Segment Information | NOTE 10 — SEGMENT INFORMATION The Company’s management views each of its casino resorts as an operating segment. Operating segments are aggregated based on their similar economic characteristics, types of customers, types of services and products provided, the regulatory environments in which they operate and their management and reporting structure. The Company has aggregated its operating segments into the following reportable segments: Las Vegas Strip Resorts, Regional Operations and MGM China. Las Vegas Strip Resorts . Las Vegas Strip Resorts consists of the following casino resorts: Bellagio, MGM Grand Las Vegas (including The Signature), Mandalay Bay (including Delano and Four Seasons), The Mirage, Luxor, New York-New York (including The Park), Excalibur, Park MGM (including NoMad Las Vegas) and Circus Circus Las Vegas (until the sale of such property in December 2019). Regional Operations. Regional Operations consists of the following casino resorts: MGM Grand Detroit in Detroit, Michigan; Beau Rivage in Biloxi, Mississippi; Gold Strike Tunica in Tunica, Mississippi; Borgata in Atlantic City, New Jersey; MGM National Harbor in Prince George’s County, Maryland; MGM Springfield in Springfield, Massachusetts; Empire City in Yonkers, New York (upon acquisition in January 2019); and MGM Northfield Park in Northfield Park, Ohio (upon MGM’s acquisition of the operations from MGP in April 2019). MGM China. MGM China consists of MGM Macau and MGM Cotai. The Company’s operations related to investments in unconsolidated affiliates, MGM Northfield Park (prior to April 1, 2019 as the operations were owned by MGP until that date), and certain other corporate operations and management services have not been identified as separate reportable segments; therefore, these operations are included in “Corporate and other” in the following segment disclosures to reconcile to consolidated results. A s a result of the Bellagio transaction in the fourth quarter of 2019, the Company records rent expense associated with the triple-net operating lease with Bellagio BREIT Venture. In order to present profit and loss of each reportable segment on a similar economic basis, the rent expense associated with the triple - net operating leases and ground leases is added back within the financial information reviewed by the chief operating decision maker as presented below, including recasting of prior year periods. Adjusted Property EBITDAR is the Company’s reportable segment GAAP measure, which management utilizes as the primary profit measure for its reportable segments and underlying operating segments. Adjusted Property EBITDAR is a measure defined as earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening and start-up expenses, gain on REIT transactions, net, restructuring costs (which represents costs related to severance, accelerated stock compensation expense, and consulting fees directly related to the operating model component of the MGM 2020 Plan), rent expense associated with triple-net operating and ground leases, income from unconsolidated affiliates related to investments in real estate ventures, and property transactions, net, and also excludes corporate expense and stock compensation expense, which are not allocated to each operating segment, and rent expense related to the master lease with MGP that eliminates in consolidation. The following tables present the Company’s segment information: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (In thousands) Net revenue Las Vegas Strip Resorts Casino $ 189,358 $ 336,262 $ 527,059 $ 969,149 Rooms 137,869 469,145 526,838 1,407,733 Food and beverage 81,429 401,362 391,218 1,156,657 Entertainment, retail and other 72,762 300,679 320,920 868,441 481,418 1,507,448 1,766,035 4,401,980 Regional Operations Casino 464,789 660,748 1,078,596 1,888,852 Rooms 34,782 90,197 94,842 243,449 Food and beverage 38,646 126,625 138,052 368,374 Entertainment, retail and other 18,609 57,448 60,260 149,241 556,826 935,018 1,371,750 2,649,916 MGM China Casino 35,297 662,838 298,995 1,959,582 Rooms 2,800 36,294 19,344 105,171 Food and beverage 6,240 32,214 23,451 93,836 Entertainment, retail and other 2,530 6,409 10,162 19,459 46,867 737,755 351,952 2,178,048 Reportable segment net revenues 1,085,111 3,180,221 3,489,737 9,229,944 Corporate and other 40,809 134,161 178,809 484,592 $ 1,125,920 $ 3,314,382 $ 3,668,546 $ 9,714,536 Adjusted Property EBITDAR Las Vegas Strip Resorts $ 15,125 $ 441,281 $ 178,277 $ 1,263,271 Regional Operations 145,734 269,125 185,369 741,710 MGM China (96,446 ) 183,989 (234,724 ) 549,603 Reportable segment Adjusted Property EBITDAR 64,413 894,395 128,922 2,554,584 Other operating income (expense) Corporate and other (113,190 ) (72,707 ) (374,769 ) (220,844 ) Preopening and start-up expenses (11 ) (925 ) (51 ) (5,091 ) Property transactions, net (4,116 ) (249,858 ) (85,440 ) (264,424 ) Gain on REIT transactions, net — — 1,491,945 — Depreciation and amortization (294,363 ) (322,009 ) (911,859 ) (973,211 ) CEO transition expense — — (44,401 ) — October 1 litigation settlement — — (49,000 ) — Restructuring — (2,491 ) (19,882 ) (86,579 ) Triple-net operating lease and ground lease rent expense (189,602 ) (8,024 ) (521,087 ) (24,309 ) Income from unconsolidated affiliates related to real estate ventures 41,687 — 106,756 — Operating income (loss) (495,182 ) 238,381 (278,866 ) 980,126 Non-operating income (expense) Interest expense, net of amounts capitalized (173,808 ) (215,503 ) (487,701 ) (647,452 ) Non-operating items from unconsolidated affiliates (23,604 ) (14,669 ) (79,986 ) (54,311 ) Other, net 13,889 (9,381 ) (102,054 ) (53,964 ) (183,523 ) (239,553 ) (669,741 ) (755,727 ) Income (loss) before income taxes (678,705 ) (1,172 ) (948,607 ) 224,399 Benefit (provision) for income taxes 76,734 7,276 84,668 (75,969 ) Net income (loss) (601,971 ) 6,104 (863,939 ) 148,430 Less: Net (income) loss attributable to noncontrolling interests 67,240 (43,237 ) 278,820 (110,861 ) Net income (loss) attributable to MGM Resorts International $ (534,731 ) $ (37,133 ) $ (585,119 ) $ 37,569 |