Condensed Consolidating Financial Information | NOTE 13 — CONDENSED CONSOLIDATING FINANCIAL INFORMATION The Company’s domestic subsidiaries, excluding certain minor subsidiaries, its domestic insurance subsidiary, 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 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 September 30, 2015 and December 31, 2014, and for the three and nine months ended September 30, 2015 and 2014, are presented below. CONDENSED CONSOLIDATING BALANCE SHEET INFORMATION At September 30, 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Elimination Consolidated (In thousands) Current assets $ 641,615 $ 879,316 $ 1,061,991 $ (648 ) $ 2,582,274 Property and equipment, net — 12,362,060 2,664,554 (11,972 ) 15,014,642 Investments in subsidiaries 20,794,181 3,715,686 — (24,509,867 ) — Investments in and advances to unconsolidated affiliates — 1,503,891 7,640 25,000 1,536,531 Intercompany accounts — 3,058,530 — (3,058,530 ) — Other non-current assets 121,610 412,103 7,013,106 — 7,546,819 $ 21,557,406 $ 21,931,586 $ 10,747,291 $ (27,556,017 ) $ 26,680,266 Current liabilities $ 268,473 $ 983,025 $ 702,005 $ (648 ) $ 1,952,855 Intercompany accounts 2,356,921 — 701,609 (3,058,530 ) — Deferred income taxes, net 2,187,057 — 309,237 — 2,496,294 Long-term debt 10,807,643 4,837 2,008,557 — 12,821,037 Other long-term obligations 36,068 67,305 61,985 — 165,358 Total liabilities 15,656,162 1,055,167 3,783,393 (3,059,178 ) 17,435,544 Redeemable noncontrolling interest — — 5,000 — 5,000 MGM Resorts stockholders' equity 5,901,244 20,876,419 3,620,420 (24,496,839 ) 5,901,244 Noncontrolling interests — — 3,338,478 — 3,338,478 Total stockholders' equity 5,901,244 20,876,419 6,958,898 (24,496,839 ) 9,239,722 $ 21,557,406 $ 21,931,586 $ 10,747,291 $ (27,556,017 ) $ 26,680,266 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 September 30, 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Elimination Consolidated (In thousands) Net revenues $ — $ 1,622,593 $ 658,889 $ (666 ) $ 2,280,816 Equity in subsidiaries' earnings 247,524 40,742 — (288,266 ) — Expenses Casino and hotel operations 1,552 962,392 434,622 (666 ) 1,397,900 General and administrative 1,132 284,328 55,035 — 340,495 Corporate expense 36,186 37,873 (40 ) — 74,019 Preopening and start-up expenses — 1,268 15,242 — 16,510 Property transactions, net — 6,984 139 — 7,123 Depreciation and amortization — 136,795 67,947 — 204,742 38,870 1,429,640 572,945 (666 ) 2,040,789 Income from unconsolidated affiliates — 56,829 521 — 57,350 Operating income (loss) 208,654 290,524 86,465 (288,266 ) 297,377 Interest expense, net of amounts capitalized (179,636 ) (232 ) (11,913 ) — (191,781 ) Other, net 12,882 (25,748 ) (14,488 ) — (27,354 ) Income (loss) before income taxes 41,900 264,544 60,064 (288,266 ) 78,242 Benefit (provision) for income taxes 24,525 (7,078 ) (954 ) — 16,493 Net income (loss) 66,425 257,466 59,110 (288,266 ) 94,735 Less: Net income attributable to noncontrolling interests — — (28,310 ) — (28,310 ) Net income (loss) attributable to MGM Resorts International $ 66,425 $ 257,466 $ 30,800 $ (288,266 ) $ 66,425 Net income (loss) $ 66,425 $ 257,466 $ 59,110 $ (288,266 ) $ 94,735 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment 556 556 1,291 (1,112 ) 1,291 Other comprehensive income (loss) 556 556 1,291 (1,112 ) 1,291 Comprehensive income (loss) 66,981 258,022 60,401 (289,378 ) 96,026 Less: Comprehensive income attributable to noncontrolling interests — — (29,045 ) — (29,045 ) Comprehensive income (loss) attributable to MGM Resorts International $ 66,981 $ 258,022 $ 31,356 $ (289,378 ) $ 66,981 Nine Months Ended September 30, 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Elimination Consolidated (In thousands) Net revenues $ — $ 4,879,596 $ 2,120,699 $ (2,100 ) $ 6,998,195 Equity in subsidiaries' earnings 875,725 133,367 — (1,009,092 ) — Expenses Casino and hotel operations 4,558 2,893,832 1,409,527 (2,100 ) 4,305,817 General and administrative 3,372 830,777 168,227 — 1,002,376 Corporate expense 72,279 112,143 (445 ) — 183,977 Preopening and start-up expenses — 3,511 46,759 — 50,270 Property transactions, net — 11,697 968 — 12,665 Depreciation and amortization — 396,852 222,867 — 619,719 80,209 4,248,812 1,847,903 (2,100 ) 6,174,824 Income from unconsolidated affiliates — 217,575 56 — 217,631 Operating income (loss) 795,516 981,726 272,852 (1,009,092 ) 1,041,002 Interest expense, net of amounts capitalized (587,286 ) (783 ) (23,219 ) — (611,288 ) Other, net 35,306 (64,900 ) (42,842 ) — (72,436 ) Income (loss) before income taxes 243,536 916,043 206,791 (1,009,092 ) 357,278 Benefit (provision) for income taxes 90,198 (11,575 ) (2,053 ) — 76,570 Net income (loss) 333,734 904,468 204,738 (1,009,092 ) 433,848 Less: Net income attributable to noncontrolling interests — — (100,114 ) — (100,114 ) Net income (loss) attributable to MGM Resorts International $ 333,734 $ 904,468 $ 104,624 $ (1,009,092 ) $ 333,734 Net income (loss) $ 333,734 $ 904,468 $ 204,738 $ (1,009,092 ) $ 433,848 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment 2,128 2,128 4,375 (4,256 ) 4,375 Other (672 ) (672 ) — 672 (672 ) Other comprehensive income (loss) 1,456 1,456 4,375 (3,584 ) 3,703 Comprehensive income (loss) 335,190 905,924 209,113 (1,012,676 ) 437,551 Less: Comprehensive income attributable to noncontrolling interests — — (102,361 ) — (102,361 ) Comprehensive income (loss) attributable to MGM Resorts International $ 335,190 $ 905,924 $ 106,752 $ (1,012,676 ) $ 335,190 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS INFORMATION Nine Months Ended September 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 $ (620,381 ) $ 996,466 $ 361,695 $ — $ 737,780 Cash flows from investing activities Capital expenditures, net of construction payable — (312,877 ) (687,701 ) — (1,000,578 ) Dispositions of property and equipment — 266 77 — 343 Proceeds from sale of assets held for sale — 19,797 — — 19,797 Investments in and advances to unconsolidated affiliates (141,390 ) (53,134 ) — — (194,524 ) Distributions from unconsolidated affiliates in excess of cumulative earnings — 202,850 — — 202,850 Investments in cash deposits - maturities longer than 90 days (200,205 ) — — — (200,205 ) Proceeds from cash deposits - maturities longer than 90 days 770,205 — — — 770,205 Intercompany accounts — (883,440 ) — 883,440 — Other — (5,483 ) 5,542 — 59 Net cash provided by (used in) investing activities 428,610 (1,032,021 ) (682,082 ) 883,440 (402,053 ) Cash flows from financing activities Net borrowings (repayments) under bank credit facilities - maturities of 90 days or less (1,272,875 ) — 555,275 — (717,600 ) Borrowings under bank credit facilities - maturities longer than 90 days 3,768,750 — 1,350,000 — 5,118,750 Repayments under bank credit facilities - maturities longer than 90 days (2,516,875 ) — (900,000 ) — (3,416,875 ) Retirement of senior notes (875,504 ) — — — (875,504 ) Debt issuance costs — — (46,170 ) — (46,170 ) Intercompany accounts 911,212 12,218 (39,990 ) (883,440 ) — Distributions to noncontrolling interest owners — — (304,562 ) — (304,562 ) Proceeds from issuance of redeemable noncontrolling interest — — 5,000 — 5,000 Other (1,059 ) — 9 — (1,050 ) Net cash provided by (used in) financing activities 13,649 12,218 619,562 (883,440 ) (238,011 ) Effect of exchange rate on cash — — 845 — 845 Cash and cash equivalents Net increase (decrease) for the period (178,122 ) (23,337 ) 300,020 — 98,561 Change in cash related to assets held for sale — (4,481 ) — — (4,481 ) Balance, beginning of period 799,508 255,655 658,552 — 1,713,715 Balance, end of period $ 621,386 $ 227,837 $ 958,572 $ — $ 1,807,795 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME INFORMATION Three Months Ended September 30, 2014 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Elimination Consolidated (In thousands) Net revenues $ — $ 1,563,598 $ 922,000 $ (591 ) $ 2,485,007 Equity in subsidiaries' earnings 188,090 82,071 — (270,161 ) — Expenses Casino and hotel operations 1,311 985,981 606,357 (591 ) 1,593,058 General and administrative 1,183 289,167 57,137 — 347,487 Corporate expense 17,984 39,086 4,493 — 61,563 Preopening and start-up expenses — 614 9,619 — 10,233 Property transactions, net — 4,332 2,462 — 6,794 Depreciation and amortization — 124,323 78,063 — 202,386 20,478 1,443,503 758,131 (591 ) 2,221,521 Income from unconsolidated affiliates — 22,950 53 — 23,003 Operating income (loss) 167,612 225,116 163,922 (270,161 ) 286,489 Interest expense, net of amounts capitalized (195,659 ) (136 ) (7,040 ) — (202,835 ) Other, net 13,843 (22,253 ) (14,654 ) — (23,064 ) Income (loss) before income taxes (14,204 ) 202,727 142,228 (270,161 ) 60,590 Benefit (provision) for income taxes (6,066 ) (4,694 ) 552 — (10,208 ) Net income (loss) (20,270 ) 198,033 142,780 (270,161 ) 50,382 Less: Net income attributable to noncontrolling interests — — (70,652 ) — (70,652 ) Net income (loss) attributable to MGM Resorts International $ (20,270 ) $ 198,033 $ 72,128 $ (270,161 ) $ (20,270 ) Net income (loss) $ (20,270 ) $ 198,033 $ 142,780 $ (270,161 ) $ 50,382 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment (6,847 ) (6,847 ) (13,505 ) 13,694 (13,505 ) Other comprehensive income (loss) (6,847 ) (6,847 ) (13,505 ) 13,694 (13,505 ) Comprehensive income (loss) (27,117 ) 191,186 129,275 (256,467 ) 36,877 Less: Comprehensive income attributable to noncontrolling interests — — (63,994 ) — (63,994 ) Comprehensive income (loss) attributable to MGM Resorts International $ (27,117 ) $ 191,186 $ 65,281 $ (256,467 ) $ (27,117 ) Nine Months Ended September 30, 2014 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Elimination Consolidated (In thousands) Net revenues $ — $ 4,737,229 $ 2,961,014 $ (1,805 ) $ 7,696,438 Equity in subsidiaries' earnings 744,544 260,886 — (1,005,430 ) — Expenses Casino and hotel operations 3,864 2,879,883 1,980,203 (1,805 ) 4,862,145 General and administrative 3,429 822,147 168,641 — 994,217 Corporate expense 51,447 108,870 9,036 — 169,353 Preopening and start-up expenses — 3,620 22,008 — 25,628 Property transactions, net — 37,870 2,652 — 40,522 Depreciation and amortization — 376,251 236,860 — 613,111 58,740 4,228,641 2,419,400 (1,805 ) 6,704,976 Income from unconsolidated affiliates — 65,719 244 — 65,963 Operating income (loss) 685,804 835,193 541,858 (1,005,430 ) 1,057,425 Interest expense, net of amounts capitalized (592,771 ) (360 ) (23,027 ) — (616,158 ) Other, net 48,792 (68,616 ) (51,194 ) — (71,018 ) Income (loss) before income taxes 141,825 766,217 467,637 (1,005,430 ) 370,249 Benefit (provision) for income taxes 50,565 (5,161 ) (1,003 ) — 44,401 Net income (loss) 192,390 761,056 466,634 (1,005,430 ) 414,650 Less: Net income attributable to noncontrolling interests — — (222,260 ) — (222,260 ) Net income (loss) attributable to MGM Resorts International $ 192,390 $ 761,056 $ 244,374 $ (1,005,430 ) $ 192,390 Net income (loss) $ 192,390 $ 761,056 $ 466,634 $ (1,005,430 ) $ 414,650 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment (5,365 ) (5,365 ) (10,403 ) 10,730 (10,403 ) Other 1,250 1,250 — (1,250 ) 1,250 Other comprehensive income (loss) (4,115 ) (4,115 ) (10,403 ) 9,480 (9,153 ) Comprehensive income (loss) 188,275 756,941 456,231 (995,950 ) 405,497 Less: Comprehensive income attributable to noncontrolling interests — — (217,222 ) — (217,222 ) Comprehensive income (loss) attributable to MGM Resorts International $ 188,275 $ 756,941 $ 239,009 $ (995,950 ) $ 188,275 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS INFORMATION Nine Months Ended September 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 $ (542,357 ) $ 939,191 $ 600,980 $ 25,000 $ 1,022,814 Cash flows from investing activities Capital expenditures, net of construction payable — (267,039 ) (350,420 ) — (617,459 ) Dispositions of property and equipment — 143 394 — 537 Investments in and advances to unconsolidated affiliates (18,700 ) (26,746 ) — (25,000 ) (70,446 ) Distributions from unconsolidated affiliates in excess of cumulative earnings — 999 — — 999 Investments in treasury securities - maturities longer than 90 days — (123,133 ) — — (123,133 ) Proceeds from treasury securities - maturities longer than 90 days — 210,300 — — 210,300 Intercompany accounts — (665,021 ) — 665,021 — Other — 8,149 — — 8,149 Net cash provided by (used in) investing activities (18,700 ) (862,348 ) (350,026 ) 640,021 (591,053 ) Cash flows from financing activities Net repayments under bank credit facilities - maturities of 90 days or less (1,290,375 ) — (450,000 ) — (1,740,375 ) Borrowings under bank credit facilities - maturities longer than 90 days 3,821,250 — 1,350,000 — 5,171,250 Repayments under bank credit facilities - maturities longer than 90 days (2,551,875 ) — (900,000 ) — (3,451,875 ) Retirement of senior notes (508,900 ) — — — (508,900 ) Intercompany accounts 1,113,239 (67,907 ) (380,311 ) (665,021 ) — Distributions to noncontrolling interest owners — — (385,722 ) — (385,722 ) Other (2,326 ) (860 ) (271 ) — (3,457 ) Net cash provided by (used in) financing activities 581,013 (68,767 ) (766,304 ) (665,021 ) (919,079 ) Effect of exchange rate on cash — — (1,577 ) — (1,577 ) Cash and cash equivalents Net increase (decrease) for the period 19,956 8,076 (516,927 ) — (488,895 ) Cash related to assets held for sale — (1,347 ) — — (1,347 ) Balance, beginning of period 378,660 237,457 1,187,552 — 1,803,669 Balance, end of period $ 398,616 $ 244,186 $ 670,625 $ — $ 1,313,427 |