss)		(734,869)		142,234		(1,185,122)		301,965
Less: net (income) loss attributable to noncontrolling interests		97,305		(47,683)		145,521		(102,542)
Net income (loss) attributable to Wynn Resorts, Limited		$	(637,564)	$	94,551	$	(1,039,601)	$	199,423
Basic and diluted net income (loss) per common share:
Net income (loss) attributable to Wynn Resorts, Limited:
Loss before income taxes										Loss before income taxes	(335,686)		(374,453)
Provision for income taxes										Provision for income taxes	(493)		(75,800)
Net loss										Net loss	(336,179)		(450,253)
Less: net loss attributable to noncontrolling interests										Less: net loss attributable to noncontrolling interests	55,201		48,216
Net loss attributable to Wynn Resorts, Limited										Net loss attributable to Wynn Resorts, Limited	$	(280,978)	$	(402,037)
Basic and diluted net loss per common share:										Basic and diluted net loss per common share:
Net loss attributable to Wynn Resorts, Limited:										Net loss attributable to Wynn Resorts, Limited:
Basic	Basic	$	(5.97)	$	0.88	$	(9.74)	$	1.87	Basic	$	(2.53)	$	(3.77)
Diluted	Diluted	$	(5.97)	$	0.88	$	(9.74)	$	1.86	Diluted	$	(2.53)	$	(3.77)
Weighted average common shares outstanding:	Weighted average common shares outstanding:									Weighted average common shares outstanding:
Basic	Basic	106,713		106,876		106,688		106,834		Basic	111,020		106,663
Diluted	Diluted	106,713		107,141		106,688		107,089		Diluted	111,020		106,663
Dividends declared per common share	Dividends declared per common share	$	—	$	1.00	$	1.00	$	1.75	Dividends declared per common share	$	0	$	1.00

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

Table of Contents

WYNN RESORTS, LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE ~~INCOME (LOSS)~~LOSS

(in thousands)

(unaudited)

Three Months Ended June 30, Six Months Ended June 30,
2020 2019 2020 2019
Net income (loss) $ (734,869) $ 142,234 $ (1,185,122) $ 301,965
Other comprehensive income (loss):
Foreign currency translation adjustments, before and after tax 53 838 1,068 (50)
Total comprehensive income (loss) (734,816) 143,072 (1,184,054) 301,915
Less: comprehensive (income) loss attributable to noncontrolling interests 97,291 (47,450) 145,224 (102,556)
Comprehensive income (loss) attributable to Wynn Resorts, Limited $ (637,525) $ 95,622 $ (1,038,830) $ 199,359


	Three Months Ended March 31,
	2021		2020
Net loss	$	(336,179)	$	(450,253)
Other comprehensive income:
Foreign currency translation adjustments, before and after tax	4,032		1,015
Total comprehensive loss	(332,147)		(449,238)
Less: comprehensive loss attributable to noncontrolling interests	54,066		47,933
Comprehensive loss attributable to Wynn Resorts, Limited	$	(278,081)	$	(401,305)

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

Table of Contents

WYNN RESORTS, LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)

(in thousands, except share data)

(unaudited)


		For the Three Months Ended June 30, 2020																																	For the Three Months Ended March 31, 2021
		Common stock																			Common stock
		Shares outstanding	Par value		Treasury stock		Additional paid-in capital		Accumulated other comprehensive loss		Retained earnings (accumulated deficit)		Total Wynn Resorts, Ltd. stockholders' equity		Noncontrolling interests		Total stockholders' equity			Shares outstanding	Par value		Treasury stock		Additional paid-in capital		Accumulated other comprehensive income		Accumulated deficit		Total Wynn Resorts, Ltd. stockholders' equity (deficit)		Noncontrolling interests		Total stockholders' deficit
Balances, April 1, 2020		107,884,163	$	1,234	$	(1,416,525)	$	2,526,062	$	(947)	$	132,266	$	1,242,090	$	(249,610)	$	992,480
Balances, January 1, 2021																			Balances, January 1, 2021	107,888,336	$	1,235	$	(1,422,531)	$	2,598,115	$	3,604	$	(1,532,420)	$	(351,997)	$	(385,320)	$	(737,317)
Net loss	Net loss	—	—		—		—		—		(637,564)		(637,564)		(97,305)		(734,869)		Net loss	—	—		—		—		—		(280,978)		(280,978)		(55,201)		(336,179)
Currency translation adjustment	Currency translation adjustment	—	—		—		—		39		—		39		14		53		Currency translation adjustment	—	—		—		—		2,897		—		2,897		1,135		4,032
Issuance of common stock, net of $17.7 million underwriter discounts, commissions and other expenses																			Issuance of common stock, net of $17.7 million underwriter discounts, commissions and other expenses	7,475,000	75		—		841,824		—		—		841,899		—		841,899
Issuance of restricted stock	Issuance of restricted stock	40,270	—		—		617		—		—		617		189		806		Issuance of restricted stock	335,285	3		—		5,899		—		—		5,902		370		6,272
Cancellation of restricted stock	Cancellation of restricted stock	(17,477)	—		—		—		—		—		—		—		—		Cancellation of restricted stock	(13,099)	0		—		—		—		—		—		—		0
Shares repurchased by the Company and held as treasury shares	Shares repurchased by the Company and held as treasury shares	(37,091)	—		(2,910)		—		—		—		(2,910)		141		(2,769)		Shares repurchased by the Company and held as treasury shares	(38,194)	—		(4,356)		—		—		—		(4,356)		—		(4,356)
Cash dividends declared	Cash dividends declared	—	—		—		—		—		208		208		16		224		Cash dividends declared	—	—		—		—		—		81		81		9		90
Stock-based compensation	Stock-based compensation	—	—		—		17,039		—		—		17,039		1,234		18,273		Stock-based compensation	—	—		—		20,235		—		—		20,235		2,385		22,620
Balances, June 30, 2020		107,869,865	$	1,234	$	(1,419,435)	$	2,543,718	$	(908)	$	(505,090)	$	619,519	$	(345,321)	$	274,198
Balances, March 31, 2021																			Balances, March 31, 2021	115,647,328	$	1,313	$	(1,426,887)	$	3,466,073	$	6,501	$	(1,813,317)	$	233,683	$	(436,622)	$	(202,939)


		For the Three Months Ended June 30, 2019																																	For the Three Months Ended March 31, 2020
		Common stock																			Common stock
		Shares outstanding	Par value		Treasury stock		Additional paid-in capital		Accumulated other comprehensive loss		Retained earnings		Total Wynn Resorts, Ltd. stockholders' equity		Noncontrolling interests		Total stockholders' equity			Shares outstanding	Par value		Treasury stock		Additional paid-in capital		Accumulated other comprehensive loss		Retained earnings		Total Wynn Resorts, Ltd. stockholders' equity		Noncontrolling interests		Total stockholders' equity
Balances, April 1, 2019		107,660,449	$	1,226	$	(1,349,413)	$	2,483,026	$	(2,591)	$	945,972	$	2,078,220	$	(162,977)	$	1,915,243
Net income		—	—		—		—		—		94,551		94,551		47,683		142,234
Balances, January 1, 2020																			Balances, January 1, 2020	107,363,943	$	1,228	$	(1,410,998)	$	2,512,676	$	(1,679)	$	641,818	$	1,743,045	$	(201,573)	$	1,541,472
Net loss																			Net loss	—	—		—		—		—		(402,037)		(402,037)		(48,216)		(450,253)
Currency translation adjustment	Currency translation adjustment	—	—		—		—		605		—		605		233		838		Currency translation adjustment	—	—		—		—		732		—		732		283		1,015
Exercise of stock options		180,000	2		—		8,479		—		—		8,481		—		8,481
Issuance of restricted stock	Issuance of restricted stock	32,633	—		—		—		—		—		—		—		—		Issuance of restricted stock	620,745	6		—		6,086		—		—		6,092		629		6,721
Cancellation of restricted stock	Cancellation of restricted stock	(10,795)	—		—		—		—		—		—		—		—		Cancellation of restricted stock	(55,570)	0		—		—		—		—		—		—		0
Shares repurchased by the Company and held as treasury shares	Shares repurchased by the Company and held as treasury shares	(251,931)	—		(30,231)		—		—		—		(30,231)		—		(30,231)		Shares repurchased by the Company and held as treasury shares	(44,955)	—		(5,527)		—		—		—		(5,527)		—		(5,527)
Cash dividends declared	Cash dividends declared	—	—		—		—		—		(107,616)		(107,616)		(82,917)		(190,533)		Cash dividends declared	—	—		—		—		—		(107,515)		(107,515)		14		(107,501)
Distribution to noncontrolling interest	Distribution to noncontrolling interest	—	—		—		—		—		—		—		(2,727)		(2,727)		Distribution to noncontrolling interest	—	—		—		—		—		—		—		(998)		(998)
Stock-based compensation	Stock-based compensation	—	—		—		6,811		—		—		6,811		823		7,634		Stock-based compensation	—	—		—		7,300		—		—		7,300		251		7,551
Balances, June 30, 2019		107,610,356	$	1,228	$	(1,379,644)	$	2,498,316	$	(1,986)	$	932,907	$	2,050,821	$	(199,882)	$	1,850,939
Balances, March 31, 2020																			Balances, March 31, 2020	107,884,163	$	1,234	$	(1,416,525)	$	2,526,062	$	(947)	$	132,266	$	1,242,090	$	(249,610)	$	992,480

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

~~Table of Contents~~

~~WYNN RESORTS, LIMITED AND SUBSIDIARIES~~

~~CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (continued)~~

~~(in thousands, except share data)~~

~~(unaudited)~~

For the Six Months Ended June 30, 2020
Common stock
Shares
outstanding Par
value Treasury
stock Additional
paid-in
capital Accumulated
other
comprehensive
loss Retained earnings (accumulated deficit) Total Wynn Resorts, Ltd.
stockholders'
equity Noncontrolling
interests Total
stockholders'
equity
Balances, January 1, 2020 107,363,943 $ 1,228 $ (1,410,998) $ 2,512,676 $ (1,679) $ 641,818 $ 1,743,045 $ (201,573) $ 1,541,472
Net loss — — — — — (1,039,601) (1,039,601) (145,521) (1,185,122)
Currency translation adjustment — — — — 771 — 771 297 1,068
Issuance of restricted stock 661,015 6 — 6,703 — — 6,709 818 7,527
Cancellation of restricted stock (73,047) — — — — — — — —
Shares repurchased by the Company and held as treasury shares (82,046) — (8,437) — — — (8,437) 141 (8,296)
Cash dividends declared — — — — — (107,307) (107,307) 30 (107,277)
Distribution to noncontrolling interest — — — — — — — (998) (998)
Stock-based compensation — — — 24,339 — — 24,339 1,485 25,824
Balances, June 30, 2020 107,869,865 $ 1,234 $ (1,419,435) $ 2,543,718 $ (908) $ (505,090) $ 619,519 $ (345,321) $ 274,198

For the Six Months Ended June 30, 2019
Common stock
Shares
outstanding Par
value Treasury
stock Additional
paid-in
capital Accumulated
other
comprehensive
loss Retained earnings Total Wynn Resorts, Ltd.
stockholders'
equity Noncontrolling
interests Total
stockholders'
equity
Balances, January 1, 2019 107,232,026 $ 1,221 $ (1,344,012) $ 2,457,079 $ (1,950) $ 921,785 $ 2,034,123 $ (219,334) $ 1,814,789
Net income — — — — — 199,423 199,423 102,542 301,965
Currency translation adjustment — — — — (36) — (36) (14) �� (50)
Exercise of stock options 257,690 3 — 12,542 — — 12,545 — 12,545
Issuance of restricted stock 429,229 4 — 14,344 — — 14,348 785 15,133
Cancellation of restricted stock (11,840) — — — — — — — —
Shares repurchased by the Company and held as treasury shares (296,749) — (35,632) — — — (35,632) — (35,632)
Cash dividends declared — — — — — (188,301) (188,301) (82,900) (271,201)
Distribution to noncontrolling interest — — — — — — — (2,727) (2,727)
Stock-based compensation — — — 14,351 — — 14,351 1,766 16,117
Balances, June 30, 2019 107,610,356 $ 1,228 $ (1,379,644) $ 2,498,316 $ (1,986) $ 932,907 $ 2,050,821 $ (199,882) $ 1,850,939

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

Table of Contents

WYNN RESORTS, LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)


		Six Months Ended June 30,							Three Months Ended March 31,
		2020		2019			2021		2020
Cash flows from operating activities:	Cash flows from operating activities:					Cash flows from operating activities:
Net income (loss)		$	(1,185,122)	$	301,965
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Net loss						Net loss	$	(336,179)	$	(450,253)
Adjustments to reconcile net loss to net cash used in operating activities:						Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	Depreciation and amortization	358,012		276,826		Depreciation and amortization	185,121		178,746
Deferred income taxes	Deferred income taxes	155,316		(2,488)		Deferred income taxes	293		74,860
Stock-based compensation expense	Stock-based compensation expense	30,448		20,168		Stock-based compensation expense	24,346		9,364
Amortization of debt issuance costs	Amortization of debt issuance costs	14,155		14,862		Amortization of debt issuance costs	6,652		6,944
Loss on extinguishment of debt	Loss on extinguishment of debt	1,462		—		Loss on extinguishment of debt	1,322		843
Provision for credit losses	Provision for credit losses	48,960		9,003		Provision for credit losses	7,367		20,613
Change in derivatives fair value	Change in derivatives fair value	18,954		4,813		Change in derivatives fair value	(4,409)		15,660
Property charges and other	Property charges and other	21,228		4,507		Property charges and other	16,710		16,894
Increase (decrease) in cash from changes in:	Increase (decrease) in cash from changes in:					Increase (decrease) in cash from changes in:
Receivables, net	Receivables, net	(39)		(25,965)		Receivables, net	(22,947)		(56,284)
Inventories, prepaid expenses and other	Inventories, prepaid expenses and other	15,579		(43,018)		Inventories, prepaid expenses and other	(21,411)		5,135
Customer deposits	Customer deposits	111,967		(59,910)		Customer deposits	(131,336)		71,736
Accounts payable and accrued expenses	Accounts payable and accrued expenses	(198,907)		8,681		Accounts payable and accrued expenses	20,565		(70,758)
Net cash (used in) provided by operating activities		(607,987)		509,444
Net cash used in operating activities						Net cash used in operating activities	(253,906)		(176,500)
Cash flows from investing activities:	Cash flows from investing activities:					Cash flows from investing activities:
Capital expenditures, net of construction payables and retention	Capital expenditures, net of construction payables and retention	(191,682)		(636,002)		Capital expenditures, net of construction payables and retention	(40,270)		(139,316)
Purchase of intangible and other assets	Purchase of intangible and other assets	—		(1,000)		Purchase of intangible and other assets	(8,500)		0
Proceeds from sale of assets and other	Proceeds from sale of assets and other	3,733		441		Proceeds from sale of assets and other	134		2,162
Net cash used in investing activities	Net cash used in investing activities	(187,949)		(636,561)		Net cash used in investing activities	(48,636)		(137,154)
Cash flows from financing activities:	Cash flows from financing activities:					Cash flows from financing activities:
Proceeds from issuance of long-term debt	Proceeds from issuance of long-term debt	2,894,134		324,754		Proceeds from issuance of long-term debt	50,084		1,469,028
Repayments of long-term debt	Repayments of long-term debt	(527,535)		(603,857)		Repayments of long-term debt	(1,166,737)		(515,194)
Proceeds from issuance of common stock						Proceeds from issuance of common stock	841,899		0
Repurchase of common stock	Repurchase of common stock	(8,437)		(35,632)		Repurchase of common stock	(4,356)		(5,527)
Finance lease payment	Finance lease payment	(74)		—		Finance lease payment	(3,881)		(37)
Proceeds from exercise of stock options	Proceeds from exercise of stock options	70		12,545		Proceeds from exercise of stock options	0		70
Dividends paid	Dividends paid	(108,074)		(270,490)		Dividends paid	(295)		(107,426)
Distribution to noncontrolling interest	Distribution to noncontrolling interest	(998)		(2,727)		Distribution to noncontrolling interest	0		(998)
Payments for financing costs	Payments for financing costs	(13,196)		(10,488)		Payments for financing costs	(2,154)		(1,919)
Net cash provided by (used in) financing activities		2,235,890		(585,895)
Net cash (used in) provided by financing activities						Net cash (used in) provided by financing activities	(285,440)		837,997
Effect of exchange rate on cash, cash equivalents and restricted cash	Effect of exchange rate on cash, cash equivalents and restricted cash	4,341		56		Effect of exchange rate on cash, cash equivalents and restricted cash	(1,131)		3,266
Cash, cash equivalents and restricted cash:	Cash, cash equivalents and restricted cash:					Cash, cash equivalents and restricted cash:
Increase (decrease) in cash, cash equivalents and restricted cash		1,444,295		(712,956)
(Decrease) increase in cash, cash equivalents and restricted cash						(Decrease) increase in cash, cash equivalents and restricted cash	(589,113)		527,609
Balance, beginning of period	Balance, beginning of period	2,358,292		2,219,323		Balance, beginning of period	3,486,384		2,358,292
Balance, end of period	Balance, end of period	$	3,802,587	$	1,506,367	Balance, end of period	$	2,897,271	$	2,885,901

Supplemental cash flow disclosures:	Supplemental cash flow disclosures:					Supplemental cash flow disclosures:
Cash paid for interest, net of amounts capitalized	Cash paid for interest, net of amounts capitalized	$	238,044	$	170,059	Cash paid for interest, net of amounts capitalized	$	138,823	$	88,438
Liability settled with shares of common stock	Liability settled with shares of common stock	$	6,720	$	15,134	Liability settled with shares of common stock	$	6,272	$	6,720
Accounts and construction payables related to property and equipment	Accounts and construction payables related to property and equipment	$	127,674	$	282,721	Accounts and construction payables related to property and equipment	$	57,463	$	127,895
Other liabilities related to intangible assets						Other liabilities related to intangible assets	$	13,748	$	13,853
Finance lease liabilities arising from obtaining finance lease assets						Finance lease liabilities arising from obtaining finance lease assets	$	7,423	$	0

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

Table of Contents

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

Note 1 - Organization

Organization

Wynn Resorts, Limited, a Nevada corporation (together with its subsidiaries, "Wynn Resorts" or the "Company") is a designer, developer, and operator of integrated resorts featuring luxury hotel rooms, high-end retail space, an array of dining and entertainment options, meeting and convention facilities, and gaming.

In the Macau Special Administrative Region of the People's Republic of China ("Macau"), the Company owns approximately 72% of Wynn Macau, Limited ("WML"), which includes the operations of the Wynn Palace and Wynn Macau resorts. The Company refers to Wynn Palace and Wynn Macau as its Macau Operations. In Las Vegas, Nevada, the Company operates and, with the exception of certain retail space, owns 100% of Wynn Las Vegas. Additionally, the Company is a 50.1% owner and managing member of a joint venture that owns and leases certain retail space at Wynn Las Vegas (the "Retail Joint Venture"). The Company refers to Wynn Las Vegas and the Retail Joint Venture as its Las Vegas Operations. On June 23, 2019, the Company opened Encore Boston Harbor, an integrated resort in Everett, Massachusetts, that is owned 100% by the Company. In October 2020, Wynn Interactive Ltd. ("Wynn Interactive") was formed through the merger of the Company's U.S. online sports betting and gaming business, social casino business, and Wynn Resorts' strategic partner, BetBull Limited ("BetBull"). Following the merger and subsequent transactions, Wynn Resorts holds an approximately 74% interest in, and consolidates, Wynn Interactive. The results of its operations are presented within Corporate and other in the accompanying condensed consolidated financial statements, except where otherwise noted.

Recent Developments Related to COVID-19

~~As previously disclosed, in January 2020, an~~Since the outbreak of ~~a new strain of coronavirus,~~ COVID-19 ~~("COVID-19"), was identified. Since then, COVID-19 has spread around the world, and~~in early 2020, steps have been taken by various countries, including those in which the Company operates, to advise citizens to avoid non-essential travel, to restrict inbound international travel, to implement closures of non-essential operations, and to implement quarantines and lockdowns to contain the spread of the virus. ~~Currently, no fully effective treatments or vaccines have been developed, and there can be no assurance as to if or when an effective treatment or vaccine will be discovered.~~

~~Macau Operations~~

InAs part of the immediate response to the initial outbreak of COVID-19, ~~pandemic,~~each of the ~~Macau government announced on February 4,~~Company's properties was subject to partial or full closure for varying lengths of time during 2020, the closure of all casino operations in Macau, including those at Wynn Palace and Wynn Macau, for a period of 15 days. On February 20, 2020, casino operations at Wynn Palace and Wynn Macau reopened on a reduced basis and have all since ~~been fully restored; however,~~reopened with certain COVID-19 specific protective measures, such as ~~traveler quarantines,~~ limiting the number of seats per table game, slot machine spacing, temperature checks, mask protection, ~~COVID-19 negative test results requirements for entry~~and suspension of certain entertainment and nightlife offerings. Several vaccines have been granted authorization in numerous countries and are being rolled out to ~~gaming areas,~~citizens based on availability and ~~health declarations remain in effect at the present time.~~priority of need. There can be no assurance as to when a sufficient number of individuals will be vaccinated, permitting travel restrictions to be fully lifted.

Macau Operations

~~While most of the foregoing travel restrictions and quarantine requirements continue to weigh on visitation to Macau, beginning~~Beginning in June 2020 certain ~~of these~~ restrictions ~~are being~~and conditions have eased to allow for visitation to Macau as ~~the region gradually recovers~~certain regions recover from the COVID-19 pandemic. ~~In July 2020, Guangdong Province, a Chinese province adjacent to Macau, eased certain quarantine requirements for those traveling between Guangdong Province and Macau,~~Quarantine-free travel, subject to ~~certain~~COVID-19 safeguards such as testing and the usual visa requirements, ~~and health declarations. Quarantine requirements for those traveling between Hong Kong and Macau have~~has been ~~announced to remain effective until at least September 7, 2020, at which time they may be lifted. In the initial phase of opening travel channels~~reintroduced between Macau and ~~other regions, it is expected that all visitors seeking entry to Macau will need to test negative for COVID-19 before entering Macau. Although Mainland China~~most areas and Macau have recently announced several policies or changes to policies which relax certain visa issuance, border control and quarantine requirements, stringent health declarations, testing and other procedures remain in place and the Individual Visitor Scheme which, prior to its suspension bycities within the PRC, ~~government due to COVID-19 travel restrictions, permitted~~and in September 2020, PRC authorities fully resumed the IVS exit visa program, which permits individual PRC citizens from nearly 50 PRC cities to travel to Macau for tourism ~~purposes, has yet to restart.~~purposes.

Las Vegas Operations and Encore Boston Harbor

The Company’s Las Vegas Operations and Encore Boston Harbor have each implemented certain COVID-19 specific protective measures, such as limiting the number of seats per table game, slot machine spacing, temperature checks, mask protection, and suspension of certain entertainment and nightlife offerings. On April 8, 2021, Encore at Wynn Las Vegas resumed full operations, having previously adjusted its operating schedule to five days/four nights each week due to reduced customer demand levels beginning on October 19, 2020. On April 13, 2021, the Governor of Nevada announced that the statewide social distancing mandate will be removed and decisions on social distancing will be returned to local authority by May 1, with a goal to have all Nevada counties open to 100% capacity by June 1. The Nevada Gaming Control Board will continue to maintain authority over gaming areas of licensed properties in Nevada. On May 3, 2021, the Gaming Control Board announced that, effective immediately, the Company's Las Vegas Operations are permitted to reopen all gaming areas to 100% of capacity, with no continuing table game or slot machine spacing restrictions. At Encore Boston Harbor, on January 25, 2021,

Table of Contents

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

~~Las Vegas Operations~~limitations on operating hours that had been in place since November 2020 were lifted, and ~~Encore Boston Harbor~~

~~Wynn Las Vegas closed on March 17, 2020,~~the property restored certain operations and reopened its hotel tower on June 4, 2020 with certain COVID-19 specific protective measures in place, such as limiting the number of seats per table game, slot machine spacing, temperature checks, mask protection, and suspension of certain entertainment and nightlife offerings.

Encore Boston Harbor closed on March 15, 2020, for the remainder of the first and second quarters of 2020. On July 12, 2020, Encore Boston Harbor reopened with certain COVID-19 specific protective measures in place, such as limiting the number of seats per table game, slot machine spacing, temperature checks, and mask protection. In addition, certain food and beverage outlets remain closed and hotel reservations have been limited toa Thursday through ~~Sunday.~~Sunday weekly schedule. On April 27, 2021, the Governor of Massachusetts announced a phased plan for further reopening and increased capacity over the next several months. Effective August 1, 2021, subject to public health and vaccination data, all industry restrictions will be lifted and capacity limits will increase to 100%.

Summary

The COVID-19 pandemic has had and will continue to have an adverse effect on the Company's results of operations. ~~The~~Notwithstanding the easing of certain COVID-19 protective measures by authorities throughout the world, certain travel restrictions, quarantine measures, testing requirements, and capacity limitations remain in effect, and the Company is currently unable to determine when protective measures and the suspension of certain offerings in effect at our Macau Operations, Las Vegas Operations, and Encore Boston Harbor will be lifted. Given the uncertainty around the extent and timing of the potential future spread or mitigation of COVID-19 and around the imposition or relaxation of protective measures, management cannot reasonably estimate the impact to the Company's future results of operations, cash flows, or financial condition.

As of ~~June 30, 2020,~~March 31, 2021, the Company had total cash and cash equivalents, excluding restricted cash, of ~~$3.80~~$2.89 billion, and had access to ~~$15.9 million and $24.1~~$833.9 million of available borrowing capacity from the WRF Revolving Facility and $293.0 million of available borrowing capacity from the Wynn Macau Revolving ~~Facility, respectively. In addition, the~~Facility. The Company has suspended its dividend ~~program and has postponed major project capital expenditures.~~program. Given the Company's liquidity position at ~~June 30, 2020 and the steps the Company has taken as further described in Note 6, "Long-Term Debt,"~~March 31, 2021, the Company believes it is able to support continuing operations and respond to the current COVID-19 pandemic challenges.

Business Combination Agreement

On May 10, 2021, Wynn Interactive entered into a business combination agreement (the "Business Combination Agreement") with Austerlitz Acquisition Corporation I, a Cayman Islands exempted company ("Austerlitz I") and Wave Merger Sub Limited, an exempted company limited by shares incorporated in Bermuda and a direct, wholly owned subsidiary of Austerlitz I ("Merger Sub"). The Business Combination Agreement provides for, among other things, the consummation of the following transactions: (i) Austerlitz I will transfer by way of continuation from the Cayman Islands to Bermuda and change its name to "Wynn Interactive, Limited"; and (ii) Merger Sub will merge with and into Wynn Interactive (the "Merger"), with Wynn Interactive being the surviving company of the Merger and direct, wholly owned subsidiary of Austerlitz I. Upon closing of the transaction, assuming no share redemptions by the public stockholders of Austerlitz I, the Company is expected to retain an approximately 58% equity interest (and approximately 72% voting interest) in Wynn Interactive. The proposed business combination is expected to close by the end of 2021, subject to approval by Austerlitz I's stockholders, gaming regulatory approval and other customary closing conditions.

Note 2 - Basis of Presentation and Significant Accounting Policies

Basis of Presentation

The accompanying condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP") have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures herein are adequate to make the information presented not misleading. In the opinion of management, the accompanying condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary to a fair presentation of the results for the interim periods presented. The results for the three ~~and six~~ months ended ~~June 30, 2020~~March 31, 2021 are not necessarily indicative of results to be expected for the full fiscal year. These ~~Condensed Consolidated Financial Statements~~condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto in the Company's Annual Report on Form 10-K for the year ended December 31, ~~2019.~~2020.

Principles of Consolidation

The accompanying condensed consolidated financial statements include the accounts of the Company, its majority-owned subsidiaries and entities the Company identifies as variable interest entities ("VIEs") of which the Company is determined to be the primary beneficiary. For information on the Company's VIEs, see Note ~~15,~~16, "Retail Joint Venture." All significant intercompany accounts and transactions have been eliminated.

Table of Contents

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Accounts Receivable

Accounts receivable, including casino and hotel receivables, are typically non-interest bearing and are recorded at amortized cost. Casino receivables primarily consist of credit issued to patrons in the form of markers and advances paid to gaming promoters. The Company issues credit based on factors such as level of play and financial resources, following background and credit checks. The casino credit extended by the Company is generally unsecured and due on demand. Gaming promoter advances are settled shortly after each month end.

~~Table of Contents~~

~~WYNN RESORTS, LIMITED AND SUBSIDIARIES~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)~~

~~(unaudited)~~

An estimated allowance for credit losses is maintained to reduce the Company's receivables to their carrying amount, which reflects the net amount the Company expects to collect. The allowance estimate reflects specific review of customer accounts and outstanding gaming promoter accounts ~~with a balance over a specified dollar~~taking into consideration the amount ~~based upon~~owed, the age of the account, the customer's financial condition, ~~as well as~~ management's experience with historical and current collection trends, current economic and business conditions, and management's expectations of future economic and business conditions and forecasts. Accounts are written off when management deems them to be uncollectible. Recoveries of accounts previously written off are recorded when received.

Gaming Taxes

The Company is subject to taxes based on gross gaming revenues in the jurisdictions in which it operates, subject to applicable jurisdictional adjustments. These gaming taxes are recorded as casino expenses in the accompanying Condensed Consolidated Statements of Operations. These taxes totaled ~~$12.5~~$212.0 million and ~~$561.8~~$254.0 million for the three months ended ~~June 30,~~March 31, 2021 and 2020, ~~and 2019, respectively, and $266.4 million and $1.15 billion for the six months ended June 30, 2020 and 2019,~~ respectively.

Recently ~~Adopted~~Issued Accounting Standards

~~Financial Instruments - Credit Losses~~

The FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) in 2016. The new guidance replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For trade and other receivables, loans and other financial instruments, the Company is required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. The Company adopted the guidance effective January 1,In March 2020, ~~and this adoption did not have a material effect on its Condensed Consolidated Financial Statements.~~

~~Cloud Computing Arrangement Implementation Costs~~

~~In August 2018,~~ the FASB issued ASU No. ~~2018-15, Customer's Accounting~~2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" ("ASU 2020-04"). ASU 2020-04 provides optional expedients and exceptions for ~~Implementation Costs Incurred~~applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In response to the concerns about structural risks of interbank offered rates and, particularly, the risk of cessation of the London Interbank Offered Rate (referred to as "LIBOR"), regulators in ~~a Cloud Computing Arrangement That Is a Service Contract. The ASU is intended~~several jurisdictions around the world have undertaken reference rate reform initiatives to ~~eliminate potential diversity in practice in accounting for costs incurred to implement cloud computing arrangements~~identify alternative reference rates that are ~~service contracts by requiring customers in such arrangements~~more observable or transaction-based and less susceptible to ~~follow internal-use software~~manipulation. ASU 2020-04 also provides companies with optional guidance to ease the potential accounting burden associated with ~~respect~~transitioning away from reference rates that are expected to ~~such costs,~~be discontinued. ASU 2020-04 can be adopted no later than December 1, 2022 with ~~any resulting deferred implementation costs recognized over~~early adoption permitted. The Company is currently assessing the ~~term~~impact the adoption of the ~~contract in the same income statement line item as the fees associated with the hosting element of the arrangement. The Company adopted the~~new guidance ~~effective January 1, 2020, and this adoption did not~~will have ~~a material effect~~ on its ~~Condensed Consolidated Financial Statements.~~consolidated financial statements.

~~Changes to the Disclosure Requirements for Fair Value Measurement~~

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. The new guidance amends the disclosure requirements for recurring and nonrecurring fair value measurements by removing, modifying, and adding certain disclosures on fair value measurements in ASC 820. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The Company adopted the guidance effective January 1, 2020, and this adoption did not have a material effect on its Condensed Consolidated Financial Statements.

~~Table of Contents~~

~~WYNN RESORTS, LIMITED AND SUBSIDIARIES~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)~~

~~(unaudited)~~

Note 3 - Cash, Cash Equivalents and Restricted Cash

Cash, cash equivalents and restricted cash consisted of the following (in thousands):

June 30,
2020 December 31,
2019
Cash and cash equivalents:
   Cash (1)
$ 2,407,678 $ 1,265,502
   Cash equivalents (2)
1,390,062 1,086,402
     Total cash and cash equivalents 3,797,740 2,351,904
Restricted cash (3)
4,847 6,388
Total cash, cash equivalents and restricted cash $ 3,802,587 $ 2,358,292

~~(1) Cash consists of cash on hand and bank deposits.~~

~~(2) Cash equivalents consist of bank time deposits and money market funds.~~

~~(3) Restricted cash consists of cash collateral associated with obligations and cash held in a trust in accordance with WML's share award plan.~~


	March 31, 2021		December 31, 2020
Cash and cash equivalents:
Cash (1)	$	2,476,330	$	2,501,452
Cash equivalents (2)	414,077		980,580
Total cash and cash equivalents	2,890,407		3,482,032
Restricted cash (3)	6,864		4,352
Total cash, cash equivalents and restricted cash	$	2,897,271	$	3,486,384
(1) Cash consists of cash on hand and bank deposits. (2) Cash equivalents consist of bank time deposits and money market funds. (3) Restricted cash consists of cash subject to certain contractual restrictions, cash collateral associated with obligations and cash held in a trust in accordance with WML's share award plan.

Table of Contents

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Note 4 - Receivables, net

Accounts Receivable and Credit Risk

Receivables, net consisted of the following (in thousands):


		June 30, 2020		December 31, 2019			March 31, 2021		December 31, 2020
Casino	Casino	$	264,186	$	304,137	Casino	$	232,763	$	207,823
Hotel	Hotel	8,197		22,114		Hotel	7,312		7,075
Other	Other	112,255		59,495		Other	77,674		85,589
		384,637		385,746			317,749		300,487
Less: allowance for credit losses	Less: allowance for credit losses	(88,319)		(39,317)		Less: allowance for credit losses	(102,412)		(100,329)
		$	296,318	$	346,429		$	215,337	$	200,158

~~Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of casino receivables.~~ As of ~~June 30, 2020~~March 31, 2021 and December 31, ~~2019,~~2020, approximately ~~82.3%~~75.8% and ~~79.0%~~77.3%, respectively, of the Company's markers were due from customers residing outside the United States, primarily in Asia. Business or economic conditions or other significant events in the countries in which ~~our~~the Company's customers reside could affect the collectability of such receivables. ~~The Company believes the concentration of its credit risk in casino receivables is mitigated substantially by its credit investigation process, credit policies and collection procedures.~~

The Company’s allowance for casino credit losses was ~~31.9%~~43.0% and ~~12.4%~~47.2% of gross casino receivables as of ~~June 30, 2020~~March 31, 2021 and December 31, ~~2019,~~2020, respectively. The increase in allowance for casino credit losses is primarily due to the impact of historical collection patterns and expectations of current and future collection trends in light of the COVID-19 pandemic, as well as the specific review of customer accounts. Although the Company believes that its allowance is adequate, it is possible the estimated amounts of cash collections with respect to receivables could change. The Company’s allowance for credit losses from its hotel and other receivables is not material.

~~Table of Contents~~

~~WYNN RESORTS, LIMITED AND SUBSIDIARIES~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)~~

~~(unaudited)~~

The following table shows the movement in the Company's allowance for credit losses recognized for receivables that occurred during the period (in thousands):


		June 30, 2020		June 30, 2019			March 31, 2021		March 31, 2020
Balance at beginning of year	Balance at beginning of year	$	39,317	$	32,694	Balance at beginning of year	$	100,329	$	39,317
Provision for credit losses	Provision for credit losses	48,960		9,003		Provision for credit losses	7,367		20,613
Write-offs	Write-offs	(144)		(12,391)		Write-offs	(5,653)		(70)
Recoveries of receivables previously written-off		60		—
Recoveries of receivables previously written off						Recoveries of receivables previously written off	501		0
Effect of exchange rate	Effect of exchange rate	126		54		Effect of exchange rate	(132)		111
Balance at end of period	Balance at end of period	$	88,319	$	29,360	Balance at end of period	$	102,412	$	59,971

Note 5 - Property and Equipment, net

Property and equipment, net consisted of the following (in thousands):


		June 30, 2020		December 31, 2019			March 31, 2021		December 31, 2020
Buildings and improvements	Buildings and improvements	$	9,737,338	$	9,367,241	Buildings and improvements	$	9,747,927	$	9,758,846
Land and improvements	Land and improvements	1,260,749		1,246,679		Land and improvements	1,265,598		1,265,510
Furniture, fixtures and equipment	Furniture, fixtures and equipment	2,999,880		2,932,483		Furniture, fixtures and equipment	3,107,077		3,093,481
Airplanes	Airplanes	110,623		110,623		Airplanes	110,623		110,623
Construction in progress	Construction in progress	155,393		477,333		Construction in progress	155,586		136,390
		14,263,983		14,134,359			14,386,811		14,364,850
Less: accumulated depreciation	Less: accumulated depreciation	(4,848,670)		(4,510,527)		Less: accumulated depreciation	(5,336,633)		(5,168,206)
		$	9,415,313	$	9,623,832		$	9,050,178	$	9,196,644

~~Depreciation expense~~As of March 31, 2021 and December 31, 2020, construction in progress consisted primarily of costs capitalized for various capital enhancements at the three months ended June 30, 2020 and 2019 was $172.8 million and $135.6 million, and depreciation expense for the six months ended June 30, 2020 and 2019 was $345.1 million and $267.9 million, respectively.Company's properties.

1311

Table of Contents

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Depreciation expense for the three months ended March 31, 2021 and 2020 was $177.7 million and $172.3 million, respectively.

Note 6 - Goodwill

The following table shows the movement in the Company's goodwill balance that occurred during the three-month period (in thousands):


	March 31, 2021
Balance at beginning of period	$	144,095
Acquisitions	0
Foreign currency translation	1,312
Balance at end of period	$	145,407

The Company recognized goodwill of $121.0 million in 2020 in connection with the acquisition of Betbull. Goodwill is included in Corporate and other as of March 31, 2021 and December 31, 2020.

Table of Contents

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Note 67 - Long-Term Debt

Long-term debt consisted of the following (in thousands):


		June 30, 2020		December 31, 2019			March 31, 2021		December 31, 2020
Macau Related:	Macau Related:					Macau Related:
Wynn Macau Credit Facilities (1):	Wynn Macau Credit Facilities (1):					Wynn Macau Credit Facilities (1):
Wynn Macau Term Loan, due 2022 (2)	Wynn Macau Term Loan, due 2022 (2)	$	2,156,960	$	2,302,540	Wynn Macau Term Loan, due 2022 (2)	$	828,460	$	1,268,106
Wynn Macau Revolver, due 2022 (3)	Wynn Macau Revolver, due 2022 (3)	726,995		350,232		Wynn Macau Revolver, due 2022 (3)	457,005		407,443
WML 4 7/8% Senior Notes, due 2024	WML 4 7/8% Senior Notes, due 2024	600,000		600,000		WML 4 7/8% Senior Notes, due 2024	600,000		600,000
WML 5 1/2% Senior Notes, due 2026	WML 5 1/2% Senior Notes, due 2026	750,000		—		WML 5 1/2% Senior Notes, due 2026	1,000,000		1,000,000
WML 5 1/2% Senior Notes, due 2027	WML 5 1/2% Senior Notes, due 2027	750,000		750,000		WML 5 1/2% Senior Notes, due 2027	750,000		750,000
WML 5 5/8% Senior Notes, due 2028						WML 5 5/8% Senior Notes, due 2028	1,350,000		1,350,000
WML 5 1/8% Senior Notes, due 2029	WML 5 1/8% Senior Notes, due 2029	1,000,000		1,000,000		WML 5 1/8% Senior Notes, due 2029	1,000,000		1,000,000

U.S. and Corporate Related:	U.S. and Corporate Related:					U.S. and Corporate Related:
WRF Credit Facilities (4):	WRF Credit Facilities (4):					WRF Credit Facilities (4):
WRF Term Loan, due 2024	WRF Term Loan, due 2024	962,500		987,500		WRF Term Loan, due 2024	925,000		937,500
WRF Revolver, due 2024	WRF Revolver, due 2024	816,000		—		WRF Revolver, due 2024	0		716,000
WLV 4 1/4% Senior Notes, due 2023	WLV 4 1/4% Senior Notes, due 2023	500,000		500,000		WLV 4 1/4% Senior Notes, due 2023	500,000		500,000
WLV 5 1/2% Senior Notes, due 2025	WLV 5 1/2% Senior Notes, due 2025	1,780,000		1,780,000		WLV 5 1/2% Senior Notes, due 2025	1,780,000		1,780,000
WLV 5 1/4% Senior Notes, due 2027	WLV 5 1/4% Senior Notes, due 2027	880,000		880,000		WLV 5 1/4% Senior Notes, due 2027	880,000		880,000
WRF 7 3/4% Senior Notes, due 2025						WRF 7 3/4% Senior Notes, due 2025	600,000		600,000
WRF 5 1/8% Senior Notes, due 2029	WRF 5 1/8% Senior Notes, due 2029	750,000		750,000		WRF 5 1/8% Senior Notes, due 2029	750,000		750,000
WRF 7 3/4% Senior Notes, due 2025		600,000		—
Retail Term Loan, due 2025 (5)	Retail Term Loan, due 2025 (5)	615,000		615,000		Retail Term Loan, due 2025 (5)	615,000		615,000
		12,887,455		10,515,272			12,035,465		13,154,049
Less: Unamortized debt issuance costs and original issue discounts and premium, net	Less: Unamortized debt issuance costs and original issue discounts and premium, net	(112,222)		(111,413)		Less: Unamortized debt issuance costs and original issue discounts and premium, net	(81,831)		(88,279)
		12,775,233		10,403,859			11,953,634		13,065,770
Less: Current portion of long-term debt	Less: Current portion of long-term debt	(298,050)		(323,876)		Less: Current portion of long-term debt	(198,465)		(596,408)
Total long-term debt, net of current portion	Total long-term debt, net of current portion	$	12,477,183	$	10,079,983	Total long-term debt, net of current portion	$	11,755,169	$	12,469,362

(1) The borrowings under the Wynn Macau Credit Facilities bear interest at LIBOR or HIBOR plus a margin of 1.50% to 2.25% per annum based on Wynn Resorts Macau S.A.’s leverage ratio.

(2) ~~As of June 30, 2020, approximately $1.22 billion~~Approximately $469.2 million and ~~$937.0~~$359.3 million of the Wynn Macau Term Loan ~~bore~~bears interest at a rate of LIBOR plus ~~1.75%~~2.25% per year and HIBOR plus ~~1.75%~~2.25% per year, respectively. As of ~~June 30, 2020,~~March 31, 2021, the weighted average interest rate was approximately ~~2.04%~~2.37%. In January 2021, the Company prepaid $412.5 million of the Wynn Macau Term Loan.

(3) ~~As of June 30, 2020, approximately $413.3~~Approximately $260.2 million and ~~$313.7~~$196.8 million of the Wynn Macau Revolver ~~bore~~bears interest at a rate of LIBOR plus ~~1.75%~~2.25% per year and HIBOR plus ~~1.75%~~2.25% per year, respectively. As of ~~June 30, 2020,~~March 31, 2021, the weighted average interest rate was approximately ~~2.09%~~2.38%. As of ~~June 30, 2020,~~March 31, 2021, the available borrowing capacity under the Wynn Macau Revolver was ~~$24.1~~$293.0 million.

(4) The WRF Credit Facilities bear interest at a rate of LIBOR plus 1.75% per year. As of ~~June 30, 2020,~~March 31, 2021, the weighted average interest rate was approximately ~~1.93%~~1.86%. Additionally, as of ~~June 30, 2020,~~March 31, 2021, the available borrowing capacity under the WRF Revolver was ~~$15.9~~$833.9 million, net of ~~$18.1~~$16.1 million in outstanding letters of credit.

(5) The Retail Term Loan bears interest at a rate of LIBOR plus 1.70% per year. As of ~~June 30, 2020,~~March 31, 2021, the effective interest rate was ~~1.87%~~2.70%.

~~WML 5 1/2% Senior Notes, due 2026~~Debt Covenant Compliance

~~On June 19, 2020, WML issued $750.0 million aggregate principal amount~~

As of ~~5 1/2% Senior Notes due 2026 (the "2026 WML Notes") pursuant to an indenture (the "2026 Indenture").~~March 31, 2021, management believes the Company was in compliance with all debt covenants.

The 2026 WML Notes will mature on January 15, 2026 and bear interest at the rate of 5 1/2% per annum payable in arrears semi-annually on January 15 and July 15 of each year, beginning on January 15, 2021. At any time prior to June 15, 2022, WML may use the net cash proceeds from certain equity offerings to redeem up to 35% of the aggregate principal amount of the 2026 WML Notes at a redemption price equal to 105.500% of the aggregate principal amount of the 2026 WML Notes, plus accrued and unpaid interest, if any. At any time prior to June 15, 2022, WML may redeem the 2026 WML Notes in whole or in part at a redemption price equal to the greater of (a) 100% of the aggregate principal amount of the 2026 WML

1413

Table of Contents

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

~~Notes to be redeemed, or (b) a make-whole amount as determined by an independent investment banker in accordance with the terms of the 2026 Indenture, in either case, plus accrued and unpaid interest.~~

In addition, on or after June 15, 2022, WML may redeem the 2026 WML Notes in whole or in part at a premium decreasing annually from 104.125% of the applicable principal amount to 100.000%, plus accrued and unpaid interest. If WML undergoes a Change of Control (as defined in the 2026 Indenture), it must offer to repurchase the 2026 WML Notes at a price equal to 101% of the aggregate principal amount thereof, plus accrued and unpaid interest. In addition, WML may redeem the 2026 WML Notes, in whole but not in part, at a redemption price equal to 100% of the principal amount, plus accrued and unpaid interest, in response to any change in or amendment to certain tax laws or tax positions. Further, if a holder or beneficial owner of the 2026 WML Notes fails to meet certain requirements imposed by any Gaming Authority (as defined in the 2026 Indenture), WML may require the holder or beneficial owner to dispose of or redeem its 2026 WML Notes.

Upon the occurrence of (a) any event after which none of WML or any subsidiary of WML has the applicable gaming concessions or authorizations in Macau in substantially the same manner and scope as WML and its subsidiaries are entitled to at the date on which the 2026 WML Notes are issued, for a period of ~~ten~~ consecutive days or more, and such event has a material adverse effect on WML and its subsidiaries, taken as a whole; or (b) the termination or modification of any such concessions or authorizations which has a material adverse effect on WML and its subsidiaries, taken as a whole, each holder of the 2026 WML Notes will have the right to require WML to repurchase all or any part of such holder's 2026 WML Notes at a purchase price in cash equal to 100% of the principal amount thereof, plus accrued and unpaid interest.

The 2026 WML Notes are WML's general unsecured obligations and rank pari passu in right of payment with all of WML's existing and future senior unsecured indebtedness; will rank senior to all of WML's future subordinated indebtedness, if any; will be effectively subordinated to all of WML's future secured indebtedness to the extent of the value of the assets securing such debt; and will be structurally subordinated to all existing and future obligations of WML's subsidiaries, including WML's existing credit facilities. The 2026 WML Notes are not registered under the Securities Act of 1933, as amended (the "Securities Act"), and the 2026 WML Notes are subject to restrictions on transferability and resale.

The 2026 Indenture contains covenants limiting WML's (and certain of its subsidiaries') ability to, among other things: merge or consolidate with another company; transfer or sell all or substantially all of its properties or assets; and lease all or substantially all of its properties or assets. The terms of the 2026 Indenture contain customary events of default, including, but not limited to: default for 30 days in the payment when due of interest on the 2026 WML Notes; default in the payment when due of the principal of, or premium, if any, on the 2026 WML Notes; failure to comply with any payment obligations relating to the repurchase by WML of the 2026 WML Notes upon a change of control; failure to comply with certain covenants in the 2026 Indenture; certain defaults on certain other indebtedness; failure to pay judgments against WML or certain subsidiaries that, in the aggregate, exceed $50 million; and certain events of bankruptcy or insolvency. In the case of an event of default arising from certain events of bankruptcy or insolvency, all 2026 WML Notes then outstanding will become due and payable immediately without further action or notice.

WML intends to use the net proceeds from the 2026 WML Notes for general corporate purposes until WML's business recovers from the effects of the COVID-19 pandemic, and then to facilitate the repayment of a portion of the amounts outstanding under the Wynn Macau Credit Facilities. In addition, WML used a portion of the net proceeds from the 2026 WML Notes to pay related fees and expenses totaling $7.1 million, which was recorded as debt issuance costs within the Condensed Consolidated Balance Sheet.

~~WRF 7 3/4% Senior Notes, due 2025~~

On April 14, 2020, WRF and its subsidiary Wynn Resorts Capital Corp. (collectively with WRF, the "WRF Issuers"), each an indirect wholly owned subsidiary of the Company, issued $600.0 million aggregate principal amount of 7 3/4% Senior Notes due 2025 (the "2025 WRF Notes") pursuant to an indenture (the "2025 Indenture") among the WRF Issuers, the guarantors party thereto, and U.S. Bank National Association, as trustee (the "Trustee"), in a private offering. The 2025 WRF Notes were issued at par.

The 2025 WRF Notes will mature on April 15, 2025 and bear interest at the rate of 7 3/4% per annum payable in arrears semi-annually on April 15 and October 15 of each year, beginning on October 15, 2020. The WRF Issuers may redeem some or all of the 2025 WRF Notes at any time prior to April 15, 2022 at a redemption price equal to 100% of the aggregate principal amount of the 2025 WRF Notes to be redeemed plus a "make-whole" premium and accrued and unpaid interest. In addition, at any time prior to April 15, 2022, the WRF Issuers may, on any one or more occasions, redeem up to 35% of the original

~~Table of Contents~~

~~WYNN RESORTS, LIMITED AND SUBSIDIARIES~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)~~

~~(unaudited)~~

aggregate principal amount of the 2025 WRF Notes with the proceeds of one or more equity offerings at a redemption price equal to 107.75% of the aggregate principal amount thereof, plus accrued and unpaid interest, if any, to, but not including, the applicable redemption date. On or after April 15, 2022, the WRF Issuers may redeem some or all of the 2025 WRF Notes at the redemption prices set forth in the 2025 Indenture plus accrued and unpaid interest. In the event of a change of control triggering event, the WRF Issuers must offer to repurchase the 2025 WRF Notes at a repurchase price equal to 101% of the aggregate principal amount thereof plus any accrued and unpaid interest, to, but not including, the repurchase date. The 2025 WRF Notes are subject to disposition and redemption requirements imposed by gaming laws and regulations of applicable gaming regulatory authorities.

The 2025 WRF Notes are jointly and severally guaranteed by each of WRF’s existing domestic restricted subsidiaries that guarantee indebtedness under the WRF's senior secured credit facilities and the WRF Issuers' existing 5 1/8% senior notes due 2029, including Wynn Las Vegas, LLC and each of its subsidiaries that guarantees its existing senior notes due 2023, 2025 and 2027.

The 2025 Indenture contains covenants that limit the ability of the WRF Issuers and the guarantors to, among other things, enter into sale-leaseback transactions, create or incur liens to secure debt, and merge, consolidate or sell all or substantially all of the WRF Issuers' assets. These covenants are subject to exceptions and qualifications set forth in the 2025 Indenture.

The 2025 Indenture also contains customary events of default, including, but not limited to, failure to make required payments, failure to comply with certain covenants, failure to pay certain other indebtedness, certain events of bankruptcy and insolvency, and failure to pay certain judgments. An event of default under the 2025 Indenture allows either the Trustee or the holders of at least 25% in aggregate principal amount of the 2025 WRF Notes, as applicable, issued under such 2025 Indenture to accelerate the amounts due under the 2025 WRF Notes, or in the case of a bankruptcy or insolvency, will automatically cause the acceleration of the amounts due under the 2025 WRF Notes.

The 2025 WRF Notes were offered pursuant to an exemption under the Securities Act of 1933, as amended (the "Securities Act"). The 2025 WRF Notes were offered only to qualified institutional buyers in reliance on Rule 144A under the Securities Act or outside the United States to certain persons in reliance on Regulation S under the Securities Act. The 2025 WRF Notes have not been and will not be registered under the Securities Act or under any state securities laws. Therefore, the WRF 2025 Notes may not be offered or sold within the United States to, or for the account or benefit of, any United States person unless the offer or sale would qualify for a registration exemption from the Securities Act and applicable state securities laws.

WRF used the net proceeds from the 2025 WRF Notes offering for general corporate purposes and to pay related fees and expenses totaling $5.6 million, of which $5.2 million was recorded as debt issuance costs within the Condensed Consolidated Balance Sheet.

~~WRF Credit Agreement Amendment~~

On April 10, 2020, WRF and certain of its subsidiaries entered into an amendment (the "WRF Credit Agreement Amendment") to its existing credit agreement (the "WRF Credit Agreement") among Deutsche Bank AG New York Branch, as administrative agent and collateral agent, and the other lenders party thereto.

The WRF Credit Agreement Amendment amends the WRF Credit Agreement to, among other things, implement a financial covenant relief period (the "Financial Covenant Relief Period") through April 1, 2021 (unless earlier terminated by WRF), implement a financial covenant increase period (the "Financial Covenant Increase Period") commencing on the first day after the expiration of the Financial Covenant Relief Period and ending on the first day of the fourth fiscal quarter after the expiration of the Financial Covenant Relief Period (unless earlier terminated by WRF), amend the definition of "Consolidated EBITDA" in the WRF Credit Agreement during the Financial Covenant Increase Period, amend WRF's financial reporting obligations (including extensions to certain deadlines), add certain restrictions on restricted payments (including restrictions on a portion of dividends received from WRF's subsidiaries) during the Financial Covenant Relief Period and the Financial Covenant Increase Period, and amend the definition of "Material Adverse Effect" in the WRF Credit Agreement to take into consideration COVID-19.

During the Financial Covenant Relief Period, the existing consolidated first lien net leverage ratio financial covenant will be replaced with a minimum liquidity financial covenant that requires WRF and its restricted subsidiaries to maintain liquidity of at least $300.0 million at all times (with liquidity being the sum of unrestricted operating cash, as defined in the WRF Credit

~~Table of Contents~~

~~WYNN RESORTS, LIMITED AND SUBSIDIARIES~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)~~

~~(unaudited)~~

Agreement, and the available borrowing capacity under the WRF Revolver). Following the Financial Covenant Relief Period and for as long as the Financial Covenant Increase Period is in effect, WRF may not permit the consolidated first lien net leverage ratio as of the last day of any fiscal quarter to exceed for the first fiscal quarter of the Financial Covenant Increase Period, 4.50 to 1.00, for the second fiscal quarter of the Financial Covenant Increase Period, 4.25 to 1.00, for the third fiscal quarter of the Financial Covenant Increase Period, 4.00 to 1.00, and for each subsequent fiscal quarter thereafter (including from and including the first fiscal quarter during which the Financial Covenant Increase Period has been terminated by WRF), 3.75 to 1.00.

~~Retail Term Loan Agreement Amendment~~

On May 5, 2020, Wynn/CA Plaza Property Owner, LLC and Wynn/CA Property Owner, LLC (collectively, the "Retail Borrowers"), subsidiaries of the Retail Joint Venture, entered into an amendment (the "Retail Term Loan Agreement Amendment") to its existing retail term loan agreement (the "Retail Term Loan Agreement"). The Retail Term Loan Agreement Amendment amends the Retail Term Loan Agreement to, among other things, temporarily suspend the requirement to maintain certain financial ratios to avoid triggering excess cash sweep provisions from the first quarter of 2020 through the fourth quarter of 2021.

~~Debt Covenant Compliance~~

~~As of June 30, 2020, management believes the Company was in compliance with all debt covenants.~~

Fair Value of Long-Term Debt

The estimated fair value of the Company's long-term debt as of ~~June 30, 2020~~March 31, 2021 and December 31, ~~2019,~~2020, was approximately ~~$12.03~~$12.31 billion and ~~$10.80~~$13.35 billion, respectively, compared to its carrying value, excluding debt issuance costs and original issue discount and premium, of ~~$12.89~~$12.04 billion and ~~$10.52~~$13.15 billion, respectively. The estimated fair value of the Company's long-term debt is based on recent trades, if available, and indicative pricing from market information (Level 2 inputs).

Note 78 - Stockholders' Equity (Deficit)

Equity Offering

On February 11, 2021, the Company completed a registered public offering of 7,475,000 newly issued shares of its common stock, par value $0.01 per share, at a price of $115.00 per share for proceeds of $841.9 million, net of $17.7 million in underwriting discounts, commissions, and other expenses. The Company used $716.0 million of the proceeds from the equity offering to repay the outstanding borrowings under the WRF Revolver, and intends to use the remaining net proceeds for general corporate purposes.

Dividends

During the first quarter of 2020, the Company paid a cash dividend of $1.00 per share, and recorded $107.5 million as a reduction of retained earnings from cash dividends declared.

On May 6, 2020, the Company announced that it had suspended its quarterly dividend program due to the financial impact of the COVID-19 pandemic.

During the first and second quarter of 2019, the Company paid a cash dividend of $0.75 and $1.00 per share, respectively, and recorded $80.7 million and $107.6 million, respectively, as a reduction of retained earnings from cash dividends declared.

Noncontrolling Interests

The WML board of directors ~~of WML~~ concluded not to recommend the payment of a dividend with respect to either of the ~~year~~years ended December 31, 2020 or 2019 due to the financial impact of the COVID-19 pandemic.

~~During~~ As such, WML paid 0 dividends during 2020 or the three months ended ~~June 30, 2019~~, WML paid a cash dividend of HK$0.45 per share for a total of $298.0 million. The Company's share of this dividend was $215.0 million with a reduction of $83.0 million to noncontrolling interest in the accompanying Condensed Consolidated Balance Sheet.March 31, 2021.

During the three months ended March 31, 2021, the Retail Joint Venture did 0t make any distribution to its non-controlling interest holder. During the three months ended March 31, 2020, the Retail Joint Venture made aggregate distributions of approximately $1.0 million to its non-controlling interest holder. For more information on the Retail Joint Venture, see Note 16, "Retail Joint Venture".

1714

Table of Contents

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Note 89 - Fair Value Measurements

The following tables present assets and liabilities carried at fair value (in thousands):


				Fair Value Measurements Using:												Fair Value Measurements Using:
		June 30, 2020		Quoted Market Prices in Active Markets (Level 1)		Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)		March 31, 2021		Quoted Market Prices in Active Markets (Level 1)		Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
Assets:	Assets:								Assets:
Cash equivalents	Cash equivalents	$	1,390,062	$	503,794	$	886,268	—	Cash equivalents	$	414,077	$	50,000	$	364,077	0
Restricted cash	Restricted cash	$	4,847	$	2,054	$	2,793	—	Restricted cash	$	6,864	$	4,867	$	1,997	0

Liabilities:	Liabilities:								Liabilities:
Interest rate collar	Interest rate collar	$	22,802	—		$	22,802	—	Interest rate collar	$	12,499	0		$	12,499	0

				Fair Value Measurements Using:												Fair Value Measurements Using:
		December 31, 2019		Quoted Market Prices in Active Markets (Level 1)		Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)		December 31, 2020		Quoted Market Prices in Active Markets (Level 1)		Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
Assets:	Assets:								Assets:
Cash equivalents	Cash equivalents	$	1,086,402	—		$	1,086,402	—	Cash equivalents	$	980,580	$	504,980	$	475,600	0
Restricted cash	Restricted cash	$	6,388	$	2,048	$	4,340	—	Restricted cash	$	4,352	$	2,054	$	2,298	0

Liabilities:	Liabilities:								Liabilities:
Interest rate collar	Interest rate collar	$	3,847	—		$	3,847	—	Interest rate collar	$	16,908	0		$	16,908	0

Note 910 - Customer Contract Liabilities

In providing goods and services to its customers, there is often a timing difference between the Company receiving cash and the Company recording revenue for providing services or holding events.

The Company's primary liabilities associated with customer contracts are as follows (in thousands):


		June 30, 2020		December 31, 2019		Increase (decrease)		June 30, 2019		December 31, 2018		Increase (decrease)			March 31, 2021		December 31, 2020		Increase (decrease)		March 31, 2020		December 31, 2019		Increase (decrease)
Casino outstanding chips and front money deposits (1)	Casino outstanding chips and front money deposits (1)	$	904,792	$	769,053	$	135,739	$	865,578	$	905,561	$	(39,983)	Casino outstanding chips and front money deposits (1)	$	461,343	$	596,463	$	(135,120)	$	857,233	$	769,053	$	88,180
Advance room deposits and ticket sales (2)	Advance room deposits and ticket sales (2)	28,874		49,834		(20,960)		36,185		42,197		(6,012)		Advance room deposits and ticket sales (2)	40,062		29,224		10,838		29,293		49,834		(20,541)
Other gaming-related liabilities (3)	Other gaming-related liabilities (3)	5,592		13,970		(8,378)		7,405		12,694		(5,289)		Other gaming-related liabilities (3)	9,608		7,882		1,726		5,485		13,970		(8,485)
Loyalty program and related liabilities (4)	Loyalty program and related liabilities (4)	21,566		21,148		418		18,166		18,148		18		Loyalty program and related liabilities (4)	24,967		22,736		2,231		20,397		21,148		(751)
		$	960,824	$	854,005	$	106,819	$	927,334	$	978,600	$	(51,266)		$	535,980	$	656,305	$	(120,325)	$	912,408	$	854,005	$	58,403

(1) Casino outstanding chips generally represent amounts owed to gaming promoters and customers for chips in their possession, and casino front money deposits represent funds deposited by customers before gaming play occurs. These amounts are included in customer deposits on the Condensed Consolidated Balance Sheets and may be recognized as revenue or redeemed for cash in the future.

(2) Advance room deposits and ticket sales represent cash received in advance for goods or services to be provided in the future. These amounts are included in customer deposits on the Condensed Consolidated Balance Sheets and will be recognized as revenue when the goods or services are provided or the events are held. Decreases in this balance generally represent the recognition of revenue and increases in the balance represent additional deposits made by customers. The deposits are expected to primarily be recognized as revenue within one year.

(3) Other gaming-related liabilities generally represent unpaid wagers primarily in the form of unredeemed slot, race and sportsbook tickets or wagers for future sporting events. The amounts are included in other accrued liabilities on the Condensed Consolidated Balance Sheets.

(4) Loyalty program and related liabilities represent the deferral of revenue until the loyalty points or other complimentaries are redeemed. The amounts are included in other accrued liabilities on the Condensed Consolidated Balance Sheets and are expected to be recognized as revenue within one year of being earned by customers.

1815

Table of Contents

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Note 1011 - Stock-Based Compensation

The total compensation cost for stock-based compensation plans was recorded as follows (in thousands):


		Three Months Ended June 30,						Six Months Ended June 30,							Three Months Ended March 31,
		2020		2019		2020		2019			2021		2020
Casino (1)	Casino (1)	$	3,196	$	1,790	$	2,300	$	4,374	Casino (1)	$	3,891	$	(896)
Rooms	Rooms	346		223		695		441		Rooms	506		349
Food and beverage	Food and beverage	666		477		1,303		809		Food and beverage	1,150		637
Entertainment, retail and other	Entertainment, retail and other	84		62		157		106		Entertainment, retail and other	4,300		73
General and administrative ~~(2)~~	General and administrative ~~(2)~~	16,792		6,938		25,993		13,768		General and administrative ~~(2)~~	14,499		9,201
Pre-opening		—		340		—		670
Total stock-based compensation expense	Total stock-based compensation expense	21,084		9,830		30,448		20,168		Total stock-based compensation expense	24,346		9,364
Total stock-based compensation capitalized	Total stock-based compensation capitalized	486		83		703		147		Total stock-based compensation capitalized	905		217
Total stock-based compensation costs	Total stock-based compensation costs	$	21,570	$	9,913	$	31,151	$	20,315	Total stock-based compensation costs	$	25,251	$	9,581

(1) For the ~~six~~three months ended ~~June 30,~~March 31, 2020, reflects the reversal of $3.3 million of compensation cost previously recognized for awards forfeited in connection with the departure of an employee.

~~(2) For the three and six months ended June 30, 2020, reflects compensation cost of $4.4 million recognized in connection with the vesting of restricted stock performance awards.~~

Note 1112 - Income Taxes

The Company recorded an income tax expense of ~~$80.9~~$0.5 million and ~~an income tax benefit of $2.0~~$75.8 million for the three months ended ~~June 30,~~March 31, 2021 and 2020, ~~and 2019, respectively, and an~~respectively. The 2021 income tax expense primarily related to the Macau dividend tax agreement that provides for an annual payment of ~~$156.7~~MOP 12.8 million ~~and an income~~(approximately $1.6 million) as complementary tax ~~benefit~~otherwise due by stockholders of ~~$0.3 million for the six months ended June 30, 2020 and 2019.~~Wynn Macau SA. The ~~The~~ 2020 income tax expense primarily related to the increase in the valuation ~~allowances for U.S foreign tax credits and U.S. loss carryforwards. The 2019 income tax benefit primarily related to the decrease in the valuation~~ allowance for ~~U.S~~U.S. foreign tax credits.

In March 2021, the Company received an extension of its Macau dividend tax agreement, providing for a payment of MOP 12.8 million (approximately $1.6 million) for 2021 and MOP 6.3 million (approximately $0.8 million) for the period ending June 26, 2022, the expiration date of the gaming concession agreement.

The Company records valuation allowances on certain of its U.S. and foreign deferred tax assets. InDuring the third quarter of 2020, the Company concluded it could no longer rely on forecasted future taxable income in assessing a valuation allowance on its deferred tax assets. This conclusion was reached due to cumulative operating losses incurred by the Company and tax legislation that reduced future sources of taxable income. As of March 31, 2021, the Company continues to rely solely on the reversal of net taxable temporary differences in assessing a need for a valuation allowance, the Company considers whether it is more likely than not that the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income. In the assessment of the valuation allowance, appropriate consideration is given to all positive and negative evidence including recent operating profitability, forecast of future earnings and the duration of statutory carryforward periods.allowance.

In April 2020, Wynn Macau SA received ~~a five year~~an extension of the exemption from ~~Macau's~~Macau’s 12% Complementary Tax on casino gaming profits ~~through December 31, 2020. Accordingly, for~~earned from January 1, 2021 to June 26, 2022, the expiration date of the gaming concession agreement.

For the three months ended June 30, 2019, the Company was exempt from the payment of such taxes totaling $19.8 million. For the six months ended June 30, 2019, the Company was exempt from the payment of such taxes totaling $42.6 million. For the threeMarch 31, 2021 and ~~six months ended June 30,~~ 2020, the Company did not have any casino gaming profits exempt from the Macau Complementary Tax. The Company's non-gaming profits remain subject to the Macau Complementary Tax and its casino winnings remain subject to the Macau special gaming tax and other levies in accordance with its concession agreement.

In ~~April 2020, Wynn Macau SA received an extension~~March 2021, the Financial Services Bureau concluded its review of the ~~exemption from Macau’s 12% Complementary Tax on casino gaming profits earned from January 1, 2021 to June 26, 2022, the expiration date~~2017 and 2018 Macau income tax returns of ~~the gaming concession agreement.~~Palo with no changes.

Note 1213 - Earnings Per Share

Basic earnings per share ("EPS") is computed by dividing net ~~income (loss)~~loss attributable to Wynn Resorts by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing net ~~income~~loss attributable to Wynn Resorts by the weighted average number of common shares outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potential dilutive securities had been ~~issued.~~issued, to the extent such impact is not anti-dilutive. Potentially dilutive securities include outstanding stock options and unvested restricted stock.

1916

Table of Contents

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

The weighted average number of common and common equivalent shares used in the calculation of basic and diluted EPS consisted of the following (in thousands, except per share amounts):


		Three Months Ended June 30,						Six Months Ended June 30,							Three Months Ended March 31,
		2020		2019		2020		2019			2021		2020
Numerator:	Numerator:									Numerator:
Net income (loss) attributable to Wynn Resorts, Limited		$	(637,564)	$	94,551	$	(1,039,601)	$	199,423
Net loss attributable to Wynn Resorts, Limited										Net loss attributable to Wynn Resorts, Limited	$	(280,978)	$	(402,037)

Denominator:	Denominator:									Denominator:
Weighted average common shares outstanding	Weighted average common shares outstanding	106,713		106,876		106,688		106,834		Weighted average common shares outstanding	111,020		106,663
Potential dilutive effect of stock options, nonvested, and performance nonvested shares	Potential dilutive effect of stock options, nonvested, and performance nonvested shares	—		265		—		255		Potential dilutive effect of stock options, nonvested, and performance nonvested shares	0		0
Weighted average common and common equivalent shares outstanding	Weighted average common and common equivalent shares outstanding	106,713		107,141		106,688		107,089		Weighted average common and common equivalent shares outstanding	111,020		106,663

Net income (loss) attributable to Wynn Resorts, Limited per common share, basic		$	(5.97)	$	0.88	$	(9.74)	$	1.87
Net income (loss) attributable to Wynn Resorts, Limited per common share, diluted		$	(5.97)	$	0.88	$	(9.74)	$	1.86
Net loss attributable to Wynn Resorts, Limited per common share, basic										Net loss attributable to Wynn Resorts, Limited per common share, basic	$	(2.53)	$	(3.77)
Net loss attributable to Wynn Resorts, Limited per common share, diluted										Net loss attributable to Wynn Resorts, Limited per common share, diluted	$	(2.53)	$	(3.77)

Anti-dilutive stock options, nonvested, and performance nonvested shares excluded from the calculation of diluted net income per share	Anti-dilutive stock options, nonvested, and performance nonvested shares excluded from the calculation of diluted net income per share	1,127		287		1,127		365		Anti-dilutive stock options, nonvested, and performance nonvested shares excluded from the calculation of diluted net income per share	1,235		1,209

Note 1314 - Leases

Lessor Arrangements

The following table presents the minimum and contingent operating lease income for the periods presented (in thousands):


		Three Months Ended June 30,						Six Months Ended June 30,							Three Months Ended March 31,
		2020		2019		2020		2019			2021		2020
Minimum rental income	Minimum rental income	$	28,073	$	33,671	$	59,723	$	66,379	Minimum rental income	$	22,738	$	31,650
Contingent rental income	Contingent rental income	1,839		11,945		8,519		26,916		Contingent rental income	26,006		6,679
Total rental income	Total rental income	$	29,912	$	45,616	$	68,242	$	93,295	Total rental income	$	48,744	$	38,329

Note 1415 - Commitments and Contingencies

Litigation

In addition to the actions noted below, the Company and its affiliates are involved in litigation arising in the normal course of business. In the opinion of management, such litigation is not expected to have a material effect on the Company's financial condition, results of operations, and cash flows.

Massachusetts Gaming License Related Actions

On September 17, 2014, the Massachusetts Gaming Commission ("MGC") designated Wynn MA the award winner of the Greater Boston (Region A) gaming license (the "Boston area license"). On November 7, 2014, the gaming license became effective.

~~Table of Contents~~

~~WYNN RESORTS, LIMITED AND SUBSIDIARIES~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)~~

~~(unaudited)~~

Revere Action

On October 16, 2014, the City of Revere, the host community to the unsuccessful bidder for the Boston area license, the International Brotherhood of Electrical Workers, Local 103, and several individuals, filed a complaint against the MGC and its gaming commissioners in Suffolk Superior Court in Boston, Massachusetts (the "Revere Action"). Mohegan Sun ("Mohegan"), the other applicant for the Boston area license, joined the lawsuit and challenged the MGC's award of the Boston area license. On December 3, 2015, the court granted the MGC's motion to dismiss the claims asserted in the Revere Action and the court dismissed all claims except Mohegan's claim alleging procedural error by the MGC in granting the license to Wynn MA. The

Table of Contents

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

plaintiffs appealed. After multiple appeals and cross appeals, only two claims remained: (1) individual plaintiffs' claim for violation of the open meeting laws; and (2) Mohegan's claim for procedural error. On July 12, 2019, the Suffolk Superior Court granted the MGC's motion for summary judgment and dismissed the open meeting law claim, leaving only Mohegan's procedural ~~claim.~~claim for procedural error.

On August 2, 2019, Mohegan filed a motion to file a second amended complaint, to add new claims related to the MGC's allegedly inadequate 2013 investigation. On October 15, 2019, the court granted Mohegan's motion to amend and allowed it to file a second amended intervenor's complaint.

Wynn MA ~~was~~is not a party to and is not named in the Revere Action.

Derivative Litigation

A number of stockholder derivative actions ~~have been~~were filed in state and federal court located in Clark County, Nevada against certain current and former members of the Company's Board of Directors and, in some cases, the Company's current and former officers. Each of the complaints ~~alleges,~~alleged, among other things, breach of fiduciary duties in failing to detect, prevent and remedy alleged inappropriate personal conduct by Stephen A. Wynn in the workplace. ~~On September 19, 2018, the Board established a Special Litigation Committee (the "SLC") to investigate the allegations in the State Derivative Case (as defined below).~~

The actions filed in the Eighth Judicial District Court of Clark County, Nevada were consolidated as In re Wynn Resorts, Ltd. Derivative Litigation ("State Derivative Case"). ~~On October 26, 2018, the SLC filed a motion to intervene and stay the State Derivative Case pending completion of its investigation, which the court granted.~~

On June 3, 2019, a separate stockholder derivative action was filed in the Eighth Judicial District Court of Clark County, Nevada alleging substantially similar causes of action as the State Derivative Case with the additional allegation that various of the Company's attorneys committed professional malpractice, and certain current and former executives also breached fiduciary duties and aided and abetted the breach of fiduciary duties, in connection with the alleged inappropriate personal conduct by Stephen A. Wynn in the workplace. ~~On July 26,~~This case was consolidated in September 2019 the plaintiff voluntarily dismissed Matt Maddox, Stephen A. Wynn, Kimmarie Sinatra, John J. Hagenbuch, Ray R. Irani, Jay L. Johnson, Robert J. Miller, Patricia Mulroy, Clark T. Randt, Jr., Alvin V. Shoemaker, J. Edward Virtue, D. Boone Wayson, and one of the Company's law firms from the action. On September 19, 2019, the court entered an order consolidating this action into ~~the State Derivative Case, and on December 2, 2019, further clarified that this action may not proceed as a separate action apart from~~ the State Derivative Case.

On November 27, 2019, the State Derivative Case parties agreed to terms of a settlement agreement. The court approved the settlement agreement on February 12, 2020, and entered a written order approving the settlement on March 10, 2020. Following the Nevada Supreme Court’s dismissal of the only appeal, the settlement agreement ~~has now become~~became effective and final. Following the dismissal, the Company ~~has~~ received net proceeds of ~~$27.7~~$30.2 million, which has been recognized as a reduction of general and administrative expense within the ~~accompanying~~ Condensed Consolidated Statements of Operations for the ~~three and six~~nine months ended ~~June~~September 30, 2020.

In 2018, several actions filed in the United States District Court, District of Nevada were consolidated as In re Wynn Resorts, Ltd. Derivative Litigation ("Federal Derivative Case"), which also claim corporate waste and violation of Section 14(a) of the Exchange Act. In June 2018, the Company filed a motion to dismiss and a motion to stay pending resolution of the Securities Action (described below). On March 29, 2019, the Court granted the Company's request for a stay. On March 25, 2020, the parties stipulated to dismiss the Federal Derivative Case given the approved settlement in the State Derivative Case.

On March 25, 2019, a separate stockholder derivative action was filed in the United States District Court, District of Nevada alleging ~~identical~~similar causes of action as the Federal Derivative Case with the additional allegation that the Board of Directors improperly refused the stockholder's demand to commence litigation against the officers and directors of the

~~Table of Contents~~

~~WYNN RESORTS, LIMITED AND SUBSIDIARIES~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)~~

~~(unaudited)~~

Company. On June 10, 2019, the Company filed a motion to dismiss, or alternatively to consolidate this action into the Federal Derivative Case. On March 23, 2020, the court denied the Company’s motion to dismiss as moot given the approved settlement in the State Derivative Case. On April 30, 2020, the Company filed a motion for summary judgment, seeking dismissal of the claims given the approved settlement in the State Derivative Case. On January 12, 2021, the court granted the Company’s motion for summary judgment of this action and denied the stockholder’s request to vacate the parties' stipulation to dismiss the Federal Derivative Case. On February 11, 2021, the stockholder filed a notice of appeal to the United States Court of Appeals for the Ninth Circuit.

Each of the actions ~~seeks~~sought to recover for the Company unspecified damages, including restitution and disgorgement of profits, and also ~~seeks~~sought to recover attorneys' fees, costs and related expenses for the plaintiff.

~~Individual Stockholder Actions~~

A number of stockholders have filed individual actions in the Eighth Judicial District Court of Clark County, Nevada against certain current and former members of the Company's Board of Directors and certain of the Company's current and former officers ("Individual Stockholder Actions"). Each of the complaints alleges that defendants, among other things, breached their fiduciary duties in failing to detect, prevent and remedy alleged inappropriate personal conduct by Stephen A. Wynn in the workplace causing injury to each of the individual stockholders.

On January 29, 2019, the defendants filed motions to dismiss each of the Individual Stockholder Actions. On December 12, 2019, the district court entered an order denying the motions to dismiss, which the defendants appealed to the Nevada Supreme Court on December 24, 2019.On January 7, 2020, the Nevada Supreme Court stayed the underlying Individual Stockholder Actions pending a decision on the defendants' appeal. On July 27, 2020, the Supreme Court issued an order mandating that the district court dismiss the action.

Securities Action

On February 20, 2018, a putative securities class action was filed against the Company and certain current and former officers of the Company in the United States District Court, Southern District of New York (which was subsequently transferred to the United States District Court, District of Nevada) by John V. Ferris and Joann M. Ferris on behalf of all persons who purchased the Company's common stock between February 28, 2014 and January 25, 2018. The complaint alleges,

Table of Contents

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

among other things, certain violations of federal securities laws and seeks to recover unspecified damages as well as attorneys' fees, costs and related expenses for the plaintiffs. On April 15, 2019, the Company filed a motion to dismiss, which the court granted on May 27, 2020, with leave to amend. On July 1, 2020, the plaintiffs filed an amended complaint. ~~The~~On August 14, 2020, the Company ~~is now preparing~~filed a motion to dismiss the amended ~~complaint.~~complaint, which is pending decision from the court.

The defendants in these actions will vigorously defend against the claims pleaded against them. These actions are in preliminary stages and management has determined that based on proceedings to date, it is currently unable to determine the probability of the outcome of these actions or the range of reasonably possible loss, if any.

Federal Investigation

From time to time, the Company receives regulatory inquiries about compliance with anti-money laundering laws. The Company received requests for information from the U.S. Attorney’s Office for the Southern District of California relating to its anti-money laundering policies and procedures, and in the first half of 2020, received two grand jury subpoenas regarding various transactions at Wynn Las Vegas relating to certain patrons and agents who reside or operate in foreign jurisdictions. The Company continues to cooperate with the U.S. Attorney’s Office in its investigation, which remains ongoing. Because no charges or claims have been brought, the Company is unable to predict the outcome of the investigation, the extent of the materiality of the outcome, or reasonably estimate the possible ~~loss or~~ range of loss, if any, which could be associated with the resolution of any possible charges or claims that may be brought against the Company.

Note 1516 - Retail Joint Venture

As of ~~June 30, 2020~~March 31, 2021 and December 31, ~~2019,~~2020, the Retail Joint Venture had total assets of ~~$97.0~~$103.9 million and ~~$90.0~~$96.3 million, respectively, and total liabilities of ~~$640.5~~$629.7 million and ~~$622.4~~$633.5 million, respectively. As of ~~June 30, 2020~~March 31, 2021 and December 31, ~~2019,~~2020, the Retail Joint Venture's liabilities included long-term debt of ~~$612.0~~$612.5 million and ~~$611.7~~$612.3 million, respectively, net of debt issuance costs, related to the outstanding borrowings under the Retail Term Loan.

~~Table of Contents~~

~~WYNN RESORTS, LIMITED AND SUBSIDIARIES~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)~~

~~(unaudited)~~

Note 1617 - Segment Information

The Company reviews the results of operations for each of its operating segments, and identifies reportable segments based upon factors such as geography, regulatory environment, and the Company's organizational and management reporting structure. 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. Other Macau primarily represents the assets for the Company's Macau holding company. 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"). ~~On June 23, 2019, the Company opened Encore Boston Harbor, an integrated resort in Everett, Massachusetts.~~ Encore Boston Harbor is presented as one reportable segment. ~~Other Macau primarily represents the assets for the Company's Macau holding company.~~

2319

Table of Contents

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

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


		Three Months Ended June 30,						Six Months Ended June 30,							Three Months Ended March 31,
		2020		2019		2020		2019			2021		2020
Operating revenues	Operating revenues									Operating revenues
Macau Operations:	Macau Operations:									Macau Operations:
Wynn Palace	Wynn Palace									Wynn Palace
Casino	Casino	$	(11,428)	$	528,545	$	196,148	$	1,151,720	Casino	$	185,909	$	207,576
Rooms	Rooms	2,431		43,183		22,141		86,498		Rooms	17,012		19,710
Food and beverage	Food and beverage	4,231		28,810		17,529		57,434		Food and beverage	11,672		13,298
Entertainment, retail and other (1)	Entertainment, retail and other (1)	13,484		28,378		32,413		59,886		Entertainment, retail and other (1)	22,733		18,929
		8,718		628,916		268,231		1,355,538			237,326		259,513
Wynn Macau	Wynn Macau									Wynn Macau
Casino	Casino	(3,524)		481,204		186,604		931,446		Casino	138,927		190,128
Rooms	Rooms	2,631		26,465		18,542		55,331		Rooms	14,702		15,911
Food and beverage	Food and beverage	3,684		20,129		13,215		41,105		Food and beverage	7,433		9,531
Entertainment, retail and other (1)	Entertainment, retail and other (1)	9,097		18,676		23,016		42,483		Entertainment, retail and other (1)	18,589		13,919
		11,888		546,474		241,377		1,070,365			179,651		229,489
Total Macau Operations	Total Macau Operations	20,606		1,175,390		509,608		2,425,903		Total Macau Operations	416,977		489,002

Las Vegas Operations:	Las Vegas Operations:									Las Vegas Operations:
Casino	Casino	24,365		119,753		95,660		231,437		Casino	79,903		71,295
Rooms	Rooms	12,353		127,554		118,458		246,644		Rooms	39,761		106,105
Food and beverage	Food and beverage	16,092		165,197		122,071		288,816		Food and beverage	40,077		105,979
Entertainment, retail and other (1)	Entertainment, retail and other (1)	12,076		51,638		52,521		98,278		Entertainment, retail and other (1)	18,975		40,445
Total Las Vegas Operations	Total Las Vegas Operations	64,886		464,142		388,710		865,175		Total Las Vegas Operations	178,716		323,824

Encore Boston Harbor:	Encore Boston Harbor:									Encore Boston Harbor:
Casino	Casino	—		13,001		101,790		13,001		Casino	111,479		101,790
Rooms	Rooms	—		1,605		10,955		1,605		Rooms	4,715		10,955
Food and beverage	Food and beverage	—		3,886		20,606		3,886		Food and beverage	9,327		20,606
Entertainment, retail and other (1)	Entertainment, retail and other (1)	206		308		7,745		308		Entertainment, retail and other (1)	4,569		7,539
Total Encore Boston Harbor	Total Encore Boston Harbor	206		18,800		141,096		18,800		Total Encore Boston Harbor	130,090		140,890

Total operating revenues	Total operating revenues	$	85,698	$	1,658,332	$	1,039,414	$	3,309,878	Total operating revenues	$	725,783	$	953,716

2420

Table of Contents

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)


		Three Months Ended June 30,						Six Months Ended June 30,							Three Months Ended March 31,
		2020		2019		2020		2019			2021		2020
Adjusted Property EBITDA (2)	Adjusted Property EBITDA (2)									Adjusted Property EBITDA (2)
Macau Operations:	Macau Operations:									Macau Operations:
Wynn Palace	Wynn Palace	$	(110,908)	$	167,165	$	(100,732)	$	389,751	Wynn Palace	$	27,369	$	10,176
Wynn Macau	Wynn Macau	(82,646)		175,873		(63,438)		339,762		Wynn Macau	16,556		19,208
Total Macau Operations	Total Macau Operations	(193,554)		343,038		(164,170)		729,513		Total Macau Operations	43,925		29,384
Las Vegas Operations (3)	Las Vegas Operations (3)	(75,564)		137,399		(97,641)		245,701		Las Vegas Operations (3)	28,081		(22,077)
Encore Boston Harbor (4)	Encore Boston Harbor (4)	(53,779)		146		(66,415)		146		Encore Boston Harbor (4)	30,363		(12,636)
Corporate and other										Corporate and other	(43,469)		0
Total	Total	(322,897)		480,583		(328,226)		975,360		Total	58,900		(5,329)
Other operating expenses	Other operating expenses									Other operating expenses
Pre-opening	Pre-opening	2,186		69,883		4,737		97,596		Pre-opening	1,627		2,551
Depreciation and amortization	Depreciation and amortization	179,266		140,269		358,012		276,826		Depreciation and amortization	185,121		178,746
Property charges and other	Property charges and other	6,567		6,930		33,796		9,704		Property charges and other	5,617		27,229
Corporate expenses and other (5)		(8,984)		35,295		15,208		97,844
Stock-based compensation (6)		21,084		9,490		30,448		19,498
Corporate expenses and other										Corporate expenses and other	17,921		24,192
Stock-based compensation										Stock-based compensation	24,346		9,364
Total other operating expenses	Total other operating expenses	200,119		261,867		442,201		501,468		Total other operating expenses	234,632		242,082
Operating income (loss)		(523,016)		218,716		(770,427)		473,892
Operating loss										Operating loss	(175,732)		(247,411)
Other non-operating income and expenses	Other non-operating income and expenses									Other non-operating income and expenses
Interest income	Interest income	3,983		6,265		11,936		13,552		Interest income	904		7,953
Interest expense, net of amounts capitalized	Interest expense, net of amounts capitalized	(133,218)		(93,149)		(262,045)		(186,329)		Interest expense, net of amounts capitalized	(152,852)		(128,827)
Change in derivatives fair value	Change in derivatives fair value	(3,294)		(3,304)		(18,954)		(4,813)		Change in derivatives fair value	4,409		(15,660)
Loss on extinguishment of debt	Loss on extinguishment of debt	(619)		—		(1,462)		—		Loss on extinguishment of debt	(1,322)		(843)
Other	Other	2,233		11,715		12,568		5,357		Other	(11,093)		10,335
Total other non-operating income and expenses	Total other non-operating income and expenses	(130,915)		(78,473)		(257,957)		(172,233)		Total other non-operating income and expenses	(159,954)		(127,042)
Income (loss) before income taxes		(653,931)		140,243		(1,028,384)		301,659
(Provision) benefit for income taxes		(80,938)		1,991		(156,738)		306
Net income (loss)		(734,869)		142,234		(1,185,122)		301,965
Net (income) loss attributable to noncontrolling interests		97,305		(47,683)		145,521		(102,542)
Net income (loss) attributable to Wynn Resorts, Limited		$	(637,564)	$	94,551	$	(1,039,601)	$	199,423
Loss before income taxes										Loss before income taxes	(335,686)		(374,453)
Provision for income taxes										Provision for income taxes	(493)		(75,800)
Net loss										Net loss	(336,179)		(450,253)
Net loss attributable to noncontrolling interests										Net loss attributable to noncontrolling interests	55,201		48,216
Net loss attributable to Wynn Resorts, Limited										Net loss attributable to Wynn Resorts, Limited	$	(280,978)	$	(402,037)

(1) Includes lease revenue accounted for under lease accounting guidance. For more information on leases, see Note ~~13,~~14, "Leases".

(2) "Adjusted Property EBITDA" is net ~~income (loss)~~loss before interest, income taxes, depreciation and amortization, pre-opening expenses, property charges and other, management and license fees, corporate expenses and other (including intercompany golf course, meeting and convention, and water rights leases), stock-based compensation, change in derivatives fair value, loss on extinguishment of debt, 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. We also present Adjusted Property EBITDA because it is used by some investors 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 preopening 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 our 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. We have 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, our calculation of Adjusted Property EBITDA may be different from the calculation methods used by other companies and, therefore, comparability may be limited.

(3) For the three months ended ~~June 30,~~March 31, 2020, ex~~cludes~~includes $56.4 million of expense ~~accrued~~accrued during the ~~first~~ quarter ~~of 2020~~ related to the Company's commitment to pay salary, tips, and benefits continuation for all of ~~our~~its U.S. employees for the period from April 1 through May 15, 2020.

(4) For the three months ended ~~June 30,~~March 31, 2020, ~~excludes~~includes $19.3 million of expense accrued during the ~~first~~ quarter ~~of 2020~~ related to the Company's commitment to pay salary, tips, and benefits continuation for all of ~~our~~its U.S. employees for the period from April 1 through May 15, 2020.

(5) For the three and six months ended June 30, 2020, includes a $27.7 million net gain recorded in relation to a derivative litigation settlement. For the six months ended June 30, 2019, includes a $35.0 million nonrecurring regulatory expense.

~~(6) Excludes~~ ~~$0.4 million~~ ~~and $0.7 million included in pre-opening expenses for the three and six months ended June 30, 2019, respectively.~~

~~Table of Contents~~

~~WYNN RESORTS, LIMITED AND SUBSIDIARIES~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)~~

~~(unaudited)~~

June 30,
2020 December 31,
2019
Assets
Macau Operations:
Wynn Palace $ 3,568,590 $ 3,734,210
Wynn Macau 1,586,192 1,656,625
Other Macau 1,709,555 1,023,411
Total Macau Operations 6,864,337 6,414,246
Las Vegas Operations 3,060,303 2,806,972
Encore Boston Harbor 2,331,115 2,456,667
Corporate and other 2,629,920 2,193,396
Total $ 14,885,675 $ 13,871,281

2621

Table of Contents

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)


	March 31, 2021		December 31, 2020
Assets
Macau Operations:
Wynn Palace	$	3,310,394	$	3,393,790
Wynn Macau	1,054,456		1,202,709
Other Macau	1,537,208		2,026,098
Total Macau Operations	5,902,058		6,622,597
Las Vegas Operations	2,993,182		2,992,870
Encore Boston Harbor	2,276,657		2,300,016
Corporate and other	1,995,014		1,954,064
Total	$	13,166,911	$	13,869,547

Table of Contents

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with, and is qualified in its entirety by, the condensed consolidated financial statements and the notes thereto included elsewhere in this Form 10-Q and the consolidated financial statements appearing in our annual report on Form 10-K for the year ended December 31, ~~2019.~~2020. Unless the context otherwise requires, all references herein to the "Company," "we," "us," or "our," or similar terms, refer to Wynn Resorts, Limited, a Nevada corporation, and its consolidated subsidiaries. This discussion and analysis contains forward-looking statements. Please refer to the section below entitled "Special Note Regarding Forward-Looking Statements."

Overview

We are a designer, developer, and operator of integrated resorts featuring luxury hotel rooms, high-end retail space, an array of dining and entertainment options, meeting and convention facilities, and gaming, all supported by an unparalleled focus on our guests, our people, and our community. Through our approximately 72% ownership of WML, we operate two integrated resorts in the Macau Special Administrative Region of the People's Republic of China ("Macau"), Wynn Palace and Wynn Macau (collectively, our "Macau Operations"). In Las Vegas, Nevada, we operate and, with the exception of certain retail space, own 100% of Wynn Las Vegas, which we also refer to as our Las Vegas Operations. On June 23, 2019, we opened Encore Boston Harbor, an integrated resort in Everett, Massachusetts. In October 2020, Wynn Interactive Ltd. ("Wynn Interactive") was formed through the merger of our U.S. online sports betting and gaming business, social casino business, and our strategic partner, BetBull Limited ("BetBull"). Following the merger and subsequent transactions, Wynn Resorts holds an approximately 74% interest in, and consolidates, Wynn Interactive. The results of Wynn Interactive are presented within Corporate and other.

Recent Developments Related to COVID-19

~~As previously disclosed, in January 2020, an~~Since the outbreak of ~~a new strain of coronavirus,~~ COVID-19 ~~("COVID-19"), was identified. Since then, COVID-19 has spread around the world, and~~in early 2020, steps have been taken by various countries, including those in which ~~we operate,~~the Company operates, to advise citizens to avoid non-essential travel, to restrict inbound international travel, to implement closures of non-essential operations, and to implement quarantines and lockdowns to contain the spread of the virus. ~~Currently, no fully effective treatments or vaccines have been developed, and there can be no assurance as to if or when an effective treatment or vaccine will be discovered.~~

~~Macau Operations~~

Macau Operations

Visitation to Macau has fallen significantly since the outbreak of COVID-19, driven by the ~~pandemic's~~ strong deterrent effect of the COVID-19 pandemic on travel and social activities, ~~the Chinese government's suspension of its visa and group tour schemes that allow mainland Chinese residents to travel to Macau, various~~ quarantine measures in Macau and elsewhere, travel and entry restrictions and conditions in Macau, the PRC, Hong Kong and Taiwan ~~and mainland China,~~involving COVID-19 testing, among other things, and the suspension or reduced accessibility of ~~ferry services~~transportation to and from Macau. Beginning in June 2020 certain restrictions and conditions have eased to allow for visitation to Macau as certain regions recover from ~~Hong Kong~~the COVID-19 pandemic. Quarantine-free travel, subject to COVID-19 safeguards such as testing and ~~mainland China~~the usual visa requirements, has been reintroduced between Macau and ~~other modes of transportation~~most areas and cities within ~~Macau.~~the PRC, and in September 2020, PRC authorities fully resumed the IVS exit visa program, which permits individual PRC citizens from nearly 50 PRC cities to travel to Macau for tourism purposes. Total visitation from ~~mainland China~~PRC to Macau decreased by ~~99.3% and 83.7%~~31.7% in the ~~three and six months~~quarter ended ~~June 30, 2020,~~March 31, 2021, compared towith the same periods in 2019. Regionally, bans on entry or enhanced quarantine requirements, depending on the person’s residency and their recent travel history, for any Macau residents, PRC citizens, Hong Kong residents and Taiwan residents attempting to enter Macau are drastically impacting visitation. Persons who are not residents of the Greater China area are barred from entry to Macau at this time.quarter ended March 31, 2020.

~~While most of~~Given the ~~foregoing travel restrictions~~evolving conditions created by and ~~quarantine requirements continue~~in response to ~~weigh on visitation to Macau, beginning in June 2020 certain of these restrictions are being eased as the region gradually recovers from~~ the COVID-19 pandemic. In July 2020, Guangdong Province, a Chinese province adjacent to Macau, eased certain quarantine requirements for those traveling between Guangdong Province and Macau, subject to certain testing requirements and health declarations. Quarantine requirements for those traveling between Hong Kong and Macaupandemic, measures that have been ~~announced to remain effective until at least September 7, 2020, at which time they~~lifted may be ~~lifted. In~~reintroduced if there are adverse developments in the ~~initial phase of opening travel channels between~~COVID-19 situation in Macau and other regions ~~it is expected that all visitors seeking entry~~with access to ~~Macau will need to test negative for COVID-19 before entering~~ Macau. Although Mainland China and Macau have recently announced several policies or changes to policies which relax certain visa issuance, border control and quarantine requirements, stringent health declarations, testing and other procedures

2723

Table of Contents

remain in place and the Individual Visitor Scheme which, prior to its suspension by the PRC government due to COVID-19 travel restrictions, permitted individual PRC citizens from nearly 50 PRC cities to travel to Macau for tourism purposes, has yet to restart.

Las Vegas Operations and Encore Boston Harbor

~~Wynn~~The Company’s Las Vegas ~~closed on March 17, 2020,~~Operations and ~~reopened on June 4, 2020 with~~Encore Boston Harbor have each implemented certain COVID-19 specific protective measures, ~~in place,~~ such as limiting the number of seats per table game, slot machine spacing, temperature checks, mask protection, and suspension of certain entertainment and nightlife offerings.

On April 8, 2021, Encore at Wynn Las Vegas resumed full operations, having previously adjusted its operating schedule to five days/four nights each week due to reduced customer demand levels beginning on October 19, 2020. On April 13, 2021, the Governor of Nevada announced that the statewide social distancing mandate will be removed and decisions on social distancing will be returned to local authority by May 1, 2021, with a goal to have all Nevada counties open to 100% capacity by June 1, 2021. The Gaming Control Board will continue to maintain authority over gaming areas of licensed properties in Nevada. On May 3, 2021, the Gaming Control Board announced that, effective immediately, the Company's Las Vegas Operations are permitted to reopen all gaming areas to 100% of capacity, with no continuing table game or slot machine spacing restrictions. At Encore Boston Harbor, ~~commenced operations~~ on ~~June 23, 2019. In response to~~January 25, 2021, limitations on operating hours that had been in place since November 2020 were lifted, and the ~~COVID-19 pandemic, Encore Boston Harbor ceased all~~property restored certain operations and ~~closed to the public~~reopened its hotel tower on March 15, 2020, for the remainder of the first and second quarters of 2020. On July 12, 2020, Encore Boston Harbor reopened with certain COVID-19 specific protective measures in place, such as limiting the number of seats per table game, slot machine spacing, temperature checks, and mask protection. In addition, certain food and beverage outlets remain closed and hotel reservations have been limited toa Thursday through ~~Sunday.~~Sunday weekly schedule.

The ~~disruptions arising from the~~ COVID-19 ~~outbreak have~~pandemic has had ~~during the three and six months ended June 30, 2020,~~ and will continue to have an adverse effect on the Company's results of operations. ~~Our operations are generating extremely limited revenue.~~Notwithstanding the easing of certain COVID-19 protective measures by authorities throughout the world, certain travel restrictions, quarantine measures, testing requirements, and capacity limitations remain in effect, and the Company is currently unable to determine when protective measures and the suspension of certain offerings in effect at our Macau Operations, Las Vegas Operations, and Encore Boston Harbor will be lifted. Given the uncertainty around the extent and timing of the potential future spread or mitigation of COVID-19 and around the imposition or relaxation of protective measures, management cannot reasonably estimate the impact onto the ~~Company’s consolidated~~Company's future results of operations, cash flows, ~~and~~or financial condition in 2020 and potentially thereafter will be material, but cannot be reasonably estimated at this time as it is unknown when the COVID-19 pandemic will end, when or if our properties will return to pre-pandemic demand and pricing, when or how quickly the current travel restrictions will be modified or cease to be necessary and the resulting impact on the Company’s business.condition.

Key Operating Measures

Certain key operating measures specific to the gaming industry are included in our discussion of our operational performance for the periods for which the Condensed Consolidated Statements of Operations are presented. These key operating measures are presented as supplemental disclosures because management and/or certain investors use these measures to better understand period-over-period fluctuations in our casino and hotel operating revenues. These key operating measures are defined below:

•Table drop in mass market for our Macau Operations is the amount of cash that is deposited in a gaming table's drop box plus cash chips purchased at the casino cage.

•Table drop for our Las Vegas Operations is the amount of cash and net markers issued that are deposited in a gaming table's drop box.

•Table drop for Encore Boston Harbor is the amount of cash and gross markers issued that are deposited in a gaming table's drop box.

•Rolling chips are non-negotiable identifiable chips that are used to track turnover for purposes of calculating incentives within our Macau Operations' VIP program.

•Turnover is the sum of all losing rolling chip wagers within our Macau Operations' VIP program.

•Table games win is the amount of table drop or turnover that is retained and recorded as casino revenues. Table games win is before discounts, commissions and the allocation of casino revenues to rooms, food and beverage and other revenues for services provided to casino customers on a complimentary basis. Table games win does not include poker rake.

•Slot machine win is the amount of handle (representing the total amount wagered) that is retained by us and is recorded as casino revenues. Slot machine win is after adjustment for progressive accruals and free play, but before discounts and the allocation of casino revenues to rooms, food and beverage and other revenues for services provided to casino customers on a complimentary basis.

•Poker rake is the portion of cash wagered by patrons in our poker rooms that is retained by the casino as a service fee, after adjustment for progressive accruals, but before the allocation of casino revenues to rooms, food and beverage and other revenues for services provided to casino customers on a complimentary basis. Poker tables are not included in our measure of average number of table games.

•Average daily rate ("ADR") is calculated by dividing total room revenues, including complimentaries (less service charges, if any), by total rooms occupied.

•Revenue per available room ("REVPAR") is calculated by dividing total room revenues, including complimentaries (less service charges, if any), by total rooms available.

2824

Table of Contents

•~~Revenue per available room ("REVPAR") is calculated by dividing total room revenues, including complimentaries (less service charges, if any), by total rooms available.~~

•Occupancy is calculated by dividing total occupied rooms, including complimentary rooms, by the total rooms available.

Below is a discussion of the methodologies used to calculate win percentages at our resorts.

In our VIP operations in Macau, customers primarily purchase rolling chips from the casino cage and can only use them to make wagers. Winning wagers are paid in cash chips. The loss of the rolling chips in the VIP operations is recorded as turnover and provides a base for calculating VIP win percentage. It is customary in Macau to measure VIP play using this rolling chip method. We expect our win as a percentage of turnover from these operations to be within the range of 2.7% to 3.0%.

In our mass market operations in Macau, customers may purchase cash chips at either the gaming tables or at the casino cage. The measurements from our VIP and mass market operations are not comparable as the measurement method used in our mass market operations tracks the initial purchase of chips at the table and at the casino cage, while the measurement method from our VIP operations tracks the sum of all losing wagers. Accordingly, the base measurement from the VIP operations is much larger than the base measurement from the mass market operations. As a result, the expected win percentage with the same amount of gaming win is lower in the VIP operations when compared to the mass market operations.

In Las Vegas, customers purchase chips at the gaming tables in exchange for cash and markers. Customers may then redeem markers at the gaming tables or at the casino cage. The cash and markers, net of redemptions, used to purchase chips are deposited in the gaming table's drop box. This is the base of measurement that we use for calculating win percentage. Each type of table game has its own theoretical win percentage. Our expected table games win percentage is 22% to 26%.

At Encore Boston Harbor, customers purchase chips at the gaming tables in exchange for cash and markers. Customers may then redeem markers only at the casino cage. The cash and gross markers used to purchase chips are deposited in the gaming table's drop box. This is the base of measurement that we use for calculating win percentage. Each type of table game has its own theoretical win percentage. Our expected table games win percentage is ~~16%~~18% to ~~20%~~22%.

Results of Operations

Summary of ~~second~~first quarter ~~2020~~2021 results

The following table summarizes our financial results for the periods presented (in thousands, except per share data):


		Three Months Ended June 30,											Six Months Ended June 30,											Three Months Ended March 31,
		2020		2019		Increase/ (Decrease)		Percent Change	2020		2019		Increase/ (Decrease)		Percent Change		2021		2020		Increase/ (Decrease)		Percent Change
Operating revenues	Operating revenues	$	85,698	$	1,658,332	$	(1,572,634)	(94.8)	$	1,039,414	$	3,309,878	$	(2,270,464)	(68.6)	Operating revenues	$	725,783	$	953,716	$	(227,933)	(23.9)
Net income (loss) attributable to Wynn Resorts, Limited		(637,564)		94,551		(732,115)		(774.3)	(1,039,601)		199,423		(1,239,024)		(621.3)
Diluted net income (loss) per share		(5.97)		0.88		(6.85)		(778.4)	(9.74)		1.86		(11.60)		(623.7)
Net loss attributable to Wynn Resorts, Limited																Net loss attributable to Wynn Resorts, Limited	(280,978)		(402,037)		121,059		30.1
Diluted net loss per share																Diluted net loss per share	(2.53)		(3.77)		1.24		32.9
Adjusted Property EBITDA (1)	Adjusted Property EBITDA (1)	(322,897)		480,583		(803,480)		(167.2)	(328,226)		975,360		(1,303,586)		(133.7)	Adjusted Property EBITDA (1)	58,900		(5,329)		64,229		NM

(1) See Item 1—"Financial Statements," Note ~~16,~~17, "Segment Information," for a reconciliation of Adjusted Property EBITDA to net ~~income (loss)~~loss attributable to Wynn Resorts, Limited.

NM - Not meaningful.

The decrease in operating revenues for the three months ended ~~June 30, 2020~~March 31, 2021 was primarily driven by decreases of ~~$620.2~~$22.2 million, ~~$534.6~~$49.8 million, $145.1 million, and ~~$399.3~~$10.8 million from Wynn Palace, Wynn Macau, ~~and~~ our Las Vegas Operations, and Encore Boston Harbor, respectively. These ~~declines~~decreases were precipitated by the continued adverse effects of the COVID-19 pandemic, including travel restrictions and capacity limitations at our Macau Operations, our Las Vegas Operations, and Encore Boston Harbor.

The decrease in net loss attributable to Wynn Resorts, Limited for the three months ended March 31, 2021 was primarily related to decreased operating expenses at our integrated resort properties. In addition, net loss attributable to Wynn Resorts, Limited for the first quarter of 2020 included the impact of $75.7 million of expense related to our commitment to pay salary, tips, and benefits continuation for all of our U.S. employees for the period from April 1 through May 15, 2020.

Table of Contents

The increase in Adjusted Property EBITDA for the three months ended March 31, 2021 was primarily driven by decreased operating expenses at our integrated resort properties. Adjusted Property EBITDA increased $17.2 million, $50.2 million, and $43.0 million at Wynn Palace, our Las Vegas Operations, and Encore Boston Harbor, respectively, and decreased $2.7 million at Wynn Macau and $43.5 million at Corporate and other, respectively. In addition, Adjusted Property EBITDA for the first quarter of 2020 included the impact of $75.7 million of expense related to our commitment to pay salary, tips, and benefits continuation for all of our U.S. employees for the period from April 1 through May 15, 2020.

Financial results for the three months ended March 31, 2021 compared to the three months ended March 31, 2020.

Operating revenues

The following table presents our operating revenues (in thousands):


	Three Months Ended March 31,
	2021		2020		Increase/ (Decrease)		Percent Change
Operating revenues
Macau Operations:
Wynn Palace	$	237,326	$	259,513	$	(22,187)	(8.5)
Wynn Macau	179,651		229,489		(49,838)		(21.7)
Total Macau Operations	416,977		489,002		(72,025)		(14.7)
Las Vegas Operations	178,716		323,824		(145,108)		(44.8)
Encore Boston Harbor	130,090		140,890		(10,800)		(7.7)
	$	725,783	$	953,716	$	(227,933)	(23.9)

NM - Not meaningful.

The following table presents our casino and non-casino operating revenues (in thousands):


	Three Months Ended March 31,
	2021		2020		Increase/ (Decrease)		Percent Change
Operating revenues
Casino revenues	$	516,218	$	570,789	$	(54,571)	(9.6)
Non-casino revenues:
Rooms	76,190		152,681		(76,491)		(50.1)
Food and beverage	68,509		149,414		(80,905)		(54.1)
Entertainment, retail and other	64,866		80,832		(15,966)		(19.8)
Total non-casino revenues	209,565		382,927		(173,362)		(45.3)
	$	725,783	$	953,716	$	(227,933)	(23.9)

Casino revenues for the three months ended March 31, 2021 were 71.1% of operating revenues, compared to 59.8% for the same period of 2020. Non-casino revenues for the three months ended March 31, 2021 were 28.9% of operating revenues, compared to 40.2% for the same period of 2020.

Table of Contents

Casino revenues

Casino revenues decreased primarily due to decreased VIP turnover and VIP table games win at our Macau Operations, partially offset by increased slot machine win at our Las Vegas Operations and Encore Boston Harbor. The table below sets forth our casino revenues and associated key operating measures (dollars in thousands, except for win per unit per day):


	Three Months Ended March 31,
	2021			2020			Increase/ (Decrease)		Percent Change
Macau Operations (1):
Wynn Palace:
Total casino revenues	$	185,909		$	207,576		$	(21,667)	(10.4)
VIP:
Average number of table games	103			89			14		15.7
VIP turnover	$	2,200,182		$	4,792,454		$	(2,592,272)	(54.1)
VIP table games win	$	96,456		$	139,569		$	(43,113)	(30.9)
VIP win as a % of turnover	4.38		%	2.91		%	1.47
Table games win per unit per day	$	10,375		$	20,257		$	(9,882)	(48.8)
Mass market:
Average number of table games	222			179			43		24.0
Table drop	$	607,518		$	475,223		$	132,295	27.8
Table games win	$	131,649		$	130,714		$	935	0.7
Table games win %	21.7		%	27.5		%	(5.8)
Table games win per unit per day	$	6,596		$	9,507		$	(2,911)	(30.6)
Average number of slot machines	687			733			(46)		(6.3)
Slot machine handle	$	358,772		$	424,714		$	(65,942)	(15.5)
Slot machine win	$	14,243		$	18,405		$	(4,162)	(22.6)
Slot machine win per unit per day	$	230		$	326		$	(96)	(29.4)
Wynn Macau:
Total casino revenues	$	138,927		$	190,128		$	(51,201)	(26.9)
VIP:
Average number of table games	90			81			9		11.1
VIP turnover	$	1,804,382		$	2,964,146		$	(1,159,764)	(39.1)
VIP table games win	$	58,635		$	122,625		$	(63,990)	(52.2)
VIP win as a % of turnover	3.25		%	4.14		%	(0.89)
Table games win per unit per day	$	7,239		$	19,702		$	(12,463)	(63.3)
Mass market:
Average number of table games	240			183			57		31.1
Table drop	$	590,890		$	578,235		$	12,655	2.2
Table games win	$	105,183		$	117,941		$	(12,758)	(10.8)
Table games win %	17.8		%	20.4		%	(2.6)
Table games win per unit per day	$	4,871		$	8,372		$	(3,501)	(41.8)
Average number of slot machines	569			634			(65)		(10.3)
Slot machine handle	$	301,271		$	366,537		$	(65,266)	(17.8)
Slot machine win	$	10,208		$	13,295		$	(3,087)	(23.2)
Slot machine win per unit per day	$	199		$	272		$	(73)	(26.8)
Poker rake	$	—		$	2,083		$	(2,083)	(100.0)

Table of Contents


	Three Months Ended March 31,
	2021			2020			Increase/ (Decrease)		Percent Change
Las Vegas Operations (2):
Total casino revenues	$	79,903		$	71,295		$	8,608	12.1
Average number of table games	172			237			(65)		(27.4)
Table drop	$	324,531		$	414,933		$	(90,402)	(21.8)
Table games win	$	76,653		$	82,666		$	(6,013)	(7.3)
Table games win %	23.6		%	19.9		%	3.7
Table games win per unit per day	$	4,957		$	4,530		$	427	9.4
Average number of slot machines	1,547			1,766			(219)		(12.4)
Slot machine handle	$	791,260		$	664,834		$	126,426	19.0
Slot machine win	$	50,489		$	46,674		$	3,815	8.2
Slot machine win per unit per day	$	363		$	343		$	20	5.8
Poker rake	$	1,867		$	2,175		$	(308)	(14.2)
Encore Boston Harbor (3):
Total casino revenues	$	111,479		$	101,790		$	9,689	9.5
Average number of table games	199			160			39		24.4
Table drop	$	234,562		$	275,631		$	(41,069)	(14.9)
Table games win	$	49,377		$	57,286		$	(7,909)	(13.8)
Table games win %	21.1		%	20.8		%	0.3
Table games win per unit per day	$	2,752		$	4,826		$	(2,074)	(43.0)
Average number of slot machines	1,889			2,837			(948)		(33.4)
Slot machine handle	$	913,795		$	767,739		$	146,056	19.0
Slot machine win	$	74,820		$	59,448		$	15,372	25.9
Slot machine win per unit per day	$	440		$	283		$	157	55.5
Poker rake	$	—		$	5,105		$	(5,105)	(100.0)

In response to the initial outbreak of COVID-19 in early 2020, each of our properties was subject to partial or full closure for varying lengths of time during 2020, and each has since reopened with certain COVID-19 specific protective measures in place.

(1) Our casino operations in Macau were closed for a 15-day period in February 2020 and resumed operations on a reduced basis on February 20, 2020.

(2) Our Las Vegas Operations closed on March 17, 2020 and reopened on June 4, 2020. On October 19, 2020, Encore at Wynn Las Vegas adjusted its operating schedule to five days/four nights each week due to reduced customer demand levels. This adjusted operating schedule remained in effect through the first quarter of 2021, and on April 8, 2021, Encore at Wynn Las Vegas resumed full operations.

(3) Encore Boston Harbor closed on March 15, 2020 and reopened on July 10, 2020. In addition, on November 6, 2020, Encore Boston Harbor temporarily suspended hotel operations and overnight casino operations pursuant to a state directive limiting the operating hours of certain businesses, including restaurants and casinos. On January 25, 2021, the limitations on operating hours were lifted, and Encore Boston Harbor restored 24-hour casino operations and reopened its hotel tower on a Thursday through Sunday weekly schedule.

Table of Contents

Non-casino revenues

The table below sets forth our room revenues and associated key operating measures:


	Three Months Ended March 31,
	2021			2020			Increase/ (Decrease)		Percent Change
Macau Operations:
Wynn Palace:
Total room revenues (dollars in thousands)	$	17,012		$	19,710		$	(2,698)	(13.7)
Occupancy	60.4		%	41.6		%	18.8
ADR	$	178		$	294		$	(116)	(39.5)
REVPAR	$	108		$	122		$	(14)	(11.5)
Wynn Macau:
Total room revenues (dollars in thousands)	$	14,702		$	15,911		$	(1,209)	(7.6)
Occupancy	60.8		%	49.2		%	11.6
ADR	$	242		$	321		$	(79)	(24.6)
REVPAR	$	147		$	158		$	(11)	(7.0)
Las Vegas Operations (1):
Total room revenues (dollars in thousands)	$	39,761		$	106,105		$	(66,344)	(62.5)
Occupancy	35.3		%	80.1		%	(44.8)
ADR	$	331		$	374		$	(43)	(11.5)
REVPAR	$	117		$	299		$	(182)	(60.9)
Encore Boston Harbor (2)(3):
Total room revenues (dollars in thousands)	$	4,715		$	10,955		$	(6,240)	(57.0)
Occupancy	71.0		%	75.8		%	(4.8)
ADR	$	276		$	292		$	(16)	(5.5)
REVPAR	$	196		$	222		$	(26)	(11.7)

(1) Wynn Las Vegas closed on March 17, 2020 and reopened on June 4, 2020.

(2) Encore Boston Harbor closed on March 15, 2020 and reopened on July 10, 2020.

(3) Encore Boston Harbor room statistics have been computed based on 36 days of operation in three months ended March 31, 2021 and 74 days of operation in three months ended March 31, 2020, representing the number of nights hotel rooms were offered for sale to the public.

Room revenues decreased $76.5 million, primarily due to lower occupancy at our Las Vegas Operations and Encore Boston Harbor. Encore at Wynn Las Vegas operated on a limited basis with midweek closures throughout the first quarter of 2021 before fully reopening April 8, 2021. The hotel tower at Encore Boston Harbor was closed pursuant to a state directive from November 6, 2020 through January 25, 2021, when it restored certain operations and reopened its hotel tower on a Thursday through Sunday weekly schedule.

Food and beverage revenues decreased $80.9 million, primarily due to decreased covers at our restaurants and the suspension of nightlife offerings at our Las Vegas Operations as a result of the adverse effects of the COVID-19 pandemic.

Entertainment, retail and other revenues decreased $16.0 million, primarily due to the closure of the Le Reve show at our Las Vegas Operations resulting from the adverse effects of the COVID-19 pandemic.

Table of Contents

capacity limitations which remain in effect in Macau and the closure of our Las Vegas Operations from March 17, 2020 until June 4, 2020. Encore Boston Harbor closed to the public on March 15, 2020 and remained closed until July 12, 2020.

The decrease in net income (loss) attributable to Wynn Resorts, Limited for the three months ended June 30, 2020 was primarily related to the adverse effects of the COVID-19 pandemic on the results of our operations. Net income (loss) attributable to Wynn Resorts, Limited for the three months ended June 30, 2020 excludes the impact of $75.7 million of expense related to our commitment to pay salary, tips, and benefits continuation for all of our U.S. employees for the period from April 1 through May 15, 2020, which we accrued during the first quarter of 2020.

The decrease in Adjusted Property EBITDA for the three months ended June 30, 2020 was driven by decreases of $278.1 million, $258.5 million, and $213.0 million from Wynn Palace, Wynn Macau, and our Las Vegas Operations, respectively. Adjusted Property EBITDA from Encore Boston Harbor was $(53.8) million.

~~Financial results for the three months ended June 30, 2020 compared to the three months ended June 30, 2019.~~

~~Operating revenues~~

~~The following table presents our operating revenues (in thousands):~~

Three Months Ended June 30,
2020 2019 Increase/ (Decrease) Percent
Change
Operating revenues
   Macau Operations:
Wynn Palace $ 8,718 $ 628,916 $ (620,198) (98.6)
Wynn Macau 11,888 546,474 (534,586) (97.8)
   Total Macau Operations 20,606 1,175,390 (1,154,784) (98.2)
   Las Vegas Operations 64,886 464,142 (399,256) (86.0)
   Encore Boston Harbor (1)
206 18,800 (18,594) (98.9)
$ 85,698 $ 1,658,332 $ (1,572,634) (94.8)

~~(1) Encore Boston Harbor commenced operations on June 23, 2019.~~

~~The following table presents our casino and non-casino operating revenues (in thousands):~~

Three Months Ended June 30,
2020 2019 Increase/ (Decrease) Percent
Change
Operating revenues
Casino revenues $ 9,413 $ 1,142,503 $ (1,133,090) (99.2)
Non-casino revenues:
          Rooms 17,415 198,807 (181,392) (91.2)
          Food and beverage 24,007 218,022 (194,015) (89.0)
          Entertainment, retail and other 34,863 99,000 (64,137) (64.8)
            Total non-casino revenues 76,285 515,829 (439,544) (85.2)
$ 85,698 $ 1,658,332 $ (1,572,634) (94.8)

Casino revenues for the three months ended June 30, 2020 were 11.0% of operating revenues, compared to 68.9% for the same period of 2019. Non-casino revenues for the three months ended June 30, 2020 were 89.0% of operating revenues, compared to 31.1% for the same period of 2019.

~~Casino revenues~~

Casino revenues decreased primarily due to the adverse effects of the COVID-19 pandemic, including widespread travel restrictions and capacity limitations and the closure of our Las Vegas Operations from March 17, 2020 until June 4, 2020. Encore Boston Harbor closed to the public on March 15, 2020, and remained closed through the second quarter. The table below sets forth our casino revenues and associated key operating measures (dollars in thousands, except for win per unit per day):

~~Table of Contents~~

Three Months Ended June 30,
2020 2019 Increase/
(Decrease) Percent
Change
Macau Operations:
Wynn Palace:
Total casino revenues $ (11,428) $ 528,545 $ (539,973) (102.2)
VIP:
Average number of table games 100 112 (12) (10.7)
VIP turnover $ 1,719,825 $ 13,388,646 $ (11,668,821) (87.2)
VIP table games win $ (29,806) $ 404,408 $ (434,214) (107.4)
VIP win as a % of turnover (1.73) % 3.02 % (4.75)
Table games win per unit per day $ (3,276) $ 39,827 $ (43,103) (108.2)
Mass market:
Average number of table games 221 214 7 3.3
Table drop $ 22,029 $ 1,267,153 $ (1,245,124) (98.3)
Table games win $ 7,168 $ 296,852 $ (289,684) (97.6)
Table games win % 32.5 % 23.4 % 9.1
Table games win per unit per day $ 357 $ 15,232 $ (14,875) (97.7)
Average number of slot machines 480 1,099 (619) (56.3)
Slot machine handle $ 39,415 $ 937,842 $ (898,427) (95.8)
Slot machine win $ 2,395 $ 43,567 $ (41,172) (94.5)
Slot machine win per unit per day $ 55 $ 436 $ (381) (87.4)
Wynn Macau:
Total casino revenues $ (3,524) $ 481,204 $ (484,728) (100.7)
VIP:
Average number of table games 91 110 (19) (17.3)
VIP turnover $ 607,144 $ 9,275,628 $ (8,668,484) (93.5)
VIP table games win $ (12,161) $ 305,809 $ (317,970) (104.0)
VIP win as a % of turnover (2.00) % 3.30 % (5.30)
Table games win per unit per day $ (1,471) $ 30,560 $ (32,031) (104.8)
Mass market:
Average number of table games 229 205 24 11.7
Table drop $ 40,817 $ 1,347,435 $ (1,306,618) (97.0)
Table games win $ 3,391 $ 279,127 $ (275,736) (98.8)
Table games win % 8.3 % 20.7 % (12.4)
Table games win per unit per day $ 163 $ 14,929 $ (14,766) (98.9)
Average number of slot machines 440 827 (387) (46.8)
Slot machine handle $ 62,011 $ 925,784 $ (863,773) (93.3)
Slot machine win $ 2,626 $ 42,815 $ (40,189) (93.9)
Slot machine win per unit per day $ 66 $ 569 $ (503) (88.5)
Poker rake $ — $ 4,674 $ (4,674) (100.0)

~~Table of Contents~~

Three Months Ended June 30,
2020 2019 Increase/
(Decrease) Percent
Change
Las Vegas Operations:
Total casino revenues $ 24,365 $ 119,753 $ (95,388) (79.7)
Average number of table games 221 238 (17) (7.1)
Table drop $ 90,873 $ 440,766 $ (349,893) (79.4)
Table games win $ 17,918 $ 126,395 $ (108,477) (85.8)
Table games win % 19.7 % 28.7 % (9.0)
Table games win per unit per day $ 2,998 $ 5,832 $ (2,834) (48.6)
Average number of slot machines 1,752 1,789 (37) (2.1)
Slot machine handle $ 246,393 $ 811,639 $ (565,246) (69.6)
Slot machine win $ 17,523 $ 55,128 $ (37,605) (68.2)
Slot machine win per unit per day $ 371 $ 339 $ 32 9.4
Poker rake $ — $ 4,119 $ (4,119) (100.0)

Note: Encore Boston Harbor casino revenues and associated key operating measures have been omitted from the table. As a result of the COVID-19 pandemic, our operations at Encore Boston Harbor were closed throughout the second quarter in 2020. In addition, the results of the eight days of its operations during the second quarter of 2019 between its June 23, 2019 opening and June 30, 2019 are not considered material to our consolidated results of operations for the three months ended June 30, 2019.

~~Non-casino revenues~~

~~The table below sets forth our room revenues and associated key operating measures:~~

Three Months Ended June 30,
2020 2019 Increase/
(Decrease) Percent Change
Macau Operations:
Wynn Palace:
Total room revenues (dollars in thousands) $ 2,431 $ 43,183 $ (40,752) (94.4)
Occupancy 4.4 % 97.4 % (93.0)
ADR $ 339 $ 265 $ 74 27.9
REVPAR $ 15 $ 258 $ (243) (94.2)
Wynn Macau:
Total room revenues (dollars in thousands) $ 2,631 $ 26,465 $ (23,834) (90.1)
Occupancy 7.5 % 98.9 % (91.4)
ADR $ 342 $ 281 $ 61 21.7
REVPAR $ 25 $ 278 $ (253) (91.0)
Las Vegas Operations:
Total room revenues (dollars in thousands) $ 12,353 $ 127,554 $ (115,201) (90.3)
Occupancy 43.7 % 90.1 % (46.4)
ADR $ 226 $ 333 $ (107) (32.1)
REVPAR $ 99 $ 300 $ (201) (67.0)

Note: Encore Boston Harbor room revenues and associated key operating measures have been omitted from the table. As a result of the COVID-19 pandemic, our operations at Encore Boston Harbor were closed throughout the second quarter in 2020. In addition, the results of the eight days of its operations during the second quarter of 2019 are not considered material to our consolidated results of operations for the three months ended June 30, 2019.

Room revenues decreased $181.4 million, primarily due to lower occupancy at Wynn Palace and Wynn Macau and the closure of our Las Vegas Operations resulting from the adverse effects of the COVID-19 pandemic.

~~Table of Contents~~

Food and beverage revenues decreased $194.0 million, primarily due to decreased covers at our restaurants at our Macau Operations and the closure of our Las Vegas Operations resulting from the adverse effects of the COVID-19 pandemic.

Entertainment, retail and other revenues decreased $64.1 million, primarily due to a decrease in visitation to our Macau Operations and the closure of our Las Vegas Operations resulting from the adverse effects of the COVID-19 pandemic.

Operating expenses

The table below presents operating expenses (in thousands):


		Three Months Ended June 30,										Three Months Ended March 31,
		2020		2019		Increase/ (Decrease)		Percent Change		2021		2020		Increase/ (Decrease)		Percent Change
Operating expenses:	Operating expenses:								Operating expenses:
Casino	Casino	$	131,138	$	724,987	$	(593,849)	(81.9)	Casino	$	351,966	$	442,690	$	(90,724)	(20.5)
Rooms	Rooms	30,367		66,148		(35,781)		(54.1)	Rooms	33,535		73,480		(39,945)		(54.4)
Food and beverage	Food and beverage	61,889		182,080		(120,191)		(66.0)	Food and beverage	73,948		175,910		(101,962)		(58.0)
Entertainment, retail and other	Entertainment, retail and other	16,873		43,514		(26,641)		(61.2)	Entertainment, retail and other	62,560		45,580		16,980		37.3
General and administrative	General and administrative	152,081		202,224		(50,143)		(24.8)	General and administrative	179,774		234,328		(54,554)		(23.3)
Provision for credit losses	Provision for credit losses	28,347		3,581		24,766		691.6	Provision for credit losses	7,367		20,613		(13,246)		(64.3)
Pre-opening	Pre-opening	2,186		69,883		(67,697)		(96.9)	Pre-opening	1,627		2,551		(924)		(36.2)
Depreciation and amortization	Depreciation and amortization	179,266		140,269		38,997		27.8	Depreciation and amortization	185,121		178,746		6,375		3.6
Property charges and other	Property charges and other	6,567		6,930		(363)		(5.2)	Property charges and other	5,617		27,229		(21,612)		(79.4)
Total operating expenses	Total operating expenses	$	608,714	$	1,439,616	$	(830,902)	(57.7)	Total operating expenses	$	901,515	$	1,201,127	$	(299,612)	(24.9)

Total operating expenses decreased ~~$830.9~~$299.6 million compared to the ~~second~~first quarter of ~~2019,~~2020, primarily due to decreased expenses related to the impact of the COVID-19 pandemic on our resorts, partially offset by increased ~~operating~~entertainment, retail and other expenses ~~following the opening of Encore Boston Harbor in June 2019.~~and depreciation and amortization expenses. Operating expenses for the ~~second~~first quarter of 2020 ~~exclude~~included $75.7 million of expense related to our commitment to pay salary, tips, and benefits continuation for all of our U.S. employees for the period from April 1 through May 15, 2020, which we accrued during the first quarter of 2020.

Casino expenses decreased ~~$311.8~~$20.0 million, ~~$260.3~~$29.9 million, $24.7 million, and ~~$27.7~~$16.1 million at Wynn Palace, Wynn Macau, ~~and~~ our Las Vegas Operations, and Encore Boston Harbor, respectively. These decreases were primarily due to reductions in gaming tax expense commensurate with the declines in casino revenues at ~~each property~~Wynn Palace and Wynn Macau resulting from the effects of the COVID-19 ~~pandemic.~~pandemic as well as lower payroll and operating costs. Casino expenses for the ~~second~~first quarter of 2020 ~~exclude~~included expense of $7.9 million from Encore Boston Harbor and $12.8 million from our Las Vegas Operations related to our commitment to pay salary, tips, and benefits continuation for all of our U.S. employees for the period from April 1 through May 15, 2020, which we accrued during the first quarter of 2020.

Room expenses decreased ~~$28.7 million, $6.6~~$29.6 million and ~~$2.1~~$6.8 million at our Las Vegas Operations ~~Wynn Palace,~~ and ~~Wynn Macau~~Encore Boston Harbor, respectively. The decreases were primarily a result of lower operating costs related to the ~~decline~~declines in occupancy at ~~each property~~our Las Vegas Operations and Encore Boston Harbor resulting from the effects of the COVID-19 pandemic. Room expenses for the ~~second~~first quarter of 2020 ~~exclude~~included expense of $1.5 million from Encore Boston Harbor and $8.3 million from our Las Vegas Operations related to our commitment to pay salary, tips, and benefits continuation for all of our U.S. employees for the period from April 1 through May 15, 2020, which we accrued during the first quarter of 2020.

Food and beverage expenses decreased ~~$100.5~~$75.0 million, ~~$15.3~~$4.5 million, $3.6 million, and ~~$7.3~~$18.8 million at our Las Vegas Operations, Wynn Palace, ~~and~~ Wynn Macau, and Encore Boston Harbor, respectively. The decreases were primarily a result of lower operating costs related to the declines in food and beverage revenues at each property as well as lower nightlife entertainment costs at our Las Vegas Operations resulting from the effects of the COVID-19 pandemic. Food and beverage expenses for the ~~second~~first quarter of 2020 ~~exclude~~included expense of $20.8 million from our Las Vegas Operations and $4.8 million from Encore Boston Harbor related to our commitment to pay salary, tips, and benefits continuation for all of our U.S. employees for the period from April 1 through May 15, 2020, which we accrued during the first quarter of 2020.

Entertainment, retail and other expenses ~~decreased $20.5 million, $5.4 million,~~increased primarily due to marketing expenses incurred at Corporate and ~~$2.4~~other. The increase was partially offset by a decrease in entertainment, retail and other expenses of $25.6 million at our Las Vegas Operations ~~Wynn Palace, and Wynn Macau, respectively. The decreases were~~ primarily as a result of lower operating costs related to the declines in entertainment, retail and other revenues ~~at each property~~ resulting from the effects of the COVID-19 pandemic. Entertainment, retail and other expenses ~~exclude~~for the first quarter of 2020 included expense of $4.1 million from our Las Vegas Operations and

~~Table of Contents~~

~~$0.7~~ $0.7 million from Encore Boston Harbor related to our commitment to pay salary, tips, and benefits continuation for all of our U.S. employees for the period from April 1 through May 15, 2020, which we accrued during the first quarter of 2020.

Table of Contents

General and administrative expenses decreased ~~primarily due to decreases of $14.6~~$9.0 million, ~~$7.0~~$6.0 million, $27.4 million, $9.1 million, and ~~$14.6~~$3.1 million at Wynn Palace, Wynn Macau, ~~and~~ our Las Vegas Operations, Encore Boston Harbor, and Corporate and other, respectively. These decreases were primarily attributable to ~~the effects~~decreased payroll, operating costs, and general and administrative expenses as a result of the COVID-19 pandemic. General and administrative expenses ~~exclude~~for the first quarter of 2020 included expense of $10.2 million from our Las Vegas Operations and $4.4 million from Encore Boston Harbor related to our commitment to pay salary, tips, and benefits continuation for all of our U.S. employees for the period from April 1 through May 15, 2020, which we accrued during the first quarter of 2020. In addition, corporate and other general and administrative expenses decreased $37.2 million, primarily due to a credit of $27.7 million for the net proceeds of a derivative action settlement recognized during the three months ended June 30, 2020. These decreases were partially offset by an increase of $23.3 million of general and administrative expenses from Encore Boston Harbor due to the opening of the property in June 2019.

Provision for credit losses ~~increased~~decreased primarily due to ~~increases~~a decrease of ~~$6.4 million, $12.0 million and $5.6~~$11.6 million at our Las Vegas ~~Operations, Wynn Palace, and Wynn Macau, respectively.~~Operations. The ~~increases were~~decrease was primarily due to the impact of historical collection patterns and expectations of current and future collection trends, ~~in light of the COVID-19 pandemic,~~ as well as the specific review of customer accounts, on our estimated credit loss for the respective periods.

For the three months ended June 30, 2020, pre-opening expenses totaled $2.2 million, which primarily related to restaurant remodels at our Las Vegas Operations. For the three months ended June 30, 2019, pre-opening expenses totaled $69.9 million, which primarily related to the development of Encore Boston Harbor.

~~Depreciation and amortization increased primarily due to additional depreciation expense of $36.9 million associated with the opening of Encore Boston Harbor in June 2019.~~

Our property charges and other expenses for the quarter ended ~~June 30,~~March 31, 2021 consisted primarily of asset abandonments of $2.1 million and $2.2 million at our Las Vegas Operations and Wynn Palace, respectively. Our property charges and other expenses for the quarter ended March 31, 2020 consisted primarily of asset ~~disposals,~~ abandonments and retirements of ~~$3.6~~$22.2 million and ~~$1.0~~$1.4 million at ~~Encore Boston Harbor~~Wynn Palace and Wynn ~~Palace,~~Macau, respectively.

Interest expense, net of capitalized interest

The following table summarizes information related to interest expense (dollars in thousands):


		Three Months Ended June 30,										Three Months Ended March 31,
		2020			2019			Increase/ (Decrease)		Percent Change		2021			2020			Increase/ (Decrease)		Percent Change
Interest expense	Interest expense										Interest expense
Interest cost, including amortization of debt issuance costs and original issue discount and premium	Interest cost, including amortization of debt issuance costs and original issue discount and premium	$	133,218		$	117,276		$	15,942	13.6	Interest cost, including amortization of debt issuance costs and original issue discount and premium	$	152,852		$	130,079		$	22,773	17.5
Capitalized interest	Capitalized interest	—			(24,127)			(24,127)		(100.0)	Capitalized interest	—			(1,252)			(1,252)		(100.0)
		$	133,218		$	93,149		$	40,069	43.0		$	152,852		$	128,827		$	24,025	18.6

Weighted average total debt balance	Weighted average total debt balance	$	12,143,644		$	9,204,417					Weighted average total debt balance	$	12,628,361		$	10,850,355
Weighted average interest rate	Weighted average interest rate	4.38		%	5.08		%				Weighted average interest rate	4.84		%	4.80		%

Interest costs increased primarily due to an increase in the weighted average debt ~~balance, partially offset by a decrease in the weighted average interest rate.~~balance. Capitalized interest decreased due to the completion of ~~Encore Boston Harbor construction activities on June 23, 2019.~~the meeting and convention expansion in February 2020.

Other non-operating income and expenses

We incurred a foreign currency remeasurement loss of $11.1 million and a gain of ~~$2.2 million and $11.7~~$10.3 million for the three months ended ~~June 30,~~March 31, 2021 and 2020, ~~and 2019,~~ respectively. The impact of the exchange rate fluctuation of the Macau pataca, in relation to the U.S. dollar, on the remeasurements of U.S. dollar denominated debt and other obligations from our Macau-related entities drove the variability between periods.

We recorded a gain of $4.4 million and a loss of ~~$3.3 million and $3.3~~$15.7 million for the three months ended ~~June 30,~~March 31, 2021 and 2020, ~~and 2019,~~ respectively, from change in derivatives fair value.

We recorded a $1.3 million loss on extinguishment of debt for the three months ended March 31, 2021 related to the partial prepayment of the Wynn Macau Term Loan.

Income taxes

We recorded an income tax expense of $0.5 million and $75.8 million for the three months ended March 31, 2021 and 2020, respectively. The 2021 income tax expense primarily related to the Macau dividend tax agreement that provides for an annual payment of MOP 12.8 million (approximately $1.6 million) as complementary tax otherwise due by stockholders of Wynn Macau SA. The 2020 income tax expense primarily related to the increase in the valuation allowances for U.S foreign tax credits.

3431

Table of Contents

~~Income taxes~~

We recorded an income tax expense of $80.9 million and an income tax benefit of $2.0 million for the three months ended June 30, 2020 and 2019, respectively. The 2020 income tax expense primarily related to the increase in the valuation allowances for U.S foreign tax credits and U.S.Net loss ~~carryforwards. The 2019 income tax benefit primarily related to the decrease in the valuation allowance for U.S foreign tax credits.~~

~~Net income (loss)~~ attributable to noncontrolling interests

Net loss attributable to noncontrolling interests was ~~$97.3~~$55.2 million and $48.2 million for the three months ended ~~June 30,~~March 31, 2021 and 2020, ~~compared to net income of $47.7 million for the same period of 2019.~~respectively. These amounts are primarily related to the noncontrolling interests' share of net ~~income (loss)~~loss from WML.

~~Table of Contents~~

~~Financial results for the six months ended June 30, 2020 compared to the six months ended June 30, 2019.~~

~~Operating revenues~~

~~The following table presents our operating revenues (in thousands):~~

Six Months Ended June 30,
2020 2019 Increase/ (Decrease) Percent Change
Operating revenues
Macau Operations:
Wynn Palace $ 268,231 $ 1,355,538 $ (1,087,307) (80.2)
Wynn Macau 241,377 1,070,365 (828,988) (77.4)
Total Macau Operations 509,608 2,425,903 (1,916,295) (79.0)
Las Vegas Operations 388,710 865,175 (476,465) (55.1)
Encore Boston Harbor (1)
141,096 18,800 122,296 650.5
$ 1,039,414 $ 3,309,878 $ (2,270,464) (68.6)

~~(1) Encore Boston commenced operations on June 23, 2019.~~

~~The following table presents casino and non-casino operating revenues (in thousands):~~

Six Months Ended June 30,
2020 2019 Increase/ (Decrease) Percent Change
Operating revenues
Casino revenues $ 580,202 $ 2,327,604 $ (1,747,402) (75.1)
Non-casino revenues:
          Rooms 170,096 390,077 (219,981) (56.4)
          Food and beverage 173,421 391,241 (217,820) (55.7)
          Entertainment, retail and other 115,695 200,956 (85,261) (42.4)
             Total non-casino revenues 459,212 982,274 (523,062) (53.3)
$ 1,039,414 $ 3,309,878 $ (2,270,464) (68.6)

Casino revenues for the six months ended June 30, 2020 were 55.8% of operating revenues, compared to 70.3% for the same period of 2019. Non-casino revenues for the six months ended June 30, 2020 were 44.2% of operating revenues, compared to 29.7% for the same period of 2019.

~~Table of Contents~~

~~Casino revenues~~

Casino revenues decreased primarily due to the adverse effects of the COVID-19 pandemic, including the closure of our casino operations in Macau for a 15-day period in February and their subsequent reopening on a reduced basis, and the closure of our Las Vegas Operations from March 17, 2020 until June 4, 2020. Encore Boston Harbor closed to the public on March 15, 2020, and remained closed through the second quarter. The table below sets forth our casino revenues and associated key operating measures (dollars in thousands, except for win per unit per day):

Six Months Ended June 30,
2020 2019 Increase/(Decrease) Percent
Change
Macau Operations:
Wynn Palace:
Total casino revenues $ 196,148 $ 1,151,720 $ (955,572) (83.0)
VIP:
Average number of table games 95 112 (17) (15.2)
VIP turnover $ 6,512,279 $ 26,015,909 $ (19,503,630) (75.0)
VIP table games win $ 109,763 $ 897,592 $ (787,829) (87.8)
VIP win as a % of turnover 1.69 % 3.45 % (1.76)
Table games win per unit per day $ 6,865 $ 44,464 $ (37,599) (84.6)
Mass market:
Average number of table games 201 212 (11) (5.2)
Table drop $ 497,252 $ 2,571,076 $ (2,073,824) (80.7)
Table games win $ 137,882 $ 612,320 $ (474,438) (77.5)
Table games win % 27.7 % 23.8 % 3.9
Table games win per unit per day $ 4,075 $ 15,929 $ (11,854) (74.4)
Average number of slot machines 596 1,095 (499) (45.6)
Slot machine handle $ 464,129 $ 1,912,890 $ (1,448,761) (75.7)
Slot machine win $ 20,800 $ 94,968 $ (74,168) (78.1)
Slot machine win per unit per day $ 208 $ 479 $ (271) (56.6)
Wynn Macau:
Total casino revenues $ 186,604 $ 931,446 $ (744,842) (80.0)
VIP:
Average number of table games 86 111 (25) (22.5)
VIP turnover $ 3,571,290 $ 19,469,660 $ (15,898,370) (81.7)
VIP table games win $ 110,464 $ 601,107 $ (490,643) (81.6)
VIP win as a % of turnover 3.09 % 3.09 % —
Table games win per unit per day $ 7,623 $ 29,824 $ (22,201) (74.4)
Mass market:
Average number of table games 208 206 2 1.0
Table drop $ 619,052 $ 2,699,128 $ (2,080,076) (77.1)
Table games win $ 121,333 $ 543,669 $ (422,336) (77.7)
Table games win % 19.6 % 20.1 % (0.5)
Table games win per unit per day $ 3,472 $ 14,608 $ (11,136) (76.2)
Average number of slot machines 529 827 (298) (36.0)
Slot machine handle $ 428,549 $ 1,720,151 $ (1,291,602) (75.1)
Slot machine win $ 15,921 $ 80,709 $ (64,788) (80.3)
Slot machine win per unit per day $ 179 $ 539 $ (360) (66.8)
Poker rake $ 2,083 $ 10,426 $ (8,343) (80.0)

~~Table of Contents~~

Six Months Ended June 30,
2020 2019 Increase/(Decrease) Percent
Change
Las Vegas Operations:
Total casino revenues $ 95,660 $ 231,437 $ (135,777) (58.7)
Average number of table games 233 238 (5) (2.1)
Table drop $ 505,806 $ 844,839 $ (339,033) (40.1)
Table games win $ 100,584 $ 237,765 $ (137,181) (57.7)
Table games win % 19.9 % 28.1 % (8.2)
Table games win per unit per day $ 4,152 $ 5,517 $ (1,365) (24.7)
Average number of slot machines 1,762 1,798 (36) (2.0)
Slot machine handle $ 911,226 $ 1,600,949 $ (689,723) (43.1)
Slot machine win $ 64,197 $ 109,672 $ (45,475) (41.5)
Slot machine win per unit per day $ 350 $ 337 $ 13 3.9
Poker rake $ 2,175 $ 6,579 $ (4,404) (66.9)
Encore Boston Harbor (1):
Total casino revenues $ 101,790 $ 13,001 $ 88,789 —
Average number of table games 160 — 160 —
Table drop $ 275,631 $ — $ 275,631 —
Table games win $ 57,286 $ — $ 57,286 —
Table games win % 20.8 % — % 20.8
Table games win per unit per day $ 4,826 $ — $ 4,826 —
Average number of slot machines 2,837 — 2,837 —
Slot machine handle $ 767,739 $ — $ 767,739 —
Slot machine win $ 59,448 $ — $ 59,448 —
Slot machine win per unit per day $ 283 $ — $ 283 —
Poker rake $ 5,105 $ — $ 5,105 —

(1) Encore Boston Harbor opened on June 23, 2019. The results of the eight days of its operations during the second quarter of 2019 are not considered material to our consolidated results of operations for the six months ended June 30, 2019. Accordingly, Encore Boston Harbor key operating measures for the six months ended June 30, 2019 have been omitted from the table.

~~Table of Contents~~

~~Non-casino revenues~~

~~The table below sets forth our room revenues and associated key operating measures:~~

Six Months Ended June 30,
2020 2019 Increase/(Decrease) Percent Change
Macau Operations:
Wynn Palace:
Total room revenues (dollars in thousands) $ 22,141 $ 86,498 $ (64,357) (74.4)
Occupancy 23.5 % 97.3 % (73.8)
ADR $ 298 $ 268 $ 30 11.2
REVPAR $ 70 $ 261 $ (191) (73.2)
Wynn Macau:
Total room revenues (dollars in thousands) $ 18,542 $ 55,331 $ (36,789) (66.5)
Occupancy 28.4 % 99.1 % (70.7)
ADR $ 324 $ 285 $ 39 13.5
REVPAR $ 92 $ 283 $ (191) (67.5)
Las Vegas Operations:
Total room revenues (dollars in thousands) $ 118,458 $ 246,644 $ (128,186) (52.0)
Occupancy 70.6 % 86.3 % (15.7)
ADR $ 350 $ 335 $ 15 4.5
REVPAR $ 247 $ 290 $ (43) (14.8)
Encore Boston Harbor (1):
Total room revenues (dollars in thousands) $ 10,955 $ 1,605 $ 9,350 —
Occupancy 75.8 % — % 75.8
ADR $ 292 $ — $ 292 —
REVPAR $ 222 $ — $ 222 —

Room revenues decreased $220.0 million, primarily due to lower occupancy at Wynn Palace and Wynn Macau and the closure of our Las Vegas Operations resulting from the adverse effects of the COVID-19 pandemic. Room revenues from Encore Boston Harbor were $11.0 million.

Food and beverage revenues decreased $217.8 million, primarily due to decreased covers at our restaurants at our Macau Operations and closure of our Las Vegas Operations resulting from the adverse effects of the COVID-19 pandemic. Food and beverage revenues from Encore Boston Harbor were $20.6 million.

Entertainment, retail and other revenues decreased $85.3 million, primarily due to a decrease in visitation to our Macau Operations and closure of our Las Vegas Operations resulting from the adverse effects of the COVID-19 pandemic. Entertainment, retail and other revenues from Encore Boston Harbor were $7.7 million.

~~Table of Contents~~

~~Operating expenses~~

~~The table below presents operating expenses (in thousands):~~

Six Months Ended June 30,
2020 2019 Increase/ (Decrease) Percent Change
Operating expenses:
Casino $ 573,828 $ 1,475,058 $ (901,230) (61.1)
Rooms 103,847 129,854 (26,007) (20.0)
Food and beverage 237,799 330,841 (93,042) (28.1)
Entertainment, retail and other 62,453 87,558 (25,105) (28.7)
General and administrative 386,409 419,546 (33,137) (7.9)
Provision for credit losses 48,960 9,003 39,957 443.8
Pre-opening 4,737 97,596 (92,859) (95.1)
Depreciation and amortization 358,012 276,826 81,186 29.3
Property charges and other 33,796 9,704 24,092 248.3
Total operating expenses $ 1,809,841 $ 2,835,986 $ (1,026,145) (36.2)

Total operating expenses decreased $1.03 billion compared to the six months ended June 30, 2019, primarily due to decreased expenses related to the impact of the COVID-19 pandemic on our resorts, partially offset by increased operating expenses following the opening of Encore Boston Harbor in June 2019.

Casino expenses decreased $547.4 million, $407.7 million, and $19.2 million at Wynn Palace, Wynn Macau, and our Las Vegas Operations, respectively. These decreases were primarily due to reductions in gaming tax expense commensurate with the declines in casino revenues at each property resulting from the effects of the COVID-19 pandemic, and were partially offset by increased casino expenses of $73.1 million from Encore Boston Harbor.

Room expenses decreased $25.2 million, $9.4 million. and $2.6 million at our Las Vegas Operations, Wynn Palace, and Wynn Macau, respectively. The decreases were primarily a result of lower operating costs related to the decline in occupancy at each property resulting from the effects of the COVID-19 pandemic, and were partially offset by increased room expenses of $11.3 million from Encore Boston Harbor.

Food and beverage expenses decreased $87.6 million, $24.4 million, and $10.2 million at our Las Vegas Operations, Wynn Palace, and Wynn Macau, respectively. The decreases were primarily a result of lower operating costs related to the declines in food and beverage revenues at each property resulting from the effects of the COVID-19 pandemic, and were partially offset by increased food and beverage expenses of $29.1 million at Encore Boston Harbor.

Entertainment, retail and other expenses decreased primarily due to decreases of $17.3 million, $9.8 million and $4.6 million at our Las Vegas Operations, Wynn Palace, and Wynn Macau, respectively. The decreases were primarily a result of lower operating costs related to the declines in entertainment, retail and other revenues at each property resulting from the effects of the COVID-19 pandemic, and were partially offset by increased entertainment, retail and other expenses of $6.6 million at Encore Boston Harbor.

General and administrative expenses decreased primarily due to decreases of $18.9 million and $7.6 million at Wynn Palace and Wynn Macau, respectively. These decreases were primarily attributable to the effects of the COVID-19 pandemic. In addition, corporate and other general and administrative expenses decreased $74.0 million, primarily due to a credit of $27.7 million for the net proceeds of a derivative action settlement recognized during the three months ended June 30, 2020, and a fine of $35.0 million assessed by the Massachusetts Gaming Commission which was incurred during the three months ended March 31, 2019. These decreases were partially offset by an increase of $68.9 million of general and administrative expenses from Encore Boston Harbor due to the opening of the property in June 2019.

The provision for credit losses increased $18.0 million, $13.8 million and $6.5 million at our Las Vegas Operations, Wynn Palace, and Wynn Macau, respectively. The increases were primarily due to the impact of historical collection patterns and expectations of current and future collection trends in light of the COVID-19 pandemic, as well as the specific review of customer accounts, on our estimated credit loss for the respective periods.

~~Table of Contents~~

For the six months ended June 30, 2020, pre-opening expenses totaled $4.7 million, which primarily related to restaurant remodels at our Las Vegas Operations. For the six months ended June 30, 2019, pre-opening expenses totaled $97.6 million, which primarily related to the development of Encore Boston Harbor.

Depreciation and amortization increased primarily due to additional depreciation expense of $73.8 million associated with the opening of Encore Boston Harbor and an increase of $6.8 million at our Las Vegas Operations associated with the opening of the meeting and convention expansion in February 2020.

Our property charges and other expenses for the six months ended June 30, 2020 consisted primarily of asset disposals, abandonments and retirements of $23.3 million and $3.9 million at Wynn Palace and Encore Boston Harbor, respectively.

~~Interest expense, net of capitalized interest~~

~~The following table summarizes information related to interest expense (dollars in thousands):~~

Six Months Ended June 30,
2020 2019 Increase/ (Decrease) Percent Change
Interest expense
Interest cost, including amortization of debt issuance costs and original issue discount and premium $ 263,297 $ 233,174 $ 30,123 12.9
Capitalized interest (1,252) (46,845) (45,593) (97.3)
$ 262,045 $ 186,329 $ 75,716 40.6
Weighted average total debt balance $ 11,496,999 $ 9,209,480
Weighted average interest rate 4.57 % 5.05 %

Interest costs increased due to an increase in the weighted average debt balance, partially offset by a decrease in the weighted average interest rate. Capitalized interest decreased due to the completion of Encore Boston Harbor construction activities on June 23, 2019.

~~Other non-operating income and expenses~~

We incurred a foreign currency remeasurement gain of $12.6 million and $5.4 million for the six months ended June 30, 2020 and 2019, respectively. The impact of the exchange rate fluctuation of the Macau pataca, in relation to the U.S. dollar, on the remeasurements of U.S. dollar denominated debt and other obligations from our Macau-related entities drove the variability between periods.

~~We recorded a loss of $19.0 million and $4.8 million for the six months ended June 30, 2020 and 2019, respectively, from change in derivatives fair value.~~

~~Income taxes~~

We recorded an income tax expense of $156.7 million and an income tax benefit of $0.3 million for the six months ended June 30, 2020 and 2019, respectively. The 2020 income tax expense primarily related to the increase in the valuation allowances for U.S foreign tax credits and U.S. loss carryforwards. The 2019 income tax benefit primarily related to the decrease in the valuation allowance for U.S foreign tax credits.

~~Net income (loss) attributable to noncontrolling interests~~

Net loss attributable to noncontrolling interests was $145.5 million for the six months ended June 30, 2020, compared to net income of $102.5 million for the same period of 2019. These amounts are primarily related to the noncontrolling interests' share of net income (loss) from WML.

~~Table of Contents~~

Adjusted Property EBITDA

We use Adjusted Property EBITDA to manage the operating results of our segments. Adjusted Property EBITDA is net ~~income (loss)~~loss before interest, income taxes, depreciation and amortization, pre-opening expenses, property charges and other, management and license fees, corporate expenses and other (including intercompany golf course, meeting and convention, and water rights leases), stock-based compensation, change in derivatives fair value, loss on extinguishment of debt, 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. We also present Adjusted Property EBITDA because it is used by some investors 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 preopening 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 our 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. We have 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, our calculation of Adjusted Property EBITDA may be different from the calculation methods used by other companies and, therefore, comparability may be limited.

The following table summarizes Adjusted Property EBITDA (in thousands) for Wynn Palace, Wynn Macau, Las Vegas Operations, and Encore Boston Harbor as reviewed by management and summarized in Item 1—"Notes to Condensed Consolidated Financial Statements," Note ~~16,~~17, "Segment Information." That footnote also presents a reconciliation of Adjusted Property EBITDA to net ~~income (loss)~~loss attributable to Wynn Resorts, Limited.

Three Months Ended June 30, Six Months Ended June 30,
2020 2019 Increase/ (Decrease) Percent Change 2020 2019 Increase/ (Decrease) Percent Change
Wynn Palace $ (110,908) $ 167,165 $ (278,073) (166.3) $ (100,732) $ 389,751 $ (490,483) (125.8)
Wynn Macau (82,646) 175,873 (258,519) (147.0) (63,438) 339,762 (403,200) (118.7)
Las Vegas Operations (75,564) 137,399 (212,963) (155.0) (97,641) 245,701 (343,342) (139.7)
Encore Boston Harbor (1)
(53,779) 146 (53,925) NM (66,415) 146 (66,561) NM

~~(1) Encore Boston Harbor opened on June 23, 2019.~~


	Three Months Ended March 31,
	2021		2020		Increase/ (Decrease)		Percent Change
Wynn Palace	$	27,369	$	10,176	$	17,193	169.0
Wynn Macau	16,556		19,208		(2,652)		(13.8)
Las Vegas Operations	28,081		(22,077)		50,158		(227.2)
Encore Boston Harbor	30,363		(12,636)		42,999		(340.3)
Corporate and other	(43,469)		—		(43,469)		NM

NM - Not meaningful.

Adjusted Property EBITDA at Wynn Palace ~~decreased $278.1 million and $490.5~~increased $17.2 million for the three ~~and six~~ months ended ~~June 30, 2020, respectively,~~March 31, 2021 primarily due to a ~~decline~~decrease in operating revenues precipitated by the adverse effects of the COVID-19 pandemic during the three and six months ended June 30, 2020, which include the closure of our casino operations in Macau for a 15-day period and their subsequent reopening on a reduced basis.expenses.

Adjusted Property EBITDA at Wynn Macau decreased ~~$258.5 million and $403.2~~$2.7 million for the three ~~and six~~ months ended ~~June 30, 2020, respectively,~~March 31, 2021 primarily due to decreased VIP turnover and VIP table games win, which offset a ~~decline~~ decrease in operating revenues precipitated by the adverse effects of the COVID-19 pandemic during the three and six months ended June 30, 2020, which include the closure of our casino operations in Macau for a 15-day period and their subsequent reopening on a reduced basis.expenses.

Adjusted Property EBITDA ~~decreased $213.0 million and $343.3 million~~ at our Las Vegas Operations increased $50.2 million for the three months ended March 31, 2021, primarily due to ~~the adverse effects of the COVID-19 pandemic during the three and six months ended June 30, 2020, including the closure of~~a decrease in operating expenses. Adjusted Property EBITDA for our Las Vegas ~~Operations on March 17,~~Operations for the first quarter of 2020 included the impact of $56.4 million of expense related to our commitment to pay salary, tips, and benefits continuation for ~~a 79-day~~all of our U.S. employees for the period ~~and their subsequent reopening on a reduced basis.~~from April 1 through May 15, 2020.

Adjusted Property EBITDA ~~from~~at Encore Boston Harbor increased $43.0 million for the three months ended March 31, 2021, primarily due to a decrease in operating expenses. Adjusted Property EBITDA for Encore Boston Harbor for the ~~three~~first quarter of

Table of Contents

2020 included the impact of $19.3 million of expense related to our commitment to pay salary, tips, and ~~six months ended June 30, 2020 was $(53.8) million and $(66.4) million, respectively. Encore Boston Harbor closed to~~benefits continuation for all of our U.S. employees for the ~~public on March~~period from April 1 through May 15, ~~2020, and remained closed through the second quarter.~~2020.

Refer to the discussions above regarding the specific details of our results of operations.

4233

Table of Contents

Liquidity and Capital Resources

Our cash flows were as follows (in thousands):


		Six Months Ended June 30,							Three Months Ended March 31,
Cash Flows - Summary	Cash Flows - Summary	2020		2019		Cash Flows - Summary	2021		2020
Net cash (used in) provided by operating activities		$	(607,987)	$	509,444
Net cash used in operating activities						Net cash used in operating activities	$	(253,906)	$	(176,500)
Net cash used in investing activities:	Net cash used in investing activities:					Net cash used in investing activities:
Capital expenditures, net of construction payables and retention	Capital expenditures, net of construction payables and retention	(191,682)		(636,002)		Capital expenditures, net of construction payables and retention	(40,270)		(139,316)
Purchase of intangible and other assets	Purchase of intangible and other assets	—		(1,000)		Purchase of intangible and other assets	(8,500)		—
Proceeds from sale of assets and other	Proceeds from sale of assets and other	3,733		441		Proceeds from sale of assets and other	134		2,162
Net cash used in investing activities	Net cash used in investing activities	(187,949)		(636,561)		Net cash used in investing activities	(48,636)		(137,154)

Net cash provided by (used in) financing activities:
Net cash (used in) provided by financing activities:						Net cash (used in) provided by financing activities:
Proceeds from issuance of long-term debt	Proceeds from issuance of long-term debt	2,894,134		324,754		Proceeds from issuance of long-term debt	50,084		1,469,028
Repayments of long-term debt	Repayments of long-term debt	(527,535)		(603,857)		Repayments of long-term debt	(1,166,737)		(515,194)
Proceeds from issuance of common stock						Proceeds from issuance of common stock	841,899		—
Repurchase of common stock	Repurchase of common stock	(8,437)		(35,632)		Repurchase of common stock	(4,356)		(5,527)
Finance lease payment	Finance lease payment	(74)		—		Finance lease payment	(3,881)		(37)
Proceeds from exercise of stock options	Proceeds from exercise of stock options	70		12,545		Proceeds from exercise of stock options	—		70
Dividends paid	Dividends paid	(108,074)		(270,490)		Dividends paid	(295)		(107,426)
Distribution to noncontrolling interest	Distribution to noncontrolling interest	(998)		(2,727)		Distribution to noncontrolling interest	—		(998)
Payments for financing costs	Payments for financing costs	(13,196)		(10,488)		Payments for financing costs	(2,154)		(1,919)
Net cash provided by (used) in financing activities		2,235,890		(585,895)
Net cash (used in) provided by financing activities						Net cash (used in) provided by financing activities	(285,440)		837,997

Effect of exchange rate on cash, cash equivalents and restricted cash	Effect of exchange rate on cash, cash equivalents and restricted cash	4,341		56		Effect of exchange rate on cash, cash equivalents and restricted cash	(1,131)		3,266
Increase (decrease) in cash, cash equivalents and restricted cash		$	1,444,295	$	(712,956)
(Decrease) increase in cash, cash equivalents and restricted cash						(Decrease) increase in cash, cash equivalents and restricted cash	$	(589,113)	$	527,609

Operating Activities

Our operating cash flows primarily consist of operating income (excluding depreciation and amortization and other non-cash charges), interest paid and earned, and changes in working capital accounts such as receivables, inventories, prepaid expenses, and payables. Our table games play is a mix of cash play and credit play, while our slot machine play is conducted primarily on a cash basis. A significant portion of our table games revenue is attributable to the play of a limited number of premium international customers who gamble on credit. The ability to collect these gaming receivables may impact our operating cash flow for the period. Our rooms, food and beverage, and entertainment, retail and other revenue is conducted on a cash and credit basis. Accordingly, operating cash flows will be impacted by changes in operating income and accounts receivable, net.

During the ~~six~~three months ended ~~June 30,~~March 31, 2021, the increase in net cash used in operating activities was primarily due to changes in working capital accounts. During the three months ended March 31, 2020, the decrease in net cash provided by operations was primarily due to the adverse effects of the COVID-19 pandemic on the results of our ~~operations. During~~operations for the ~~six~~three months ended ~~June 30, 2019, the increase in net cash provided by operations was primarily driven by an increase in net income.~~March 31, 2020.

Investing Activities

Our investing activities primarily consist of project capital expenditures, such as ~~the construction of Encore Boston Harbor, which opened in June 2019, and~~ the construction of the meeting and convention expansion at Wynn Las Vegas, which opened in February 2020, as well as maintenance capital expenditures associated with maintaining and continually refining our world-class integrated resort properties. In light of the unprecedented COVID-19 pandemic and our focus on safeguarding the Company's operations and the well-being of our employees, we ~~expect to~~ temporarily ~~postpone~~postponed major project capital expenditures for the remainder of fiscal year 2020, including the Wynn Tower room remodel at Wynn Las Vegas. We will be continuously monitoring the situation and conditions in the markets in which we operate, and will resume such project capital expenditures when conditions have stabilized.2020.

4334

Table of Contents

During the ~~six~~three months ended ~~June 30,~~March 31, 2021, we incurred capital expenditures of $19.8 million at our Las Vegas Operations, $6.3 million at Encore Boston Harbor, $7.4 million at Wynn Palace, and $4.8 million at Wynn Macau, primarily related to maintenance capital expenditures.

During the three months ended March 31, 2020, we incurred capital expenditures of ~~$48.1~~$43.6 million at Encore Boston Harbor primarily for the payment of construction retention and other payables related to its construction, ~~$57.5~~$37.0 million at our Las Vegas Operations for restaurant remodels and maintenance capital expenditures, ~~$23.1~~$12.2 million for the construction of the additional meeting and convention space at Wynn Las Vegas, and ~~$27.5~~$17.5 million and ~~$32.5~~$26.6 million at Wynn Palace and Wynn Macau, respectively, primarily related to maintenance capital expenditures.

During the six months ended June 30, 2019, we incurred capital expenditures of $335.9 million related to the construction of Encore Boston Harbor and $106.8 million related to the construction of the additional meeting and convention space at Wynn Las Vegas and the reconfiguration of the Wynn Las Vegas golf course.

Financing Activities

During the ~~six~~three months ended ~~June 30,~~March 31, 2021, we received proceeds of $841.9 million from our February 2021 equity offering and used $716.0 million of the proceeds from the equity offering to repay the outstanding borrowings under the WRF Revolver. In addition, we borrowed $50.1 million under the Wynn Macau Revolver, paid $438.6 million of outstanding principal owed under the Wynn Macau Term Loan, and made a $12.5 million quarterly amortization payment under the WRF Term Loan.

During the three months ended March 31, 2020, we ~~issued $750.0 million aggregate principal amount of WML 5 1/2% Senior Notes due 2026, issued $600.0 million aggregate principal amount of WRF 7 3/4% Senior Notes due 2025,~~ borrowed ~~$376.0~~$325.8 million, net of amounts repaid, under the Wynn Macau Revolver, borrowed ~~$816.0~~$791.0 million under the WRF Revolver, prepaid $150.2 million of outstanding principal owed under the Wynn Macau Term Loan, and made a $12.5 million quarterly amortization ~~payments~~payment under the WRF Term ~~Loan totaling $25.0 million.~~Loan. In addition, we used cash of ~~$108.1 million for the payment of dividends.~~

During the six months ended June 30, 2019, we repaid $523.7 million, net of amounts borrowed, on the Wynn Macau Senior Revolving Credit Facility, borrowed an additional $250.0 million term loan under the Wynn Resorts Term Loan, and used cash of $270.5$107.4 million for the payment of dividends.

Capital Resources

The COVID-19 pandemic ~~has caused, and is continuing to cause, significant disruption in the financial markets both globally and in the United States, and~~ has impacted and will continue to impact, materially, our business, financial condition and results of operations. While we believe our strong liquidity position will enable us to fund our current obligations for the foreseeable future, COVID-19 has resulted in significant disruption, which has had and will continue to have a negative impact on our operating income and could have a negative impact on our ability to access capital in the future. We continue to monitor the rapidly evolving situation and guidance from international and domestic authorities.

The following table summarizes our unrestricted cash and cash equivalents and available revolver borrowing capacity under the Company as of ~~June 30, 2020~~March 31, 2021 (in thousands):


		Total Cash and Cash Equivalents		Revolver Borrowing Capacity			Total Cash and Cash Equivalents		Revolver Borrowing Capacity
Wynn Resorts (Macau) S.A. and subsidiaries	Wynn Resorts (Macau) S.A. and subsidiaries	$	734,640	$	24,066	Wynn Resorts (Macau) S.A. and subsidiaries	$	273,124	$	293,031
Wynn Macau, Limited and subsidiaries (1)	Wynn Macau, Limited and subsidiaries (1)	1,698,726		—		Wynn Macau, Limited and subsidiaries (1)	1,529,751		—
Wynn Resorts Finance, LLC (2)	Wynn Resorts Finance, LLC (2)	403,378		15,950		Wynn Resorts Finance, LLC (2)	248,425		833,894
Wynn Resorts, Limited and other	Wynn Resorts, Limited and other	960,996		—		Wynn Resorts, Limited and other	839,107		—
Total cash and cash equivalents	Total cash and cash equivalents	$	3,797,740	$	40,016	Total cash and cash equivalents	$	2,890,407	$	1,126,925

(1) Excluding Wynn Resorts (Macau) S.A. and subsidiaries.

(2) Excluding Wynn Macau, Limited and subsidiaries.

Wynn Resorts (Macau) S.A. and subsidiaries. Wynn Resorts (Macau) S.A. ("Wynn Macau SA") generates cash from our Macau Operations and utilizes its revolver to fund short term working capital requirements as needed. We expect to use this cash to service our existing Wynn Macau Credit Facilities, make distributions to WML, and fund working capital and capital expenditure requirements at our Macau Operations.

The Wynn Macau Credit Facilities contain customary negative and financial covenants, including, but not limited to, leverage ratio and interest coverage ratio tests (as defined in the Wynn Macau Credit Facilities) that could restrict its ability to make distributions to WML and incur additional indebtedness. Wynn Macau SA is required to maintain a leverage ratio of not greater than 4.00 to 1 and an interest coverage ratio of not less than 2.00 to 1. Wynn Macau SA complied with these ratios for the three months ended ~~June 30, 2020.~~March 31, 2021.

In January 2021, Wynn Macau SA prepaid approximately $412.5 million of the term loan outstanding under the Wynn Macau Credit Facilities using proceeds from WML senior notes issuances.

Table of Contents

The Company is currently designing the second phase of Wynn Palace. We do not expect to incur significant capital expenditures related to the construction of this project in 2021.

Wynn Macau, Limited and subsidiaries. Wynn Macau, Limited ("WML") primarily generates cash through distributions from Wynn Macau SA. We expect to use WML's cash to service our existing WML Notes, pay dividends to shareholders of WML (of which we own approximately 72%), and fund working capital requirements at WML.

~~Table of Contents~~

~~The board~~WML paid no dividends during 2020 or the first quarter of directors of WML concluded not to recommend the payment of a dividend with respect to the year ended December 31, 2019, in light of the unprecedented COVID-19 pandemic and our focus on safeguarding the Company's Macau Operations and the well-being of our employees.2021. The WML board of directors will be continuously monitoring the situation and market conditions in Macau and Greater China and may consider a special dividend in the future when such conditions have stabilized.

On June 19, 2020, WML issued $750.0 million aggregate principal amount of 5 1/2% Senior Notes due 2026 (the "2026 WML Notes") pursuant to an indenture (the "2026 Indenture"). The 2026 WML Notes were issued at par. WML plans to use the net proceeds from the offering for general corporate purposes until our business recovers from the effects of the COVID-19 Pandemic, and then to facilitate the repayment of a portion of the amounts outstanding under the Wynn Macau Credit Facilities.

If our portion of our cash and cash equivalents were repatriated to the U.S. on ~~June 30, 2020,~~March 31, 2021, it would be subject to minimal U.S. taxes in the year of repatriation.

Wynn Resorts Finance, LLC and subsidiaries. Wynn Resorts Finance, LLC ("WRF" or "Wynn Resorts Finance") generates cash from distributions from its subsidiaries, which include our Macau Operations, Wynn Las Vegas, and Encore Boston Harbor, and contributions from Wynn Resorts, as required. In addition, WRF may utilize its available revolving borrowing capacity as needed. We expect to use this cash to service our WRF Credit Facilities, 2025 WRF Notes, ~~(as defined below),~~ 2029 WRF Notes, and WLV Notes, and to fund working capital and capital expenditure requirements as needed.

In April 2020, WRF and its subsidiary, Wynn Resorts Capital Corp. (collectively with WRF, the "WRF Issuers"), each an indirect wholly-owned subsidiary of the Company, issued $600 million aggregate principal amount of 7 3/4% Senior Notes due 2025 (the "2025 WRF Notes") pursuant to an indenture (the "2025 Indenture") among the WRF Issuers, the guarantors party thereto and U.S. Bank National Association, as trustee (the "Trustee"), in a private offering. The 2025 WRF Notes were issued at par. WRF plans to use the net proceeds from the offering for general corporate purposes and to pay related fees and expenses.

In April 2020, WRF and certain of its subsidiaries entered into an amendment (the "WRF Credit Agreement Amendment") to its existing credit agreement (the "WRF Credit Agreement"). The WRF Credit Agreement Amendment provides for a financial covenant relief period through April 1, 2021, during which the existing consolidated first lien net leverage ratio financial covenant is replaced by a requirement for WRF to maintain minimum liquidity of at least $300.0 million at all times. Following the financial covenant relief period, WRF is subject to a financial covenant increase period beginning on the first day after the expiration of the financial covenant relief period and ending on the first day of the fourth fiscal quarter after the expiration of the financial covenant relief period, during which WRF must maintain a consolidated first lien net leverage ratio no greater than 4.50 to 1 during the first quarter of the financial covenant increase period, no greater than 4.25 to 1 for the second fiscal quarter, no greater than 4.00 to 1 for the third fiscal quarter, and no greater than 3.75 to 1 for the fourth fiscal quarter of the financial covenant increase period and for each subsequent fiscal quarter thereafter. The WRF Credit Agreement Amendment also adds certain restrictions on restricted payments during the financial covenant relief period and the financial covenant increase period.

WRF is a holding company and, as a result, its ability to pay dividends to Wynn Resorts is dependent on WRF receiving distributions from its subsidiaries, which include WML, Wynn Las Vegas, LLC, and Wynn MA, LLC (the owner and operator of Encore Boston Harbor). The WRF Credit Agreement contains customary negative and financial covenants, including, but not limited to, covenants that restrict WRF's ability to pay dividends or distributions and incur additional indebtedness.

~~As previously disclosed, we are in the planning phase of a~~In 2021, Wynn Las Vegas will proceed with its planned room remodel, ~~of the Wynn Tower at Wynn Las Vegas.~~which we temporarily postponed during 2020. We ~~have concluded to temporarily postpone the remodel until conditions have stabilized (as discussed above within~~ ~~Investing Activities). Accordingly, at this time we do not~~ expect to incur ~~significant capital expenditures associated with~~between $170 million and $180 million of remaining project costs related to this remodel, which we expect to complete before the ~~Wynn Tower room remodel during~~end of 2021.

The Company repaid $716.0 million of the ~~remainder of fiscal year 2020.~~outstanding borrowings under the WRF Revolver in February 2021, using proceeds from the February 2021 equity offering described below.

Wynn Resorts, Limited and other subsidiaries. Wynn Resorts, Limited is a holding company and, as a result, our ability to pay dividends is dependent on our ability to obtain funds and our subsidiaries' ability to provide funds to us. Wynn Resorts, Limited and other primarily generates cash from royalty and management agreements with our resorts, dividends and distributions from our subsidiaries, and the operations of the Retail Joint Venture of which we own 50.1%. We expect to use this cash to service our Retail Term Loan and for general corporate purposes.

~~Table~~On February 11, 2021, the Company completed a registered public offering of ~~Contents~~

~~On May 5, 2020, certain subsidiaries~~7,475,000 newly issued shares of its common stock, par value $0.01 per share, at a price of $115.00 per share for proceeds of $841.9 million, net of $17.7 million in underwriting discounts, commissions and other expenses. The Company used $716.0 million of the ~~Retail Joint Venture entered into an amendment~~net proceeds from this equity offering to repay the ~~existing retail term loan agreement~~outstanding borrowings under the WRF revolver in February 2021, and intends to ~~temporarily suspend~~use the ~~requirement to maintain certain financial ratios to avoid triggering excess cash sweep provisions from the first quarter of 2020 through the fourth quarter of 2021.~~

~~On May 6, 2020, the Company announced that it has suspended its quarterly dividend program due to the financial impact of the COVID-19 pandemic.~~remaining net proceeds for general corporate purposes.

Other Factors Affecting Liquidity

We may refinance all or a portion of our indebtedness on or before maturity. We cannot assure you that we will be able to refinance any of the indebtedness on acceptable terms or at all.

Legal proceedings in which we are involved also may impact our liquidity. No assurance can be provided as to the outcome of such proceedings. In addition, litigation inherently involves significant costs. For information regarding legal proceedings, see Item 1—"Notes to Condensed Consolidated Financial Statements," Note ~~14,~~15, "Commitments and Contingencies."

Our Board of Directors has authorized an equity repurchase program of up to $1.0 billion. Under the equity repurchase program, we may repurchase the Company's outstanding shares from time to time through open market purchases, in privately

Table of Contents

negotiated transactions, and under plans complying with Rules 10b5-1 and 10b-18 under the Exchange Act. As of ~~June 30, 2020,~~March 31, 2021, we had $800.1 million in repurchase authority remaining under the program.

We have in the past repurchased, and in the future, we may periodically consider repurchasing our outstanding notes for cash. The amount of any notes to be repurchased, as well as the timing of any repurchases, will be based on business, market and other conditions and factors, including price, contractual requirements or consents, and capital availability.

New business developments or other unforeseen events may occur, resulting in the need to raise additional funds. We continue to explore opportunities to develop additional gaming or related businesses in domestic and international markets. There can be no assurances regarding the business prospects with respect to any other opportunity. Any new development may require us to obtain additional financing. We may decide to conduct any such development through Wynn Resorts, Limited or through subsidiaries separate from the Las Vegas, Boston or Macau-related entities.

Off-Balance Sheet Arrangements

We have not entered into any transactions with special purpose entities nor do we engage in any derivatives except for an interest rate collar associated with our Retail Term Loan. We do not have any retained or contingent interest in assets transferred to an unconsolidated entity. As of ~~June 30, 2020,~~March 31, 2021, we had outstanding letters of credit totaling ~~$18.1~~$16.1 million.

Critical Accounting Policies and Estimates

A description of our critical accounting policies is included in Item 7 of our Annual Report on Form 10-K for the year ended December 31, ~~2019.~~2020. There have been no significant changes to these policies for the ~~six~~three months ended ~~June 30, 2020.~~March 31, 2021.

Recently Adopted Accounting Standards and Accounting Standards Issued But Not Yet Adopted

See related disclosure in Item 1—"Notes to Condensed Consolidated Financial Statements," Note 2, "Basis of Presentation and Significant Accounting Policies."

Forward-Looking Statements

We make forward-looking statements in this ~~Annual~~Quarterly Report on Form ~~10-K~~10-Q based upon the beliefs and assumptions of our management and on information currently available to us. Forward-looking statements include, but are not limited to, information about our business strategy, development activities, competition and possible or assumed future results of operations, throughout this report and are often preceded by, followed by or include the words "may," "will," "should," "would," "could," "believe," "expect," "anticipate," "estimate," "intend," "plan," "continue" or the negative of these terms or similar expressions.

~~Table of Contents~~

Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those we express in these forward-looking statements, including the risks and uncertainties in Item ~~1A—"Risk~~1A — "Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2020 and other factors we describe from time to time in our periodic filings with the ~~SEC,~~Securities and Exchange Commission ("SEC"), such as:

•the duration and severity of the COVID-19 pandemic, the adverse effects of the COVID-19 pandemic, including government-mandated property closures, travel restrictions or social distancing or quarantine measures, the macroeconomic conditions during and after the COVID-19 pandemic, including potential higher unemployment rates, declines in income levels and loss of personal wealth resulting from the COVID-19 pandemic and its impact on consumer behavior related to discretionary spending and traveling;

•extensive regulation of our business and the cost of compliance or failure to comply with applicable laws and regulations;

•pending or future claims and legal proceedings, regulatory or enforcement actions or probity investigations;

•our ability to maintain our gaming licenses and concessions;

•our dependence on key employees;

•general global political and economic conditions, in the U.S. and China (including ~~COVID-19 and~~ the Chinese government's ongoing anti-corruption campaign), which may impact levels of travel, leisure, and consumer spending;

•restrictions or conditions on visitation ~~(caused by COVID-19 or otherwise)~~ by citizens of ~~mainland China~~PRC to Macau;

•the impact on the travel and leisure industry from factors such as an outbreak of an infectious disease, ~~such as COVID-19,~~ public incidents of violence, riots, demonstrations, extreme weather patterns or natural disasters, military conflicts, civil unrest, and any future security alerts and/or terrorist attacks;

•doing business in foreign locations such as Macau;

•our ability to maintain our customer relationships and collect and enforce gaming receivables;

•our relationships with Macau gaming promoters;

Table of Contents

•our dependence on a limited number of resorts and locations for all of our cash flow and our subsidiaries' ability to pay us dividends and distributions;

•competition in the casino/hotel and resort industries and actions taken by our competitors, including new development and construction activities of competitors;

•factors affecting the development and success of new gaming and resort properties (including limited labor resources, government labor and gaming policies and transportation infrastructure in Macau; and cost increases, environmental regulation, and our ability to secure necessary permits and ~~approvals)~~approvals in Everett, Massachusetts);

•construction risks (including disputes with and defaults by contractors and subcontractors; construction, equipment or staffing problems; shortages of materials or skilled labor; environment, health and safety issues; and unanticipated cost increases);

•legalization and growth of gaming in other jurisdictions;

•any violations by us of the anti-money laundering laws or Foreign Corrupt Practices Act;

•adverse incidents or adverse publicity concerning our resorts or our corporate responsibilities;

•changes in gaming laws or regulations;

•changes in federal, foreign, or state tax laws or the administration of such laws;

•continued compliance with all provisions in our debt agreements;

•conditions precedent to funding under our credit facilities;

•leverage and debt service (including sensitivity to fluctuations in interest rates);

•cybersecurity risk, including cyber and physical security breaches, system failure, computer viruses, and negligent or intentional misuse by customers, company employees, or employees of third-party vendors;

•our ability to protect our intellectual property rights; and

•our current and future insurance coverage levels.

Further information on potential factors that could affect our financial condition, results of operations and business are included in this report and our other filings with the SEC. You should not place undue reliance on any forward-looking statements, which are based only on information available to us at the time this statement is made. We undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Market risk is the risk of loss arising from adverse changes in market rates and prices, such as interest rates, foreign currency exchange rates and commodity prices.

~~Table of Contents~~

Interest Rate Risks

One of our primary exposures to market risk is interest rate risk associated with our debt facilities that bear interest based on floating rates. We attempt to manage interest rate risk by managing the mix of long-term fixed rate borrowings and variable rate borrowings, supplemented by hedging activities as believed by us to be appropriate. We cannot assure you that these risk management strategies will have the desired effect, and interest rate fluctuations could have a negative impact on our results of operations.

Interest Rate Sensitivity

As of ~~June 30, 2020,~~March 31, 2021, approximately ~~59%~~77% of our long-term debt was based on fixed rates. Based on our borrowings as of ~~June 30, 2020,~~March 31, 2021, an assumed 100 basis point change in the variable rates would cause our annual interest expense to change by ~~$52.8~~$22.8 million.

In order to mitigate exposure to interest rate fluctuations on the Retail Term Loan, the Company entered into a five year interest rate collar with a notional value of $615.0 million. The interest rate collar establishes a range whereby the Company will pay the counterparty if one-month LIBOR falls below the established floor rate of 1.00%, and the counterparty will pay the Company if one-month LIBOR exceeds the ceiling rate of 3.75%.

Foreign Currency Risks

We expect most of the revenues and expenses for any casino that we operate in Macau will be denominated in Hong Kong dollars or Macau patacas; however, a significant portion of our Wynn Macau, Limited debt is denominated in U.S. dollars.

Table of Contents

Fluctuations in the exchange rates resulting in weakening of the Macau pataca or the Hong Kong dollar in relation to the U.S. dollar could have materially adverse effects on our results, financial condition and ability to service debt. Based on our balances as of ~~June 30, 2020,~~March 31, 2021, an assumed 1% change in the U.S. dollar/Hong Kong dollar exchange rate would cause a foreign currency transaction gain/loss of ~~$27.1~~$38.9 million.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

The Company's management, with the participation of the Company's Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO"), has evaluated the effectiveness of the Company's disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")) as of the end of the period covered by this report. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can only provide reasonable assurance of achieving the desired control objectives and management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Based on such evaluation, the Company's CEO and CFO have concluded that, as of the period covered by this report, the Company's disclosure controls and procedures were effective, at the reasonable assurance level, in recording, processing, summarizing and reporting, on a timely basis, information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act and were effective in ensuring that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company's management, including the Company's CEO and CFO, as appropriate to allow timely decisions regarding required disclosure.

Management's Report on Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter to which this report relates that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

4839

Table of Contents

Part II. OTHER INFORMATION

Item 1. Legal Proceedings

We are occasionally party to lawsuits. As with all litigation, no assurance can be provided as to the outcome of such matters and we note that litigation inherently involves significant costs. For information regarding the Company's legal proceedings see Item 1—"Notes to Condensed Consolidated Financial Statements," Note ~~14,~~15, "Commitments and Contingencies" of Part I in this Quarterly Report on Form 10-Q.

Item 1A. Risk Factors

A description of our risk factors can be found in Item 1A, Part I of our Annual Report on Form 10-K for the year ended December 31, ~~2019.~~2020. There were no material changes to those risk factors during the ~~six~~three months ended ~~June 30, 2020 other than the risk factor described below:~~

The outbreak of the novel coronavirus COVID-19 ("COVID-19") has had and will likely continue to have an adverse effect on our business, operations, financial condition and operating results, and the ability of our subsidiaries to pay dividends and distributions.

In January 2020, an outbreak of a new strain of coronavirus, COVID-19, was identified and has spread around the world including the United States. Currently, there are no fully effective vaccines or treatments and there can be no assurance that an effective vaccine or treatment will be developed. The spread of COVID-19 and the recent developments surrounding the global pandemic are currently having negative impacts on all aspects of our business.

The current, and uncertain future, impact of the COVID-19 pandemic, including its effect on the ability or desire of people to travel (including to and from our properties), is expected to continue to impact our results, operations, outlooks, plans, goals, growth, reputation, cash flows and liquidity.

The U.S. government has put in place restrictions on travel to the United States from Europe and Asia, and could expand the restrictions. A significant portion of our business in the United States relies on the willingness and ability of premium international customers to travel to the United States. As such, our Las Vegas Operations and operations at Encore Boston Harbor have been and may continue to be adversely impacted.

Furthermore, in response to and as part of a continuing effort to reduce the spread of COVID-19, we temporarily closed all operations at Wynn Las Vegas and at Encore Boston Harbor, and they remained closed until authorized to re-open under U.S. and state government directives, on June 4, 2020 and July 12, 2020, respectively. Since reopening, we have implemented certain COVID-19 specific protective measures at each location, such as limiting the number of seats per table game, slot machine spacing, temperature checks, and mask protection. In addition, we have been, and will continue to be further, negatively impacted by related developments, including heightened governmental regulations and travel advisories, including recommendations by the U.S. Department of State and the Centers for Disease Control and Prevention, and travel bans and restrictions, each of which has impacted, and is expected to continue to significantly impact, the casino resort industry.

~~Our casino operations in Macau were closed for a 15-day period in February 2020 and resumed operations on a reduced basis on February 20, 2020. On~~ March 20, 2020, our casinos’ operations were fully restored; however certain COVID-19 specific protective measures, such as various traveler quarantines, limiting the number of seats per table game, slot machine spacing, temperature checks, mask protection, COVID-19 negative test results requirements for entry to gaming areas, and health declarations remain in effect at the present time. Visitation to Macau has significantly decreased since the outbreak of COVID-19, driven by the pandemic’s strong deterrent effect on travel and social activities, the Chinese government’s suspension of many of its visa and group tour schemes that allow mainland Chinese residents to travel to Macau, various quarantine measures in Macau and elsewhere, travel and entry restrictions and conditions in Macau, Hong Kong, Taiwan, and mainland China, and the suspension of ferry services to Macau from Hong Kong and mainland China and other modes of transportation within Macau. Regionally, bans on entry, testing requirements, and enhanced quarantine requirements depending on the person’s residency and their recent travel history, for any Macau residents, PRC citizens, Hong Kong residents, and Taiwan residents attempting to enter Macau are drastically impacting visitation. Persons who are not residents of the Greater China area are barred from entry to Macau at this time.

While most of the foregoing travel restrictions and quarantine and testing requirements continue to weigh on visitation to Macau, beginning in June 2020 certain of these restrictions are being eased as certain regions gradually recover from the COVID-19 pandemic. In July 2020, Guangdong Province, a Chinese province adjacent to Macau, eased certain quarantine requirements for those traveling between Guangdong Province and Macau, subject to certain testing requirements and health

~~Table of Contents~~

declarations. Quarantine requirements for those traveling between Hong Kong and Macau have been announced to remain effective until at least September 7, 2020, at which time they may be lifted. In the initial phase of opening travel channels between Macau and other regions, it is expected that all visitors seeking entry to Macau will need to test negative for COVID-19 before entering Macau. Although Mainland China and Macau have recently announced several policies or changes to policies which relax certain visa issuance, border control and quarantine requirements, stringent health declarations, testing and other procedures remain in place and the Individual Visitor Scheme ("IVS") has yet to restart, which prior to its suspension by the PRC government due to COVID-19 travel restrictions, permitted individual PRC citizens from nearly 50 PRC cities to travel to Macau for tourism purposes. We are currently unable to determine when these measures will be lifted from additional regions and cities throughout China and lifted measures may be reintroduced if there are adverse developments in the COVID-19 situation in Macau and other regions with access to Macau.

~~Until the IVS resumes, we do not expect business volumes to materially improve. We cannot predict when the IVS will resume or which PRC cities will resume issuance of IVS travel permits.~~

Although all our properties are currently open, we cannot predict whether future closures would be appropriate or could be mandated. For instance, a confirmed COVID-19 case being found in the casinos in future could result in all casino operations in Macau, including those of Wynn Palace and Wynn Macau, being suspended by the Macau government.

We cannot predict the effects of the conditions upon which we have been permitted by governmental authorities to reopen our operations. Moreover, even once travel advisories and restrictions are lifted, demand for casino resorts may remain weak for a significant length of time and we cannot predict if and when our properties will return to pre-outbreak demand or pricing. In particular, consumer behavior related to discretionary spending and traveling, including demand for casino resorts, may be negatively impacted by the adverse changes in the perceived or actual economic climate, including higher unemployment rates, declines in income levels and loss of personal wealth resulting from the impact of the COVID-19 pandemic. In addition, we cannot predict the impact that the COVID-19 pandemic will have on our partners, such as tenants, travel agencies, suppliers and other vendors. We may be adversely impacted as a result of the adverse impact that our partners suffer.

As a result of all of the foregoing, we may be required to raise additional capital in the future and our access to and cost of financing will depend on, among other things, global economic conditions, conditions in the global financing markets, the availability of sufficient amounts of financing, our prospects and our credit ratings. If our credit ratings were to be downgraded, or general market conditions were to ascribe higher risk to our rating levels, our industry, or us, our access to capital and the cost of any debt financing will be further negatively impacted. In addition, the terms of future debt agreements could include more restrictive covenants, or require incremental collateral, which may further restrict our business operations or be unavailable due to our covenant restrictions then in effect. There is no guarantee that debt financings will be available in the future to fund our obligations, or that they will be available on terms consistent with our expectations.

In addition, the COVID-19 pandemic has significantly increased economic and demand uncertainty. The current outbreak and continued spread of COVID-19 could cause a global recession or depression, which would have a further adverse impact on our financial condition and operations. Current economic forecasts for significant increases in unemployment in the U.S. and other regions due to the adoption of social distancing and other policies to slow the spread of the virus is likely to have a negative impact on demand for casino resorts, and these impacts could exist for an extensive period of time.

The extent of the effects of the outbreak on our business and the casino resort industry at large is highly uncertain and will ultimately depend on future developments, including, but not limited to, the duration and severity of the pandemic, the length of time it takes for demand and pricing to return and normal economic and operating conditions to resume.

The COVID-19 pandemic has had and will continue to have an adverse effect on our results of operations and the ability of our subsidiaries to pay dividends and distributions. Given the uncertainty around the extent and timing of the potential future spread or mitigation of COVID-19 and around the imposition or relaxation of protective measures, the impact on our results of operations, cash flows, and financial condition in 2020 and potentially thereafter will be material, but cannot be reasonably estimated at this time as it is unknown when the COVID-19 pandemic will end, when or if our properties will return to pre-pandemic demand and pricing, when or how quickly the current travel restrictions will be eased and the resulting impact on our business and operations.

To the extent the COVID-19 pandemic adversely affects our business, operations, financial condition and operating results, it may also have the effect of heightening many of the other risks related to our business, including, but not limited to, those relating to our high level of indebtedness, our need to generate sufficient cash flows to service our indebtedness, and our ability to comply with the covenants contained in the agreements that govern our indebtedness.

~~Table of Contents~~

31, 2021.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchases of Equity Securities

The following table summarizes the share repurchases in satisfaction of tax withholding obligations on vested restricted stock during the quarter ended ~~June 30, 2020:~~March 31, 2021:

For the Month Ended Number of Shares Repurchased Weighted Average Price Paid Per Share Approximate Dollar Value of Repurchased Shares
(in thousands)
April 30, 2020 343 $ 82.01 $ 28
May 31, 2020 4,344 $ 86.28 $ 375
June 30, 2020 32,376 $ 76.90 $ 2,490


For the Month Ended	Number of Shares Repurchased	Weighted Average Price Paid Per Share		Approximate Dollar Value of Repurchased Shares (in thousands)
January 31, 2021	31,270	$	110.01	$	3,440
February 28, 2021	4,410	$	132.49	$	584
March 31, 2021	2,514	$	131.98	$	332

None of the foregoing repurchases that occurred during the three months ended ~~June 30, 2020~~March 31, 2021 were part of the Company's publicly announced repurchase program. As of ~~June 30, 2020,~~March 31, 2021, we had $800.1 million in repurchase authority under the program.

Item 5. Other Information

None.

5140

Table of Contents

Item 6. Exhibits

(a)Exhibits


Exhibit No.						Description
3.1						Third Amended and Restated Articles of Incorporation of the Registrant. (Incorporated by reference from the Quarterly Report on Form 10-Q filed by the Registrant on May 8, 2015.).
3.2						Ninth Amended and Restated Bylaws of the Registrant. (Incorporated by reference from the Annual Report on Form 10-K filed by the Registrant on February 28, 2020.).
*4.1						~~Indenture, dated as of June 17, 2020, by and between Wynn Macau, Limited and Deutsche Bank Trust Company Americas, as trustee, related to senior notes due 2026.~~
*10.1						First Amendment to Term Loan Agreement, dated as of May 5, 2020, by and among Wynn/CA Plaza Property Owner, LLC and Wynn/CA Property Owner, LLC, as borrowers, United Overseas Bank Limited, New York Agency, as administrative agent, and the lenders party thereto.
*31.1						Certification of Chief Executive Officer of Periodic Report Pursuant to Rule 13a – 14(a) and Rule 15d – 14(a).
*31.2						Certification of Chief Financial Officer of Periodic Report Pursuant to Rule 13a – 14(a) and Rule 15d – 14(a).
*32						Certification of CEO and CFO Pursuant to 19 U.S.C. Section 1350.
101						The following material from Wynn Resorts, Limited's Quarterly Report on Form 10-Q, formatted in Inline XBRL (Inline Extensible Business Reporting Language): (i) the Condensed Consolidated Balance Sheets as of ~~June 30, 2020~~March 31, 2021 and December 31, ~~2019;~~2020; (ii) the Condensed Consolidated Statements of Operations for the three ~~and six~~ months ended ~~June 30, 2020~~March 31, 2021 and ~~2019;~~2020; (iii) the Condensed Consolidated Statements of Comprehensive ~~Income (Loss)~~Loss for the three ~~and six~~ months ended ~~June 30, 2020~~March 31, 2021 and ~~2019;~~2020; (iv) the Condensed Consolidated Statements of Stockholders' Equity (Deficit) for the three ~~and six~~ months ended ~~June 30, 2020~~March 31, 2021 and ~~2019;~~2020; (v) the Condensed Consolidated Statements of Cash Flows for the ~~six~~three months ended ~~June 30, 2020~~March 31, 2021 and ~~2019;~~2020; and (vi) Notes to Condensed Consolidated Financial Statements. The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
104						Cover Page Interactive Data File - The cover page XBRL tags are embedded within the Inline XBRL document.

Wynn Resorts, Limited agrees to furnish to the U.S. Securities and Exchange Commission, upon request, a copy of each agreement with respect to long-term debt not filed herewith in reliance upon the exemption from filing applicable to any series of debt which does not exceed 10% of the total consolidated assets of the company.

* Filed ~~herewith~~herewith.

5241

Table of Contents

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

WYNN RESORTS, LIMITED

Dated: ~~August 6, 2020~~May 10, 2021

By:

/s/ Craig S. Billings

Craig S. Billings

President and Chief Financial Officer ~~and Treasurer~~

(Principal Financial and Accounting Officer)

5342


	For the Six Months Ended June 30, 2020
	Common stock
	Shares outstanding	Par value		Treasury stock		Additional paid-in capital		Accumulated other comprehensive loss		Retained earnings (accumulated deficit)		Total Wynn Resorts, Ltd. stockholders' equity		Noncontrolling interests		Total stockholders' equity
Balances, January 1, 2020	107,363,943	$	1,228	$	(1,410,998)	$	2,512,676	$	(1,679)	$	641,818	$	1,743,045	$	(201,573)	$	1,541,472
Net loss	—	—		—		—		—		(1,039,601)		(1,039,601)		(145,521)		(1,185,122)
Currency translation adjustment	—	—		—		—		771		—		771		297		1,068
Issuance of restricted stock	661,015	6		—		6,703		—		—		6,709		818		7,527
Cancellation of restricted stock	(73,047)	—		—		—		—		—		—		—		—
Shares repurchased by the Company and held as treasury shares	(82,046)	—		(8,437)		—		—		—		(8,437)		141		(8,296)
Cash dividends declared	—	—		—		—		—		(107,307)		(107,307)		30		(107,277)
Distribution to noncontrolling interest	—	—		—		—		—		—		—		(998)		(998)
Stock-based compensation	—	—		—		24,339		—		—		24,339		1,485		25,824
Balances, June 30, 2020	107,869,865	$	1,234	$	(1,419,435)	$	2,543,718	$	(908)	$	(505,090)	$	619,519	$	(345,321)	$	274,198


	For the Six Months Ended June 30, 2019
	Common stock
	Shares outstanding	Par value		Treasury stock		Additional paid-in capital		Accumulated other comprehensive loss		Retained earnings		Total Wynn Resorts, Ltd. stockholders' equity		Noncontrolling interests			Total stockholders' equity
Balances, January 1, 2019	107,232,026	$	1,221	$	(1,344,012)	$	2,457,079	$	(1,950)	$	921,785	$	2,034,123	$	(219,334)		$	1,814,789
Net income	—	—		—		—		—		199,423		199,423		102,542			301,965
Currency translation adjustment	—	—		—		—		(36)		—		(36)		(14)		��	(50)
Exercise of stock options	257,690	3		—		12,542		—		—		12,545		—			12,545
Issuance of restricted stock	429,229	4		—		14,344		—		—		14,348		785			15,133
Cancellation of restricted stock	(11,840)	—		—		—		—		—		—		—			—
Shares repurchased by the Company and held as treasury shares	(296,749)	—		(35,632)		—		—		—		(35,632)		—			(35,632)
Cash dividends declared	—	—		—		—		—		(188,301)		(188,301)		(82,900)			(271,201)
Distribution to noncontrolling interest	—	—		—		—		—		—		—		(2,727)			(2,727)
Stock-based compensation	—	—		—		14,351		—		—		14,351		1,766			16,117
Balances, June 30, 2019	107,610,356	$	1,228	$	(1,379,644)	$	2,498,316	$	(1,986)	$	932,907	$	2,050,821	$	(199,882)		$	1,850,939