Condensed Consolidating Financial Information | NOTE 13 — CONDENSED CONSOLIDATING FINANCIAL INFORMATION The Company’s domestic subsidiaries, excluding certain minor subsidiaries, its domestic insurance subsidiaries, MGM Grand Detroit, LLC, MGM National Harbor, LLC and Blue Tarp reDevelopment, LLC (the company that will own and operate the Company’s casino resort in Springfield, Massachusetts), and each of their respective subsidiaries, have fully and unconditionally guaranteed, on a joint and several basis, payment of the senior credit facility and the outstanding debt securities. The Company’s international subsidiaries, including MGM China, are not guarantors of such indebtedness. Separate condensed financial statement information for the subsidiary guarantors and non-guarantors as of June 30, 2015 and December 31, 2014, and for the three and six months ended June 30, 2015 and 2014, are presented below. CONDENSED CONSOLIDATING BALANCE SHEET INFORMATION At June 30, 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Elimination Consolidated (In thousands) Current assets $ 1,673,920 $ 867,066 $ 726,554 $ (518 ) $ 3,267,022 Property and equipment, net — 12,391,970 2,411,560 (11,972 ) 14,791,558 Investments in subsidiaries 20,730,688 3,679,694 — (24,410,382 ) — Investments in and advances to unconsolidated affiliates — 1,458,850 7,202 25,000 1,491,052 Intercompany accounts — 2,849,897 — (2,849,897 ) — Other non-current assets 127,938 419,813 7,052,204 — 7,599,955 $ 22,532,546 $ 21,667,290 $ 10,197,520 $ (27,247,769 ) $ 27,149,587 Current liabilities $ 1,174,019 $ 962,594 $ 654,700 $ (518 ) $ 2,790,795 Intercompany accounts 2,465,742 — 384,155 (2,849,897 ) — Deferred income taxes, net 2,216,466 — 309,170 — 2,525,636 Long-term debt 10,813,770 4,837 1,676,602 — 12,495,209 Other long-term obligations 34,339 70,086 51,692 — 156,117 Total liabilities 16,704,336 1,037,517 3,076,319 (2,850,415 ) 17,967,757 Redeemable Noncontrolling Interest – – 5,000 – 5,000 MGM Resorts stockholders' equity 5,828,210 20,629,773 3,767,581 (24,397,354 ) 5,828,210 Noncontrolling interests — — 3,348,620 — 3,348,620 Total stockholders' equity 5,828,210 20,629,773 7,116,201 (24,397,354 ) 9,176,830 $ 22,532,546 $ 21,667,290 $ 10,197,520 $ (27,247,769 ) $ 27,149,587 At December 31, 2014 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Elimination Consolidated (In thousands) Current assets $ 1,390,806 $ 868,688 $ 768,335 $ (669 ) $ 3,027,160 Property and equipment, net — 12,445,086 2,008,428 (11,972 ) 14,441,542 Investments in subsidiaries 20,430,160 3,896,365 — (24,326,525 ) — Investments in and advances to unconsolidated affiliates — 1,526,446 7,588 25,000 1,559,034 Intercompany accounts — 2,175,091 — (2,175,091 ) — Other non-current assets 141,035 414,801 7,118,939 — 7,674,775 $ 21,962,001 $ 21,326,477 $ 9,903,290 $ (26,489,257 ) $ 26,702,511 Current liabilities $ 1,680,319 $ 953,179 $ 775,097 $ (670 ) $ 3,407,925 Intercompany accounts 1,932,780 — 242,311 (2,175,091 ) — Deferred income taxes, net 2,312,828 — 309,032 — 2,621,860 Long-term debt 11,907,534 4,837 1,001,511 — 12,913,882 Other long-term obligations 37,623 58,016 34,931 — 130,570 Total liabilities 17,871,084 1,016,032 2,362,882 (2,175,761 ) 19,074,237 MGM Resorts stockholders' equity 4,090,917 20,310,445 4,003,051 (24,313,496 ) 4,090,917 Noncontrolling interests — — 3,537,357 — 3,537,357 Total stockholders' equity 4,090,917 20,310,445 7,540,408 (24,313,496 ) 7,628,274 $ 21,962,001 $ 21,326,477 $ 9,903,290 $ (26,489,257 ) $ 26,702,511 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME INFORMATION Three Months Ended June 30, 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Elimination Consolidated (In thousands) Net revenues $ — $ 1,687,721 $ 698,125 $ (711 ) $ 2,385,135 Equity in subsidiaries' earnings 300,435 47,659 — (348,094 ) — Expenses Casino and hotel operations 1,506 994,001 461,001 (711 ) 1,455,797 General and administrative 1,039 276,895 55,774 — 333,708 Corporate expense 20,577 39,066 (41 ) — 59,602 Preopening and start-up expenses — 1,326 16,563 — 17,889 Property transactions, net — 3,456 497 — 3,953 Depreciation and amortization — 132,239 76,326 — 208,565 23,122 1,446,983 610,120 (711 ) 2,079,514 Income from unconsolidated affiliates — 43,481 (581 ) — 42,900 Operating income (loss) 277,313 331,878 87,424 (348,094 ) 348,521 Interest expense, net of amounts capitalized (196,573 ) (263 ) (6,409 ) — (203,245 ) Other, net 9,545 (18,414 ) (13,712 ) — (22,581 ) Income (loss) before income taxes 90,285 313,201 67,303 (348,094 ) 122,695 Benefit (provision) for income taxes 7,174 (2,811 ) (591 ) — 3,772 Net income (loss) 97,459 310,390 66,712 (348,094 ) 126,467 Less: Net income attributable to noncontrolling interests — — (29,008 ) — (29,008 ) Net income (loss) attributable to MGM Resorts International $ 97,459 $ 310,390 $ 37,704 $ (348,094 ) $ 97,459 Net income (loss) $ 97,459 $ 310,390 $ 66,712 $ (348,094 ) $ 126,467 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment 311 311 608 (622 ) 608 Other comprehensive income (loss) 311 311 608 (622 ) 608 Comprehensive income (loss) 97,770 310,701 67,320 (348,716 ) 127,075 Less: Comprehensive income attributable to noncontrolling interests — — (29,305 ) — (29,305 ) Comprehensive income (loss) attributable to MGM Resorts International $ 97,770 $ 310,701 $ 38,015 $ (348,716 ) $ 97,770 Six Months Ended June 30, 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Elimination Consolidated (In thousands) Net revenues $ — $ 3,257,003 $ 1,461,810 $ (1,434 ) $ 4,717,379 Equity in subsidiaries' earnings 628,201 92,625 — (720,826 ) — Expenses Casino and hotel operations 3,006 1,931,440 974,905 (1,434 ) 2,907,917 General and administrative 2,240 546,449 113,192 — 661,881 Corporate expense 36,093 74,270 (405 ) — 109,958 Preopening and start-up expenses — 2,243 31,517 — 33,760 Property transactions, net — 4,713 829 — 5,542 Depreciation and amortization — 260,057 154,920 — 414,977 41,339 2,819,172 1,274,958 (1,434 ) 4,134,035 Income from unconsolidated affiliates — 160,746 (465 ) — 160,281 Operating income (loss) 586,862 691,202 186,387 (720,826 ) 743,625 Interest expense, net of amounts capitalized (407,650 ) (551 ) (11,306 ) — (419,507 ) Other, net 22,424 (39,152 ) (28,354 ) — (45,082 ) Income (loss) before income taxes 201,636 651,499 146,727 (720,826 ) 279,036 Benefit (provision) for income taxes 65,673 (4,497 ) (1,099 ) — 60,077 Net income (loss) 267,309 647,002 145,628 (720,826 ) 339,113 Less: Net income attributable to noncontrolling interests — — (71,804 ) — (71,804 ) Net income (loss) attributable to MGM Resorts International $ 267,309 $ 647,002 $ 73,824 $ (720,826 ) $ 267,309 Net income (loss) $ 267,309 $ 647,002 $ 145,628 $ (720,826 ) $ 339,113 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment 1,572 1,572 3,084 (3,144 ) 3,084 Other (672 ) (672 ) — 672 (672 ) Other comprehensive income (loss) 900 900 3,084 (2,472 ) 2,412 Comprehensive income (loss) 268,209 647,902 148,712 (723,298 ) 341,525 Less: Comprehensive income attributable to noncontrolling interests — — (73,316 ) — (73,316 ) Comprehensive income (loss) attributable to MGM Resorts International $ 268,209 $ 647,902 $ 75,396 $ (723,298 ) $ 268,209 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS INFORMATION Six Months Ended June 30, 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Elimination Consolidated (In thousands) Cash flows from operating activities Net cash provided by (used in) operating activities $ (400,538 ) $ 672,429 $ 175,378 $ — $ 447,269 Cash flows from investing activities Capital expenditures, net of construction payable — (204,787 ) (389,254 ) — (594,041 ) Dispositions of property and equipment — 182 77 — 259 Proceeds from sale of assets held for sale — 19,797 — — 19,797 Investments in and advances to unconsolidated affiliates (141,230 ) (35,449 ) — — (176,679 ) Distributions from unconsolidated affiliates in excess of cumulative earnings — 202,136 — — 202,136 Investments in cash deposits - maturities longer than 90 days (200,205 ) — — — (200,205 ) Proceeds from cash deposits - maturities longer than 90 days 570,000 — — — 570,000 Intercompany accounts — (674,807 ) — 674,807 — Other — (3,744 ) 5,598 — 1,854 Net cash provided by (used in) investing activities 228,565 (696,672 ) (383,579 ) 674,807 (176,879 ) Cash flows from financing activities Net borrowings (repayments) under bank credit facilities - maturities of 90 days or less (1,270,250 ) — 223,742 — (1,046,508 ) Borrowings under bank credit facilities - maturities longer than 90 days 2,516,875 — 900,000 — 3,416,875 Repayments under bank credit facilities - maturities longer than 90 days (1,260,625 ) — (450,000 ) — (1,710,625 ) Retirement of senior notes (504 ) — — — (504 ) Debt issuance costs — — (45,639 ) — (45,639 ) Intercompany accounts 841,658 11,271 (178,122 ) (674,807 ) — Distributions to noncontrolling interest owners — — (264,454 ) — (264,454 ) Proceeds from issuance of redeemable noncontrolling interest — — 5,000 — 5,000 Other (286 ) (3 ) 3 — (286 ) Net cash provided by (used in) financing activities 826,868 11,268 190,530 (674,807 ) 353,859 Effect of exchange rate on cash — — 714 — 714 Cash and cash equivalents Net increase (decrease) for the period 654,895 (12,975 ) (16,957 ) — 624,963 Change in cash related to assets held for sale — 3,662 — — 3,662 Balance, beginning of period 799,508 255,655 658,552 — 1,713,715 Balance, end of period $ 1,454,403 $ 246,342 $ 641,595 $ — $ 2,342,340 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME INFORMATION Three Months Ended June 30, 2014 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Elimination Consolidated (In thousands) Net revenues $ — $ 1,617,302 $ 964,352 $ (621 ) $ 2,581,033 Equity in subsidiaries' earnings 254,137 85,446 — (339,583 ) — Expenses Casino and hotel operations 1,299 971,928 646,386 (621 ) 1,618,992 General and administrative 1,134 272,340 54,010 — 327,484 Corporate expense 16,724 36,198 1,517 — 54,439 Preopening and start-up expenses — 1,015 8,744 — 9,759 Property transactions, net — 33,044 126 — 33,170 Depreciation and amortization — 123,853 79,217 — 203,070 19,157 1,438,378 790,000 (621 ) 2,246,914 Income from unconsolidated affiliates — 20,207 138 — 20,345 Operating income (loss) 234,980 284,577 174,490 (339,583 ) 354,464 Interest expense, net of amounts capitalized (196,215 ) (120 ) (7,601 ) — (203,936 ) Other, net 16,358 (23,507 ) (17,156 ) — (24,305 ) Income (loss) before income taxes 55,123 260,950 149,733 (339,583 ) 126,223 Benefit (provision) for income taxes 54,885 (2,108 ) (832 ) — 51,945 Net income (loss) 110,008 258,842 148,901 (339,583 ) 178,168 Less: Net income attributable to noncontrolling interests — — (68,160 ) — (68,160 ) Net income (loss) attributable to MGM Resorts International $ 110,008 $ 258,842 $ 80,741 $ (339,583 ) $ 110,008 Net income (loss) $ 110,008 $ 258,842 $ 148,901 $ (339,583 ) $ 178,168 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment 2,999 2,999 5,862 (5,998 ) 5,862 Other comprehensive income (loss) 2,999 2,999 5,862 (5,998 ) 5,862 Comprehensive income (loss) 113,007 261,841 154,763 (345,581 ) 184,030 Less: Comprehensive income attributable to noncontrolling interests — — (71,023 ) — (71,023 ) Comprehensive income (loss) attributable to MGM Resorts International $ 113,007 $ 261,841 $ 83,740 $ (345,581 ) $ 113,007 Six Months Ended June 30, 2014 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Elimination Consolidated (In thousands) Net revenues $ — $ 3,173,631 $ 2,039,014 $ (1,214 ) $ 5,211,431 Equity in subsidiaries' earnings 556,455 178,815 — (735,270 ) — Expenses Casino and hotel operations 2,553 1,893,902 1,373,846 (1,214 ) 3,269,087 General and administrative 2,246 532,980 111,504 — 646,730 Corporate expense 33,463 69,784 4,543 — 107,790 Preopening and start-up expenses — 3,006 12,389 — 15,395 Property transactions, net — 33,538 190 — 33,728 Depreciation and amortization — 251,928 158,797 — 410,725 38,262 2,785,138 1,661,269 (1,214 ) 4,483,455 Income from unconsolidated affiliates — 42,769 191 — 42,960 Operating income (loss) 518,193 610,077 377,936 (735,270 ) 770,936 Interest expense, net of amounts capitalized (397,112 ) (224 ) (15,987 ) — (413,323 ) Other, net 34,948 (46,362 ) (36,540 ) — (47,954 ) Income (loss) before income taxes 156,029 563,491 325,409 (735,270 ) 309,659 Benefit (provision) for income taxes 56,631 (467 ) (1,555 ) — 54,609 Net income (loss) 212,660 563,024 323,854 (735,270 ) 364,268 Less: Net income attributable to noncontrolling interests — — (151,608 ) — (151,608 ) Net income (loss) attributable to MGM Resorts International $ 212,660 $ 563,024 $ 172,246 $ (735,270 ) $ 212,660 Net income (loss) $ 212,660 $ 563,024 $ 323,854 $ (735,270 ) $ 364,268 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment 1,482 1,482 3,102 (2,964 ) 3,102 Other 1,250 1,250 — (1,250 ) 1,250 Other comprehensive income (loss) 2,732 2,732 3,102 (4,214 ) 4,352 Comprehensive income (loss) 215,392 565,756 326,956 (739,484 ) 368,620 Less: Comprehensive income attributable to noncontrolling interests — — (153,228 ) — (153,228 ) Comprehensive income (loss) attributable to MGM Resorts International $ 215,392 $ 565,756 $ 173,728 $ (739,484 ) $ 215,392 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS INFORMATION Six Months Ended June 30, 2014 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Elimination Consolidated (In thousands) Cash flows from operating activities Net cash provided by (used in) operating activities $ (366,066 ) $ 664,206 $ 480,484 $ 25,000 $ 803,624 Cash flows from investing activities Capital expenditures, net of construction payable — (166,418 ) (203,830 ) — (370,248 ) Dispositions of property and equipment — 104 308 — 412 Investments in and advances to unconsolidated affiliates (11,700 ) (17,050 ) — (25,000 ) (53,750 ) Distributions from unconsolidated affiliates in excess of cumulative earnings — 790 — — 790 Investments in treasury securities - maturities longer than 90 days — (93,137 ) — — (93,137 ) Proceeds from treasury securities - maturities longer than 90 days — 111,238 — — 111,238 Intercompany accounts — (462,037 ) — 462,037 — Other — 2,535 — — 2,535 Net cash provided by (used in) investing activities (11,700 ) (623,975 ) (203,522 ) 437,037 (402,160 ) Cash flows from financing activities Net repayments under bank credit facilities - maturities of 90 days or less (1,287,750 ) — (450,000 ) — (1,737,750 ) Borrowings under bank credit facilities - maturities longer than 90 days 3,001,875 — 450,000 — 3,451,875 Repayments under bank credit facilities - maturities longer than 90 days (1,728,125 ) — — — (1,728,125 ) Retirement of senior notes (508,900 ) — — — (508,900 ) Intercompany accounts 849,275 (38,418 ) (348,820 ) (462,037 ) — Distributions to noncontrolling interest owners — — (314,447 ) — (314,447 ) Other (1,696 ) — (477 ) — (2,173 ) Net cash provided by (used in) financing activities 324,679 (38,418 ) (663,744 ) (462,037 ) (839,520 ) Effect of exchange rate on cash — — (476 ) — (476 ) Cash and cash equivalents Net increase (decrease) for the period (53,087 ) 1,813 (387,258 ) — (438,532 ) Balance, beginning of period 378,660 237,457 1,187,552 — 1,803,669 Balance, end of period $ 325,573 $ 239,270 $ 800,294 $ — $ 1,365,137 |