Wynn Resorts

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

È ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

FORM 10-K

EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2016

OR

‘ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934
For the transition period

to
Commission File No. 000-50028

WYNN RESORTS, LIMITED

(Exact name of registrant as specified in its charter)

NEVADA
(State or other jurisdiction of
incorporation or organization)

46-0484987
(I.R.S. Employer
Identification Number)

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)

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

Title of Each Class
Common Stock, $0.01 par value

Name of Each Exchange on Which Registered
Nasdaq Global Select Market

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

None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities

Act. Yes È No ‘

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the

Act. Yes ‘ No È

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 È No ‘

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any,

every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this
chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such
files). Yes È No ‘

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein,
and will not be contained, to the best of the registrant’s knowledge, in definitive proxy or information statements incorporated
by reference in Part III of this Form 10-K or any amendment to this Form 10-K. È

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a
smaller reporting company. See definition of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in
Rule 12b-2 of the Exchange Act.
Large accelerated filer È
Non-accelerated filer ‘

‘
Accelerated filer
Smaller reporting company ‘

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange

Act). Yes ‘ No È

The aggregate market value of the registrant’s voting and non-voting common stock held by non-affiliates based on the

closing price as reported on the NASDAQ Global Select Market on June 30, 2016 was approximately $7.18 billion.

As of February 15, 2017, 101,925,222 shares of the registrant’s Common Stock, $0.01 par value, were outstanding.

DOCUMENTS INCORPORATED BY REFERENCE
Portions of the registrant’s Proxy Statement for its 2017 Annual Meeting of Stockholders to be filed not later than 120

days after the end of the fiscal year covered by this report are incorporated by reference into Part III of this Form 10-K.

WYNN RESORTS, LIMITED AND SUBSIDIARIES
FORM 10-K
TABLE OF CONTENTS

Item 1. Business
Item 1A. Risk Factors
Item 1B. Unresolved Staff Comments
Item 2.
Item 3.
Item 4. Mine Safety Disclosures

Properties
Legal Proceedings

PART I

PART II

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of

Equity Securities
Selected Financial Data

Item 6.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Item 8.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
Item 9A. Controls and Procedures
Item 9B. Other Information

Financial Statements and Supplementary Data

PART III

Item 10. Directors, Executive Officers and Corporate Governance
Item 11. Executive Compensation
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder

Matters

Item 13. Certain Relationships and Related Transactions, and Director Independence
Item 14. Principal Accountant Fees and Services

Item 15. Exhibits, Financial Statement Schedules
Signatures

PART IV

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Item 1.

Business

Overview

PART I

Wynn Resorts, Limited (“Wynn Resorts,” or together with its subsidiaries, “we” or the “Company”), led by

Chairman and Chief Executive Officer, Stephen A. Wynn, is a leading developer, owner and operator of
destination casino resorts (integrated resorts) that integrate hotel accommodations and a wide range of amenities,
including fine dining outlets, premium retail offerings, distinctive entertainment theaters and large meeting
complexes.

Wynn Resorts currently owns approximately 72% of Wynn Macau, Limited (“WML”) and operates two
integrated resorts in the Macau Special Administrative Region of the People’s Republic of China (“Macau”),
Wynn Macau and Wynn Palace. We also own 100% of and operate Wynn Las Vegas, an integrated resort in Las
Vegas, Nevada, and are currently constructing Wynn Boston Harbor, an integrated resort in Everett
Massachusetts, adjacent to Boston, which we expect to open in mid-2019.

We present the operating results of our three resorts in the following segments: Wynn Macau, Wynn Palace,

and Las Vegas Operations. For more information on our segments, see Item 8—“Financial Statements and
Supplementary Data,” Note 18 “Segment Information.”

Wynn Resorts, a Nevada corporation, was formed in 2002. Wynn Resorts files annual reports on Form

10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments of such reports with the
Securities and Exchange Commission (“SEC”). Any document Wynn Resorts files may be inspected, without
charge, at the SEC’s public reference room at 100 F Street, N.E. Washington, D.C. 20549 or at the SEC’s
internet site address at http://www.sec.gov. Information related to the operation of the SEC’s public reference
room may be obtained by calling the SEC at 1-800-SEC-0330. In addition, through our own internet address at
www.wynnresorts.com, Wynn Resorts provides a hyperlink to a third-party SEC filing website which posts these
filings as soon as reasonably practicable, where they can be reviewed without charge. The information found on
our website is not a part of this Annual Report on Form 10-K or any other report we file or furnish to the SEC.

Our Resorts

Macau Operations

We opened Wynn Macau on September 6, 2006, Encore, an expansion of Wynn Macau, on April 21, 2010,
and Wynn Palace on August 22, 2016. We refer to Wynn Macau and Wynn Palace as our “Macau Operations.”
We operate our Macau Operations under a 20-year casino concession agreement granted by the Macau
government in June 2002. We lease from the Macau government approximately 16 acres of land in downtown
Macau’s inner harbor where Wynn Macau is located and 51 acres of land in the Cotai area of Macau where
Wynn Palace is located. See “Regulation and Licensing—Macau” for details on the casino concession
agreement, and see “Item 2—Properties” for details on the land concession agreement.

Wynn Macau features the following as of February 15, 2017:

• Approximately 284,000 square feet of casino space, offering 24-hour gaming and a full range of games

with 303 table games and 957 slot machines, private gaming salons, sky casinos and a poker pit;

• Two luxury hotel towers with a total of 1,008 guest rooms and suites;

• Eight food and beverage outlets;

• Approximately 57,000 square feet of high-end, brand-name retail space;

• Approximately 31,000 square feet of meeting and convention space;

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• Recreation and leisure facilities, including two health clubs, spas, a salon and a pool; and

• A rotunda show featuring a Chinese zodiac-inspired ceiling along with gold “prosperity tree” and

“dragon of fortune” attractions.

Wynn Palace features the following as of February 15, 2017:

• Approximately 420,000 square feet of casino space, offering 24-hour gaming and a full range of games

with 304 table games and 996 slot machines, private gaming salons, sky casinos and a poker pit;

• A luxury hotel with a total of 1,706 guest rooms, suites and villas;

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10 food and beverage outlets;

• Approximately 105,000 square feet of high-end, brand-name retail space;

• Approximately 40,000 square feet of meeting and convention space;

• Recreation and leisure facilities, including a gondola ride, health club, spa, salon and pool; and

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Public attractions including a performance lake and floral art displays.

In response to our evaluation of our Macau Operations and our commitment to creating a unique customer

experience, we have made and expect to continue to make enhancements and refinements to these resorts.

Las Vegas Operations

We opened Wynn Las Vegas on April 28, 2005 and opened Encore, an expansion of Wynn Las Vegas, on

December 22, 2008. We also refer to Wynn Las Vegas as our “Las Vegas Operations.” Wynn Las Vegas is
located at the intersection of the Las Vegas Strip and Sands Avenue, and occupies approximately 215 acres of
land fronting the Las Vegas Strip. In addition, we own approximately 18 acres across Sands Avenue, a portion of
which is utilized for employee parking and an office building, and approximately five acres adjacent to the golf
course upon which an office building is located.

Wynn Las Vegas features the following as of February 15, 2017:

• Approximately 189,000 square feet of casino space, offering 24-hour gaming and a full range of games
with 234 table games and 1,907 slot machines, private gaming salons, a sky casino, a poker room, and
a race and sports book;

• Two luxury hotel towers with a total of 4,748 guest rooms, suites and villas;

•

33 food and beverage outlets;

• Approximately 99,000 square feet of high-end, brand-name retail space (of which, effective

December 28, 2016, approximately 88,000 square feet is owned and operated by a joint venture of
which we own 50.1%);

• Approximately 290,000 square feet of meeting and convention space;

• Three nightclubs and a beach club;

• Recreation and leisure facilities, including an 18-hole golf course, swimming pools, private cabanas,

two full service spas and salons, and a wedding chapel; and

• A specially designed theater presenting “Le Rêve-The Dream,” a water-based theatrical production and

a theater presenting entertainment productions and various headliner entertainment acts.

In December 2016, we formed a joint venture with Crown Acquisitions Inc. (“Crown”) to own and operate

approximately 88,000 square feet of existing retail space and signed an agreement with Crown to form a joint

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venture to own and operate approximately 73,000 square feet of additional retail space that is currently under
construction at Wynn Las Vegas. We expect to open the additional retail space in the first quarter of 2018. For
more information on the joint venture, see Item 8—“Financial Statements and Supplementary Data,” Note 3,
“Retail Joint Venture.”

In response to our evaluation of our Las Vegas Operations and our commitment to creating a unique

customer experience, we have made and expect to continue to make enhancements and refinements to this resort.

Construction and Development Opportunities

In November 2014, we were awarded a gaming license to develop and construct Wynn Boston Harbor, an
integrated resort in Everett, Massachusetts, located adjacent to Boston along the Mystic River. The resort will contain a
hotel, a waterfront boardwalk, meeting and convention space, casino space, a spa, retail offerings and food and
beverage outlets. The total project budget, including gaming license fees, construction costs, capitalized interest,
pre-opening expenses and land costs, is estimated to be approximately $2.4 billion. As of December 31, 2016, we have
incurred approximately $466.8 million in total project costs. We expect to open Wynn Boston Harbor in mid-2019.

We continually seek out new opportunities for additional gaming or related businesses, in the United States,

and worldwide.

Our Strategy

We believe that Wynn Resorts is the world’s preeminent designer, developer, and operator of integrated

resorts. The Company’s integrated resort business model, pioneered by Chairman and Chief Executive Officer
Stephen A. Wynn, integrates luxury hotel rooms, high-end retail, an array of dining and entertainment options,
meeting space, and gaming, all supported by superior levels of customer service. Given his extensive design and
operational experience across numerous gaming jurisdictions, we believe that Mr. Wynn’s involvement with our
resorts provides a distinct advantage over other gaming enterprises.

Wynn Resorts and its management team have a demonstrated track record in developing and operating
successful integrated resort projects around the world. The senior executive team has an average of over 25 years
of experience in the hotel and gaming industries. In addition, we have a design, development and construction
subsidiary, in which senior management has significant experience across all major construction disciplines.

We aim to build appropriately scaled integrated resorts that attract a wide range of customer segments
(including premium international customers) and generate strong financial results. We design and continually
refresh our integrated resorts to create unique customer experiences across a wide range of gaming and
non-gaming amenities. Our business is dependent upon repeat visitation from our guests. We believe superior
customer experience and service is the best marketing strategy to attract and retain our customers. Human
resources and staff training are essential to our strategy to ensure our employees are prepared to provide the
luxury service that our guests expect.

Our integrated resorts are conceptualized, designed, built and operated in major metropolitan markets to service
all customers with an emphasis on providing superior levels of premium customer service. In Las Vegas and Macau,
we have been successful in attracting not only a wide range of domestic guests, but also extending our customer market
areas into international markets. We leverage our international marketing team across branch offices located in five
countries (Hong Kong SAR, Singapore, Japan, Taiwan and Canada) to attract international customers.

Reflecting our commitment to customer service globally, the Company has received the following recognition:

• Collectively, Wynn Resorts earned more Five-Star awards than any other independent hotel company

in the world in the official 2017 Forbes Travel Guide Star Rating list.

• Wynn Macau continues to be the only resort in the world with eight Forbes Travel Guide Five-Star

awards.

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• Wynn Resorts owns two of the largest Forbes Five-Star hotels in the United States: Wynn Tower Suites

(Las Vegas) and Encore Tower Suites (Las Vegas).

• Wynn Resorts was once again honored as the highest ranking casino resort on FORTUNE Magazine’s

2017 World’s Most Admired Companies list in the hotel, casino and resort category.

We plan to continue to seek out new opportunities to develop and operate integrated resorts, including
related businesses, around the world. Overall, we believe Wynn Resorts has a demonstrated track record of
developing integrated resorts that stimulate city- and region-wide economic activity, which we believe includes:

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attracting a wide range of customers to the region, including high-net-worth international tourists;

driving international tourism for the region;

raising average hotel room rates in the region;

extending the average length of stay per visitor;

complementing existing convention and meeting business with five-star accommodations and
appropriately scaled meeting amenities;

elevating service levels with the execution of five-star customer service; and

helping stimulate city-wide investment and employment.

Market and Competition

The casino resort industry is highly competitive. Both our Macau Operations and Las Vegas Operations

compete with other high-quality casino resorts. Resorts located near our properties compete on the basis of the
range of amenities, level of service, price, location, entertainment, themes and size, among other factors. We seek
to differentiate our Macau and Las Vegas integrated resorts from other major resorts by delivering superior
design and customer service.

Macau

Macau is governed as a special administrative region of China and is located approximately 37 miles southwest
of, and approximately one hour away via ferry from, Hong Kong. Macau, which has been a casino destination for more
than 50 years, consists principally of a peninsula on mainland China, with two neighboring islands, Taipa and Coloane,
between which the Cotai area is located. In 2002, the government of Macau ended a 40-year monopoly on the conduct
of gaming operations by conducting a competitive process that resulted in the issuance of gaming concessions to three
concessionaires (including Wynn Resorts (Macau) S.A., (“Wynn Macau SA”)) who in turn were permitted, subject to
the approval of the government of Macau, to each grant one subconcession, resulting in a total of six gaming
concessionaires and subconcessionaires. In addition to Wynn Macau SA, each of Sociedade de Jogos de Macau
(“SJM”) and Galaxy Entertainment Group Limited are primary concessionaires with Sands China Ltd., Melco Crown
and MGM China Holdings Limited operating under subconcessions. There is no limit to the number of casinos each
concessionaire or subconcessionaire is permitted to operate, but each facility is subject to government approval.
Currently, there are 38 casinos operating in Macau.

We believe that the Macau region hosts one of the world’s largest concentrations of potential gaming

customers. Since the introduction of new casinos starting in 2004, the Macau market has experienced a
significant increase in annual gaming revenue and has become the largest gaming market in the world. According
to Macau Statistical Information, annual gaming revenues have grown from $2.9 billion in 2002 to $27.9 billion
in 2016.

Macau’s gaming market is primarily dependent on tourists. Gaming customers traveling to Macau typically
come from nearby destinations in Asia. According to the Macau Statistics and Census Service Monthly Bulletin
of Statistics, approximately 90% of the tourists who visited Macau in 2016 came from Hong Kong, mainland
China or Taiwan. Travel to Macau by citizens of mainland China requires a visa.

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In 2014, the Macau gaming market experienced its first year-over-year decline in annual gaming revenues
since its liberalization in 2002, influenced by a downward trend in tourist arrivals. Government statistics show a
slight increase in tourist arrivals in 2016 over 2015 of 0.8%, to 31.0 million tourists in 2016. Despite the slight
increase in tourist arrivals in Macau, the decline in tourists’ gaming activities has contributed to a further
reduction in annual gaming revenues in Macau during 2016, as compared to 2015.

The Macau market has experienced tremendous growth in capacity since the opening of Wynn Macau in

2006. As of December 31, 2016, there were 36,300 hotel rooms, 6,287 table games and 13,826 slot machines in
Macau, compared to 12,978 hotel rooms, 2,762 table games and 6,546 slot machines as of December 31, 2006.
During 2016, we contributed to the new capacity in the market, with the opening of Wynn Palace in the Cotai
area. Several of the current concessionaires and subconcessionaires also opened additional facilities during 2016
in the Cotai area or will open additional facilities during 2017 and 2018, which will further increase other gaming
and non-gaming offerings in the Macau market.

Our Macau Operations face competition primarily from the 36 other casinos located throughout Macau in

addition to casinos located throughout the world, including Singapore, Philippines, Malaysia, Australia, Las
Vegas, cruise ships in Asia that offer gaming, and other casinos throughout Asia. If current efforts to legalize
gaming in other Asian countries, such as Japan, are successful, our Macau Operations will face additional
competition.

Las Vegas

Las Vegas is the largest gaming market in the United States. Although Las Vegas Strip gaming revenues

remained relatively flat at $6.4 billion for the year ended December 31, 2016, the economic environment in the
gaming and hotel markets in Las Vegas continued to improve with increased visitation and hotel room
demand. During 2016, the average daily room rate increased 4.5% and visitation increased 1.5% to 42.9 million
visitors compared to 2015. In addition, Las Vegas Strip resorts experienced 2016 year-over-year increases of
1.1% and 5.9% in occupancy and revenue per available room, respectively.

Wynn Las Vegas is located on the Las Vegas Strip and competes with other high-quality resorts and hotel
casinos in Las Vegas. Wynn Las Vegas also competes, to some extent, with other casino resorts throughout the
United States and elsewhere in the world.

Geographic Data

Geographic data is reported in Item 8—“Financial Statements and Supplementary Data,” Note 18 “Segment
Information.” Additional financial data about our geographic operations is provided in Item 7—“Management’s
Discussion and Analysis of Financial Condition and Results of Operations.”

Regulation and Licensing

Macau

General. As a casino concessionaire, Wynn Macau SA is subject to the regulatory control of the
government of Macau. The government has adopted Laws and Administrative Regulations governing the
operation of casinos in Macau. Only concessionaires or subconcessionaires are permitted to operate casinos.
Subconcessions may be awarded subject to the approval of the Macau government and each concessionaire has
issued one subconcession. Each concessionaire was required to enter into a concession agreement with the
Macau government which, together with the Law and Administrative Regulations, form the framework for the
regulation of the activities of the concessionaire.

Under the Law and Administrative Regulations, concessionaires are subject to suitability requirements
relating to background, associations and reputation, as are stockholders of 5% or more of a concessionaire’s
equity securities, officers, directors and key employees. The same requirements apply to any entity engaged by a

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concessionaire to manage casino operations. Concessionaires are required to satisfy minimum capitalization
requirements, demonstrate and maintain adequate financial capacity to operate the concession and submit to
continuous monitoring of their casino operations by the Macau government. Concessionaires also are subject to
periodic financial reporting requirements and reporting obligations with respect to, among other things, certain
contracts, financing activities and transactions with directors, financiers and key employees. Transfers or the
encumbering of interests in concessionaires must be reported to the Macau government and are ineffective
without government approval.

Each concessionaire is required to engage an executive director who must be a permanent resident of Macau

and the holder of at least 10% of the capital stock of the concessionaire. The appointment of the executive
director and of any successor is ineffective without the approval of the Macau government. All contracts placing
the management of a concessionaire’s casino operations with a third party also are ineffective without the
approval of the Macau government.

Concessionaires are subject to a special gaming tax of 35% of gross gaming revenue, and must also make an

annual contribution of up to 4% of gross gaming revenue for the promotion of public interests, social security,
infrastructure and tourism. Concessionaires are obligated to withhold applicable taxes, according to the rate in
effect as set by the government, from any commissions paid to gaming promoters. The withholding rate may be
adjusted from time to time.

Concession Agreement. The concession agreement between Wynn Macau SA and the Macau government

required Wynn Macau SA to construct and operate one or more casino gaming properties in Macau, including, at
a minimum, one full-service casino resort by the end of December 2006, and to invest not less than a total of
4 billion Macau patacas (approximately $500.0 million) in Macau-related projects by June 2009. These
obligations were satisfied upon the opening of Wynn Macau in 2006.

Wynn Macau SA was also obligated to obtain, and did obtain, a 700.0 million Macau pataca (approximately

$87.0 million) bank guarantee from Banco National Ultramarino, S.A. (“BNU”) that was effective until
March 31, 2007. The amount of this guarantee was reduced to 300 million Macau patacas (approximately $37.0
million) for the period from April 1, 2007 until 180 days after the end of the term of the concession agreement.
This guarantee, which is for the benefit of the Macau government, assures Wynn Macau SA’s performance under
the casino concession agreement, including the payment of premiums, fines and indemnity for any material
failure to perform the concession agreement. Wynn Macau SA is obligated, upon demand by BNU, to promptly
repay any claim made on the guarantee by the Macau government. BNU is currently paid an annual fee by Wynn
Macau SA for the guarantee of approximately 2.3 million patacas (approximately $0.3 million).

The government of Macau may redeem the concession beginning on June 24, 2017, and in such event Wynn

Macau SA will be entitled to fair compensation or indemnity. The amount of such compensation or indemnity
will be determined based on the amount of gaming and non-gaming revenue generated during the tax year prior
to the redemption multiplied by the remaining years before expiration of the concession.

The government of Macau may unilaterally rescind the concession if Wynn Macau SA fails to fulfill its
fundamental obligations under the concession agreement. The concession agreement expressly provides that the
government of Macau may unilaterally rescind the concession agreement if Wynn Macau SA:

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conducts unauthorized games or activities that are excluded from its corporate purpose;

abandons or suspends gaming operations in Macau for more than seven consecutive days (or more than
14 days in a civil year) without justification;

defaults in payment of taxes, premiums, contributions or other required amounts;

does not comply with government inspections or supervision;

systematically fails to observe its obligations under the concession system;

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fails to maintain bank guarantees or bonds satisfactory to the government;

is the subject of bankruptcy proceedings or becomes insolvent;

engages in serious fraudulent activity, damaging to the public interest; or

repeatedly and seriously violates applicable gaming laws.

If the government of Macau unilaterally rescinds the concession agreement for one of the reasons stated above,

Wynn Macau SA will be required to compensate the government in accordance with applicable law, and the areas
defined as casino under Macau law and all of the gaming equipment pertaining to the gaming operations of Wynn
Macau SA will be transferred to the government without compensation. In addition, the government of Macau may, in
the public interest, unilaterally terminate the concession at any time, in which case Wynn Macau SA would be entitled
to reasonable compensation.

The government of Macau may assume temporary custody and control over the operation of a concession in

certain circumstances. During any such period, the costs of operations must be borne by the concessionaire. The
government of Macau also may redeem a concession starting at an established date after the entering into effect of a
concession.

Gaming Promoters. A gaming promoter, also known as a junket representative, is a person or entity who, for the

purpose of promoting casino gaming activity, arranges customer transportation and accommodations, and provides
credit in their sole discretion, food and beverage services and entertainment in exchange for commissions or other
compensation from a concessionaire. Macau law provides that gaming promoters must be licensed by the Macau
government in order to do business with and receive compensation from concessionaires. For a license to be obtained,
direct and indirect owners of 5% or more of a gaming promoter (regardless of its corporate form or sole proprietor
status), its directors and its key employees must be found suitable. Applicants are required to pay the cost of license
investigations, and are required to maintain suitability standards during the period of licensure. The term of a gaming
promoter’s license is one calendar year, and licenses can be renewed for additional periods upon the submission of
renewal applications. Natural person junket representative licensees are subject to a suitability verification process
every three years and business entity licensees are subject to the same requirement every six years. The Gaming
Inspection and Coordination Bureau (“DICJ”) implemented certain instructions in 2009, which have the force of law,
relating to commissions paid to, and by, gaming promoters. Such instructions also impose certain financial reporting
and audit requirements on gaming promoters.

Under Macau law, licensed gaming promoters must identify outside contractors who assist them in their

promotion activities. These contractors are subject to approval of the Macau government. Changes in the management
structure of business entity gaming promoters’ licensees must be reported to the Macau government and any transfer or
the encumbering of interests in such licensees is ineffective without prior government approval. To conduct gaming
promotion activities, licensees must be registered with one or more concessionaires and must have written contracts
with such concessionaires, copies of which must be submitted to the Macau government.

Macau law further provides that concessionaires are jointly responsible with their gaming promoters for the

gaming activities of such representatives and their directors and contractors in the concessionaire’s casinos, and for
their compliance with applicable laws and regulations. Concessionaires must submit annual lists of their gaming
promoters, and must update such lists on a quarterly basis. The Macau government may designate a maximum number
of gaming promoters and specify the number of gaming promoters a concessionaire is permitted to engage.
Concessionaires are subject to periodic reporting requirements with respect to commissions paid to their gaming
promoters’ representatives and are required to oversee their activities and report instances of unlawful activity.

In late 2015, the Macau government implemented enhanced accounting and financial procedures and

requirements to be followed by gaming promoters. These enhanced procedures require gaming promoters to
disclose more detailed financial and accounting information to the DICJ, including the disclosure of certain
financial information on a monthly basis. Gaming promoters also must identify and nominate senior financial or
accounting representatives to be available to the DICJ for any follow-up matters the DICJ may require.

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Nevada

Introduction. The ownership and operation of casino gaming facilities in the State of Nevada are subject to
the Nevada Gaming Control Act and the regulations made thereunder, as well as to various local ordinances. Our
Las Vegas Operations are subject to the licensing and regulatory control of the Nevada Gaming Commission, the
Nevada Gaming Control Board and the Clark County Liquor and Gaming Licensing Board, which we refer to
herein collectively as the “Nevada Gaming Authorities.”

Policy Concerns of Gaming Laws. The laws, regulations and supervisory procedures of the Nevada Gaming

Authorities are based upon declarations of public policy. Such public policy concerns include, among other
things:

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preventing unsavory or unsuitable persons from being directly or indirectly involved with gaming at
any time or in any capacity;

establishing and maintaining responsible accounting practices and procedures;

• maintaining effective controls over the financial practices of licensees, including establishing minimum

procedures for internal fiscal affairs and safeguarding assets and revenue, providing reliable
recordkeeping and requiring the filing of periodic reports with the Nevada Gaming Authorities;

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preventing cheating and fraudulent practices; and

providing a source of state and local revenue through taxation and licensing fees.

Changes in applicable laws, regulations and procedures could have significant negative effects on our Las

Vegas gaming operations and our financial condition and results of operations.

Owner and Operator Licensing Requirements. Our subsidiary, Wynn Las Vegas, LLC, the owner and

operator of Wynn Las Vegas, has been approved by the Nevada Gaming Authorities as a limited liability
company licensee, referred to as a company licensee, which includes approval to conduct casino gaming
operations, including a race book and sports pool, pari-mutuel wagering and the operation of gaming salons.
These gaming licenses are not transferable.

Company Registration Requirements. Wynn Resorts was found suitable by the Nevada Gaming Commission to

own the equity interests of Wynn Resorts Holdings, LLC (“Wynn Resorts Holdings”), a wholly owned subsidiary of
Wynn Resorts, and to be registered by the Nevada Gaming Commission as a publicly traded corporation, referred to as
a registered company, for the purposes of the Nevada Gaming Control Act. Wynn Resorts Holdings was found suitable
by the Nevada Gaming Commission to own the equity interests of Wynn America, LLC (“Wynn America”) and to be
registered by the Nevada Gaming Commission as an intermediary company. Wynn America was found suitable by the
Nevada Gaming Commission to own the equity interests of Wynn Las Vegas Holdings, LLC and to be registered by
the Nevada Gaming Commission as an intermediary company. Wynn Las Vegas Holdings, LLC was found suitable by
the Nevada Gaming Commission to own the equity interests of Wynn Las Vegas, LLC and to be registered by the
Nevada Gaming Commission as an intermediary company. In addition to being licensed, Wynn Las Vegas, LLC, as an
issuer of debt securities registered with the SEC, also qualified as a registered company. Wynn Las Vegas Capital
Corp., a co-issuer of the debt securities, was not required to be registered or licensed, but may be required to be found
suitable as a lender or financing source.

Periodically, we are required to submit detailed financial and operating reports to the Nevada Gaming
Commission and provide any other information that the Nevada Gaming Commission may require. Substantially
all of our material loans, leases, sales of securities and similar financing transactions must be reported to, and/or
approved by, the Nevada Gaming Commission.

Individual Licensing Requirements. No person may become a more than 5% stockholder or member of, or

receive any percentage of the profits of, an intermediary company or company licensee without first obtaining
licenses and approvals from the Nevada Gaming Authorities. The Nevada Gaming Authorities may investigate

8

any individual who has a material relationship to or material involvement with us to determine whether the
individual is suitable or should be licensed as a business associate of a gaming licensee. Certain of our officers,
directors and key employees have been or may be required to file applications with the Nevada Gaming
Authorities and are or may be required to be licensed or found suitable by the Nevada Gaming Authorities. All
applications required as of the date of this report have been filed. However, the Nevada Gaming Authorities may
require additional applications and may also deny an application for licensing for any reason which they deem
appropriate. A finding of suitability is comparable to licensing, and both require submission of detailed personal
and financial information followed by a thorough investigation. An applicant for licensing or an applicant for a
finding of suitability must pay or must cause to be paid all the costs of the investigation. Changes in licensed
positions must be reported to the Nevada Gaming Authorities and, in addition to their authority to deny an
application for a finding of suitability or licensing, the Nevada Gaming Authorities have the jurisdiction to
disapprove a change in a corporate position.

If the Nevada Gaming Authorities were to find an officer, director or key employee unsuitable for licensing
or unsuitable to continue having a relationship with us, we would have to sever all relationships with that person.
In addition, the Nevada Gaming Commission may require us to terminate the employment of any person who
refuses to file appropriate applications. Determinations of suitability or questions pertaining to licensing are not
subject to judicial review in Nevada.

Redemption of Securities Owned by an Unsuitable Person. The Company’s articles of incorporation
provide that, to the extent required by the gaming authority making the determination of unsuitability or to the
extent the Board of Directors determines, in its sole discretion, that a person is likely to jeopardize the
Company’s or any affiliate’s application for, receipt of, approval for, right to the use of, or entitlement to, any
gaming license, shares of Wynn Resorts’ capital stock that are owned or controlled by such person or its affiliates
are subject to redemption by Wynn Resorts. The redemption price will be the amount, if any, required by the
gaming authority or, if the gaming authority does not determine the price, the sum deemed by the Board of
Directors to be the fair value of the securities to be redeemed. If Wynn Resorts determines the redemption price,
the redemption price will be capped at the closing price of the shares on the principal national securities
exchange on which the shares are listed on the trading day before the redemption notice is given. If the shares are
not listed on a national securities exchange, the redemption price will be capped at the closing sale price of the
shares as quoted on The NASDAQ Global Select Market or if the closing price is not reported, the mean between
the bid and ask prices, as quoted by any other generally recognized reporting system. Wynn Resorts’ right of
redemption is not exclusive of any other rights that it may have or later acquire under any agreement, its bylaws
or otherwise. The redemption price may be paid in cash, by promissory note, or both, as required, and pursuant to
the terms established by the applicable Gaming Authority and, if not, as the Board of Directors of Wynn Resorts
elects, and as set forth in the Company’s articles of incorporation.

Based on the Board of Directors’ finding of “unsuitability,” on February 18, 2012, Wynn Resorts redeemed

and canceled Aruze USA, Inc.’s (“Aruze”) 24,549,222 shares of Wynn Resorts’ common stock. Pursuant to its
articles of incorporation, Wynn Resorts issued the Redemption Price Promissory Note (the “Redemption Note”)
to Aruze in redemption of the shares. Aruze, Universal Entertainment Corporation and Mr. Kazuo Okada
(collectively, the “Okada Parties”) have challenged the redemption of Aruze’s shares and the Company is
currently involved in litigation with those parties as well as related shareholder derivative litigation. See
Item 1A—“Risk Factors” and Item 8—“Financial Statements and Supplementary Data,” Note 17 “Commitments
and Contingencies.”

Consequences of Violating Gaming Laws. If the Nevada Gaming Commission determines that we have
violated the Nevada Gaming Control Act or any of its regulations, it could limit, condition, suspend or revoke our
registrations and gaming license. In addition, we and the persons involved could be subject to substantial fines
for each separate violation of the Nevada Gaming Control Act, or of the regulations of the Nevada Gaming
Commission, at the discretion of the Nevada Gaming Commission. Further, the Nevada Gaming Commission
could appoint a supervisor to operate our Las Vegas Operations and, under specified circumstances, earnings

9

generated during the supervisor’s appointment (except for the reasonable rental value of the premises) could be
forfeited to the State of Nevada. Limitation, conditioning or suspension of any of our gaming licenses and the
appointment of a supervisor could, and revocation of any gaming license would, have a significant negative
effect on our gaming operations.

Requirements for Voting or Nonvoting Securities Holders. Regardless of the number of shares held, any

beneficial owner of Wynn Resorts’ voting or nonvoting securities may be required to file an application, be
investigated and have that person’s suitability as a beneficial owner of voting securities determined if the Nevada
Gaming Commission has reason to believe that the ownership would be inconsistent with the declared policies of
the State of Nevada. If the beneficial owner of the voting or nonvoting securities of Wynn Resorts who must be
found suitable is a corporation, partnership, limited partnership, limited liability company or trust, it must submit
detailed business and financial information, including a list of its beneficial owners. The applicant must pay all
costs of the investigation incurred by the Nevada Gaming Authorities in conducting any investigation.

The Nevada Gaming Control Act requires any person who acquires more than 5% of the voting securities of
a registered company to report the acquisition to the Nevada Gaming Commission. The Nevada Gaming Control
Act requires beneficial owners of more than 10% of a registered company’s voting securities to apply to the
Nevada Gaming Commission for a finding of suitability within 30 days after the Chairman of the Nevada
Gaming Control Board mails the written notice requiring such filing. However, an “institutional investor,” as
defined in the Nevada Gaming Control Act, which beneficially owns more than 10% but not more than 11% of a
registered company’s voting securities as a result of a stock repurchase by the registered company may not be
required to file such an application. Further, an institutional investor which acquires more than 10%, but not
more than 25%, of a registered company’s voting securities may apply to the Nevada Gaming Commission for a
waiver of a finding of suitability if the institutional investor holds the voting securities for investment purposes
only. An institutional investor that has obtained a waiver may hold more than 25% but not more than 29% of a
registered company’s voting securities and maintain its waiver where the additional ownership results from a
stock repurchase by the registered company. An institutional investor will not be deemed to hold voting
securities for investment purposes unless the voting securities were acquired and are held in the ordinary course
of business as an institutional investor and not for the purpose of causing, directly or indirectly, the election of a
majority of the members of the Board of Directors of the registered company, a change in the corporate charter,
bylaws, management, policies or operations of the registered company, or any of its gaming affiliates, or any
other action which the Nevada Gaming Commission finds to be inconsistent with holding the registered
company’s voting securities for investment purposes only. Activities which are not deemed to be inconsistent
with holding voting securities for investment purposes only include:

•

voting on all matters voted on by stockholders or interest holders;

• making financial and other inquiries of management of the type normally made by securities analysts
for informational purposes and not to cause a change in management, policies or operations; and

•

other activities that the Nevada Gaming Commission may determine to be consistent with such
investment intent.

The articles of incorporation of Wynn Resorts include provisions intended to assist its implementation of the

above restrictions.

Wynn Resorts is required to maintain a current stock ledger in Nevada which may be examined by the
Nevada Gaming Authorities at any time. If any securities are held in trust by an agent or by a nominee, the record
holder may be required to disclose the identity of the beneficial owner to the Nevada Gaming Authorities. A
failure to make the disclosure may be grounds for finding the record holder unsuitable. We are required to
provide maximum assistance in determining the identity of the beneficial owner of any of Wynn Resorts’ voting
securities. The Nevada Gaming Commission has the power to require the stock certificates of any registered
company to bear a legend indicating that the securities are subject to the Nevada Gaming Control Act. The

10

certificates representing shares of Wynn Resorts’ common stock note that the shares are subject to a right of
redemption and other restrictions set forth in Wynn Resorts’ articles of incorporation and bylaws and that the
shares are, or may become, subject to restrictions imposed by applicable gaming laws.

Consequences of Being Found Unsuitable. Any person who fails or refuses to apply for a finding of
suitability or a license within 30 days after being ordered to do so by the Nevada Gaming Commission or by the
Chairman of the Nevada Gaming Control Board, or who refuses or fails to pay the investigative costs incurred by
the Nevada Gaming Authorities in connection with the investigation of its application, may be found unsuitable.
The same restrictions apply to a record owner if the record owner, after request, fails to identify the beneficial
owner. Any person found unsuitable and who holds, directly or indirectly, any beneficial ownership of any voting
security or debt security of a registered company beyond the period of time as may be prescribed by the Nevada
Gaming Commission may be guilty of a criminal offense. We will be subject to disciplinary action if, after we
receive notice that a person is unsuitable to hold an equity interest or to have any other relationship with us, we:

•

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•

•

pay that person any dividend or interest upon any voting securities;

allow that person to exercise, directly or indirectly, any voting right held by that person relating to
Wynn Resorts;

pay remuneration in any form to that person for services rendered or otherwise; or

fail to pursue all lawful efforts to require the unsuitable person to relinquish such person’s voting
securities, including, if necessary, the immediate purchase of the voting securities for cash at fair
market value.

Gaming Laws Relating to Debt Securities Ownership. The Nevada Gaming Commission may, in its
discretion, require the owner of any debt or similar securities of a registered company, to file applications, be
investigated and be found suitable to own the debt or other securities of the registered company if the Nevada
Gaming Commission has reason to believe that such ownership would otherwise be inconsistent with the
declared policies of the State of Nevada. If the Nevada Gaming Commission decides that a person is unsuitable
to own the securities, then under the Nevada Gaming Control Act, the registered company can be sanctioned,
including the loss of its approvals if, without the prior approval of the Nevada Gaming Commission, it:

•

•

•

pays to the unsuitable person any dividend, interest or any distribution whatsoever;

recognizes any voting right by the unsuitable person in connection with the securities;

pays the unsuitable person remuneration in any form; or

• makes any payment to the unsuitable person by way of principal, redemption, conversion, exchange,

liquidation or similar transaction.

Approval of Public Offerings. Wynn Resorts, Limited may not make a public offering (debt or equity) without

the prior approval of the Nevada Gaming Commission if the proceeds from the offering are intended to be used to
construct, acquire or finance gaming facilities in Nevada, or to retire or extend obligations incurred for those purposes
or for similar transactions. On March 17, 2016, the Nevada Gaming Commission granted Wynn Resorts, Limited prior
approval, subject to certain conditions, to make public offerings for a period of three years (the “Shelf Approval”). The
Shelf Approval also applies to any affiliated company wholly owned by us that is a publicly traded corporation or
would thereby become a publicly traded corporation pursuant to a public offering. The Shelf Approval may be
rescinded for good cause without prior notice upon the issuance of an interlocutory stop order by the Chairman of the
Nevada Gaming Control Board. The Shelf Approval does not constitute a finding, recommendation or approval by any
of the Nevada Gaming Authorities as to the accuracy or adequacy of the offering memorandum or the investment
merits of the securities. Any representation to the contrary is unlawful.

Approval of Changes in Control. A registered company must obtain the prior approval of the Nevada

Gaming Commission with respect to a change in control through merger; consolidation; stock or asset
acquisitions; management or consulting agreements; or any act or conduct by a person by which the person
obtains control of the registered company.

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Entities seeking to acquire control of a registered company must satisfy the Nevada Gaming Control Board
and Nevada Gaming Commission with respect to a variety of stringent standards before assuming control of the
registered company. The Nevada Gaming Commission may also require controlling stockholders, officers,
directors and other persons having a material relationship or involvement with the entity proposing to acquire
control to be investigated and licensed as part of the approval process relating to the transaction.

Approval of Defensive Tactics. The Nevada legislature has declared that some corporate acquisitions
opposed by management, repurchases of voting securities and corporate defense tactics affecting Nevada
corporate gaming licensees or affecting registered companies that are affiliated with the operations of Nevada
gaming licensees may be harmful to stable and productive corporate gaming. The Nevada Gaming Commission
has established a regulatory scheme to reduce the potential adverse effects of these business practices upon
Nevada’s gaming industry and to further Nevada’s policy in order to:

•

•

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assure the financial stability of corporate gaming licensees and their affiliated companies;

preserve the beneficial aspects of conducting business in the corporate form; and

promote a neutral environment for the orderly governance of corporate affairs.

Approvals may be required from the Nevada Gaming Commission before a registered company can make

exceptional repurchases of voting securities above its current market price and before a corporate acquisition
opposed by management can be consummated. The Nevada Gaming Control Act also requires prior approval of a
plan of recapitalization proposed by a registered company’s Board of Directors in response to a tender offer
made directly to its stockholders for the purpose of acquiring control.

Fees and Taxes. License fees and taxes, computed in various ways depending on the type of gaming or

activity involved, are payable to the State of Nevada and to the counties and cities in which the licensed
subsidiaries’ respective operations are conducted. Depending upon the particular fee or tax involved, these fees
and taxes are payable monthly, quarterly or annually and are based upon:

•

•

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a percentage of the gross revenue received;

the number of gaming devices operated; or

the number of table games operated.

A live entertainment tax also is imposed on admission charges where live entertainment is furnished.

Foreign Gaming Investigations. Any person who is licensed, required to be licensed, registered, required to

be registered in Nevada, or is under common control with such persons (collectively, “licensees”), and who
proposes to become involved in a gaming venture outside of Nevada, is required to deposit with the Nevada
Gaming Control Board, and thereafter maintain, a revolving fund in the amount of $10,000 to pay the expenses
of investigation of the Nevada Gaming Control Board of the licensee’s or registrant’s participation in such
foreign gaming. The revolving fund is subject to increase or decrease at the discretion of the Nevada Gaming
Commission. Licensees and registrants are required to comply with the foreign gaming reporting requirements
imposed by the Nevada Gaming Control Act. A licensee or registrant is also subject to disciplinary action by the
Nevada Gaming Commission if it:

•

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knowingly violates any laws of the foreign jurisdiction pertaining to the foreign gaming operation;

fails to conduct the foreign gaming operation in accordance with the standards of honesty and integrity
required of Nevada gaming operations;

engages in any activity or enters into any association that is unsuitable because it poses an
unreasonable threat to the control of gaming in Nevada, reflects or tends to reflect, discredit or
disrepute upon the State of Nevada or gaming in Nevada, or is contrary to the gaming policies of
Nevada;

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•

•

engages in activities or enters into associations that are harmful to the State of Nevada or its ability to
collect gaming taxes and fees; or

employs, contracts with or associates with a person in the foreign operation who has been denied a
license or finding of suitability in Nevada on the ground of unsuitability.

Licenses for Conduct of Gaming and Sale of Alcoholic Beverages. The conduct of gaming activities and

the service and sale of alcoholic beverages at Wynn Las Vegas are subject to licensing, control and regulation by
the Clark County Liquor and Gaming Licensing Board, which has granted Wynn Las Vegas, LLC licenses for
such purposes. In addition to approving Wynn Las Vegas, LLC, the Clark County Liquor and Gaming Licensing
Board has the authority to approve all persons owning or controlling the stock of any corporation controlling a
gaming license. Clark County gaming and liquor licenses are not transferable. The County has full power to
limit, condition, suspend or revoke any license. Any disciplinary action could, and revocation would, have a
substantial negative impact upon our operations.

Massachusetts

Introduction. On November 22, 2011, Massachusetts Governor Deval Patrick signed Chapter 194 of the
Acts of 2011 “An Act Establishing Expanded Gaming in the Commonwealth,” legislation (the “Gaming Act”)
designed to provide significant benefits to the Commonwealth of Massachusetts by advancing job creation and
economic development. The Gaming Act allows for up to three destination resort casinos located in three
geographically diverse regions across the Commonwealth and a single slots facility, not pegged to any particular
region. The licensing fee for each resort casino is $85.0 million and requires a capital investment, to include a
hotel facility, of at least $500.0 million. The Commonwealth will receive 25% of gross gaming revenues.

The Gaming Act also called for the creation of a five-member independent body, the Massachusetts Gaming
Commission (the “MGC”), to oversee the implementation and licensing process, as well as regulate the operation
of gaming facilities. The MGC is in the process of promulgating detailed regulations to govern the operations of
the resort casinos and the slot parlor facility.

Owner and Operator Licensing Requirements. Our indirect wholly owned subsidiary, Wynn MA, LLC,
was the “applicant” under the MGC’s Phase 1 regulations and was determined to be suitable for the purpose of
holding a Category 1 Gaming License. On September 17, 2014, the MGC designated Wynn MA, LLC the award
winner of the Greater Boston (Region A) gaming license. On November 7, 2014, the gaming license awarded to
us became effective.

Company Registration Requirements. In addition, pursuant to the Phase 1 regulations, the following

entities and persons are deemed to be “qualifiers” subject to investigation: all members, transferees of a
member’s interest, directors and managers of the licensee and, in the judgment of the MGC, each lender, each
holder of indebtedness, each underwriter, each close associate, each executive and each agent. As a result, Wynn
Resorts, its key employees and its directors were therefore subject to a suitability investigation. Wynn Resorts
and all individual qualifiers were found suitable by the MGC. As our progress in Massachusetts continues,
additional entities and key employees may be required to file applications with the MGC and are or may be
required to be licensed or found suitable by the MGC. A finding of suitability is comparable to licensing, and
both require submission of detailed personal and financial information followed by a thorough investigation. An
applicant for licensing or an applicant for a finding of suitability must pay or must cause to be paid all the costs
of the investigation. Changes in licensed positions must be reported to the MGC.

If the MGC were to find an officer, director or key employee unsuitable for licensing or unsuitable to
continue having a relationship with us, we would have to sever all relationships with that person. In addition, the
MGC may require us to terminate the employment of any person who refuses to file appropriate applications.
Determinations of suitability or questions pertaining to licensing are not subject to judicial review.

13

Consequences of Violating Gaming Laws. If the MGC determines that we have violated the Gaming Act or

any of its regulations, it could limit, condition, suspend or revoke our registrations and gaming license. In
addition, the MGC set forth certain conditions in our gaming license. Any violation of the Gaming Act, its
regulations or any of our license conditions resulting in a limitation, conditioning or suspension of our gaming
license would have a significant negative effect on our Massachusetts gaming operations.

Licenses for Conduct of Gaming and Sale of Alcoholic Beverages. Pursuant to the Gaming Act, the MGC

may grant a gaming beverage license for the sale and distribution of alcoholic beverages for a gaming
establishment. The division of gaming liquor enforcement of the Alcoholic Beverage Control Commission has
the authority to enforce, regulate and control the distribution of alcoholic beverages in a gaming establishment.
The MGC may revoke, suspend, refuse to renew or refuse to transfer a gaming beverage license for violations of
the Gaming Act that pertain to the sale and distribution of alcohol consumed on the premises and the regulations
adopted by the MGC. The MGC has adopted regulations for the issuance of gaming beverage licenses. These
regulations and any changes in applicable laws, regulations and procedures could have significant negative
effects on our future Massachusetts gaming operations and results of operations.

Other Regulations

In addition to gaming regulations, we are subject to extensive local, state, federal and foreign laws and regulations
in the jurisdictions in which we operate. These include, but are not limited to, laws and regulations relating to alcoholic
beverages, environmental matters, employment and immigration, currency and other transactions, taxation, zoning and
building codes, marketing and advertising, lending, debt collection, privacy, telemarketing, money laundering, laws
and regulations administered by the Office of Foreign Assets Control, and anti-bribery laws, including the Foreign
Corrupt Practices Act. Such laws and regulations could change or could be interpreted differently in the future, or new
laws and regulations could be enacted. Any material changes, new laws or regulations, or material differences in
interpretations by courts or governmental authorities could adversely affect our business and operating results.

Seasonality

We may experience fluctuations in revenues and cash flows from month to month; however, we do not

believe that our business is materially impacted by seasonality.

Employees

As of December 31, 2016, we had approximately 24,600 employees (including approximately 12,600 in

Macau and 12,000 in the United States).

Our ten-year collective bargaining agreement with the Culinary and Bartenders Union, which covers

approximately 5,600 employees at Wynn Las Vegas, expired by its terms in July 2015. An extension was in place
until February 2017 when we entered into a new collective bargaining agreement, which expires July 2021. In
November 2010, we entered into a ten-year collective bargaining agreement with the Transportation Workers
Union, which covers approximately 430 of our table games dealers at Wynn Las Vegas. Certain other unions
may seek to organize the workers of our resorts.

Intellectual Property

Among our most important marks are our trademarks and service marks that use the name “WYNN.” Wynn

Resorts has registered with the U.S. Patent and Trademark Office (“PTO”) a variety of WYNN-related
trademarks and service marks in connection with a variety of goods and services.

We have also filed applications with various foreign patent and trademark registries, including in Macau, China,

Singapore, Hong Kong, Taiwan, Japan, certain European countries and various other jurisdictions throughout the
world, to register a variety of WYNN-related trademarks and service marks in connection with a variety of goods and
services.

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We recognize that our intellectual property assets, including the word and logo version of “WYNN,” are

among our most valuable assets. As a result, and in connection with expansion of our resorts and gaming
activities outside the United States, we have undertaken a program to register our trademarks and other
intellectual property rights in relevant jurisdictions. We have retained counsel and intend to take all steps
necessary to protect our intellectual property rights against unauthorized use throughout the world.

On August 6, 2004, we entered into agreements with Mr. Wynn that confirm and clarify our rights to use the

“Wynn” surname and Mr. Wynn’s persona in connection with our casino resorts. Under a Surname Rights
Agreement, Mr. Wynn has acknowledged our exclusive, fully paid-up, perpetual, worldwide right to use, and to
own and register trademarks and service marks incorporating, the “Wynn” surname for casino resorts and related
businesses, together with the right to sublicense the name and marks to our affiliates. Under a Rights of Publicity
License, Mr. Wynn has granted us the exclusive, royalty-free, worldwide right to use his full name, persona and
related rights of publicity for casino resorts and related businesses, together with the ability to sublicense the
persona and publicity rights to our affiliates, until October 24, 2017.

We have also registered various domain names with various domain registrars around the world. Our
domain registrations extend to various foreign countries such as “.com.cn” and “.com.hk.” We pursue domain
related infringement on a case by case basis depending on the infringing domain in question. The information
found on these websites is not a part of this Annual Report on Form 10-K or any other report we file or furnish to
the SEC.

For more information regarding the Company’s intellectual property matters see Item 1A—“Risk Factors.”

Forward-Looking Statements

We make forward-looking statements in this Annual Report on Form 10-K 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.

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 Factors” and other factors we describe from time to time in our periodic filings
with the SEC, such as:

•

•

•

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•

•

•

our dependence on Stephen A. Wynn;

general global political and economic conditions, in the U.S. and China, which may impact levels of
travel, leisure and consumer spending;

restrictions or conditions on visitation by citizens of mainland China to Macau;

the impact on the travel and leisure industry from factors such as an outbreak of an infectious disease,
extreme weather patterns or natural disasters, military conflicts 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;

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;

15

•

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•

•

•

•

•

•

•

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•

•

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•

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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 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 of gaming in other jurisdictions;

extensive regulation of our business (including the Chinese government’s ongoing anti-corruption
campaign) and the cost of compliance or failure to comply with applicable laws and regulations;

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

our ability to maintain our gaming licenses and concessions;

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

changes in gaming laws or regulations;

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

potential violations of law by Mr. Kazuo Okada, a former shareholder of ours;

changes in the valuation of the promissory note we issued in connection with the redemption of
Mr. Okada’s shares;

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 misappropriation of customer information or other breaches of information
security;

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 1A. Risk Factors

You should carefully consider the risk factors set forth below, as well as the other information contained in
this Annual Report on Form 10-K, regarding matters that could have an adverse effect, including a material one,
on our business, financial condition, results of operations and cash flows. Additional risks and uncertainties not
currently known to us or that we currently deem to be immaterial may also have a material adverse effect on our
business, financial condition, results of operations and cash flows.

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Risks Related to our Business

The loss of Stephen A. Wynn could significantly harm our business.

Our ability to maintain our competitive position is dependent to a large degree on the efforts, skills and
reputation of Stephen A. Wynn, the Chairman of the Board, Chief Executive Officer and one of the principal
stockholders of Wynn Resorts. Mr. Wynn’s employment agreement expires in October 2022; however, we
cannot assure you that Mr. Wynn will remain with Wynn Resorts. If we lose the services of Mr. Wynn, or if he is
unable to devote sufficient attention to our operations for any other reason, our business may be significantly
impaired.

Our business is particularly sensitive to reductions in discretionary consumer and corporate spending as a
result of global economic conditions.

Consumer demand for casino/hotel resorts, trade shows and conventions and for the type of luxury

amenities that we offer is particularly sensitive to changes in the global economy, which adversely impact
discretionary spending on leisure activities. Changes in discretionary consumer spending or consumer
preferences brought about by factors such as perceived or actual general global economic conditions, high
unemployment, weakness in housing or oil markets, perceived or actual changes in disposable consumer income
and wealth, an economic recession and changes in consumer confidence in the global economy, or fears of war
and future acts of terrorism have in the past and could in the future reduce customer demand for the luxury
amenities and leisure activities we offer, and may have a significant negative impact on our operating results.

Also, consumer demographics and preferences may evolve over time, which, for example, has resulted in growth
in consumer demand for non-gaming offerings. Our success depends in part on our ability to anticipate the preferences
of consumers and react to those trends and any failure to do so may negatively impact our operating results.

Visitation to Macau may decline due to economic disruptions in mainland China, restrictions on visitations
to Macau from citizens of mainland China and the anti-corruption campaign.

A significant number of our gaming customers at our Macau Operations come from mainland China.
Continued economic disruption, contraction and uncertainty in China could further impact the number of patrons
visiting our Macau Operations or the amount they may be willing to spend. In addition, policies adopted from
time to time by the Chinese government, including any travel restrictions imposed by China on its citizens such
as restrictions imposed on exit visas granted to residents of mainland China for travel to Macau, could disrupt the
number of visitors from mainland China to our property. It is not known when, or if, policies similar to those
implemented in 2009 restricting visitation by mainland Chinese citizens to Macau and Hong Kong, will be put in
place and travel policies may be adjusted, without notice, in the future. Furthermore, the Chinese government’s
ongoing anti-corruption campaign has influenced the behavior of Chinese consumers and their spending patterns
both domestically and abroad. The campaign has specifically led to tighter monetary transfer regulations,
including real time monitoring of certain financial channels, certain types of guidelines on cash withdrawals,
which has disrupted, and may impact, the number of visitors and the amount of money they bring from mainland
China to Macau. The overall effect of the campaign and monetary transfer restrictions may impact visitation and
may continue to negatively affect our revenues and results of operations.

Our business is particularly sensitive to the willingness of our customers to travel. Acts or the threat of acts
of terrorism, regional political events and developments in certain countries could cause severe disruptions
in air travel that reduce the number of visitors to our facilities, resulting in a material adverse effect on our
business and financial condition, results of operations or cash flows.

We are dependent on the willingness of our customers to travel. Only a small amount of our business is and
will be generated by local residents. Most of our customers travel to reach our Las Vegas and Macau properties.
Acts of terrorism or concerns over the possibility of such acts may severely disrupt domestic and international

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travel, which would result in a decrease in customer visits to Las Vegas and Macau, including our properties.
Regional conflicts could have a similar effect on domestic and international travel. Disruptions in air or other
forms of travel as a result of any terrorist act, outbreak of hostilities, escalation of war or worldwide infectious
disease outbreak would have an adverse effect on our business and financial condition, results of operations or
cash flows.

We are entirely dependent on a limited number of resorts for all of our cash flow, which subjects us to
greater risks than a gaming company with more operating properties.

We are currently entirely dependent upon our Macau Operations and Las Vegas Operations for all of our
operating cash flow. As a result, we are subject to a greater degree of risk than a gaming company with more
operating properties or greater geographic diversification. The risks to which we have a greater degree of
exposure include the following:

•

•

•

•

•

•

changes in local economic and competitive conditions;

changes in local and state governmental laws and regulations, including gaming laws and regulations;

natural and other disasters, including the outbreak of infectious diseases;

an increase in the cost of maintaining our properties;

a decline in the number of visitors to Las Vegas or Macau; and

a decrease in gaming and non-casino activities at our resorts.

Any of the factors outlined above could negatively affect our results of operations and our ability to

generate sufficient cash flow to make payments or maintain our covenants with respect to our debt.

We are a parent company and our primary source of cash is and will be distributions from our subsidiaries.

We are a parent company with limited business operations of our own. Our main asset is the capital stock of

our subsidiaries. We conduct most of our business operations through our direct and indirect subsidiaries.
Accordingly, our primary sources of cash are dividends and distributions with respect to our ownership interests
in our subsidiaries that are derived from the earnings and cash flow generated by our operating properties. Our
subsidiaries might not generate sufficient earnings and cash flow to pay dividends or distributions in the future.

Our subsidiaries’ payments to us will be contingent upon their earnings and upon other business
considerations. In addition, our subsidiaries’ debt instruments and other agreements limit or prohibit certain
payments of dividends or other distributions to us. We expect that future debt instruments for the financing of our
other developments will contain similar restrictions. An inability of our subsidiaries to pay us dividends and
distributions would have a significant negative effect on our liquidity.

Our casino, hotel, convention and other facilities face intense competition, which may increase in the
future.

The casino/hotel industry is highly competitive. Our Macau Operations face intense competition with

approximately 36 other casinos currently operating in Macau. We hold a concession under one of only three
gaming concessions and three subconcessions authorized by the Macau government to operate casinos in Macau.
The Macau government has had the ability to grant additional gaming concessions since April 2009. If the Macau
government were to allow additional competitors to operate in Macau through the grant of additional concessions
or subconcessions, we would face additional competition, which could have a material adverse effect on our
business, financial condition, results of operations and cash flows. Several of the current concessionaires and
subconcessionaires will open additional facilities in the Cotai area during 2017 and 2018. These Cotai facilities
are expected to increase total hotel room inventory by approximately 12.3% from the current inventory and
significantly increase other gaming and non-gaming offerings in Macau.

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Our Macau Operations face competition from casinos located in other areas of Asia, such as Singapore, the

Philippines and Malaysia. We also encounter competition from other major gaming centers located around the
world, including Australia and Las Vegas, cruise ships in Asia that offer gaming, and other casinos throughout
Asia. Further, if current efforts to legalize gaming in other Asian countries, such as Japan, are successful, we will
face additional regional competition.

Our Las Vegas Operations compete with other Las Vegas Strip hotels and with other hotel casinos in Las

Vegas on the basis of overall atmosphere, range of amenities, level of service, price, location, entertainment,
theme and size, among other factors. Wynn Las Vegas also competes with other casino/hotel facilities in other
cities. The proliferation of gaming activities in other areas could significantly harm our business as well. In
particular, the legalization or expansion of casino gaming in or near metropolitan areas from which we attract
customers could have a negative effect on our business. In addition, new or renovated casinos in Macau or
elsewhere in Asia could draw Asian gaming customers away from Wynn Las Vegas.

Increased competition could result in a loss of customers, which may negatively affect our cash flows and

results of operations.

Our business relies on high-end, international customers. We often extend credit, and we may not be able to
collect gaming receivables from our credit players or credit play may decrease.

General. A significant portion of our table games revenue at our resorts is attributable to the play of a

limited number of international customers. The loss or a reduction in the play of the most significant of these
customers could have a material adverse effect on our business, financial condition, results of operations and
cash flows. A downturn in economic conditions in the countries in which these customers reside could cause a
reduction in the frequency of visits by and revenue generated from these customers.

We conduct our gaming activities on a credit as well as a cash basis. The casino credit we extend is

generally unsecured and due on demand. We will extend casino credit to those customers whose level of play and
financial resources, in the opinion of management, warrant such an extension. The collectability of receivables
from international customers could be negatively affected by future business or economic trends or by significant
events in the countries in which these customers reside.

Macau Operations. Although the law in Macau permits casino operators to extend credit to gaming customers,
our Macau Operations may not be able to collect all of its gaming receivables from its credit players. We expect that
our Macau Operations will be able to enforce these obligations only in a limited number of jurisdictions, including
Macau. To the extent our gaming customers are visitors from other jurisdictions, we may not have access to a forum in
which we will be able to collect all of our gaming receivables because, among other reasons, courts of many
jurisdictions do not enforce gaming debts and we may encounter forums that will refuse to enforce such debts. Our
inability to collect gaming debts could have a significant negative impact on our operating results.

Currently, the gaming tax in Macau is calculated as a percentage of gross gaming revenue. However, unlike

Nevada, the gross gaming revenue calculation in Macau does not include deductions for uncollectible gaming
debts. As a result, if we extend credit to our customers in Macau and are unable to collect on the related
receivables from them, we remain obligated to pay taxes on our winnings from these customers.

Las Vegas Operations. While gaming debts evidenced by a credit instrument, including what is commonly
referred to as a “marker,” are enforceable under the current laws of Nevada, and judgments on gaming debts are
enforceable in all states of the United States under the Full Faith and Credit Clause of the United States Constitution,
other jurisdictions may determine that direct or indirect enforcement of gaming debts is against public policy. Although
courts of some foreign nations will enforce gaming debts directly and the assets in the United States of foreign debtors
may be used to satisfy a judgment, judgments on gaming debts from U.S. courts are not binding on the courts of many
foreign nations. We cannot assure that we will be able to collect the full amount of gaming debts owed to us, even in

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jurisdictions that enforce them. Changes in economic conditions may make it more difficult to assess creditworthiness
and more difficult to collect the full amount of any gaming debt owed to us. Our inability to collect gaming debts could
have a significant negative impact on our operating results.

Win rates for our gaming operations depend on a variety of factors, some of which are beyond our control.

The gaming industry is characterized by an element of chance. In addition to the element of chance, win
rates are also affected by other factors, including players’ skill and experience, the mix of games played, the
financial resources of players, the spread of table limits, the volume of bets played, the amount of time played
and undiscovered acts of fraud or cheating. Our gross gaming revenues are mainly derived from the difference
between our casino winnings and the casino winnings of our gaming customers. Since there is an inherent
element of chance in the gaming industry, we do not have full control over our winnings or the winnings of our
gaming customers.

In addition, premium gaming is more volatile than other forms of gaming, and variances in win-loss results
attributable to high-end gaming may have a positive or negative impact on cash flow and earnings in a particular
quarter.

Our new projects may not be successful.

In addition to the construction and regulatory risks associated with our current and future construction
projects, we cannot assure you that the level of consumer demand for our casino resorts or for the type of luxury
amenities that we will offer will meet our expectations. The operating results of our new projects may be
materially different than the operating results of our current integrated resorts due to, among other reasons,
differences in consumer and corporate spending and preferences in new geographic areas, increased competition
from other markets or other developments that may be beyond our control. In addition, our new projects may be
more sensitive to certain risks, including risks associated with downturns in the economy, than the resorts we
currently operate. The demands imposed by new developments on our managerial, operational and other
resources may impact our operation of our existing resorts. If any of these issues were to occur, it could
adversely affect our prospects, financial condition, or results of operations.

We could encounter substantial cost increases higher than expected in the development of our projects.

We are currently constructing Wynn Boston Harbor in Everett, Massachusetts. The total project budget for

Wynn Boston Harbor, including gaming license fees, construction costs, capitalized interest, pre-opening
expenses and land costs, is estimated to be approximately $2.4 billion.

The projected development costs for Wynn Boston Harbor reflect our best estimates and the actual

development costs may be higher than expected. Contingencies that have been set aside by us to cover potential
cost overruns or potential delays may be insufficient to cover the full amount of such overruns or delays. If these
contingencies are not sufficient to cover these costs, or if we are not able to recover damages for these delays and
contingencies, we may not have the funds required to pay the excess costs and this project may not be completed.
Failure to complete this project may negatively affect our financial condition, our results of operations and our
ability to pay our debt.

Construction projects will be subject to development and construction risks, which could have an adverse
effect on our financial condition, results of operations or cash flows.

Major construction projects of the scope and scale of Wynn Boston Harbor entail significant risks,

including:

•

•

unanticipated cost increases;

shortages of, and price increases in, materials or skilled labor;

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•

•

•

•

•

•

•

•

•

•

•

changes to plans and specifications;

delays in obtaining or inability to obtain requisite licenses, permits and authorizations from regulatory
authorities;

changes in laws and regulations, or in the interpretation and enforcement of laws and regulations,
applicable to gaming, leisure, real estate development or construction projects;

unforeseen engineering, environmental and/or geological problems;

labor disputes or work stoppages;

disputes with and defaults by contractors and subcontractors;

personal injuries to workers and other persons;

environment, health and safety issues, including site accidents;

delays or interference from severe weather or natural disasters;

geological, construction, excavation, regulatory and equipment problems; and

unavailability of construction equipment.

Construction, equipment or staffing problems or difficulties in obtaining any of the requisite licenses,

permits and authorizations from regulatory authorities could increase the total cost, delay or prevent the
construction or opening or otherwise affect the design and features of Wynn Boston Harbor.

We anticipate that only some of the subcontractors engaged for these projects will post bonds guaranteeing

timely completion of the subcontractor’s work and payment for all of that subcontractor’s labor and materials.
These bonds may not be adequate to ensure completion of the work.

Our Wynn Boston Harbor facility may not commence operations on schedule and construction costs for the
project may exceed budgeted amounts. Failure to complete the project on schedule or within budget may have a
significant negative effect on us and on our ability to make payments on our debt.

We are currently required to commence gaming operations at Wynn Boston Harbor by June 2020. If we are
unable to meet this deadline, the Massachusetts Gaming Commission may suspend or revoke our gaming
license.

Pursuant to the Gaming Act, the Company is required to commence gaming operations at Wynn Boston
Harbor by June 2020, the date that is one year from our projected opening date of June 2019. If the Company is
unable to meet the current deadline and is unable to obtain an extension of the deadline from the MGC, the MGC
may suspend or revoke our gaming license and, if we are found by the MGC after a hearing to have acted in bad
faith, we will be assessed a fine of up to $50,000,000. Failure to meet the deadline could have an adverse effect
on our financial condition, results of operations or cash flows from this planned facility.

We are subject to extensive state and local regulation, and licensing and gaming authorities have
significant control over our operations. The cost of compliance or failure to comply with such regulations
and authorities could have a negative effect on our business.

The operations of our resorts are contingent upon our obtaining and maintaining all necessary licenses,

permits, approvals, registrations, findings of suitability, orders and authorizations in the jurisdictions in which
our resorts are located. The laws, regulations and ordinances requiring these licenses, permits and other approvals
generally relate to the responsibility, financial stability and character of the owners and managers of gaming
operations, as well as persons financially interested or involved in gaming operations. The Nevada Gaming
Commission may require the holder of any debt or securities we or Wynn Las Vegas, LLC issue to file
applications, be investigated and be found suitable to own Wynn Resorts’ securities if it has reason to believe
that the security ownership would be inconsistent with the declared policies of the State of Nevada.

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The Company’s articles of incorporation provide that, to the extent required by the gaming authority making

the determination of unsuitability or to the extent the Board of Directors determines, in its sole discretion, that a
person is likely to jeopardize the Company’s or any affiliate’s application for, receipt of, approval for, right to the
use of, or entitlement to, any gaming license, shares of Wynn Resorts’ capital stock that are owned or controlled
by an unsuitable person or its affiliates are subject to redemption by Wynn Resorts. The redemption price may be
paid in cash, by promissory note, or both, as required, and pursuant to the terms established by, the applicable
gaming authority and, if not, as Wynn Resorts elects. On February 18, 2012, after receiving a report from Freeh,
Sporkin & Sullivan, LLP (the “Freeh Report”) detailing numerous instances of conduct constituting prima facie
violations of the Foreign Corrupt Practices Act (the “FCPA”) by Kazuo Okada (formerly the largest beneficial
owner of Wynn Resorts’ shares) and certain of his affiliates, the Board of Directors of Wynn Resorts determined
that Aruze USA Inc. (“Aruze”), Universal Entertainment Corporation, and Mr. Kazuo Okada (collectively, the
“Okada Parties”) were “unsuitable” within the meaning of Article VII of Wynn Resorts’ articles of incorporation
and redeemed all of Aruze’s shares of Wynn Resorts’ common stock. See Item 8—“Financial Statements and
Supplementary Data,” Note 17 “Commitments and Contingencies.”

Nevada and Massachusetts regulatory authorities have broad powers to request detailed financial and other

information, to limit, condition, suspend or revoke a registration, gaming license or related approvals; approve
changes in our operations; and levy fines or require forfeiture of assets for violations of gaming laws or
regulations. Complying with gaming laws, regulations and license requirements is costly. Any change in the
Nevada and Massachusetts laws, regulations or licenses applicable to our business or a violation of any current or
future laws or regulations applicable to our business or gaming licenses could require us to make substantial
expenditures and forfeit assets, and would negatively affect our gaming operations.

Our Macau Operations are subject to unique risks. Failure to adhere to the regulatory and gaming

environment in Macau could result in the revocation of our Macau Operations’ concession or otherwise
negatively affect its operations in Macau. Moreover, we are subject to the risk that U.S. regulators could
determine that Macau’s gaming regulatory framework has not developed in a way that would permit us to
conduct operations in Macau in a manner consistent with the way in which we intend, or the Nevada gaming
authorities require us, to conduct our operations in the United States.

Any violation of applicable Anti-Money Laundering laws or regulations or the Foreign Corrupt Practices
Act could adversely affect our business, performance, prospects, value, financial condition, and results of
operations.

We deal with significant amounts of cash in our operations and are subject to various jurisdictions’ reporting

and anti-money laundering laws and regulations. Recently, both U.S. and Macau governmental authorities have
increased their focus on the gaming industry and compliance with anti-money laundering laws and regulations.
From time to time, the Company receives governmental and regulatory inquiries about compliance with such
laws and regulations. The Company cooperates with all such inquiries. Any violation of anti-money laundering
laws or regulations could adversely affect our business, performance, prospects, value, financial condition, and
results of operations.

Further, we have operations, and a significant portion of our revenue is derived outside of the United States.

We are therefore subject to regulations imposed by the FCPA and other anti-corruption laws that generally
prohibit U.S. companies and their intermediaries from offering, promising, authorizing or making improper
payments to foreign government officials for the purpose of obtaining or retaining business. Violations of the
FCPA and other anti-corruption laws may result in severe criminal and civil sanctions as well as other penalties
and the SEC and U.S. Department of Justice have increased their enforcement activities with respect such laws
and regulations.

Internal control policies and procedures and employee training and compliance programs that we have

implemented to deter prohibited practices may not be effective in prohibiting our directors, employees,
contractors or agents from violating or circumventing our policies and the law. If we or our directors, employees

22

or agents fail to comply with applicable laws or Company policies governing our operations, the Company may
face investigations, prosecutions and other legal proceedings and actions, which could result in civil penalties,
administrative remedies and criminal sanctions. Any such government investigations, prosecutions or other legal
proceedings or actions could adversely affect our business, performance, prospects, value, financial condition,
and results of operations.

Mr. Okada failed to comply with internal training in these matters and failed to return to Wynn Resorts an

executed Acknowledgment agreeing to comply with the Wynn Resorts Code of Business Conduct and Ethics. On
February 19, 2012, Wynn Resorts’ filed a complaint in Nevada state court against Mr. Okada and other entities
alleging, among other things, breach of fiduciary duty in connection with alleged violations of the FCPA. For
information on such complaint, the Freeh Report, which detailed numerous instances of conduct constituting
prima facie violations of FCPA by Mr. Okada and certain of his affiliates, and the redemption Aruze’s shares, see
Item 8—“Financial Statements and Supplementary Data,” Note 17 “Commitments and Contingencies.”

Because we own real property, we are subject to extensive environmental regulation, which creates
uncertainty regarding future environmental expenditures and liabilities.

We have incurred costs to comply with environmental requirements, such as those relating to discharges
into the air, water and land, the handling and disposal of solid and hazardous waste and the cleanup of properties
affected by hazardous substances. Under these and other environmental requirements we may be required to
investigate and clean up hazardous or toxic substances or chemical releases at our property. As an owner or
operator, we could also be held responsible to a governmental entity or third parties for property damage,
personal injury and investigation and cleanup costs incurred by them in connection with any contamination.

These laws typically impose cleanup responsibility and liability without regard to whether the owner or
operator knew of or caused the presence of the contaminants. The liability under those laws has been interpreted
to be joint and several unless the harm is divisible and there is a reasonable basis for allocation of the
responsibility. The costs of investigation, remediation or removal of those substances may be substantial, and the
presence of those substances, or the failure to remediate a property properly, may impair our ability to use our
property.

Contamination has been identified at and in the vicinity of our site in Everett, Massachusetts. The ultimate
cost of remediating contaminated sites is difficult to accurately predict and could exceed our current estimates.
We may be required to conduct additional investigations and remediation with respect to this site. As a result, we
also could incur material costs in excess of our estimates as a result of additional cleanup obligations imposed or
contamination identified in the future. Our proposed expenditures related to environmental matters are not
currently expected to have a material adverse effect on our business, financial condition or results of operations.
However, the environmental laws under which we operate are complicated and often increasingly more stringent,
and may be applied retroactively. Accordingly, we may be required to make additional expenditures to remain in,
or to achieve compliance with, environmental laws in the future.

Compliance with changing laws and regulations may result in additional expenses and compliance risks.

Changing laws and regulations are creating uncertainty for gaming companies. These changing laws and
regulations are subject to varying interpretations in many cases due to their lack of specificity, recent issuance
and/or lack of guidance. As a result, their application in practice may evolve over time as new guidance is
provided by regulatory and governing bodies. In addition, further regulation of casinos, financial institutions and
public companies is possible. This could result in continuing uncertainty and higher costs regarding compliance
matters. Due to our commitment to maintain high standards of compliance with laws and public disclosure, our
efforts to comply with evolving laws, regulations and standards have resulted in and are likely to continue to
result in increased general and administrative expense. In addition, we are subject to different parties’
interpretation of our compliance with these new and changing laws and regulations.

23

We are subject to taxation by various governments and agencies. The rate of taxation could change.

We are subject to tax by various governments and agencies, both in the U.S. and in Macau. Changes in the

rates of taxation, the amount of taxes we owe and the time when income is subject to taxation, our ability to
claim U.S. foreign tax credits, failure to renew our Macau dividend agreement and Macau income tax exemption
and the imposition of foreign withholding taxes could increase our overall rate of taxation.

Potential violations of law by Mr. Okada and his affiliates could have adverse consequences to the
Company.

The Freeh Reported detailed numerous instances of conduct constituting prima facie violations of the FCPA

by Mr. Okada and certain of his affiliates. See Item 8-“Financial Statements and Supplementary Data,” Note 17
“Commitments and Contingencies.” The Company has provided the Freeh Report to applicable regulators and
has been cooperating with related investigations of such regulators. The conduct of Mr. Okada and his affiliates
and the outcome of any resulting regulatory findings could have adverse consequences to the Company. A
finding by regulatory authorities that Mr. Okada violated the FCPA on Company property and/or otherwise
involved the Company in criminal or civil violations could result in actions by regulatory authorities against the
Company. Relatedly, regulators have and may pursue separate investigations into the Company’s compliance
with applicable laws in connection with the Okada matter, as discussed in Item 8—“Financial Statements and
Supplementary Data,” Note 17 “Commitments and Contingencies.” While the Company believes that it is in full
compliance with all applicable laws, any such investigations could result in actions by regulators against the
Company, which could negatively affect the Company’s financial condition or results of operations.

Mr. Okada and his affiliates have challenged the redemption of Aruze’s Shares. An adverse judgment or
settlement resulting from the related litigation could reduce our profits or limit our ability to operate our
business.

On February 18, 2012, Wynn Resorts’ Gaming Compliance Committee received the Freeh Report detailing a
pattern of misconduct by the Okada Parties. After receiving the Freeh Report, the Board of Directors of Wynn Resorts
determined that each of the Okada Parties was “unsuitable” within the meaning of Article VII of Wynn Resorts’
articles of incorporation and redeemed all of Aruze’s shares of Wynn Resorts’ common stock. See Item 8-“Financial
Statements and Supplementary Data,” Note 17 “Commitments and Contingencies.” On February 19, 2012, Wynn
Resorts filed a complaint in the Eighth Judicial District Court, Clark County, Nevada against the Okada Parties (as
amended, the “Complaint”), alleging breaches of fiduciary duty and related claims (the “Redemption Action”) arising
from the activities addressed in the Freeh Report. The Company is seeking compensatory and special damages as well
as a declaration that it acted lawfully and in full compliance with its articles of incorporation, bylaws and other
governing documents in redeeming and canceling the shares of Aruze. On March 12, 2012, the Okada Parties filed an
answer denying the claims and a counterclaim (as amended, the “Counterclaim”) against the Company, each of the
members of the Company’s Board of Directors (other than Mr. Okada) and Wynn Resorts’ General Counsel
(collectively, the “Wynn Parties”), seeking, among other things a declaration that the redemption of Aruze’s shares was
void, an injunction restoring Aruze’s share ownership, damages in an unspecified amount and rescission of the
Amended and Restated Stockholders Agreement, dated as of January 6, 2010, by and among Aruze, Stephen A. Wynn,
and Elaine P. Wynn (the “Stockholders Agreement”). In connection with the Redemption Action and Counterclaim
(1) various Okada Parties filed a complaint in the Tokyo District Court against the Company, all members of the Board
of Directors (other than Mr. Okada) and the Company’s General Counsel alleging that the press release issued by the
Company in connection with the Redemption Action has damaged their social evaluation and credibility and seeking
damages and legal fees, (2) four federal derivative actions were commenced against the Company and all members of
its Board of Directors, (3) two state derivative actions were commenced against the Company and all members of its
Board of Directors, (4) regulatory inquiries and investigations were initiated against the Company, and (5) the Okada
Parties filed a complaint in the Court of First Instance of Macau (against Wynn Macau SA and certain individuals who
are or were directors of Wynn Macau SA and/or Wynn Macau, Limited). See Item 8—“Financial Statements and

24

Supplementary Data,” Note 17 “Commitments and Contingencies,” for a full description of these matters and status as
of the date of this report. The Company is vigorously pursuing its claims against the Okada Parties, and together with
the other counter-defendants, vigorously defending against the Counterclaim and other actions asserted against them.
However, as with all litigation, the outcome of these proceedings cannot be predicted. Any adverse judgments or
settlements involving payment of a material sum of money could cause a material adverse effect on our financial
condition and results of operations and could expose us to additional claims by third parties, including current or
former investors or regulators. Any adverse judgments or settlements would reduce our profits and could limit our
ability to operate our business.

Change in valuation of our Redemption Price Promissory Note could have a negative impact on our
financial results.

We record the Redemption Note at fair value in accordance with applicable accounting guidance. As of

December 31, 2016 and 2015, the fair value of the Redemption Note was $1.82 billion and $1.88 billion,
respectively. In determining this fair value, we estimated the Redemption Note’s present value using discounted
cash flows with a probability-weighted expected return for redemption assumptions and a discount rate, which
included time value and non-performance risk adjustments commensurate with the risk of the Redemption Note.

Considerations for the redemption assumptions included the stated maturity of the Redemption Note,
uncertainty of the related cash flows as well as potential effects of the following: uncertainties surrounding the
potential outcome and timing of pending litigation with the Okada Parties (see Item 8—“Financial Statements
and Supplementary Data,” Note 17 “Commitments and Contingencies”); the outcome of on-going investigations
of Aruze by the United States Attorney’s Office, the U.S. Department of Justice and the Nevada Gaming Control
Board; and other potential legal and regulatory actions. In addition, in the furtherance of various future business
objectives, we considered our ability, at our sole option, to prepay the Redemption Note at any time in
accordance with its terms without penalty. Accordingly, we reasonably determined that the estimated life of the
Redemption Note could be less than the contractual life of the Redemption Note.

In determination of the appropriate discount rate to be used in the estimated present value, the Redemption

Note’s subordinated position and credit risk relative to all other debt in our capital structure and credit ratings
associated with our traded debt were considered. Observable inputs for the risk free rate were based on Federal
Reserve rates for U.S. Treasury securities and the credit risk spread was based on a yield curve index of similarly
rated debt.

A change in any of the assumptions discussed above could result in a change in the fair value of this

Redemption Note and significantly impact our financial results.

Ongoing litigation and other disputes with Mr. Okada and certain of his affiliates, as well as claims by
Ms. Wynn, could distract management and result in negative publicity and additional scrutiny from
regulators.

There has been widespread publicity of the findings in the Freeh Report of prima facie violations of law by
Mr. Okada and his affiliates, the Board of Directors’ unsuitability finding, the redemption of shares and related
litigation. The actions, litigation, and publicity could reduce demand for shares of Wynn Resorts and Wynn
Macau, Limited and thereby have a negative impact on the trading prices of their respective shares. In addition,
Elaine P. Wynn has asserted various claims against Mr. Wynn, the Company and various Company officers,
which have and may continue to draw adverse publicity or impugn the Company’s reputation. Ongoing litigation
and other disputes can be expensive to defend and may divert management’s attention from the operations of our
businesses. The disputes may also lead to additional scrutiny from regulators, which could lead to investigations
relating to, and possibly a negative impact on, the Company’s gaming licenses, and possibly have a negative
impact on the Company’s ability to bid successfully for new gaming market opportunities.

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Our information technology and other systems are subject to cyber security risk including misappropriation
of customer information or other breaches of information security.

We rely on information technology and other systems (including those maintained by third parties with

whom we contract to provide data services) to maintain and transmit large volumes of customer financial
information, credit card settlements, credit card funds transmissions, mailing lists and reservations information
and other personally identifiable information. We also maintain important internal company data such as
personally identifiable information about our employees and information relating to our operations. The systems
and processes we have implemented to protect customers, employees and company information are subject to the
ever-changing risk of compromised security. These risks include cyber and physical security breaches, system
failure, computer viruses, and negligent or intentional misuse by customers, company employees, or employees
of third-party vendors. The steps we take to deter and mitigate these risks may not be successful and our
insurance coverage for protecting against cybersecurity risks may not be sufficient. Our third-party information
system service providers face risks relating to cybersecurity similar to ours, and we do not directly control any of
such parties’ information security operations. A significant theft, loss or fraudulent use of customer or company
data maintained by us or by a third-party service provider could have an adverse effect on our reputation, cause a
material disruption to our operations and management team, and result in remediation expenses, regulatory
penalties and litigation by customers and other parties whose information was subject to such attacks, all of
which could have a material adverse effect on our business, results of operations and cash flows.

Our collection and use of personal data are governed by privacy laws and regulations and privacy law is an
area that changes often and varies significantly by jurisdiction. Compliance with applicable privacy regulations
may increase our operating costs and/or adversely impact our ability to market our products, properties and
services to our guests. In addition, non-compliance with applicable privacy regulations by us (or in some
circumstances non-compliance by third parties engaged by us) or a breach of security on systems storing our data
may result in damage of reputation and/or subject us to fines, payment of damages, lawsuits or restrictions on our
use or transfer of data.

If a third party successfully challenges our ownership of, or right to use, the Wynn-related trademarks and/
or service marks, our business or results of operations could be harmed.

Our intellectual property assets, especially the logo version of “Wynn,” are among our most valuable assets.

We have filed applications with the PTO and with various foreign patent and trademark registries including
registries in Macau, China, Hong Kong, Singapore, Taiwan, Japan, certain European countries and various other
jurisdictions throughout the world, to register a variety of WYNN-related trademarks and service marks in
connection with a variety of goods and services. These marks include “WYNN RESORTS,” “WYNN DESIGN
AND DEVELOPMENT,” “WYNN LAS VEGAS,” “WYNN MACAU,” “WYNN PALACE” and “ENCORE.”
Some of the applications are based upon ongoing use and others are based upon a bona fide intent to use the
marks in the future.

A common element of most of these marks is the use of the surname “WYNN.” As a general rule, a
surname (or the portion of a mark primarily constituting a surname) is not eligible for registration unless the
surname has acquired “secondary meaning.” To date, we have been successful in demonstrating to the PTO such
secondary meaning for the Wynn name, in certain of the applications, based upon factors including Mr. Wynn’s
prominence as a resort developer, but we cannot assure you that we will be successful with the other pending
applications.

Federal registrations are not completely dispositive of the right to such marks. Third parties who claim prior

rights with respect to similar marks may nonetheless challenge our right to obtain registrations or our use of the
marks and seek to overcome the presumptions afforded by such registrations.

Furthermore, due to the increased use of technology in computerized gaming machines and in business
operations generally, other forms of intellectual property rights (such as patents and copyrights) are becoming of
increased relevance. It is possible that, in the future, third parties might assert superior intellectual property rights

26

or allege that their intellectual property rights cover some aspect of our operations. The defense of such
allegations may result in substantial expenses, and, if such claims are successfully prosecuted, may have a
material impact on our business. Efforts we take to acquire and protect our intellectual property rights against
unauthorized use throughout the world, which may include retaining counsel and commencing litigation in
various jurisdictions, may be costly and may not be successful in protecting and preserving the status and value
of our intellectual property assets.

Our insurance coverage may not be adequate to cover all possible losses that we could suffer, including
losses resulting from terrorism, and our insurance costs may increase.

We have comprehensive property and liability insurance policies for our properties with coverage features

and insured limits that we believe are customary in their breadth and scope. However, in the event of a
substantial loss, the insurance coverage we carry may not be sufficient to pay the full market value or
replacement cost of our lost investment or could result in certain losses being totally uninsured. As a result, we
could lose some or all of the capital we have invested in a property, as well as the anticipated future revenue from
the property, and we could remain obligated for debt or other financial obligations related to the property.

Market forces beyond our control may limit the scope of the insurance coverage we can obtain in the future

or our ability to obtain coverage at reasonable rates. Certain catastrophic losses may be uninsurable or too
expensive to justify obtaining insurance. As a result, if we suffer such a catastrophic loss, we may not be
successful in obtaining future insurance without increases in cost or decreases in coverage levels. Furthermore,
our debt instruments and other material agreements require us to maintain a certain minimum level of insurance.
Failure to satisfy these requirements could result in an event of default under these debt instruments or material
agreements, which would negatively affect our business and financial condition.

Risks Associated with our Macau Operations

Our Macau Operations may be affected by adverse political and economic conditions.

Our Macau Operations, including Wynn Palace, are subject to significant political, economic and social
risks inherent in doing business in an emerging market. Macau’s legislative, regulatory, legal, economic and
cultural institutions are in a period of transition. The future success of our Macau Operations will depend on
political and economic conditions in Macau and mainland China. For example, fiscal decline and civil, domestic
or international unrest in Macau, China or the surrounding region could significantly harm our business, not only
by reducing customer demand for casino resorts, but also by increasing the risk of imposition of taxes and
exchange controls or other governmental restrictions, laws or regulations that might impede our Macau
Operations or ability to repatriate funds.

We compete for limited labor resources in Macau and Macau government policies may also affect our
ability to employ imported labor.

The success of our operations in Macau will be affected by our success in hiring and retaining employees.

We compete with a large number of casino resorts in Macau for a limited number of qualified employees. In
addition, the Macau government requires that we only hire Macau residents as dealers in our casinos.
Competition for these individuals in Macau has increased and will continue to increase as other competitors
expand their operations. We have to seek employees from other countries to adequately staff our resort and
certain Macau government policies affect our ability to import labor in certain job classifications. Despite our
coordination with the Macau labor and immigration authorities to assure that our labor needs are satisfied, we
may not be able to recruit and retain a sufficient number of qualified employees for our operations or obtain
required work permits for those employees. If we are unable to obtain, attract, retain and train skilled employees,
our ability to adequately manage and staff our existing and planned casino and resort properties in Macau could
be impaired, which could have a material adverse effect on our business, financial condition, results of operations
or cash flows.

27

The Macau government has established a maximum number of gaming tables that can be operated in
Macau and has limited the number of new gaming tables at new gaming areas in Macau.

Prior to the opening of Wynn Palace, the DICJ authorized 100 new table games for operation at Wynn

Palace with 25 additional table games authorized for operation on January 1, 2017, and a further 25 new table
games for operation on January 1, 2018, for a total of 150 new table games in the aggregate. In addition, we have
and will continue to transfer table games between Wynn Macau and Wynn Palace, subject to the aggregate cap,
to optimize our casino operations. As of February 15, 2017, we had a total of 303 table games at Wynn Macau
and 304 at Wynn Palace.

The smoking control legislation in Macau could have an adverse effect on our business, financial
condition, results of operations or cash flows.

In 2014, the Macau government approved additional smoking control legislation, which prohibited smoking

in casinos starting on October 6, 2014. The legislation, however, permits casinos to maintain certain limited
smoking areas open to VIP patrons if such areas are within restricted access areas, comply with certain square
footage ratios based on overall gaming area square footage and comply with the conditions set out in the
Dispatch of the Chief Executive, dated November 1, 2012, as amended by the Dispatch of the Chief Executive,
dated June 3, 2014. Prior public announcements by the Macau government indicated that the Macau government
intended to pursue a full smoking ban within all Macau casinos, but in February 2017, Macau’s Health Bureau
proposed not pursuing a full ban and permitting casinos to have smoking lounges constructed in accordance with
certain stringent technical standards still to be determined. The existing smoking legislation, and any smoking
legislation intended to fully ban all smoking in casinos, may deter potential gaming customers who are smokers
from frequenting casinos in Macau and disrupt the number of patrons visiting or the amount of time visiting
patrons spend at our property, which could have a material adverse effect on our business, financial condition,
results of operations and cash flows.

Macau may not have an adequate transportation infrastructure to accommodate the demand of visitors to
Macau.

Because of additional casino projects which are under construction and to be developed in the future, the
ferry and helicopter services which provide transportation between Macau, Hong Kong, and mainland China may
need to be expanded to accommodate the increased visitation to Macau. If transportation facilities to and from
Macau are inadequate to meet the demands of an increased volume of gaming customers visiting Macau, the
desirability of Macau as a gaming destination, as well as the results of operations of our Macau Operations, could
be negatively impacted. Furthermore, construction of current and future casino projects, as well as any future
infrastructure projects, adjacent to our properties could impede access to our properties during construction and
development. This may negatively impact the results of our Macau Operations.

Extreme weather conditions may have an adverse impact on our Macau Operations.

Macau’s subtropical climate and location on the South China Sea are subject to extreme weather conditions

including typhoons and heavy rainstorms. Unfavorable weather conditions could negatively affect the
profitability of our resorts and prevent or discourage guests from traveling to Macau.

Revenues from our Macau gaming operations will end if we cannot secure an extension of our concession
in 2022 or if the Macau government exercises its redemption right beginning in 2017.

Our concession agreement with the Macau government expires in June 2022. Unless our concession is
extended, in June 2022, all of our gaming operations and related equipment in Macau will be automatically
transferred to the Macau government without compensation to us and we will cease to generate any revenues
from these operations. Beginning in June 2017, the Macau government may redeem the concession agreement by

28

providing us at least one year’s prior notice. In the event the Macau government exercises this redemption right,
we are entitled to fair compensation or indemnity. The amount of such compensation or indemnity will be
determined based on the amount of revenue generated during the tax year prior to the redemption multiplied for
the remaining years under the concession. We may not be able to renew or extend our concession agreement on
terms favorable to us or at all and, if our concession is redeemed, the compensation paid to us may not be
adequate to compensate us for the loss of future revenues. The redemption of or failure to extend our concession
would have a material adverse effect on our results of operations.

If our Macau Operations fail to comply with the concession agreement, the Macau government can
terminate our concession without compensation to us, which would have a material adverse effect on our
business and financial condition.

The Macau government has the right to unilaterally terminate our concession in the event of our material

non-compliance with the basic obligations under the concession and applicable Macau laws. The concession
agreement expressly provides that the government of Macau may unilaterally rescind the concession agreement
of our Macau Operations if it:

•

•

•

•

•

•

•

•

•

conducts unauthorized games or activities that are excluded from its corporate purpose;

suspends gaming operations in Macau for more than seven consecutive days (or more than 14 days in a
civil year) without justification;

defaults in payment of taxes, premiums, contributions or other required amounts;

does not comply with government inspections or supervision;

systematically fails to observe its obligations under the concession system;

fails to maintain bank guarantees or bonds satisfactory to the government;

is the subject of bankruptcy proceedings or becomes insolvent;

engages in serious fraudulent activity, damaging to the public interest; or

repeatedly violates applicable gaming laws.

If the government of Macau unilaterally rescinds the concession agreement, our Macau Operations will be
required to compensate the government in accordance with applicable law, and the areas defined as casino space
under Macau law and all of the gaming equipment pertaining to our gaming operations will be transferred to the
government without compensation. The loss of our concession would prohibit us from conducting gaming
operations in Macau, which would have a material adverse effect on our business and financial condition.

Certain Nevada gaming laws apply to our Macau Operations’ gaming activities and associations.

Certain Nevada gaming laws also apply to gaming activities and associations in jurisdictions outside the
State of Nevada. With respect to our Macau Operations, we and our subsidiaries that must be licensed to conduct
gaming operations in Nevada are required to comply with certain reporting requirements concerning gaming
activities and associations in Macau conducted by our Macau-related subsidiaries. We and our licensed Nevada
subsidiaries also will be subject to disciplinary action by the Nevada Gaming Commission if our Macau-related
subsidiaries:

•

•

•

knowingly violate any Macau laws relating to their Macau gaming operations;

fail to conduct our Macau Operations in accordance with the standards of honesty and integrity
required of Nevada gaming operations;

engage in any activity or enter into any association that is unsuitable for us because it poses an
unreasonable threat to the control of gaming in Nevada, reflects or tends to reflect discredit or disrepute
upon the State of Nevada or gaming in Nevada, or is contrary to Nevada gaming policies;

29

•

•

engage in any activity or enter into any association that interferes with the ability of the State of
Nevada to collect gaming taxes and fees; or

employ, contract with or associate with any person in the foreign gaming operation who has been
denied a license or a finding of suitability in Nevada on the ground of unsuitability, or who has been
found guilty of cheating at gambling.

Such disciplinary action could include suspension, conditioning, limitation or revocation of the registration,
licenses or approvals held by us and our licensed Nevada subsidiaries, including Wynn Las Vegas, LLC, and the
imposition of substantial fines.

In addition, if the Nevada Gaming Control Board determines that any actual or intended activities or
associations of our Macau-related subsidiaries may be prohibited pursuant to one or more of the standards
described above, the Nevada Gaming Control Board can require us and our licensed Nevada subsidiaries to file
an application with the Nevada Gaming Commission for a finding of suitability of the activity or association. If
the Nevada Gaming Commission finds that the activity or association in Macau is unsuitable or prohibited, our
Macau-related subsidiaries will either be required to terminate the activity or association, or will be prohibited
from undertaking the activity or association. Consequently, should the Nevada Gaming Commission find that our
Macau-related subsidiary’s gaming activities or associations in Macau are unsuitable, those subsidiaries may be
prohibited from undertaking their planned gaming activities or associations in Macau, or be required to divest
their investment in Macau, possibly on unfavorable terms.

We depend upon gaming promoters for a significant portion of our gaming revenue. If we are unable to
maintain, or develop additional, successful relationships with reputable gaming promoters, our ability to
maintain or grow our gaming revenues could be adversely affected.

We may lose the clientele of our gaming promoters, who generate a significant portion of our gaming

revenue. There is intense competition among casino operators in Macau for services provided by gaming
promoters, which has intensified as additional casinos open in Macau. If we are unable to maintain, or develop
additional, successful relationships with reputable gaming promoters, or lose a significant number of our gaming
promoters to our competitors, our ability to maintain or grow our gaming revenues will be adversely affected and
we will have to seek alternative ways of developing relationships with VIP customers. In addition, if our gaming
promoters are unable to develop or maintain relationships with our VIP customers, our ability to maintain or
grow our gaming revenues will be hampered.

The financial resources of our gaming promoters may be insufficient to allow them to continue doing
business in Macau which could adversely affect our business and financial condition. Our gaming
promoters may experience difficulty in attracting patrons.

Given present market conditions in Macau and certain economic and other factors occurring in the region, gaming

promoters are encountering difficulties in attracting patrons to come to Macau. Further, gaming promoters are
experiencing decreased liquidity, limiting their ability to grant credit to their patrons, resulting in decreased gaming
volume in Macau and at our Macau Operations. Credit already extended by our gaming promoters to their patrons has
become difficult for them to collect. The inability to attract sufficient patrons, grant credit and collect amounts due in a
timely manner are negatively affecting our gaming promoters’ operations, causing gaming promoters to wind up or
liquidate their operations or resulting in some of our gaming promoters leaving Macau. Current and any future
difficulties could have an adverse impact on our results of operations.

Increased competition for the services of gaming promoters may require us to pay increased commission
rates to gaming promoters.

Certain gaming promoters have significant leverage and bargaining strength in negotiating operational

agreements with casino operators. This leverage could result in gaming promoters negotiating changes to our
operational agreements, including higher commissions, or the loss of business to a competitor or the loss of

30

certain relationships with gaming promoters. If we need to increase our commission rates or otherwise change
our practices with respect to gaming promoters due to competitive forces, our results of operations could be
adversely affected.

Failure by the gaming promoters with whom we work to comply with Macau gaming laws and high
standards of probity and integrity might affect our reputation and ability to comply with the requirements of
our concession, Macau gaming laws and other gaming licenses.

The reputations and probity of the gaming promoters with whom we work are important to our own

reputation and to our ability to operate in compliance with our concession, Macau gaming laws and other gaming
licenses. We conduct periodic reviews of the probity and compliance programs of our gaming promoters.
However, we are not able to control our gaming promoters’ compliance with these high standards of probity and
integrity, and our gaming promoters may violate provisions in their contracts with us designed to ensure such
compliance. In addition, if we enter into a new business relationship with a gaming promoter whose probity is in
doubt, this may be considered by regulators or investors to reflect negatively on our own probity. If our gaming
promoters are unable to maintain required standards of probity and integrity, we may face consequences from
gaming regulators with authority over our operations. Furthermore, if any of our gaming promoters violate the
Macau gaming laws while on our premises, the Macau government may, in its discretion, take enforcement
action against us, the gaming promoter, or each concurrently, and we may be sanctioned and our reputation could
be harmed.

Unfavorable changes in currency exchange rates may increase our Macau Operations’ obligations under
the concession agreement and cause fluctuations in the value of our investment in Macau.

The currency delineated in our Macau Operations’ concession agreement with the government of Macau is

the Macau pataca. The Macau pataca is linked to the Hong Kong dollar, and the two are often used
interchangeably in Macau. The Hong Kong dollar is linked to the U.S. dollar and the exchange rate between
these two currencies has remained relatively stable over the past several years. However, the exchange linkages
of the Hong Kong dollar and the Macau pataca, and the Hong Kong dollar and the U.S. dollar, are subject to
potential changes due to changes in Chinese governmental policies and international economic and political
developments.

If the Hong Kong dollar and the Macau pataca are no longer linked to the U.S. dollar, the exchange rate for

these currencies may severely fluctuate. The current rate of exchange fixed by the applicable monetary
authorities for these currencies may also change.

Because many of our Macau Operations payment and expenditure obligations are in Macau patacas, in the

event of unfavorable Macau pataca or Hong Kong dollar rate changes, our Macau Operations’ obligations, as
denominated in U.S. dollars, would increase. In addition, because we expect that most of the revenues for any
casino that we operate in Macau will be in Hong Kong dollars, we are subject to foreign exchange risk with
respect to the exchange rate between the Hong Kong dollar and the U.S. dollar. Also, if any of our Macau-related
entities incur U.S. dollar-denominated debt, fluctuations in the exchange rates of the Macau pataca or the Hong
Kong dollar, in relation to the U.S. dollar, could have adverse effects on our results of operations, financial
condition and ability to service its debt.

Currency exchange controls and currency export restrictions could negatively impact our Macau
Operations.

Currency exchange controls and restrictions on the export of currency by certain countries may negatively

impact the success of our Macau Operations. For example, there are currently existing currency exchange
controls and restrictions on the export of the renminbi, the currency of China. Restrictions on the export of the
renminbi may impede the flow of gaming customers from China to Macau, inhibit the growth of gaming in
Macau and negatively impact our Macau Operations.

31

Our Macau subsidiaries’ indebtedness is secured by a substantial portion of their assets.

Subject to applicable laws, including gaming laws, and certain agreed upon exceptions, our Macau
subsidiaries’ debt is secured by liens on substantially all of their assets. In the event of a default by such
subsidiaries under their financing documents, or if such subsidiaries experience insolvency, liquidation,
dissolution or reorganization, the holders of such secured debt would first be entitled to payment from their
collateral security, and only then would holders of our Macau subsidiaries’ unsecured debt be entitled to payment
from their remaining assets.

Conflicts of interest may arise because certain of our directors and officers are also directors of Wynn
Macau, Limited.

Wynn Macau, Limited, an indirect wholly owned subsidiary of Wynn Resorts and the developer, owner and

operator of Wynn Macau and Wynn Palace, listed its ordinary shares of common stock on The Stock Exchange
of Hong Kong Limited in October 2009. As of December 31, 2016, Wynn Resorts owns approximately 72% of
Wynn Macau, Limited’s ordinary shares of common stock. As a result of Wynn Macau, Limited having
stockholders who are not affiliated with us, we and certain of our officers and directors who also serve as officers
and/or directors of Wynn Macau, Limited may have conflicting fiduciary obligations to our stockholders and to
the minority stockholders of Wynn Macau, Limited. Decisions that could have different implications for Wynn
Resorts and Wynn Macau, Limited, including contractual arrangements that we have entered into or may in the
future enter into with Wynn Macau, Limited, may give rise to the appearance of a potential conflict of interest.

Risks Related to Share Ownership and Stockholder Matters

Our largest stockholders are able to exert significant influence over our operations and future direction.

As of December 31, 2016, Mr. Wynn and Elaine P. Wynn owned 12,000,000 shares and 9,611,927 shares,

respectively, or in the aggregate approximately 21.2%, of our outstanding common stock. As a result, Mr. Wynn
and Elaine P. Wynn, to the extent they vote their shares in a similar manner, may be able to exert significant
influence over all matters requiring our stockholders’ approval, including the approval of significant corporate
transactions.

Under the Stockholders Agreement, Mr. Wynn and Elaine P. Wynn have agreed to vote the shares of Wynn
Resorts’ common stock held by them that are subject to the terms of the Stockholders Agreement in a manner so
as to elect to our Board of Directors each of the nominees contained on each and every slate of directors endorsed
by Mr. Wynn. As a result of this voting arrangement, Mr. Wynn, as a practical matter, exercises significant
influence over the slate of directors to be elected to Wynn Resorts’ Board of Directors. In addition, with stated
exceptions, the Stockholders Agreement requires the written consent of the other party prior to any party selling
any shares of Wynn Resorts’ common stock that it owns.

In June 2012, in connection with the pending litigation between the Company and Aruze, Elaine P. Wynn

submitted a cross claim against Mr. Wynn and Mr. Okada seeking to void the Stockholders Agreement, which, if
successful, could result in a change in control under the Wynn Las Vegas, LLC debt documents. For additional
information on the cross claim, see Item 8—“Financial Statements and Supplementary Data,” Note 17
“Commitments and Contingencies.”

In November 2006, the Board of Directors of Wynn Resorts approved an amendment of its bylaws that

exempts future acquisitions of shares of Wynn Resorts’ common stock by either Mr. Wynn or Aruze from
Nevada’s acquisition of controlling interest statutes. In light of the determination by the Board of Directors on
February 18, 2012 that each of the Okada Parties is an “Unsuitable Person” under the Company’s articles of
incorporation and the redemption and cancellation of Aruze’s shares of Company common stock, our Fifth
Amended and Restated Bylaws amended these provisions to delete the reference to Aruze and its affiliates. The
Nevada acquisition of controlling interest statutes require stockholder approval in order to exercise voting rights

32

in connection with any acquisition of a controlling interest in certain Nevada corporations unless the articles of
incorporation or bylaws of the corporation in effect on the 10th day following the acquisition of a controlling
interest by certain acquiring persons provide that these statutes do not apply to the corporation or to the
acquisition specifically by types of existing or future stockholders. These statutes define a “controlling interest”
as (i) one-fifth or more but less than one third, (ii) one-third or more but less than a majority, or (iii) a majority or
more, of the voting power in the election of directors. As a result of these bylaws provisions, Mr. Wynn or his
affiliates may acquire ownership of outstanding voting shares of Wynn Resorts permitting him or them to
exercise more than one-third but less than a majority, or a majority or more, of all of the voting power of the
Company in the election of directors, without requiring a resolution of the Company’s stockholders granting
voting rights in the control shares acquired.

Our stock price may be volatile.

The trading price of our common stock has been and may continue to be subject to wide fluctuations. Our
stock price may fluctuate in response to a number of events and factors, such as general United States, China, and
world economic and financial conditions, our own quarterly variations in operating results, increased
competition, changes in financial estimates and recommendations by securities analysts, changes in applicable
laws or regulations, and changes affecting the travel industry. The stock market in general, and prices for
companies in our industry in particular, has experienced extreme volatility that may be unrelated to the operating
performance of a particular company. These broad market and industry fluctuations may adversely affect the
price of our common stock, regardless of our operating performance.

Risks Related to our Indebtedness

We are highly leveraged and future cash flow may not be sufficient for us to meet our obligations, and we
might have difficulty obtaining more financing.

We have a substantial amount of consolidated debt in relation to our equity. As of December 31, 2016, we
had total outstanding debt of approximately $10.13 billion, which includes a portion of the funds we expect to
need for the development and construction of our current projects. We may, however, incur additional
indebtedness in connection with the construction of these projects. See Item 1—“Business,” “Construction and
Development Opportunities”. In addition, we are permitted to incur additional indebtedness if certain conditions
are met, including conditions under our Wynn Macau credit facilities, our Wynn America credit facilities and our
Wynn Las Vegas, LLC indentures in connection with other future potential development plans. On February 18,
2012, we issued a Redemption Note with a principal amount of approximately $1.94 billion in redemption of all
of the shares of Wynn Resorts common stock held by Aruze. As of December 31, 2016, the fair value of the
Redemption Note was $1.82 billion. For additional information on the redemption and the Redemption Note, see
Item 8—“Financial Statements and Supplementary Data,” Note 17 “Commitments and Contingencies.”

Our indebtedness could have important consequences. For example:

•

•

•

failure to meet our payment obligations or other obligations could result in acceleration of our
indebtedness, foreclosure upon our assets that serve as collateral or bankruptcy and trigger cross
defaults under other agreements;

servicing our indebtedness requires a substantial portion of our cash flow from the operations of our
Las Vegas and Macau Operations and reduces the amount of available cash, if any, to fund working
capital and other cash requirements or pay for other capital expenditures;

the Okada Parties have challenged the redemption of Aruze’s shares and we are currently involved in
litigation with those parties as well as related shareholder derivative litigation. The outcome of these
various proceedings cannot be predicted. Any adverse judgments or settlements involving payment of a
material sum of money could cause a material adverse effect on our financial condition and results of
operations and could expose us to additional claims by third parties including current or former

33

investors or regulators. Any adverse judgments or settlements would reduce our profits and could limit
our ability to operate our business. See Item 8—“Financial Statements and Supplementary Data,” Note
17 “Commitments and Contingencies”;

• we may not be able to obtain additional financing, if needed; and

•

rates with respect to a portion of the interest we pay will fluctuate with market rates and, accordingly,
our interest expense will increase if market interest rates increase.

Under the terms of the documents governing our debt facilities, subject to certain limitations, we are

permitted to incur indebtedness. If we incur additional indebtedness, the risks described above will be
exacerbated.

The agreements governing our debt facilities contain certain covenants that restrict our ability to engage in
certain transactions and may impair our ability to respond to changing business and economic conditions.

Some of our debt facilities require us to satisfy various financial covenants, which include requirements for

minimum interest coverage ratios and leverage ratios pertaining to total debt to earnings before interest, tax,
depreciation and amortization and a minimum earnings before interest, tax, depreciation and amortization. For
more information on financial covenants we are subject to under our debt facilities, see Item 8—“Financial
Statements and Supplementary Data,” Note 9 “Long-Term Debt.” Future indebtedness or other contracts could
contain covenants more restrictive than those contained in our existing debt facilities.

The agreements governing our debt facilities also contain restrictions on our ability to engage in certain

transactions and may limit our ability to respond to changing business and economic conditions. These
restrictions include, among other things, limitations on our ability and the ability of our restricted subsidiaries to:

•

•

pay dividends or distributions or repurchase equity;

incur additional debt;

• make investments;

•

•

•

•

•

create liens on assets to secure debt;

enter into transactions with affiliates;

issue stock of, or member’s interests in, subsidiaries;

enter into sale-leaseback transactions;

engage in other businesses;

• merge or consolidate with another company;

•

•

•

•

•

undergo a change of control;

transfer, sell or otherwise dispose of assets;

issue disqualified stock;

create dividend and other payment restrictions affecting subsidiaries; and

designate restricted and unrestricted subsidiaries.

Our ability to comply with the terms of our outstanding facilities may be affected by general economic

conditions, industry conditions and other events outside of our control. As a result, we may not be able to
maintain compliance with these covenants. If our properties’ operations fail to generate adequate cash flow, we
may violate those covenants, causing a default under our agreements, which would materially and adversely
affect our operating results and our financial condition or result in our lenders or holders of our debt taking action
to enforce their security interests in our various assets or cause all outstanding amounts to be due and payable
immediately.

34

Item 1B. Unresolved Staff Comments

None.

Item 2.

Properties

Macau Land Concessions

The government of Macau owns most of the land in Macau. In most cases, private interests in real property

located in Macau are obtained through long-term leases known as concessions and other grants of rights to use
land from the government.

Wynn Macau. In July 2004, Wynn Macau SA, entered into a land concession contract under which Wynn

Macau SA leases from the Macau government approximately 16 acres of land in downtown Macau’s inner
harbor area where Wynn Macau is located. The term of the land concession contract is 25 years from August
2004, and it may be renewed with government approval for successive periods.

Wynn Palace. In September 2011, Palo Real Estate Company Limited (“Palo”), a subsidiary of Wynn
Macau SA, and Wynn Macau SA formally accepted the terms and conditions of a draft land concession contract
from the Macau government for approximately 51 acres of land in the Cotai area of Macau. On May 2, 2012, the
land concession contract was gazetted by the government of Macau evidencing the final step in the granting of
the land concession. The term of the land concession contract is 25 years from May 2012, and it may be renewed
with government approval for successive periods.

Las Vegas Land

We own approximately 238 acres of land on or near the Las Vegas Strip consisting of approximately 75
acres at the northeast corner of the intersection of Las Vegas Boulevard and Sands Avenue, on which Wynn Las
Vegas is located, the approximately 140-acre golf course behind Wynn Las Vegas, approximately five acres
adjacent to the golf course upon which an office building is located, and approximately 18 acres located across
from the Wynn Las Vegas site at Koval Lane and Sands Avenue, a portion of which is improved with an
employee parking garage and an office building.

Las Vegas Water Rights

We own approximately 834 acre-feet of permitted and certificated water rights, which we currently use to

irrigate the golf course. We also own approximately 151.5 acre-feet of permitted and certificated water rights for
commercial use. There are significant cost savings and conservation benefits associated with using water
supplied pursuant to our water rights. We anticipate using our water rights to support future development of the
golf course land.

Massachusetts Land

We own approximately 33 acres of land along the Mystic River in Everett, Massachusetts, adjacent to

Boston, which is the project site for Wynn Boston Harbor, our integrated resort that is currently under
construction. The resort will contain a hotel, a waterfront boardwalk, meeting and convention space, casino
space, a spa, retail offerings and food and beverage outlets.

Item 3.

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. Please see Item 8—“Financial
Statements and Supplementary Data,” Note 17 “Commitments and Contingencies—Litigation” in this Annual

35

Report on Form 10-K, which is incorporated herein by reference. For additional information, please see Item 8—
“Financial Statements and Supplementary Data” as well as Item 1A—“Risk Factors” in this Annual Report on
Form 10-K.

CCAC Information Request

In July 2014, Wynn Macau SA was contacted by the Commission Against Corruption of Macau (“CCAC”)

requesting certain information related to its land in the Cotai area of Macau. Wynn Macau SA is cooperating
with CCAC’s request.

Item 4. Mine Safety Disclosures

Not Applicable.

36

PART II

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of

Equity Securities

Market Information

Our common stock trades on the NASDAQ Global Select Market under the symbol “WYNN.” The
following table sets forth the high and low sale prices for the indicated periods, as reported by the NASDAQ
Global Select Market.

High

Low

2017

2016

2015

First Quarter (through February 15, 2017) . . . . . . . . . .

$104.39

$ 86.20

First Quarter
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Second Quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Third Quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fourth Quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

First Quarter
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Second Quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Third Quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fourth Quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 96.60
$105.69
$109.50
$104.90

$160.41
$136.93
$112.00
$ 77.25

$ 49.95
$ 85.72
$ 87.26
$ 82.51

$121.53
$ 93.59
$ 52.26
$ 50.96

Holders

There were approximately 185 holders of record of our common stock as of February 15, 2017.

Dividends

Wynn Resorts is a holding company and, as a result, our ability to pay dividends is highly dependent on our

ability to obtain funds and our subsidiaries’ ability to provide funds to us. Restrictions imposed by our
subsidiaries’ debt instruments significantly restrict certain key subsidiaries, including Wynn Las Vegas, LLC,
Wynn America, LLC and Wynn Macau SA, from making dividends or distributions to Wynn Resorts. These
restrictions are subject to certain exceptions for affiliated overhead expenses as defined in the agreements
governing the debt instruments, unless certain financial and non-financial criteria have been satisfied.

In February 2016, May 2016, August 2016, and November 2016, the Company paid a cash dividend of

$0.50 per share.

In February 2015, we paid a cash dividend of $1.50 per share. In each of May 2015, August 2015, and

November 2015, we paid a cash dividend of $0.50 per share.

On January 26, 2017, the Company announced a cash dividend of $0.50 per share, payable on February 28,

2017, to stockholders of record as of February 14, 2017.

Our Board of Directors will continue to periodically assess the level and appropriateness of any cash

dividends.

Issuer Purchases of Equity Securities

In November 2016, we repurchased 5,763 shares in satisfaction of tax withholding obligations on vested

restricted stock at an average price of $87.53 per share, for a total amount of $0.5 million.

37

In December 2016, we repurchased 73,413 shares in satisfaction of tax withholding obligations on vested

restricted stock at an average price of $98.37 per share, for a total amount of $7.2 million.

None of the foregoing repurchases that occurred during the three months ended December 31, 2016 were

part of the Company’s publicly announced repurchase program, which is discussed in Item 8—“Financial
Statements and Supplementary Data,” Note 12 “Stockholders’ Equity—Common Stock.”

Stock Performance Graph

The graph below compares the five year cumulative total return on our common stock to the cumulative
total return of the Standard & Poor’s 500 Stock Index (“S&P 500”) and the Dow Jones US Gambling Index. The
performance graph assumes that $100 was invested on December 31, 2011 in each of the Company’s common
stock, the S&P 500 and the Dow Jones US Gambling Index, and that all dividends were reinvested. The stock
price performance shown in this graph is neither necessarily indicative of, nor intended to suggest, future stock
price performance.

COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN*
Among Wynn Resorts Ltd., the S&P 500 Index 
and the Dow Jones US Gambling Index

$250

$200

$150

$100

$50

$0

12/11

12/12

12/13

12/14

12/15

12/16

Wynn Resorts Ltd.

S&P 500

Dow Jones US Gambling 

*$100 invested on 12/31/11 in stock or index, including reinvestment of dividends.
Fiscal year ending December 31.

Copyright © 2017 S&P, a division of McGraw Hill Financial. All rights reserved.
Copyright © 2017 Dow Jones & Co. All rights reserved.

38

Item 6.

Selected Financial Data

The following financial information for each of the five years ended December 31, 2016, 2015, 2014, 2013,
and 2012 has been derived from our consolidated financial statements. This selected consolidated financial data
should be read together with Item 7—“Management’s Discussion and Analysis of Financial Condition and
Results of Operations,” our consolidated financial statements and related notes and other information contained
in this Annual Report on Form 10-K. Operating results for the periods presented are not indicative of the results
that may be expected for future years.

Consolidated Statements of Income Data:
Net revenues . . . . . . . . . . . . . . . . . . . . . . . . .
Pre-opening costs . . . . . . . . . . . . . . . . . . . . .
Operating income . . . . . . . . . . . . . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: net income attributable to

Years Ended December 31,

2016 (1)

2015

2014

2013

2012 (2)

(in thousands, except per share amounts)

$4,466,297
154,717
521,662
302,469

$4,075,883
77,623
658,814
281,524

$5,433,661
30,146
1,266,278
962,644

$5,620,936
3,169
1,290,091
1,004,157

$5,154,284
466
1,029,276
728,699

noncontrolling interests . . . . . . . . . . . . . . .

(60,494)

(86,234)

(231,090)

(275,505)

(226,663)

Net income attributable to Wynn Resorts,

Limited . . . . . . . . . . . . . . . . . . . . . . . . . . .
Basic income per share . . . . . . . . . . . . . . . . .
Diluted income per share . . . . . . . . . . . . . . . .

241,975
2.39
2.38

$
$

195,290
1.93
1.92

$
$

731,554
7.25
7.18

$
$

728,652
7.25
7.17

$
$

502,036
4.87
4.82

$
$

Consolidated Balance Sheets Data:
Cash and cash equivalents . . . . . . . . . . . . .
Construction in progress . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . .
Total assets (3)
Total long-term obligations (3) (4) . . . . . .
Stockholders’ equity . . . . . . . . . . . . . . . . .
Cash dividends declared per common

December 31,

2016 (1)

2015

2014

2013

2012 (2)

(in thousands, except per share amounts)

$ 2,453,122
299,686
11,953,557
10,248,676
257,881

$ 2,080,089
3,217,117
10,459,159
9,327,143
21,845

$2,182,164
1,666,326
9,001,919
7,482,510
211,091

$2,435,041
558,624
8,332,133
6,748,283
132,351

$1,725,219
110,490
7,234,832
6,002,701
103,932

share . . . . . . . . . . . . . . . . . . . . . . . . . . .

$

2.00

$

3.00

$

6.25

$

7.00

$

9.50

(1) On August 22, 2016, we opened Wynn Palace.
(2) On February 18, 2012, we redeemed and canceled Aruze’s 24,549,222 shares of Wynn Resorts common

stock. In connection with the redemption and cancellation, stockholders’ equity was reduced by
$1.94 billion, the face amount of the Redemption Note. Aruze has challenged the redemption and
cancellation of the 24,549,222 shares and legal proceedings are ongoing. See Item 8—“Financial Statements
and Supplementary Data,” Note 17 “Commitments and Contingencies.”

(3) For fiscal years 2015 and prior, the total assets and total long-term obligations have been reclassified to

conform to the presentation from the retrospective application of deferred financing costs accounting
guidance we adopted on January 1, 2016. See Item 8—“Financial Statements and Supplementary Data,”
Note 2 “Summary of Significant Accounting Policies—Recently Issued and Adopted Accounting
Standards.”
Includes long-term debt, long-term portion of the contract premium payments under our land concession
contract at Wynn Macau, other long-term liabilities and deferred income taxes, net.

(4)

Item 7. 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

consolidated financial statements and the notes thereto included elsewhere in this Annual Report on Form 10-K.

39

Overview

We are a developer, owner and operator of destination casino resorts (integrated resorts). In Macau, we own
approximately 72% of WML and we operate the Wynn Macau and Wynn Palace resorts, which we refer to as our
Macau Operations. In Las Vegas, Nevada, with the exception of the majority of the retail space, we own 100% of
and operate Wynn Las Vegas or what we also refer to as Las Vegas Operations. We are currently constructing
Wynn Boston Harbor, an integrated casino resort in Everett, Massachusetts.

Macau Operations

Wynn Macau features two luxury hotel towers with a total of 1,008 guest rooms and suites, approximately

284,000 square feet of casino space, eight food and beverage outlets, approximately 31,000 square feet of
meeting and convention space, approximately 57,000 square feet of retail space, a rotunda show and recreation
and leisure facilities.

On August 22, 2016, we opened Wynn Palace, an integrated resort in the Cotai area of Macau. Wynn Palace

features a luxury hotel tower with 1,706 guest rooms, suites and villas, approximately 420,000 square feet of
casino space, 10 food and beverage outlets, approximately 40,000 square feet of meeting and convention space,
approximately 105,000 square feet of retail space, public attractions, including a performance lake and floral art
displays, and recreation and leisure facilities.

Las Vegas Operations

Wynn Las Vegas features two luxury hotel towers with a total of 4,748 guest rooms, suites and villas,
approximately 189,000 square feet of casino space, 33 food and beverage outlets, an on-site 18-hole golf course,
approximately 290,000 square feet of meeting and convention space, approximately 99,000 square feet of retail
space, as well as two showrooms, three nightclubs, a beach club, and recreation and leisure facilities.

In December 2016, we formed a joint venture with Crown Acquisitions Inc. (“Crown”) to own and operate

approximately 88,000 square feet of existing retail space (of which we own 50.1%) and signed an agreement with
Crown to form a joint venture to own and operate approximately 73,000 square feet of additional retail space that
is currently under construction at Wynn Las Vegas. We expect to open the additional retail space in the first
quarter of 2018. For more information on the joint venture, see Item 8—“Financial Statements and
Supplementary Data,” Note 3, “Retail Joint Venture.”

Future Development

In November 2014, we were awarded a gaming license to develop and construct Wynn Boston Harbor, an
integrated resort in Everett, Massachusetts, adjacent to Boston along the Mystic River. The resort will contain a
hotel, a waterfront boardwalk, meeting and convention space, casino space, a spa, retail offerings and food and
beverage outlets. The total project budget, including gaming license fees, construction costs, capitalized interest,
pre-opening expenses and land costs, is estimated to be approximately $2.4 billion. As of December 31, 2016, we
have incurred approximately $466.8 million in total project costs. We expect to open Wynn Boston Harbor in
mid-2019.

We continually seek out new opportunities for additional gaming or related businesses, in the United States,

and worldwide.

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 a Consolidated Statement of Income is presented. Below are
definitions of these key operating measures discussed:

• Table drop 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.

40

• 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.

• 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.

• Rolling chips are identifiable chips that are used to track turnover for purposes of calculating

incentives.

•

Slot win is the amount of handle (representing the total amount wagered) that is retained by us and is
recorded as casino revenues.

• Average daily rate (“ADR”) is calculated by dividing total room revenues, including the retail value of

promotional allowances (less service charges, if any), by total rooms occupied, including
complimentary rooms.

• Revenue per available room (“REVPAR”) is calculated by dividing total room revenues, including the

retail value of promotional allowances (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 non-negotiable chips, commonly referred to
as rolling chips, from the casino cage. Non-negotiable chips can only be used to make wagers. Winning wagers
are paid in cash chips. The loss of the non-negotiable 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 smaller in the VIP
operations when compared to the mass market operations.

In Las Vegas, customers purchase chips at the gaming tables. The cash and net 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 in Las Vegas. Each type of table game has its own theoretical win percentage. Our expected table
games win percentage in Las Vegas is 21% to 25%.

41

Results of Operations

Summary annual results

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

share data).

Net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income attributable to Wynn Resorts,

Limited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Diluted net income per share . . . . . . . . . . . . . . . .
Adjusted Property EBITDA . . . . . . . . . . . . . . . .

Years Ended December 31,

2016

2015

2014

$4,466,297

$4,075,883

$5,433,661

241,975
2.38
1,259,327

195,290
1.92
1,185,789

731,554
7.18
1,773,278

During the year ended December 31, 2016, our net income attributable to Wynn Resorts, Limited was

$242.0 million, an increase of 23.9% over $195.3 million in the same period of 2015, resulting in diluted
earnings per share of $2.38. The increase in net income attributable to Wynn Resorts, Limited was primarily due
to a loss on extinguishment of debt in 2015 that was not experienced in 2016. Adjusted Property EBITDA
increased year-over-year by 6.2%, from $1.19 billion for the year ended December 31, 2015 to $1.26 billion for
the same period of 2016, primarily due to the new operations associated with the opening of Wynn Palace,
partially offset by a decrease of 3.8% from Wynn Macau driven by a continued decrease in business volumes.

During the year ended December 31, 2015, our net income attributable to Wynn Resorts, Limited
was $195.3 million, a decrease of 73.3% over $731.6 million in the same period of 2014, resulting in diluted
earnings per share of $1.92. The decrease in net income attributable to Wynn Resorts, Limited was primarily due
to weaker performance from Wynn Macau, driven by a 46.4% reduction in VIP turnover compared to 2014,
along with a loss on extinguishment of debt we experienced during the year. Adjusted Property EBITDA
decreased year-over-year by 33.1%, from $1.77 billion for the year ended December 31, 2014 to $1.19 billion for
the same period of 2015, primarily as a result of the weaker performance from Wynn Macau previously
discussed.

Financial results for the year ended December 31, 2016 compared to the year ended December 31, 2015.

Net revenues

The following table presents net revenues from our Macau and Las Vegas Operations (dollars in thousands):

Years Ended December 31,

2016

2015

Percent
Change

Net revenues

Macau Operations:

Wynn Macau . . . . . . . . . . . . . . . . . . . . . . . .
Wynn Palace (1) . . . . . . . . . . . . . . . . . . . . .

$2,264,087
583,336

$2,463,092

—

Total Macau Operations . . . . . . . . . . . . . . . . . . .
Las Vegas Operations . . . . . . . . . . . . . . . . . . . . .

2,847,423
1,618,874

2,463,092
1,612,791

$4,466,297

$4,075,883

(8.1)
—

15.6
0.4

9.6

(1) Wynn Palace opened on August 22, 2016.

Net revenues increased 9.6%, or $390.4 million, for the year ended December 31, 2016, compared to the

same period of 2015. The increase was primarily due to $583.3 million from Wynn Palace and an increase
of $6.1 million from our Las Vegas Operations, partially offset by a decrease of $199.0 million from Wynn
Macau.

42

Non-casino revenues consist of operating revenues from rooms, food and beverage, entertainment, retail and

other, less promotional allowances. The following table presents net revenues from our casino revenues and
non-casino revenues (dollars in thousands):

Years Ended December 31,

2016

2015

Percent
Change

Net revenues

Casino revenues . . . . . . . . . . . . . . . . . . . . . . . . .
Non-casino revenues . . . . . . . . . . . . . . . . . . . . . .

$3,268,141
1,198,156

$2,932,419
1,143,464

$4,466,297

$4,075,883

11.4
4.8

9.6

Casino revenues were 73.2% of total net revenues for the year ended December 31, 2016, compared to

71.9% for the same period of 2015, while non-casino revenues were 26.8% of total net revenues, compared to
28.1% for the same period of 2015.

Casino revenues

Casino revenues increased 11.4%, or $335.7 million, for the year ended December 31, 2016, compared to
the same period in 2015. The increase was primarily due to casino revenues of $519.9 million from Wynn Palace,
partially offset by a $177.7 million decrease from Wynn Macau. The decline in casino revenues from Wynn
Macau was driven by a decrease in business volumes from both our VIP and mass market operations, with
decreases in VIP turnover of 18.8%, table drop of 5.6% and slot handle of 14.5%. The business volume decrease
for Wynn Macau was primarily driven by the continued impact from the current economic and political
conditions in Macau and China, as well as impact from recent resort openings in the Cotai area of Macau,
including Wynn Palace. We experienced a VIP win as a percentage of turnover of 3.29% for the year ended
December 31, 2016, compared to 2.87% for the same period of 2015, which partially offset the business volume
decrease in our VIP operations.

Prior to the opening of Wynn Palace, the Gaming Inspection and Coordination Bureau of Macau authorized

100 new table games for operation at Wynn Palace with 25 additional table games authorized for operation on
January 1, 2017, and a further 25 new table games for operation on January 1, 2018, for a total of 150 new table
games in the aggregate. In addition, we have and will continue to transfer table games between Wynn Macau and
Wynn Palace, subject to the aggregate cap, to optimize our casino operations. As of February 15, 2017, we had a
total of 303 table games at Wynn Macau and 304 at Wynn Palace.

43

The table below sets forth our casino revenues and associated key operating measures for our Macau and

Las Vegas Operations (dollars in thousands, except for win per unit per day).

Years Ended December 31,

2016

2015

Increase/
(Decrease)

Percent
Change

Macau Operations:

Wynn Macau:

Total casino revenues . . . . . . . . . . . . . . . . . . . . .
VIP:

$ 2,135,193

$ 2,312,925

$

(177,732)

(7.7)

Average number of table games . . . . . . . . .
VIP turnover . . . . . . . . . . . . . . . . . . . . . . . .
Table games win . . . . . . . . . . . . . . . . . . . . .
VIP win as a % of turnover . . . . . . . . . . . . .
Table games win per unit per day . . . . . . . .

149
$47,048,754
$ 1,547,261

230
$57,917,060
$ 1,659,683

3.29%

2.87%

$

28,332

$

19,785

(81)
$(10,868,306)
(112,422)
$
0.42
8,547

$

Mass market:

Average number of table games . . . . . . . . .
Table drop . . . . . . . . . . . . . . . . . . . . . . . . . .
Table games win . . . . . . . . . . . . . . . . . . . . .
Table games win % . . . . . . . . . . . . . . . . . . .
Table games win per unit per day . . . . . . . .
Average number of slot machines . . . . . . . .
Slot machine handle . . . . . . . . . . . . . . . . . .
Slot machine win . . . . . . . . . . . . . . . . . . . . .
Slot machine win per unit per day . . . . . . . .

216
$ 4,585,476
881,797
$

228
$ 4,857,804
951,458
$

19.2%

19.6%

$

11,131
802
$ 3,386,973
145,680
$
497
$

$

11,431
708
$ 3,961,115
191,164
$
740
$

$
$

$

$
$
$

(12)
(272,328)
(69,661)
(0.4)
(300)
94
(574,142)
(45,484)
(243)

(35.2)
(18.8)
(6.8)

43.2

(5.3)
(5.6)
(7.3)

(2.6)
13.3
(14.5)
(23.8)
(32.8)

Wynn Palace (1):

Total casino revenues . . . . . . . . . . . . . . . . . . . . .
VIP:

$

519,877

$

— $

519,877 —

Average number of table games . . . . . . . . .
VIP turnover . . . . . . . . . . . . . . . . . . . . . . . .
Table games win . . . . . . . . . . . . . . . . . . . . .
VIP win as a % of turnover . . . . . . . . . . . . .
Table games win per unit per day . . . . . . . .

81
$14,480,023
396,954
$

2.74%

$

37,009

Mass market:

Average number of table games . . . . . . . . .
Table drop . . . . . . . . . . . . . . . . . . . . . . . . . .
Table games win . . . . . . . . . . . . . . . . . . . . .
Table games win % . . . . . . . . . . . . . . . . . . .
Table games win per unit per day . . . . . . . .
Average number of slot machines . . . . . . . .
Slot machine handle . . . . . . . . . . . . . . . . . .
Slot machine win . . . . . . . . . . . . . . . . . . . . .
Slot machine win per unit per day . . . . . . . .

245
$ 1,000,881
211,146
$

21.1%
6,527
962
738,907
40,664
320

$

$
$
$

$
$

$

$
$

$

$
$
$

—
81 —
— $ 14,480,023 —
396,954 —
— $
2.74 —
— %
37,009 —
— $

245 —
—
— $ 1,000,881 —
211,146 —
— $
21.1 —
— %
6,527 —
— $
962 —
—
738,907 —
— $
40,664 —
— $
320 —
— $

(1) Wynn Palace opened on August 22, 2016.

44

Years Ended December 31,

2016

2015

Increase/
(Decrease)

Percent
Change

Las Vegas Operations:

Total casino revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Average number of table games . . . . . . . . . . . . . . . . .
Table drop . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Table games win . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Table games win % . . . . . . . . . . . . . . . . . . . . . . . . . . .
Table games win per unit per day . . . . . . . . . . . . . . . .
Average number of slot machines . . . . . . . . . . . . . . . .
Slot machine handle . . . . . . . . . . . . . . . . . . . . . . . . . . .
Slot machine win . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Slot machine win per unit per day . . . . . . . . . . . . . . . .

$ 613,071
235
$1,838,479
$ 465,041

$ 619,494
232
$2,060,189
$ 490,920

$

25.3%
5,406
1,893
$3,148,610
$ 208,024
300
$

$

23.8%
5,786
1,866
$2,969,327
$ 206,626
303
$

$

(6,423)
3
$(221,710)
$ (25,879)
1.5
(380)
27
$ 179,283
1,398
$
(3)
$

$

(1.0)
1.3
(10.8)
(5.3)

(6.6)
1.4
6.0
0.7
(1.0)

Non-casino revenues

Non-casino revenues increased 4.8%, or $54.7 million, to $1.20 billion for the year ended December 31,
2016, from $1.14 billion for the same period of 2015, primarily due to the opening of Wynn Palace during the
third quarter of 2016 and an increase of 5.7% in room revenues from our Las Vegas Operations, partially offset
by a 14.4% decline in non-casino revenues at Wynn Macau.

Room revenues increased 12.0%, or $64.8 million, to $603.3 million for the year ended December 31, 2016,
from $538.5 million in the same period of 2015, primarily attributable to $54.8 million from Wynn Palace and an
increase of $23.5 million from our Las Vegas Operations, partially offset by a decrease of $13.5 million from
Wynn Macau. The increase experienced by our Las Vegas Operations was driven by an ADR increase
of 3.9% while the decrease from Wynn Macau was a result of an ADR decline of 9.3% and a 2.1 percentage
point decrease in occupancy.

The table below sets forth our room revenues and associated key operating measures for our Macau and Las

Vegas Operations.

Macau Operations:

Wynn Macau:

Years Ended December 31,

2016

2015

Percent
Change (1)

Total room revenues (dollars in thousands) . . . . . . . . . . . . . . .
Occupancy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ADR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
REVPAR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$111,817

$125,348

94.4%
293
277

$
$

96.5%
323
312

$
$

(10.8)
(2.1)
(9.3)
(11.2)

Wynn Palace (2):

Total room revenues (dollars in thousands) . . . . . . . . . . . . . . .
Occupancy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ADR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
REVPAR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 54,843

$ —

83.2%
276
230

$
$

— %

$ —
$ —

Las Vegas Operations:

Total room revenues (dollars in thousands) . . . . . . . . . . . . . . .
Occupancy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ADR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
REVPAR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$436,613

$413,152

85.3%
296
252

$
$

85.2%
285
243

$
$

—
—
—
—

5.7
0.1
3.9
3.7

(1) Except occupancy, which is presented as a percentage point change.
(2) Wynn Palace opened on August 22, 2016.

45

Food and beverage revenues increased slightly by 0.7%, or $4.4 million, to $601.5 million for the year
ended December 31, 2016, from $597.1 million for the same period of 2015, primarily due to $27.1 million from
Wynn Palace, partially offset by decreases of $12.0 million and $10.7 million from our Las Vegas Operations
and Wynn Macau, respectively. Our Las Vegas Operations decreased primarily due to a decline in revenues at
our nightclubs and the decrease from Wynn Macau was mainly from a decline in revenues at our restaurants.

Entertainment, retail and other increased 3.7%, or $12.8 million, to $363.4 million for the year ended

December 31, 2016, from $350.6 million for the same period of 2015. The increase was primarily due to
$38.0 million from Wynn Palace, partially offset by a $19.3 million decrease in revenue from retail shops at
Wynn Macau.

Promotional allowances increased 8.0%, or $27.3 million, to $370.1 million for the year ended

December 31, 2016, from $342.7 million for the same period of 2015. As a percentage of total casino revenues,
promotional allowances were 11.3% for the year ended December 31, 2016, compared to 11.7% for the same
period of 2015.

Operating costs and expenses

Operating costs and expenses increased 15.4%, or $527.6 million, to $3.94 billion for the year ended

December 31, 2016, from $3.42 billion for the same period of 2015, driven primarily by increases in casino
expenses of $217.1 million, general and administrative expenses of $83.3 million, depreciation and amortization
of $82.1 million and pre-opening costs of $77.1 million, all mainly due to the opening of Wynn Palace.

Casino expenses increased 11.7%, or $217.1 million, to $2.08 billion for the year ended December 31, 2016,

from $1.86 billion for the same period of 2015. The increase was commensurate with the 11.4% increase in
casino revenues.

Room expenses increased 6.0%, or $8.9 million, to $157.9 million for the year ended December 31, 2016,
from $149.0 million for the same period of 2015. The increase was primarily due to $16.4 million from Wynn
Palace and a $4.3 million increase from our Las Vegas Operations, partially offset by an $11.6 million decrease
from Wynn Macau.

Food and beverage expenses increased 3.9%, or $14.0 million, to $375.2 million for the year ended
December 31, 2016, from $361.2 million for the same period of 2015, primarily related to Wynn Palace.

Entertainment, retail and other expenses increased 2.4%, or $3.7 million, to $161.1 million for the year
ended December 31, 2016, from $157.4 million for the same period of 2015. The increase was primarily due to
$8.9 million from Wynn Palace, partially offset by a decrease of $4.8 million from Wynn Macau.

General and administrative expenses increased 17.9%, or $83.3 million, to $548.1 million for the year ended

December 31, 2016, from $464.8 million for the same period of 2015. The increase was primarily due to
$73.9 million from Wynn Palace, as well as increases in general and administrative expenses from our Las Vegas
Operations and corporate related expenses.

Provision for doubtful accounts decreased $2.9 million, or 26.2%, to $8.2 million for the year ended
December 31, 2016, from $11.1 million for the same period of 2015. The change in the provision was primarily
due to increased collections of casino accounts receivable at Wynn Macau.

Pre-opening costs were $154.7 million for the year ended December 31, 2016, compared to $77.6 million
for the same period of 2015. During the year ended December 31, 2016, we incurred $129.8 million related to
Wynn Palace, $22.7 million related to Wynn Boston Harbor, and $2.3 million related to our Las Vegas
Operations. During the year ended December 31, 2015 we incurred pre-opening costs of $55.1 million and
$22.6 million related to Wynn Palace and Wynn Boston Harbor, respectively.

46

Depreciation and amortization increased 25.4%, or $82.1 million, to $404.7 million for the year ended

December 31, 2016, from $322.6 million for the same period of 2015. The increase was attributable to
$105.9 million from Wynn Palace, primarily from the opening and associated building and furniture, fixtures and
equipment placed in service, partially offset by a decrease of $14.1 million at Wynn Macau. The majority of the
Wynn Macau decrease was due to a change in estimated useful lives of buildings and improvements, which was
effective September 1, 2015, to more accurately reflect the estimated periods during which these assets are
expected to remain in service.

Property charges and other were $54.8 million for the year ended December 31, 2016, compared to

$10.5 million for the same period of 2015. During the year ended December 31, 2016, we incurred a
$15.5 million exit fee for the right to procure energy from the wholesale energy markets instead of from the local
public electric utility by our Las Vegas Operations and $14.1 million for the write-down of the carrying value to
the purchase price of an aircraft we sold in January 2017. In addition, we incurred expenses of $10.1 million in
abandonment charges related to current construction of additional retail space at our Las Vegas Operations and
$5.5 million for the write-off of show production costs due to the closing of Steve Wynn’s ShowStoppers in
December 2016.

Interest expense, net of capitalized interest

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

Years Ended December 31,

2016

2015

Percent
Change

Interest expense

Interest cost, including amortization of deferred financing costs and

original issue discount and premium . . . . . . . . . . . . . . . . . . . . . . . . . .
Capitalized interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 383,497
(94,132)

$ 354,233
(53,327)

8.3
76.5

$ 289,365

$ 300,906

(3.8)

Weighted average total debt balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Weighted average interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$9,564,845

$8,214,598

4.0%

4.3%

Interest cost increased $29.3 million for the year ended December 31, 2016, compared to the same period of
2015, primarily due to an increase in our weighted average total debt balance, partially offset by a decrease in our
weighted average interest rate. Capitalized interest increased $40.8 million for the year ended December 31,
2016, primarily due to the $25.6 million correction of an immaterial amount during 2016 as well as the
construction of Wynn Palace. During the first quarter of 2016, we corrected immaterial amounts of additional
interest of $25.6 million that should have been capitalized instead of being expensed during the years ended
December 31, 2015 and 2014. Had these amounts been corrected in the appropriate periods, the capitalized
interest for the year ended December 31, 2015, would have been $21.9 million higher. For further information,
see Item 1—“Notes to Consolidated Financial Statements,” Note 2 “Summary of Significant Accounting
Policies.”

Other non-operating income and expenses

We incurred gains of $65.0 million and $52.0 million for the years ended December 31, 2016 and 2015,
respectively, from the change in fair value of the Redemption Note. The change in fair value was a result of
changes in certain variables to calculate the estimated fair value. For further information on the fair value of the
Redemption Note, see Item 1—“Notes to Consolidated Financial Statements,” Note 2 “Summary of Significant
Accounting Policies.”

We incurred a loss of $126.0 million on the extinguishment of debt for the year ended December 31, 2015,

in connection with the cash tender offer for the 7 7/8% First Mortgage Notes due May 1, 2020 and the 7 3/4%
2020 First Mortgage Notes due August 15, 2020 (together the “2020 Notes”), subsequent redemption of the

47

untendered 2020 Notes and the amendment of our Wynn Macau credit facilities. We expensed $98.9 million for
the consideration paid to holders who tendered the 2020 Notes, $17.2 million of unamortized deferred financing
costs and original issue discount and $0.1 million in other fees incurred. In connection with the redemption of the
remaining principal amount of the untendered 2020 Notes, we recorded a loss for the premium portion of the
consideration of $5.9 million and expensed $1.8 million of unamortized deferred financing costs and original
discount. In connection with the amendment of the Wynn Macau credit facilities, we expensed $2.1 million of
unamortized deferred financing costs. We incurred no loss on extinguishment of debt for the year ended
December 31, 2016.

We incurred a gain of $0.4 million and a loss of $5.3 million from the change in the fair value of our interest
rate swaps for the years ended December 31, 2016 and 2015, respectively. For further information on our interest
rate swaps, see Item 8—“Financial Statements and Supplementary Data,” Note 2 “Summary of Significant
Accounting Policies.”

Interest income was $13.5 million for the year ended December 31, 2016, compared to $7.2 million for
2015. During the years ended December 31, 2016 and 2015, our short-term investment strategy was to preserve
capital while retaining sufficient liquidity. The majority of our short-term investment securities were in fixed
deposits and money market accounts with a maturity of three months or less.

Income Taxes

For the years ended December 31, 2016 and 2015, we recorded a tax expense of $8.1 million and

$7.7 million, respectively, primarily related to an increase in our deferred tax liabilities.

Wynn Macau SA has received a five-year exemption from the Macau Complementary Tax on casino
gaming profits through December 31, 2020. For the years ended December 31, 2016 and 2015, we were exempt
from the payment of $27.3 million and $41.6 million, respectively, in such taxes. Our non-gaming profits remain
subject to the Macau Complementary Tax and casino winnings remain subject to the Macau special gaming tax
and other levies together totaling 39% in accordance with our concession agreement.

In July 2011, Wynn Macau SA received an extension of its agreement with the Macau government that
provides for an annual payment of 15.5 million Macau patacas (approximately $1.9 million) as complementary
tax due by shareholders on dividend distributions. This agreement on dividends was effective through
December 31, 2015. In August 2016, Wynn Macau SA received an extension of the agreement for an additional
five years applicable to tax years 2016 through 2020. The extension agreement provides for an annual payment
of 12.8 million Macau patacas (approximately $1.6 million).

We have participated in the Internal Revenue Service (“IRS”) Compliance Assurance Program (“CAP”) for

the 2012 through 2016 tax years and will continue to participate in the IRS CAP for the 2017 tax year. In
February 2016, the IRS completed an examination of the 2014 U.S. tax return and had no changes.

In April 2016, the Financial Services Bureau commenced an examination of the 2011 and 2012 Macau
income tax returns of Palo. In June 2016, the Financial Services Bureau concluded its examination with no
changes.

Net income attributable to noncontrolling interests

Net income attributable to noncontrolling interests was $60.5 million for the year ended December 31, 2016,

compared to $86.2 million for the year ended December 31, 2015. These amounts are primarily related to the
noncontrolling interests’ share of net income from WML.

48

Financial results for the year ended December 31, 2015 compared to the year ended December 31, 2014.

Net Revenues

The following table presents net revenues from our Macau and Las Vegas Operations (dollars in thousands):

Net revenues

Wynn Macau . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Las Vegas Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$2,463,092
1,612,791

$3,796,750
1,636,911

$4,075,883

$5,433,661

(35.1)
(1.5)

(25.0)

Years Ended December 31,

2015

2014

Percent
Change

Net revenues decreased 25.0% to $4.08 billion for the year ended December 31, 2015, from $5.43 billion for

the same period in 2014. The decline in net revenues was primarily driven by a decrease of 35.5%, or
$1.27 billion, in casino revenue from our Macau Operations.

Non-casino revenues consist of operating revenues from rooms, food and beverage, entertainment, retail and

other, less promotional allowances. The following table presents net revenues from our casino revenues and
non-casino revenues (dollars in thousands):

Net revenues

Casino revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-casino revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$2,932,419
1,143,464

$4,274,221
1,159,440

$4,075,883

$5,433,661

(31.4)
(1.4)

(25.0)

Years Ended December 31,

2015

2014

Percent
Change

Casino revenues were 71.9% of total net revenues for the year ended December 31, 2015, compared to
78.7% of total net revenues for the same period of 2014, while non-casino revenues were 28.1% of total net
revenues, compared to 21.3% in the prior year. This increase in non-casino revenues as a percentage of total net
revenues reflects performance of non-gaming amenities, such as Las Vegas nightclubs and continued high
occupancy and use of our facilities, in contrast to the decline in VIP gaming revenue in Macau.

Casino Revenues

Casino revenues decreased 31.4% to $2.93 billion for the year ended December 31, 2015, from $4.27 billion

in the same period of 2014. The decline was primarily due to the continued weak gaming environment affecting
our Macau Operations, which experienced a year-over-year decrease in casino revenues of 35.5% from
$3.59 billion to $2.31 billion. Our VIP gaming operations drove the decline with $57.92 billion in VIP turnover
for the year ended December 31, 2015, compared to $108.08 billion for the same period of 2014. In addition, our
Macau Operations’ mass market gaming contributed to the decline with a 12.0% decrease in table drop combined
with a reduction in table games win percentage of 1.9 percentage points. Our VIP tables decreased from 248 as of
December 31, 2014 to 190 as of December 31, 2015, based on the operating environment and customer demand.

49

The table below sets forth our casino revenues and associated key operating measures for our Macau and

Las Vegas Operations (dollars in thousands, except for win per unit per day).

Macau Operations:
Wynn Macau:

Total casino revenues . . . . . . . . . . . . . . . . . . . . . . . .
VIP:

$ 2,312,925

$

3,586,781

$ (1,273,856)

(35.5)

Years Ended December 31,

2015

2014

Increase/
(Decrease)

Percent
Change

Average number of table games . . . . . . . . . . . .
VIP turnover . . . . . . . . . . . . . . . . . . . . . . . . . . .
Table games win . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . .
VIP win as a % of turnover
Table games win per unit per day . . . . . . . . . . .

230
$57,917,060
$ 1,659,683

259
$108,077,342
3,051,046
$

2.87%

2.82%

$

19,785

$

32,258

(29)
$(50,160,282)
$ (1,391,363)
0.05
(12,473)

$

Mass market:

Average number of table games . . . . . . . . . . . .
Table drop . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Table games win . . . . . . . . . . . . . . . . . . . . . . . .
Table games win % . . . . . . . . . . . . . . . . . . . . . .
Table games win per unit per day . . . . . . . . . . .
Average number of slot machines . . . . . . . . . .
Slot machine handle . . . . . . . . . . . . . . . . . . . . .
Slot machine win . . . . . . . . . . . . . . . . . . . . . . .
Slot machine win per unit per day . . . . . . . . . .

228
$ 4,857,804
951,458
$

19.6%

$

11,431
708
$ 3,961,115
191,164
$
740
$

Las Vegas Operations:

Total casino revenues . . . . . . . . . . . . . . . . . . . . . . . .
Average number of table games . . . . . . . . . . . .
Table drop . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Table games win . . . . . . . . . . . . . . . . . . . . . . . .
Table games win % . . . . . . . . . . . . . . . . . . . . . .
Table games win per unit per day . . . . . . . . . . .
Average number of slot machines . . . . . . . . . .
Slot machine handle . . . . . . . . . . . . . . . . . . . . .
Slot machine win . . . . . . . . . . . . . . . . . . . . . . .
Slot machine win per unit per day . . . . . . . . . .

$

619,494
232
$ 2,060,189
490,920
$

$

23.8%
5,786
1,866
$ 2,969,327
206,626
$
303
$

$
$

$

$
$
$

$

$
$

$

$
$
$

202
5,517,382
1,187,997

21.5%

16,154
679
5,415,127
264,763
1,068

$
$

26
(659,578)
(236,539)
(1.9)
(4,723)
29
$ (1,454,012)
(73,599)
$
(328)
$

$

687,440
232
2,556,452
623,968

24.4%
7,354
1,858
3,008,563
186,458
275

$

$
$

$

$
$
$

(67,946)
—

(496,263)
(133,048)
(0.6)
(1,568)
8
(39,236)
20,168
28

(11.2)
(46.4)
(45.6)

(38.7)

12.9
(12.0)
(19.9)

(29.2)
4.3
(26.9)
(27.8)
(30.7)

(9.9)
—
(19.4)
(21.3)

(21.3)
0.4
(1.3)
10.8
10.2

Non-casino revenues

Non-casino revenues decreased 1.4%, or $16.0 million, to $1.14 billion for the year ended December 31,

2015, from $1.16 billion for the same period of 2014.

Room revenues decreased $4.3 million, to $538.5 million for the year ended December 31, 2015, from
$542.8 million in the same period of 2014, driven by a decline from our Macau Operations of $8.4 million,
partially offset by an increase from our Las Vegas Operations of $4.2 million.

50

The table below sets forth our room revenues and associated key operating measures for our Macau and Las

Vegas Operations.

Macau Operations:
Wynn Macau:

Years Ended December 31,

2015

2014

Percent
Change (1)

Total room revenues (dollars in thousands) . . . . . . . .
Occupancy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ADR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
REVPAR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$125,348

$133,781

96.5%
323
312

$
$

98.4%
333
327

$
$

Las Vegas Operations:

Total room revenues (dollars in thousands) . . . . . . . .
Occupancy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ADR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
REVPAR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$413,152

$408,981

85.2%
285
243

$
$

86.9%
274
238

$
$

(6.3)
(1.9)
(3.0)
(4.6)

1.0
(1.7)
4.0
2.1

(1) Except occupancy, which is presented as a percentage point change.

Food and beverage revenues decreased $7.6 million to $597.1 million for the year ended December 31,

2015, from $604.7 million for the same period of 2014. We experienced a decline of $24.0 million in food and
beverage revenues from our Macau Operations, mainly from restaurants, partially offset by an increase of $16.4
million in food and beverage revenues from our Las Vegas Operations, which was driven by increases in
revenues at nightclubs and from catering and banquets.

Entertainment, retail and other decreased 12.6%, or $50.6 million, to $350.6 million for the year ended
December 31, 2015, from $401.2 million for the same period of 2014. The decrease was primarily due to a
decline in revenue from retail shops at our Macau Operations.

Promotional allowances decreased 11.9%, or $46.5 million, to $342.7 million for the year

ended December 31, 2015, from $389.2 million for the same period of 2014. As a percentage of total casino
revenues, promotional allowances were 11.7% for the year ended December 31, 2015, compared to 9.1% for the
same period of 2014, as the decline in total complimentaries was less than the decline in total revenues.

Operating costs and expenses

Operating costs and expenses decreased 18.0%, or $750.3 million, to $3.42 billion for the year ended
December 31, 2015, from $4.17 billion for the same period of 2014, mainly from a decrease in casino expenses.

Casino expenses decreased 30.2%, or $804.3 million, to $1.86 billion for the year ended December 31,
2015, from $2.67 billion for the same period of 2014, primarily due to lower gaming taxes from the 39% gross
win tax incurred at our Macau Operations. The decline in gaming taxes was commensurate with
the 35.5% decrease in casino revenues at our Macau Operations.

Room expenses were relatively flat for the year ended December 31, 2015, compared to the same period

of 2014.

Food and beverage expenses increased 7.1%, or $24.0 million, to $361.2 million for the year ended
December 31, 2015, from $337.2 million for the same period of 2014, due primarily to an increase of $21.8
million from our Las Vegas Operations. The increase was primarily a result of higher costs in the current period
for entertainment at Wynn Las Vegas nightclubs.

51

Entertainment, retail and other expenses decreased 3.9%, or $6.3 million, to $157.4 million for the year

ended December 31, 2015, from $163.8 million in the same period of 2014. The decrease was primarily
attributable to the reduction in merchandise cost at our Macau Operations associated with the decline in retail
shop revenues, partially offset by an increase from our Las Vegas Operations due to costs associated with Steve
Wynn’s ShowStoppers, which opened in December 2014.

General and administrative expenses decreased 5.6%, or $27.7 million, to $464.8 million for the year ended

December 31, 2015, from $492.5 million in the same period of 2014, primarily attributable to a decrease in
corporate related expenses.

Provision for doubtful accounts increased $7.2 million, or 184.6%, to $11.1 million for the year
ended December 31, 2015, from $3.9 million for the same period of 2014. The change in the provision was
primarily due to the impact of historical collection patterns and current collection trends, as well as specific
review of customer accounts and outstanding gaming promoter accounts, on our estimated allowance for the
respective periods.

Pre-opening costs were $77.6 million for the year ended December 31, 2015, compared to $30.1 million for

the same period of 2014 and were primarily associated with the design and planning for our development
projects. During the year ended December 31, 2015, we incurred $55.1 million related to Wynn Palace and $22.6
million related to Wynn Boston Harbor. Pre-opening costs for the year ended December 31, 2014 related to
Wynn Palace.

Depreciation and amortization increased 2.7%, or $8.5 million, to $322.6 million for the year ended
December 31, 2015, from $314.1 million for the same period of 2014. The increase was primarily due to
additional depreciation associated with building improvements at our Macau Operations, including our new VIP
gaming rooms. The increase was partially offset by a $7.4 million reduction in depreciation due to a change in
the estimated useful lives of certain assets in Macau during 2015.

Interest expense, net of capitalized interest

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

Interest expense

Interest cost, including amortization of deferred

financing costs and original issue discount and
premium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capitalized interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Years Ended December 31,

2015

2014

Percent
Change

354,233
(53,327)

348,520
(33,458)

$ 300,906

$ 315,062

1.6
59.4

(4.5)

Weighted average total debt balance . . . . . . . . . . . . . . . . . . . .
Weighted average interest rate . . . . . . . . . . . . . . . . . . . . . . . . .

$8,214,598

$7,174,054

4.3%

4.8%

Our interest cost increased $5.7 million to $354.2 million for the year ended December 31, 2015, due to an

increase in our weighted average total debt balance, partially offset by a decrease in our weighted average
interest rate. Capitalized interest increased $19.9 million to $53.3 million for the year ended December 31, 2015,
primarily due to the construction of Wynn Palace. Financing activities during 2015 include the issuance of the 5
1/2% Senior Notes due 2025 (“2025 Notes”), cash tender offer and subsequent redemption of the 2020 Notes and
the amendment of the Wynn Macau credit facilities. Financing activities during 2014 include the issuance of 5
1/4% Senior Notes due 2021.

52

Other non-operating income and expenses

We incurred losses of $126.0 million on the extinguishment of debt for the year ended December 31, 2015,

compared to losses of $9.6 million in 2014. During the year ended December 31, 2015, in connection with the
cash tender offer and subsequent redemption of the untendered 2020 Notes, we incurred a loss of $123.9 million
associated with the premium paid, the write-off of unamortized deferred financing costs and original issue
discount and other fees. In addition, we incurred a loss of $2.1 million related to the write-off of unamortized
deferred financing costs associated with the amendment of our Wynn Macau credit facilities. During the year
ended December 31, 2014, the loss was for the premium paid on the 2020 Notes through open market
transactions and the write-off of related unamortized deferred financing costs and original issue discount.

For the year ended December 31, 2015, we recognized a gain of $52.0 million from the change in fair value

of the Redemption Note as a result of changes in certain variables used in the estimated fair value. No change
was recognized in the same period of 2014.

We incurred losses of $5.3 million and $4.4 million for the years ended December 31, 2015 and 2014,

respectively, from the change in the fair value of our interest rate swaps.

Interest income was $7.2 million for the year ended December 31, 2015, compared to $20.4 million in 2014.

During 2015 and 2014, our short-term investment strategy was to preserve capital while retaining sufficient
liquidity. The majority of our short-term investments were in time deposits, fixed deposits and money market
accounts with a maturity of three months or less.

Income Taxes

For the years ended December 31, 2015 and 2014, we recorded a tax expense of $7.7 million and a tax

benefit of $3.8 million, respectively. For the year ended December 31, 2015, our income tax expense was
primarily related to an increase in our deferred tax liabilities. For the year ended December 31, 2014, our income
tax benefit was primarily related to a release of valuation allowance on prior year foreign tax credits resulting
from the implementation of a tax planning strategy.

For the years ended December 31, 2015 and 2014, we were exempt from the payment of $41.6

million and $99.4 million, respectively, under our exemption from the Macau Complementary Tax on gaming
profits. Our non-gaming profits remain subject to the Macau Complementary Tax and casino winnings remain
subject to the Macau special gaming tax and other levies together totaling 39% in accordance with our
concession agreement.

Net income attributable to noncontrolling interests

Net income attributable to noncontrolling interests was $86.2 million for the year ended December 31, 2015,

compared to $231.1 million for the year ended December 31, 2014. These amounts represent the noncontrolling
interests’ share of net income from Wynn Macau, Limited for each year.

Adjusted Property EBITDA

We use Adjusted Property EBITDA to manage the operating results of our segments. Adjusted Property
EBITDA is net income before interest, taxes, depreciation and amortization, pre-opening costs, property charges
and other, management and license fees, corporate expenses and other (including intercompany golf course and
water rights leases), stock-based compensation, loss on extinguishment of debt, change in interest rate swap fair
value, change in Redemption Note fair value and other non-operating income and expenses, and includes equity
in income from unconsolidated affiliates. Adjusted Property EBITDA is presented exclusively as a supplemental
disclosure because we believe that it is widely used to measure the performance, and as a basis for valuation, of

53

gaming companies. We use Adjusted Property EBITDA as a measure of the operating performance of our
segments and to compare the operating performance of our properties with those of our competitors, as well as a
basis for determining certain incentive compensation. We also present Adjusted Property EBITDA because it is
used by some investors as a way 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 financial measures in accordance with U.S. generally accepted accounting principles (“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 pre-opening 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 measures of 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, 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 our Macau and Las Vegas
Operations as reviewed by management and summarized in Item 8—“Financial Statements and Supplementary
Data,” Note 18 “Segment Information.” That footnote also presents a reconciliation of Adjusted Property
EBITDA to net income attributable to Wynn Resorts, Limited.

Years Ended December 31,

2016

2015

2014

Wynn Macau . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Wynn Palace (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Las Vegas Operations . . . . . . . . . . . . . . . . . . . . . . . .

$681,509
103,036
474,782

$708,623
—
477,166

$1,258,082
—
515,196

(1) Wynn Palace opened on August 22, 2016.

Adjusted Property EBITDA at Wynn Macau decreased year-over-year by 3.8% for the year ended
December 31, 2016, primarily due to casino revenue performance driven by year-over-year declines in VIP
turnover, table drop and slot machine handle.

Adjusted Property EBITDA at Wynn Palace was $103.0 million since opening on August 22, 2016.

Adjusted Property EBITDA for our Las Vegas Operations was relatively flat for the year ended

December 31, 2016, compared to the same period of 2015.

Adjusted Property EBITDA at Wynn Macau and for our Las Vegas Operations decreased year-over-year by

43.7% and 7.4%, respectively, for the year ended December 31, 2015, primarily due to the decline in casino
revenues.

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

Liquidity and Capital Resources

Operating Activities

Our operating cash flows primarily consist of our operating income generated by our Macau and Las Vegas

Operations (excluding depreciation 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

54

both in Macau and Las Vegas 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 that 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 primarily on a cash basis or as a trade receivable. Accordingly, operating cash flows
will be impacted by changes in operating income and accounts receivable.

Net cash provided by operations for the year ended December 31, 2016 was $970.5 million, compared to
$572.8 million for the same period of 2015. The increase was primarily due to the change in customer deposits
and working capital accounts from our Macau Operations.

Net cash provided by operations for the year ended December 31, 2015 was $572.8 million, compared

to $1.10 billion for the same period of 2014. The reduction was primarily due to lower operating income
generated by our Macau Operations and from the change in working capital accounts.

Investing Activities

Net cash used in investing activities for the year ended December 31, 2016 was $1.29 billion, which was
primarily attributable to $1.23 billion in capital expenditures, net of construction payables and retention. Capital
expenditures, net of construction payables and retention, consisted primarily of $838.3 million for Wynn Palace
and $212.2 million for Wynn Boston Harbor.

Net cash used in investing activities for the year ended December 31, 2015 was $1.89 billion, which was
primarily attributable to $1.92 billion in capital expenditures, net of construction payables and retention, with
$1.57 billion related to Wynn Palace.

Net cash used in investing activities for the year ended December 31, 2014 was $1.11 billion, which was
primarily attributable to $1.22 billion in capital expenditures, net of construction payables and retention, with
$982.4 million related to Wynn Palace. We also used $86.7 million in cash for payment of our Massachusetts
gaming license.

Financing Activities

Net cash provided by financing activities was $691.9 million for the year ended December 31, 2016, which
was primarily attributable to borrowings of $930.0 million under our Wynn America credit facility and proceeds
of $217.0 million from the sale of a 49.9% ownership interest in a subsidiary, partially offset by $325.2 million
for the payment of dividends.

Net cash provided by financing activities was $1.22 billion for the year ended December 31, 2015, which
was primarily attributable to net borrowings of $1.62 billion under our amended Wynn Macau credit facilities,
partially offset by $499.1 million for the payment of dividends. We also issued $1.8 billion of 2025 Notes and
used the proceeds for the purchase of $1.6 billion of our 2020 Notes.

Net cash used in financing activities was $235.6 million for the year ended December 31, 2014, which was

primarily attributable to the payment of dividends of $942.9 million and payments on our long-term
debt, partially offset by proceeds of $755.6 million from the issuance of senior notes and $132.6 million from
borrowings, net of repayments, under our Wynn Macau revolving credit facility. During 2014, we used $98.4
million for open market purchases of principal on our first mortgage notes and $31.5 million for the repayment of
the remaining principal on our note payable secured by aircraft.

Capital Resources

As of December 31, 2016, we had approximately $2.45 billion of cash and cash equivalents and

$301.5 million of available-for-sale investments in domestic and foreign debt securities and commercial paper.
Cash and cash equivalents include cash on hand, cash in bank and fixed deposits, investments in money market

55

funds, domestic and foreign bank time deposits and commercial paper, all with original maturities of less than 90
days. Of these amounts, WML and its subsidiaries (of which we own approximately 72%) held $334.2 million in
cash. If our portion of this cash was repatriated to the U.S. on December 31, 2016, it would be subject to minimal
U.S. taxes in the year of repatriation. Wynn Las Vegas, LLC held cash balances of $225.7 million. Wynn
Resorts, Limited (including its subsidiaries other than WML and Wynn Las Vegas, LLC), which is not a
guarantor of the debt of its subsidiaries, held $1.89 billion and $301.5 million of cash and available-for-sale
investments, respectively.

The Wynn Macau credit facilities consist of a $2.30 billion equivalent fully funded senior secured term loan

facility and a $750.0 million equivalent senior secured revolving credit facility (together, the “Wynn Macau
Credit Facilities”). Borrowings under the Wynn Macau Credit Facilities consist of both United States dollar and
Hong Kong dollar tranches and were used to refinance Wynn Macau SA’s existing indebtedness and fund the
construction and development of Wynn Palace and will be used for general corporate purposes. As of
December 31, 2016, we had $409.2 million of available borrowing capacity under the senior secured revolving
credit facility.

The Wynn America credit facilities consist of a $375 million senior secured revolving credit facility and
a $1.0 billion fully funded senior secured term loan facility (together, the “Wynn America Credit Facilities”).
Borrowings under the Wynn America Credit Facilities are and will be used to fund the development, construction
and pre-opening expenses of Wynn Boston Harbor and for general corporate purposes. On June 21, 2016, we
amended the Wynn America Credit Facilities to extend the available borrowing period for $649.7 million of the
delay draw senior secured term loan facility from June 30, 2016 to December 31, 2016. On July 1, 2016, we
amended the Wynn America Credit Facilities to increase the existing $875 million senior secured term loan
facility (the “WA Senior Term Loan Facility I”) by a principal amount of $125 million with the available
borrowing period ending on December 31, 2016 (such increase, the “WA Senior Term Loan Facility II”). As of
December 31, 2016, the available borrowing capacity under the Wynn America Credit Facilities
was $361.3 million, net of $13.7 million in outstanding letters of credit.

The WML Finance I, Limited credit facility consists of a HK$1.55 billion (approximately $199.7 million)

cash-collateralized revolving credit facility (“WML Finance Credit Facility”). Borrowings under the WML
Finance Credit Facility are in Hong Kong dollars and are used for working capital requirements and general
corporate purposes. On October 25, 2016, we amended the WML Finance Credit Facility to increase the principal
amount up to HK$3.87 billion (approximately $499.0 million). As of December 31, 2016, the Company had
$309.4 million of available borrowing capacity under the WML Finance Credit Facility.

We expect that our future cash needs will relate primarily to operations, funding of development projects

and enhancements to our operating resorts, debt service and retirement and general corporate purposes. We
expect to meet our cash needs including our contractual obligations with future anticipated cash flow from
operations, availability under our bank credit facilities and our existing cash balances. We intend to primarily
fund our current development project, Wynn Boston Harbor, with the available borrowing capacity under our
bank credit facilities.

Macau Related Debt

Our Macau related debt consists of senior notes, the Wynn Macau Credit Facilities, and the WML Finance

Credit Facility.

2021 Notes. On March 20, 2014, WML issued $750.0 million aggregate principal amount of 5 1/4% Senior

Notes due 2021 (the “Additional 2021 Notes”), which were consolidated and form a single series with the
$600.0 million aggregate principal amount of 5 1/4% Senior Notes due 2021 issued by WML on October 16,
2013 (the “Original 2021 Notes” and together with the “Additional 2021 Notes,” the “2021 Notes”).

56

The 2021 Notes bear interest at the rate of 5 1/4% per annum and will mature on October 15, 2021. Interest

on the 2021 Notes is payable semi-annually in arrears on April 15 and October 15 of each year, beginning on
April 15, 2014. At any time on or before October 14, 2016, WML may redeem the 2021 Notes, in whole or in
part, at a redemption price equal to the greater of (a) 100% of the aggregate principal amount of the 2021 Notes
or (b) a “make-whole” amount as determined by an independent investment banker in accordance with the terms
of the indenture for the 2021 Notes, dated as of October 16, 2013 (the “WML Indenture”). In either case, the
redemption price would include accrued and unpaid interest. In addition, on or after October 15, 2016, WML
may redeem the 2021 Notes, in whole or in part, at a premium decreasing annually from 103.94% of the principal
amount to zero, plus accrued and unpaid interest. If WML undergoes a Change of Control (as defined in the
WML Indenture), it must offer to repurchase the 2021 Notes at a price equal to 101% of the aggregate principal
amount thereof, plus accrued and unpaid interest. In addition, we may redeem the 2021 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
2021 Notes fails to meet certain requirements imposed by any Gaming Authority (as defined in the WML
Indenture), WML may require the holder or beneficial owner to dispose of or redeem its 2021 Notes.

The 2021 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 Wynn Macau SA’s existing credit facilities. The 2021 Notes
are not registered under the Securities Act of 1933, as amended (the “Securities Act”), and the 2021 Notes are
subject to restrictions on transferability and resale.

The WML 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 WML Indenture contain
customary events of default, including, but not limited to: default for 30 days in the payment when due of interest
on the 2021 Notes; default in the payment when due of the principal of, or premium, if any, on the 2021 Notes;
failure to comply with any payment obligations relating to the repurchase by WML of the 2021 Notes upon a
change of control; failure to comply with certain covenants in the WML Indenture; certain defaults on certain
other indebtedness; failure to pay judgments against WML or certain subsidiaries that, in the aggregate, exceed
$50.0 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 2021 Notes then outstanding will become due and payable
immediately without further action or notice.

Wynn Macau Credit Facilities. On September 30, 2015, we amended our Wynn Macau Credit Facilities.
The borrowing availability was increased to $3.05 billion with the ability to upsize an additional $1 billion in
equivalent senior secured loans upon satisfaction of various conditions. The senior secured term loan facility is
repayable in graduating installments of between 2.5% and 7.33% of the principal amount on a quarterly basis
commencing December 2018, with a final installment of 50% of the principal amount repayable in September
2021 (extended from July 2018). Any outstanding borrowings from the senior secured revolving credit facility
will mature in September 2020 (extended from July 2017) by which time any outstanding borrowings from the
senior secured revolving credit facility must be repaid. 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 Macau SA’s Leverage Ratio (as defined
in the Wynn Macau Credit Facilities). The commitment fee required to be paid for unborrowed amounts under
the senior secured revolving credit facility, if any, is between 0.52% to 0.79% per annum, based on Wynn Macau
SA’s Leverage Ratio. The annual commitment fee is payable quarterly in arrears and is calculated based on the
daily average of the unborrowed amounts.

The Wynn Macau Credit Facilities contain a requirement that Wynn Macau SA must make mandatory
repayments of indebtedness from specified percentages of excess cash flow. If Wynn Macau SA’s Leverage
Ratio is greater than 4.5 to 1, then 25% of Excess Cash Flow (as defined in the Wynn Macau Credit Facilities)

57

must be used for prepayment of indebtedness and cancellation of available borrowings under the Wynn Macau
Credit Facilities. There is no mandatory prepayment in respect of Excess Cash Flow if Wynn Macau SA’s
Leverage Ratio is equal to or less than 4.5 to 1.

The Wynn Macau Credit Facilities contain customary covenants restricting certain activities including, but

not limited to: the incurrence of additional indebtedness, the incurrence or creation of liens on any of its property,
sale and leaseback transactions, the ability to dispose of assets, and making loans or other investments. In
addition, Wynn Macau SA is required by the financial covenants to maintain a Leverage Ratio of not greater than
5.5 to 1 for the fiscal year ending December 31, 2016, and an Interest Coverage Ratio (as defined in the Wynn
Macau Credit Facilities) of not less than 2.00 to 1 at any time.

Borrowings under the Wynn Macau Credit Facilities will continue to be guaranteed by Palo, and by certain
subsidiaries of the Company that own equity interests in Wynn Macau SA, and are secured by substantially all of
the assets of Wynn Macau SA and Palo, and the equity interests in Wynn Macau SA. Borrowings under the
Wynn Macau Credit Facilities are not guaranteed by the Company or WML.

In connection with the gaming concession contract of Wynn Macau SA, Wynn Macau SA entered into a
Bank Guarantee Reimbursement Agreement with BNU for the benefit of the Macau government. This guarantee
assures Wynn Macau SA’s performance under the casino concession agreement, including the payment of
premiums, fines and indemnity for any material failure to perform under the terms of the concession agreement
and the payment of any gaming taxes. As of December 31, 2016, the guarantee was in the amount of MOP 300
million (approximately $37.6 million) and will remain at such amount until 180 days after the end of the term of
the concession agreement (2022). BNU, as issuer of the guarantee, is currently secured by a second priority
security interest in the senior lender collateral package. From and after repayment of all indebtedness under the
Wynn Macau Credit Facilities, Wynn Macau SA is obligated to promptly, upon demand by BNU, repay any
claim made on the guarantee by the Macau government. BNU is paid an annual fee for the guarantee of MOP 2.3
million (approximately $0.3 million).

Borrowings under the WML Finance Credit Facility are in Hong Kong dollars and are used for working
capital requirements and general corporate purposes. The WML Finance Credit Facility matures in July 2018, at
which time any outstanding borrowings must be repaid. The WML Finance Credit Facility bears interest initially
at 1.50% per annum, such rate calculated as the interest rate paid by the lender as the deposit bank for the cash
collateral deposited and pledged with the lender plus a margin of 0.40%. Under terms of the agreement,
mandatory repayment is required upon a Change in Control or Material Adverse Effect, as defined in the
agreement. The terms of the increased principal amount under the amendment are equivalent to the terms of the
original credit agreement.

U.S. and Corporate Related Debt

Our U.S. related debt consists of first mortgage notes, senior notes and the Wynn America Credit Facilities.

The Corporate related debt consists of the Redemption Note.

Notes. Our first mortgage notes and senior notes rank pari passu in right of payment.

2022 Notes. In March 2012, Wynn Las Vegas, LLC and Wynn Las Vegas Capital Corp., an indirect wholly

owned subsidiary of Wynn Resorts (“Capital Corp.” and, together with Wynn Las Vegas, the “Issuers”), issued
$900 million aggregate principal amount of the 5 3/8% First Mortgage Notes due 2022 (the “2022 Notes”)
pursuant to an indenture, dated as of March 12, 2012 (the “2022 Indenture”), among the Issuers, the Guarantors
(as defined below) and U.S. Bank National Association, as trustee (the “Trustee”). The 2022 Notes will mature
on March 15, 2022 and bear interest at the rate of 5 3/8% per annum. The Issuers may, at their option, redeem the
2022 Notes, in whole or in part, at any time or from time to time on or after March 15, 2017, in accordance with

58

a premium schedule set forth in the 2022 Indenture, plus accrued and unpaid interest. If the Issuers undergo a
change of control (as defined in the 2022 Indenture), the Issuers will be required to offer to repurchase the first
mortgage notes at 101% of the principal amount, plus accrued and unpaid interest.

2023 Notes. In May 2013, the Issuers issued $500 million aggregate principal amount of 4 1/4% Senior

Notes due 2023 (the “2023 Notes”) pursuant to an indenture, dated as of May 22, 2013 (the “2023 Indenture”),
among the Issuers, the Guarantors and the Trustee. The 2023 Notes will mature on May 30, 2023 and bear
interest at the rate of 4 1/4% per annum. The Issuers may, at their option, redeem the 2023 Notes, in whole or in
part, at any time or from time to time prior to their stated maturity. The redemption price for 2023 Notes that are
redeemed before February 28, 2023 will include a “make-whole” premium, plus accrued and unpaid interest. In
the event of a change of control triggering event (as defined in the 2023 Indenture), the Issuers will be required to
offer to repurchase the 2023 Notes at 101% of the principal amount, plus accrued and unpaid interest.

2025 Notes. In February 2015, the Issuers issued $1.8 billion aggregate principal amount of 5 1/2% Senior

Notes due 2025 (the “2025 Notes”) pursuant to an indenture, dated as of February 18, 2015 (the “2025
Indenture”), among the Issuers, Guarantors and the Trustee. The 2025 Notes will mature on March 1, 2025 and
bear interest at the rate of 5 1/2% per annum. The Issuers may, at their option, redeem the 2025 Notes, in whole
or in part, at any time or from time to time prior to their stated maturity. The redemption price for 2023 Notes
that are redeemed before December 1, 2024 will include a “make-whole” premium, plus accrued and unpaid
interest. In the event of a change of control triggering event (as defined in the 2025 Indenture), the Issuers will be
required to offer to repurchase the 2025 Notes at 101% of the principal amount, plus accrued and unpaid interest.

Each of the 2022 Notes, 2023 Notes and 2025 Notes are senior obligations of the Issuers and are unsecured,

except by a first priority pledge by Wynn Las Vegas Holdings, LLC of its equity interests in Wynn Las Vegas,
LLC. If Wynn Resorts receives an investment grade rating from one or more ratings agencies, the first priority
pledge securing the 2023 Notes and 2025 Notes will be released.

Each of the 2023 Notes and 2025 Notes are jointly and severally guaranteed by all of the Issuers’
subsidiaries, other than Capital Corp. which was a co-issuer (the “Guarantors”). The guarantees are senior
unsecured obligations and rank senior in right of payment to all of their existing and future subordinated debt.
The guarantees rank equally in right of payment with all existing and future liabilities of the Issuers’ subsidiaries
that are not so subordinated and will be effectively subordinated in right of payment to all of such existing and
future secured debt (to the extent of the collateral securing such debt).

The 2022 Indenture contains customary negative covenants and financial covenants, including, but not
limited to, covenants that restrict the Issuers’ and the Guarantors’ ability to pay dividends or distributions or
repurchase equity; incur additional debt; make investments; create liens on assets to secure debt; enter into
transactions with affiliates; enter into sale-leaseback transactions; merge or consolidate with another company;
and transfer and sell assets or create dividend and other payment restrictions affecting subsidiaries. Each of the
2023 Indenture and 2025 Indenture contains negative covenants and financial covenants, including, but not
limited to, covenants limiting the Issuers’ and the Guarantors’ ability to create liens on assets to secure debt;
enter into sale-leaseback transactions; and merge or consolidate with another company. These covenants are
subject to a number of important and significant limitations, qualifications and exceptions.

Events of default under each of the 2022 Indenture, 2023 Indenture and 2025 Indenture include, among
others, the following: default for 30 days in the payment of interest when due on the applicable notes; default in
payment of the principal, or premium, if any, when due on the applicable notes; failure to comply with certain
covenants in the applicable indenture; and certain events of bankruptcy or insolvency. In the case of an event of
default arising from certain events of bankruptcy or insolvency with respect to the Issuers or Guarantors, all notes
then outstanding will become due and payable immediately without further action or notice.

Each of the 2022 Notes, 2023 Notes and 2025 Notes are also subject to mandatory redemption requirements

imposed by gaming laws and regulations of gaming authorities in Nevada.

59

Wynn America Credit Facilities. Under the Wynn America Credit Facilities, the senior secured revolving

credit facility matures in November 2019, the WA Senior Term Loan Facility I is repayable in quarterly
installments of $21.9 million commencing June 2018, with a final installment of $656.3 million repayable in
November 2020 and the WA Senior Term Loan Facility II matures in November 2020. Subject to certain
exceptions, the Wynn America Credit Facilities bear interest at either base rate plus 0.75% per annum or the
reserve adjusted eurodollar rate plus 1.75% per annum. The annual fee required to pay for unborrowed amounts,
if any, is 0.30% per annum, payable quarterly in arrears, calculated based on the daily average of the unborrowed
amounts under such credit facilities.

The Wynn America Credit Facilities contain customary representations and warranties, events of default and

negative and affirmative covenants, including, among other things, limitations on: indebtedness; investments;
restricted payments; mergers and acquisitions; payment of indebtedness; negative pledges; liens; transactions
with affiliates and sales of assets. In addition, Wynn America is subject to financial covenants including
maintaining a Maximum Consolidated Senior Secured Net Leverage Ratio and a Minimum Consolidated
EBITDA, each as defined in the Wynn America Credit Facilities. Commencing with the second full fiscal quarter
ending after the fiscal quarter in which the opening of Wynn Boston Harbor occurs, the Maximum Consolidated
Senior Secured Net Leverage Ratio is not to exceed 2.75 to 1. Commencing with the fiscal quarter ending
December 31, 2015, the Minimum Consolidated EBITDA is not to be less than $200.0 million.

We provided a completion guaranty in favor of the lenders under the Wynn America Credit Facilities to
support the development and opening of Wynn Boston Harbor. Wynn America and the guarantors have entered
into a security agreement in favor of the lenders under the Wynn America Credit Facilities pursuant to which,
subject to certain exceptions, Wynn America and the guarantors have pledged all equity interests in the
guarantors to the extent permitted by applicable law and granted a first priority security interest in substantially
all of the other existing and future assets of the guarantors.

Redemption Note. Based on the Board of Directors’ finding of “unsuitability,” on February 18, 2012, we

redeemed and canceled Aruze’s 24,549,222 shares of Wynn Resorts’ common stock. Following a finding of
“unsuitability,” our articles of incorporation authorize redemption at “fair value” of the shares held by unsuitable
persons. Pursuant to the articles of incorporation, we issued the Redemption Note to Aruze, a former stockholder
and related party, in redemption of the shares. The Redemption Note has a principal amount of approximately
$1.94 billion, matures on February 18, 2022 and bears interest at the rate of 2% per annum, payable annually in
arrears on each anniversary of the date of the Redemption Note. We may, in our sole and absolute discretion, at
any time and from time to time, and without penalty or premium, prepay the whole or any portion of the principal
or interest due under the Redemption Note. In no instance shall any payment obligation under the Redemption
Note be accelerated except in the sole and absolute discretion of Wynn Resorts or as specifically mandated by
law. The indebtedness evidenced by the Redemption Note, is subordinated to the prior payment in full of all
existing and future obligations of Wynn Resorts and any of its affiliates in respect of indebtedness for borrowed
money of any kind or nature. Aruze, Universal Entertainment Corporation and Kazuo Okada have challenged the
redemption of Aruze’s shares and we are currently involved in litigation with those parties as well as related
shareholder derivative litigation. The outcome of these various proceedings cannot be predicted. Any adverse
judgments or settlements involving payment of a material sum of money could cause a material adverse effect on
our financial condition and results of operations and could expose us to additional claims by third parties,
including current or former investors or regulators. Any adverse judgments or settlements would reduce our
profits and could limit our ability to operate our business. See Item 1A—“Risk Factors” and Item 8—“Financial
Statements and Supplementary Data,” Note 17 “Commitments and Contingencies.”

Other Factors Affecting Liquidity

Wynn Resorts is a holding company and, as a result, our ability to pay dividends is highly dependent on our

ability to obtain funds and our subsidiaries’ ability to provide funds to us. Wynn Las Vegas, LLC, Wynn
America, LLC and Wynn Macau SA debt instruments contain customary negative covenants and financial
covenants, including, but not limited to, covenants that restrict their ability to pay dividends or distributions.

60

Wynn Las Vegas, LLC intends to fund its operations and capital requirements from cash on hand and
operating cash flow. We cannot assure you however, that our Las Vegas Operations will generate sufficient cash
flow from operations or the availability of additional indebtedness will be sufficient to enable us to service and
repay Wynn Las Vegas, LLC’s indebtedness and to fund its other liquidity needs. Similarly, we expect that our
Macau Operations will fund Wynn Macau SA and WML’s debt service obligations with existing cash, operating
cash flow and availability under the Wynn Macau Credit Facilities. However, we cannot assure you that
operating cash flows will be sufficient to do so. 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 8—“Financial Statements and Supplementary Data,” Note 17
“Commitments and Contingencies.”

Our Board of Directors has authorized an equity repurchase program of up to $1.7 billion. The repurchase

program may include repurchases from time to time through open market purchases, in privately negotiated
transactions, and under plans complying with Rules 10b5-1 and 10b-18 under the Exchange Act. As of
December 31, 2016, we had purchased a cumulative total of 12,804,954 shares of our common stock for a net
cost of $1.1 billion under the program, with no purchases made under this program during the years ended
December 31, 2016, 2015 and 2014.

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 would require us to obtain additional financing. We may decide to conduct
any such development through Wynn Resorts or through subsidiaries separate from the Las Vegas 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 interest rate swaps and foreign currency forward contracts. We do not have any retained or contingent
interest in assets transferred to an unconsolidated entity. As of December 31, 2016, we had outstanding letters of
credit totaling $13.7 million.

61

Contractual Obligations and Commitments

The following table summarizes our scheduled contractual commitments as of December 31, 2016 (in

millions):

Payments Due By Period

Less
Than
1 Year

1 to 3
Years

4 to 5
Years

After
5 Years

Long-term debt obligations . . . . . . . . . . . . . . . . . . . . . . . .
Fixed interest payments . . . . . . . . . . . . . . . . . . . . . . . . . . .
Estimated variable interest payments (1) . . . . . . . . . . . . . .
Operating leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Construction contracts and commitments . . . . . . . . . . . . .
Employment agreements . . . . . . . . . . . . . . . . . . . . . . . . . .
Other (2) (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ — $ 677.3
556.5
278.2
183.0
93.6
36.3
20.4
22.9
357.9
55.2
59.7
146.8
141.9

$4,510.0
541.7
101.7
22.7
—
6.9
70.6

$5,136.4
358.8
—
101.8
—
—
14.7

Total

$10,323.7
1,735.2
378.3
181.3
380.8
121.8
374.1

Total commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$951.7

$1,677.9

$5,253.7

$5,611.8

$13,495.1

(1) Amounts for all periods represent our estimated future interest payments on our debt facilities based upon

amounts outstanding and LIBOR or HIBOR rates as of December 31, 2016. Such rates continue at historical
lows as of December 31, 2016. Actual rates will vary.

(2) Other includes open purchase orders, future charitable contributions, fixed gaming tax payments in Macau,
performance contracts and other contracts. As further discussed in Item 8—“Financial Statements and
Supplementary Data,” Note 16 “Income Taxes” of this report, we had $90.5 million of unrecognized tax
benefits as of December 31, 2016. Due to the inherent uncertainty of the underlying tax positions, it is not
practicable to assign this liability to any particular year and therefore it is not included in the table above as
of December 31, 2016.

(3) Other excludes community payments associated with the continuing operations of Wynn Boston Harbor,

which commence upon the opening of the resort. These amounts are approximately $10.5 million per year
with minimal annual increases.

Critical Accounting Policies and Estimates

Management’s discussion and analysis of our results of operations and liquidity and capital resources are based on

our consolidated financial statements. Our consolidated financial statements were prepared in conformity with U.S.
GAAP. A summary of our significant accounting policies are presented in Item 8—“Financial Statements and
Supplementary Data,” Note 2 “Summary of Significant Accounting Policies.” Certain of our accounting policies
require management to apply significant judgment in defining the appropriate assumptions integral to financial
estimates. On an ongoing basis, management evaluates those estimates, including those relating to the estimated lives
of depreciable assets, asset impairment, allowances for doubtful accounts, accruals for customer loyalty programs,
contingencies, litigation and other items. Judgments are based on historical experience, terms of existing contracts,
industry trends and information available from outside sources, as appropriate. However, by their nature, judgments are
subject to an inherent degree of uncertainty, and therefore actual results could differ from our estimates.

Development, Construction and Property and Equipment Estimates

During the construction and development of a resort, pre-opening or start-up costs are expensed when
incurred. In connection with the construction and development of our resorts, significant start-up costs are
incurred and charged to pre-opening costs through their respective openings. Once our resorts open, expenses
associated with the opening of the resorts are no longer charged as pre-opening costs.

During the construction and development stage, direct costs such as those incurred for the design and
construction of our resorts, including applicable portions of interest, are capitalized. Accordingly, the recorded
amounts of property and equipment increase significantly during construction periods. Depreciation is provided

62

over the estimated useful lives of the assets using the straight-line method. We determine the estimated useful
lives based on our experience with similar assets, estimate of the usage of the asset, and other factors specific to
the asset. Depreciation expense related to capitalized construction costs is recognized when the related assets are
placed in service. Upon the opening of our resorts, we begin recognizing depreciation expense on the fixed
assets. The remaining estimated useful lives of assets are periodically reviewed and adjusted as necessary.

Costs of repairs and maintenance are charged to expense when incurred. The cost and accumulated
depreciation of property and equipment retired or otherwise disposed of are eliminated from the respective
accounts and any resulting gain or loss is included in property charges and other.

We also evaluate our property and equipment and other long-lived assets for impairment in accordance with

applicable accounting standards. For assets to be disposed of we recognize the asset at the lower of carrying
value or fair market value less costs of disposal, as estimated based on comparable asset sales, solicited offers, or
a discounted cash flow model. For assets to be held and used, we review for impairment whenever indicators of
impairment exist. In reviewing for impairment, we compare the estimated future cash flows of the asset, on an
undiscounted basis, to the carrying value of the asset. If the undiscounted cash flows exceed the carrying value,
no impairment is indicated. If the undiscounted cash flows do not exceed the carrying value, an impairment is
recorded based on the fair value of the asset, typically measured using a discounted cash flow model. If an asset
is still under development, future cash flows include remaining construction costs. All recognized impairment
losses, whether for assets to be disposed of or assets to be held and used are recorded as operating expenses.

Redemption Price Promissory Note

We record the Redemption Note at its fair value in accordance with applicable accounting guidance. As of

December 31, 2016 and 2015, the fair value of the Redemption Note was $1.82 billion and $1.88 billion,
respectively. We utilized an independent third party valuation to assist in the determination of this fair value. In
determining this fair value, we estimated the Redemption Note’s present value using discounted cash flows with
a probability-weighted expected return for redemption assumptions and a discount rate, which included time
value and non-performance risk adjustments commensurate with the risk of the Redemption Note.

Considerations for the redemption assumptions included the stated maturity of the Redemption Note,
uncertainty of the related cash flows as well as potential effects of the following: uncertainties surrounding the
potential outcome and timing of pending litigation with the Okada Parties (see Item 8—“Financial Statements
and Supplementary Data,” Note 17 “Commitments and Contingencies”); the outcome of ongoing investigations
of Aruze by the United States Attorney’s Office, the U.S. Department of Justice and the Nevada Gaming Control
Board; and other potential legal and regulatory actions. In addition, in the furtherance of various future business
objectives, we considered our ability, at our sole option, to prepay the Redemption Note at any time in
accordance with its terms without penalty. Accordingly, we reasonably determined that the estimated life of the
Redemption Note could be less than the contractual life of the Redemption Note.

In determining the appropriate discount rate to be used in the estimated present value, the Redemption

Note’s subordinated position and credit risk relative to all other debt in our capital structure and credit ratings
associated with our traded debt were considered. Observable inputs for the risk free rate based on Federal
Reserve rates for U.S. Treasury securities and credit risk spread based on a yield curve index of similarly rated
debt were used.

Retail Joint Venture

On December 28, 2016, we formed a joint venture (the “Retail Joint Venture”) with Crown to own and
operate approximately 88,000 square feet of existing retail space at Wynn Las Vegas. In connection with the
transaction, we transferred certain assets and liabilities with a net book value of $31.8 million associated with the
existing Wynn Las Vegas retail stores from Wynn Las Vegas, LLC, to the Retail Joint Venture. We sold Crown a

63

49.9% ownership interest in the Retail Joint Venture for consideration of $292.0 million, which consisted of
$217.0 million in cash and a $75.0 million interest-free note that matures in full on January 3, 2018. Wynn Las
Vegas, LLC transferred all interests as lessor in third-party retail store leases to the Retail Joint Venture as part of
the transaction and the majority of the retail stores previously operated by Wynn Las Vegas, LLC are now
operated under a master lease agreement between a newly formed retail entity owned by Wynn Resorts, as lessee,
and the Retail Joint Venture, as lessor. We maintain a 50.1% ownership interest in the Retail Joint Venture and
are the managing member. Our responsibilities with respect to the Retail Joint Venture include day-to-day
business operations, property management services and a role in the leasing decisions of the retail space.

We assessed our ownership in the Retail Joint Venture based on consolidation accounting guidance with an

evaluation being performed to determine if the Retail Joint Venture is a variable interest entity (“VIE”), if we
have a variable interest in the Retail Joint Venture and if we are the primary beneficiary of the Retail Joint
Venture. The primary beneficiary is the party who has the power to direct the activities of a VIE that most
significantly impact the entity’s economic performance and who has an obligation to absorb losses of the entity
or a right to receive benefits from the entity that could potentially be significant to the entity.

We concluded that the Retail Joint Venture is a VIE and we are the primary beneficiary based on our
involvement in the leasing activities of the Retail Joint Venture. As a result, we consolidate all of the Retail Joint
Venture’s assets, liabilities and results of operations. We will evaluate our primary beneficiary designation on an
ongoing basis and will assess the appropriateness of the Retail Joint Venture’s VIE status when changes occur.

Investments and Fair Value

We have made investments in domestic and foreign corporate debt securities and commercial paper. Our

investment policy requires investments to be investment grade and limits the amount of exposure to any one
issuer with the objective of minimizing the potential risk of principal loss. We determine the appropriate
classification of our investments at the time of purchase and reevaluate such designation as of each balance sheet
date. Our investments are reported at fair value, with unrealized gains and losses, net of tax, reported in other
comprehensive income (loss). Adjustments are made for amortization of premiums and accretion of discounts to
maturity computed under the effective interest method. Such amortization is included in interest income together
with realized gains and losses and the stated interest on such securities.

We measure certain of our financial assets and liabilities, at fair value on a recurring basis pursuant to
accounting standards for fair value measurements. Fair value is the price that would be received to sell an asset or
paid to transfer a liability in an orderly transaction between market participants at the measurement date. These
accounting standards establish a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair
value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2,
defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and
Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to
develop its own assumptions.

We obtain pricing information in determining the fair value of our available-for-sale securities from
independent pricing vendors. Based on our inquiries, the pricing vendors use various pricing models consistent
with what other market participants would use. The assumptions and inputs used by the pricing vendors are
derived from market observable sources including: reported trades, broker/dealer quotes, issuer spreads,
benchmark curves, bids, offers and other market-related data. We have not made adjustments to such prices.
Each quarter, we validate the fair value pricing methodology to determine the fair value consistent with
applicable accounting guidance and to confirm that the securities are classified properly in the fair value
hierarchy. We also compare the pricing received from our vendors to independent sources for the same or similar
securities.

64

Allowance for Estimated Doubtful Accounts Receivable

A substantial portion of our outstanding receivables relates to casino credit play. Credit play, through the
issuance of markers, represents a significant portion of the table games volume at our Las Vegas Operations.
While offered, the issuance of credit at our Macau Operations is less significant when compared to Las Vegas.
Our goal is to maintain strict controls over the issuance of credit and aggressively pursue collection from those
customers who fail to pay their balances in a timely fashion. These collection efforts may include the mailing of
statements and delinquency notices, personal contacts, the use of outside collection agencies, and litigation.
Markers issued at our Las Vegas Operations are generally legally enforceable instruments in the United States,
and United States assets of foreign customers may be used to satisfy judgments entered in the United States.

The enforceability of markers and other forms of credit related to gaming debt outside of the United States

varies from country to country. Some foreign countries do not recognize the enforceability of gaming related
debt, or make enforcement burdensome. We closely consider the likelihood and difficulty of enforceability,
among other factors, when issuing credit to customers who are not residents of the United States. In addition to
our internal credit and collection departments, located in both Las Vegas and Macau, we have a network of legal,
accounting and collection professionals to assist us in our determinations regarding enforceability and our overall
collection efforts.

As of December 31, 2016 and 2015, 88.1% and 85.1%, respectively, of our casino accounts receivable were

owed by customers from foreign countries, primarily in Asia. In addition to enforceability issues, the
collectability of markers given to foreign customers is affected by a number of factors including changes in
currency exchange rates and economic conditions in the customers’ home countries.

We regularly evaluate our reserve for bad debts based on a specific review of customer accounts and
outstanding gaming promoter accounts as well as management’s prior experience with collection trends in the
casino industry and current economic and business conditions. In determining our allowance for estimated
doubtful accounts receivable, we apply loss factors based on historical marker collection history to aged account
balances and we specifically analyze the collectability of each account with a balance over a specified dollar
amount, based upon the age, the customer’s financial condition, collection history and any other known
information.

The following table presents key statistics related to our casino accounts receivable (dollars in thousands):

Casino accounts receivable . . . . . . . . . . . . . . . . . . . . . . . .
Allowance for doubtful casino accounts receivable . . . . .
Allowance as a percentage of casino accounts

December 31,

2016

2015

$211,557
$ 53,860

$190,294
$ 66,109

receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

25.5%

34.7%

Our reserve for doubtful casino accounts receivable is based on our estimates of amounts collectible and
depends on the risk assessments and judgments by management regarding realizability, the state of the economy
and our credit policy. Our reserve methodology is applied similarly to credit extended at each of our resorts. As
of December 31, 2016 and 2015, 49.2% and 38.7%, respectively, of our outstanding casino accounts receivable
balance originated at our Macau Operations.

As of December 31, 2016, a 100 basis point change in the allowance for doubtful accounts as a percentage
of casino accounts receivable would change the provision for doubtful accounts by approximately $2.1 million.

As our customer payment experience evolves, we will continue to refine our estimated reserve for bad debts.
Accordingly, the associated provision for doubtful accounts may fluctuate. Because individual customer account
balances can be significant, the reserve and the provision can change significantly between periods as we become
aware of additional information about a customer or changes occur in a region’s economy or legal system.

65

Derivative Financial Instruments

Derivative financial instruments, including interest rate swaps and foreign currency forward contracts, are

used to manage interest rate and foreign currency exposures. The fair value of derivative financial instruments is
recognized as an asset or liability at each balance sheet date, with changes in fair value affecting net income as
the Company’s derivative financial instruments do not qualify for hedge accounting.

We seek to manage our interest rate risk associated with variable-rate borrowings, through balancing fixed-
rate and variable-rate borrowings with the use of interest rate swaps. We currently have three interest rate swap
agreements that convert a portion of our variable rate borrowings under the Wynn Macau Senior Term Loan
Facility to a fixed rate. Under the agreements, we pay a fixed interest rate on notional amounts corresponding to
borrowings in exchange for receipts on the same amount at a variable interest rate based on the applicable
LIBOR or HIBOR at the time of payment.

We measure the fair value of our interest rate swaps on a recurring basis. We categorize our interest rate
swap contracts as Level 2 in the hierarchy as described above. The fair value approximates the amount we would
receive (pay) if these contracts were settled at the respective valuation dates. Fair value is estimated based upon
current, and predictions of future, interest rate levels along a yield curve, the remaining duration of the
instruments and other market conditions, and therefore is subject to significant estimation and a high degree of
variability of fluctuation between periods. We adjust this amount by applying a non-performance valuation,
considering our creditworthiness or the creditworthiness of our counterparties at each settlement date, as
applicable.

Stock-Based Compensation

Accounting standards for stock-based payments establish standards for the accounting for transactions in

which an entity exchanges its equity instruments for goods and services or incurs a liability in exchange for
goods and services that are based on the fair value of the entity’s equity instruments or that may be settled by the
issuance of those equity instruments. It requires an entity to measure the costs of employee services received in
exchange for an award of equity instruments based on the grant-date fair value of the award and recognize that
cost over the service period. We use the Black-Scholes option pricing model to determine the grant-date fair
value of our stock options. The Black-Scholes model uses assumptions of expected volatility, risk-free interest
rates, the expected term of options granted, and expected rates of dividends. Management determines these
assumptions by reviewing current market rates, making industry comparisons and reviewing conditions relevant
to our Company.

The expected volatility and expected term assumptions can significantly impact the fair value of stock
options. We believe that the valuation techniques and the approach utilized to develop our assumptions are
reasonable in calculating the fair value of the options we grant. We estimate the expected stock price volatility
using a combination of implied and historical factors related to our stock price in accordance with applicable
accounting standards. As our stock price fluctuates, this estimate will change. A hypothetical 10% change in the
volatility assumption for our options granted in 2016 would not have a material effect on the change in fair value.
Expected term represents the estimated average time between the option’s grant date and its exercise date. A
hypothetical 10% change in the expected term assumption for our options granted in 2016 would not have a
material effect on the change in fair value. These assumed changes in fair value would have been recognized over
the vesting schedule of such awards.

Accounting standards also require the classification of stock compensation expense in the same financial

statement line items as cash compensation, and therefore impacts our departmental expenses (and related
operating margins), pre-opening costs and construction in progress for our development projects, and our general
and administrative expenses (including corporate expenses).

66

Income Taxes

We are subject to income taxes in the United States and other foreign jurisdictions where we operate.
Accounting standards require the recognition of deferred tax assets, net of applicable reserves, and liabilities for
the estimated future tax consequences attributable to differences between financial statement carrying amounts of
existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards.
Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those
temporary differences are expected to be recovered or settled. The effect of a change in tax rates on the income
tax provision and deferred tax assets and liabilities is recognized in the results of operations in the period that
includes the enactment date. Accounting standards require recognition of a future tax benefit to the extent that
realization of such benefit is more likely than not. Otherwise, a valuation allowance is applied.

As of December 31, 2016, we have a foreign tax credit (“FTC”) carryover of $3.27 billion and we have
recorded a valuation allowance of $3.20 billion against this asset based on our estimate of future realization. The
FTCs are attributable to the Macau special gaming tax, which is 35% of gross gaming revenue in Macau. The
U.S. taxing regime only allows a credit for 35% of foreign source income. In assessing the need for a valuation
allowance, we rely solely on the reversal of net taxable temporary differences that result in foreign source income
during the 10-year foreign tax credit carryforward period.

Our income tax returns are subject to examination by the IRS and other tax authorities in the locations
where we operate. We assess potentially unfavorable outcomes of such examinations based on accounting
standards for uncertain income taxes. The accounting standards prescribe a minimum recognition threshold a tax
position is required to meet before being recognized in the financial statements.

Uncertain tax position accounting standards apply to all tax positions related to income taxes. These
accounting standards utilize a two-step approach for evaluating tax positions. The tax benefit is measured as the
largest amount of benefit that is more likely than not to be realized upon settlement.

As applicable, we recognize accrued penalties and interest related to unrecognized tax benefits in the

provision for income taxes.

Recently Issued and Adopted Accounting Standards

See related disclosure at Item 8—“Financial Statements and Supplementary Data,” Note 2 “Summary of

Significant Accounting Policies.”

Item 7A. 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.

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 have had the desired effect, and interest
rate fluctuations could have a negative impact on our results of operations.

The following table provides estimated future cash flow information derived from our best estimates of
repayments as of December 31, 2016, of our expected long-term indebtedness and related weighted average
interest rates by expected maturity dates. However, we cannot predict the LIBOR or HIBOR rates that will be in

67

effect in the future. As of December 31, 2016, such rates remain at historic lows. Actual rates will vary. The
one-month LIBOR and HIBOR rates as of December 31, 2016 of 0.77% and 0.75%, respectively, were used for
all variable rate calculations in the table below.

The information is presented in U.S. dollar equivalents as applicable.

Years Ending December 31,

Expected Maturity Date

2017

2018

2019

2020

2021

Thereafter

Total

(dollars in millions)

Long-term debt:
Fixed rate . . . . . . . . . . .
Average interest rate . .
Variable rate . . . . . . . .
Average interest rate . .

$—
— %
$—
— %

$ —

$ —

$ —

$1,350.0

$5,136.4

$6,486.4

— %

— %

— %

5.3%

4.0%

4.3%

$313.0

$364.3

$1,668.3

$1,491.7

$ —

$3,837.3

1.9%

2.7%

2.6%

2.8%

— %

2.6%

Interest Rate Swap Information

We have entered into floating-for-fixed interest rate swap arrangements relating to certain of our floating-
rate debt facilities. We measure the fair value of our interest rate swaps on a recurring basis. Changes in the fair
values of our interest rate swaps for each reporting period recorded are, and will continue to be, recognized as a
change in interest rate swap fair value in our Consolidated Statements of Income, as the swaps do not qualify for
hedge accounting.

We currently have three interest rate swap agreements intended to hedge a portion of the underlying interest

rate risk on borrowings under our Wynn Macau Credit Facilities. Under two of the swap agreements, we pay a
fixed interest rate (excluding the applicable interest margin) of 0.73% on notional amounts corresponding to
borrowings of HK$3.95 billion (approximately $509.4 million) in exchange for receipts on the same amount at a
variable interest rate based on the applicable HIBOR at the time of payment. These interest rate swaps fix the
all-in interest rate on such amounts at 2.23% to 2.98%. These interest rate swap agreements mature in July 2017.

Under the third swap agreement, we pay a fixed interest rate (excluding the applicable interest margin) of

0.68% on notional amounts corresponding to borrowings of $243.8 million in exchange for receipts on the same
amount at a variable rate based on the applicable LIBOR at the time of payment. This interest rate swap fixes the
all-in interest rate on such amounts at 2.18% to 2.93%. This interest rate swap agreement matures in July 2017.

As of December 31, 2016, interest rate swaps of $1.1 million were included in prepaid expenses and other in

the accompanying Consolidated Balance Sheets. As of December 31, 2015, interest rate swaps of $0.7 million
were included in other assets and $0.1 million were included in other long-term liabilities in the accompanying
Consolidated Balance Sheets.

The fair value approximates the amount we would pay or receive if these contracts were settled at the

respective valuation dates. Fair value is estimated based upon current, and predictions of future, interest rate
levels along a yield curve, the remaining duration of the instruments and other market conditions, and therefore,
is subject to significant estimation and a high degree of variability of fluctuation between periods. We adjust this
amount by applying a non-performance valuation, considering our creditworthiness or the creditworthiness of our
counterparties at each settlement date, as applicable.

68

Other Interest Rate Swap Information

The following table provides information about our interest rate swaps, by contractual maturity dates, as of

December 31, 2016, using estimated future LIBOR and HIBOR rates based upon implied forward rates in the
yield curve. The information is presented in U.S. dollar equivalents, which is our reporting currency:

Years Ending December 31,

Expected Maturity Date

Average notional amount
. . . . . . . . . .
Average pay rate . . . . . . . . . . . . . . . . .
Average receive rate . . . . . . . . . . . . . .

2017

2018

2019

2020

2021

Thereafter

Total

$753.0

$—

(dollars in millions)
$—

$—

$—

$—

$753.0

0.71% — % — % — % — % — %
0.95% — % — % — % — % — %

0.71%
0.95%

We do not use derivative financial instruments, other financial instruments or derivative commodity

instruments for trading or speculative purposes.

Interest Rate Sensitivity

As of December 31, 2016, approximately 66.5% of our debt was based on fixed rates, including the notional

amounts related to interest rate swaps. Based on our borrowings as of December 31, 2016, an assumed 1%
change in the variable rates would cause our annual interest cost to change by $34.6 million.

Foreign Currency Risks

The currency delineated in Wynn Macau SA’s concession agreement with the government of Macau is the

Macau pataca. The Macau pataca is linked to the Hong Kong dollar, and in many cases the two are used
interchangeably in Macau. The Hong Kong dollar is linked to the U.S. dollar and the exchange rate between
these two currencies has remained relatively stable over the past several years. However, the exchange linkages
of the Hong Kong dollar and the Macau pataca, and the Hong Kong dollar and the U.S. dollar, are subject to
potential changes due to, among other things, changes in Chinese governmental policies and international
economic and political developments.

If the Hong Kong dollar and the Macau pataca are not linked to the U.S. dollar in the future, severe

fluctuations in the exchange rate for these currencies may result. We also cannot assure you that the current rate
of exchange fixed by the applicable monetary authorities for these currencies will remain at the same level.

We manage exposure to foreign currency risks associated with future scheduled interest payments through

the use of foreign currency forward contracts. These contracts involve the exchange of one currency for a second
currency at a future date and are with a counter party, which is a major international financial institution.

We expect most of the revenues and expenses for any casino that we operate in Macau will be in Hong

Kong dollars or Macau patacas. For any U.S. dollar-denominated debt or other obligations incurred by our
Macau-related entities, fluctuations in the exchange rates of the Macau pataca or the Hong Kong dollar, in
relation to the U.S. dollar, could have adverse effects on our results of operations, financial condition and ability
to service debt. Based on our balances as of December 31, 2016, an assumed 1% change in the US dollar/Hong
Kong dollar exchange rate would cause a foreign currency transaction gain/loss of approximately $28.2 million.

69

Item 8.

Financial Statements and Supplementary Data

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

Report of Independent Registered Public Accounting Firm on Internal Control over Financial Reporting . .
Report of Independent Registered Public Accounting Firm on the Consolidated Financial Statements . . . . .
Consolidated Balance Sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidated Statements of Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidated Statements of Comprehensive Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidated Statements of Stockholders’ Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidated Statements of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Notes to Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Page

71
72
73
74
75
76
77
78

70

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON INTERNAL
CONTROL OVER FINANCIAL REPORTING

The Board of Directors and Stockholders of Wynn Resorts, Limited and subsidiaries:

We have audited Wynn Resorts, Limited and subsidiaries’ (the “Company”) internal control over financial

reporting as of December 31, 2016, based on criteria established in Internal Control—Integrated Framework
issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the
“COSO criteria”). The Company’s management is responsible for maintaining effective internal control over
financial reporting, and for its assessment of the effectiveness of internal control over financial reporting
included in the accompanying Management Report on Internal Control Over Financial Reporting, included in
Item 9A. Our responsibility is to express an opinion on the Company’s internal control over financial reporting
based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight
Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether effective internal control over financial reporting was maintained in all material respects. Our
audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a
material weakness exists, testing and evaluating the design and operating effectiveness of internal control based
on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We
believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for external purposes in
accordance with generally accepted accounting principles. A company’s internal control over financial reporting
includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance
with generally accepted accounting principles, and that receipts and expenditures of the company are being made
only in accordance with authorizations of management and directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the
company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect
misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that
controls may become inadequate because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.

In our opinion, the Company maintained, in all material respects, effective internal control over financial

reporting as of December 31, 2016, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board

(United States), the 2016 consolidated financial statements of Wynn Resorts, Limited and subsidiaries and our
report dated February 24, 2017 expressed an unqualified opinion thereon.

Las Vegas, Nevada
February 24, 2017

/s/ Ernst & Young LLP

71

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors and Stockholders of Wynn Resorts, Limited and subsidiaries:

We have audited the accompanying consolidated balance sheets of Wynn Resorts, Limited and subsidiaries

(the “Company”) as of December 31, 2016 and 2015, and the related consolidated statements of income,
comprehensive income, stockholders’ equity and cash flows for each of the three years in the period ended
December 31, 2016. Our audits also included the financial statement schedule listed in the Index at item 15(a)2.
These financial statements and schedule are the responsibility of the Company’s management. Our responsibility
is to express an opinion on these financial statements and schedule based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight
Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audits provide a reasonable basis for our
opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the

consolidated financial position of Wynn Resorts, Limited and subsidiaries at December 31, 2016 and 2015, and
the consolidated results of their operations and their cash flows for each of the three years in the period ended
December 31, 2016, in conformity with U.S. generally accepted accounting principles. Also, in our opinion, the
related financial statement schedule referred to above, when considered in relation to the basic financial
statements taken as a whole, presents fairly in all material respects the information set forth therein.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board

(United States), the Company’s internal control over financial reporting as of December 31, 2016, based on
criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring
Organizations of the Treadway Commission (2013 framework) and our report dated February 24, 2017 expressed
an unqualified opinion thereon.

Las Vegas, Nevada
February 24, 2017

/s/ Ernst & Young LLP

72

WYNN RESORTS, LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)

December 31,

2016

2015

Current assets:

ASSETS

Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investment securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Receivables, net
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prepaid expenses and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 2,453,122
173,437
218,968
91,541
53,299

$ 2,080,089
115,297
187,887
74,493
48,012

Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Property and equipment, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Restricted cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investment securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Intangible assets, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investment in unconsolidated affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2,990,367
8,259,631
192,823
128,023
113,588
269,125

—

2,505,778
7,477,478
2,060
136,256
110,972
225,888
727

Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$11,953,557

$10,459,159

Current liabilities:

LIABILITIES AND STOCKHOLDERS’ EQUITY

Accounts and construction payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Current portion of land concession obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Customer deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gaming taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued compensation and benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued interest
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other accrued liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$

298,505

—
599,566
162,706
165,501
98,118
91,905

$

Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other long-term liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred income taxes, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,416,301
10,125,352
87,462
66,561

267,791
16,000
436,409
98,559
129,697
98,129
63,586

1,110,171
9,149,665
141,121
36,357

Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11,695,676

10,437,314

Commitments and contingencies (Note 17)
Stockholders’ equity:

Preferred stock, par value $0.01; 40,000,000 shares authorized; zero shares issued and

outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

—

—

Common stock, par value $0.01; 400,000,000 shares authorized; 115,036,945 and
114,610,441 shares issued; 101,799,471 and 101,571,909 shares outstanding,
respectively . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Treasury stock, at cost; 13,237,474 and 13,038,532 shares, respectively . . . . . . . . . . . . . . .
Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated other comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total Wynn Resorts, Limited stockholders’ equity (deficit) . . . . . . . . . . . . . . . . . . . . .
Noncontrolling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,150
(1,166,697)
1,226,915
1,484
95,097

157,949
99,932

257,881

1,146
(1,152,680)
983,131
1,092
55,332

(111,979)
133,824

21,845

Total liabilities and stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$11,953,557

$10,459,159

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

73

WYNN RESORTS, LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)

Years Ended December 31,

2016

2015

2014

Operating revenues:

Casino . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rooms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Food and beverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Entertainment, retail and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$3,268,141
603,272
601,514
363,428

$2,932,419
538,500
597,080
350,622

$4,274,221
542,762
604,701
401,181

Gross revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: promotional allowances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4,836,355
(370,058)

4,418,621
(342,738)

5,822,865
(389,204)

Net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4,466,297

4,075,883

5,433,661

Operating costs and expenses:

Casino . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rooms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Food and beverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Entertainment, retail and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
General and administrative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provision for doubtful accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pre-opening costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Property charges and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2,079,740
157,904
375,234
161,144
548,141
8,203
154,717
404,730
54,822

1,862,687
149,009
361,246
157,432
464,793
11,115
77,623
322,629
10,535

2,667,013
148,338
337,206
163,754
492,464
3,906
30,146
314,119
10,437

Total operating costs and expenses . . . . . . . . . . . . . . . . . . . . . .

3,944,635

3,417,069

4,167,383

Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

521,662

658,814

1,266,278

Other income (expense):

Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest expense, net of amounts capitalized . . . . . . . . . . . . . . . . . . .
Change in interest rate swap fair value . . . . . . . . . . . . . . . . . . . . . . .
Decrease in Redemption Note fair value . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loss on extinguishment of debt
Equity in income from unconsolidated affiliates . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13,536
(289,365)
433
65,043
—
16
(728)

7,229
(300,906)
(5,300)
52,041
(126,004)
1,823
1,550

20,441
(315,062)
(4,393)
—
(9,569)
1,349
(182)

Other income (expense), net . . . . . . . . . . . . . . . . . . . . . . . . . . .

(211,065)

(369,567)

(307,416)

Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Benefit (provision) for income taxes . . . . . . . . . . . . . . . . . . . . . . . . .

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: net income attributable to noncontrolling interests . . . . . . . . .

310,597
(8,128)

302,469
(60,494)

289,247
(7,723)

281,524
(86,234)

958,862
3,782

962,644
(231,090)

Net income attributable to Wynn Resorts, Limited . . . . . . . . . . . . . . . . .

$ 241,975

$ 195,290

$ 731,554

Basic and diluted income per common share:

Net income attributable to Wynn Resorts, Limited:

Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$
$

2.39
2.38

$
$

1.93
1.92

$
$

7.25
7.18

Weighted average common shares outstanding:

Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

101,445
101,855

101,163
101,671

100,927
101,931

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

74

WYNN RESORTS, LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands)

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other comprehensive income (loss):

Foreign currency translation adjustments, before and after tax . . . . . . . .
Unrealized gain (loss) on available-for-sale securities, before and after

Years Ended December 31,

2016

2015

2014

$302,469

$281,524

$ 962,644

(180)

(448)

(282)

tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

522

(1,086)

(195)

Total comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: comprehensive income attributable to noncontrolling interests . . .

302,811
(60,444)

279,990
(86,113)

962,167
(231,021)

Comprehensive income attributable to Wynn Resorts, Limited . . . . . . . . . . . .

$242,367

$193,877

$ 731,146

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

75

WYNN RESORTS, LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(in thousands, except share data)

Common stock

Shares
outstanding

Par
value

Treasury
stock

Additional
paid-in
capital

Accumulated
other
comprehensive
income

Retained
earnings

Total
Wynn Resorts,
Limited
stockholders’
equity (deficit)

Noncontrolling
interests

Total
stockholders’
equity

Balances, January 1, 2014 . . . . . . . . . . . . 101,192,408 $1,142 $(1,143,419) $ 888,727
—
Net income . . . . . . . . . . . . . . . . . . . . . . . . .
Currency translation adjustment
—
. . . . . . . .
Net unrealized gain (loss) on investment

—
—

—
—

—
—

$ 2,913
—
(203)

$ 66,130
731,554
—

$(184,507)
731,554
(203)

$ 316,858
231,090
(79)

$ 132,351
962,644
(282)

securities . . . . . . . . . . . . . . . . . . . . . . . . .
Exercise of stock options . . . . . . . . . . . . . .
Issuance of restricted stock . . . . . . . . . . . .
Cancellation of restricted stock . . . . . . . . .
Shares repurchased by the company and

—

—

2

211,133
54,500 —
(9,166) —

—
—
—
—

held as treasury shares . . . . . . . . . . . . . .

(9,578) —

(2,062)

Shares of subsidiary purchased for share

award plan . . . . . . . . . . . . . . . . . . . . . . .
Cash dividends declared . . . . . . . . . . . . . . .
Excess tax benefits from stock-based

compensation . . . . . . . . . . . . . . . . . . . . .
Stock-based compensation . . . . . . . . . . . . .

—
—

—
—

—
—

—
—

—
—

—
—

—
11,643
—
—

—

—

59

9,376
38,761

(205)
—
—
—

—

—
—

—
—

—
—
—
—

—

—

(205)
11,645
—
—

(2,062)

—

(633,197)

(633,138)

10
214
—
—

—

(195)
11,859
—
—

(2,062)

(2,081)
(312,287)

(2,081)
(945,425)

—
—

9,376
38,761

—
6,145

9,376
44,906

Balances, December 31, 2014 . . . . . . . . . 101,439,297

1,144

(1,145,481)

948,566

2,505

164,487

(28,779)

239,870

211,091

—
—

—
(327)

195,290
—

195,290
(327)

86,234
(121)

281,524
(448)

Net income . . . . . . . . . . . . . . . . . . . . . . . . .
Currency translation adjustment
. . . . . . . .
Net unrealized loss on investment

securities . . . . . . . . . . . . . . . . . . . . . . . . .
Exercise of stock options . . . . . . . . . . . . . .
Issuance of restricted stock . . . . . . . . . . . .
Shares repurchased by the company and

held as treasury shares . . . . . . . . . . . . . .
Shares of subsidiary repurchased for share
award plan . . . . . . . . . . . . . . . . . . . . . . .
Cash dividends declared . . . . . . . . . . . . . . .
Excess tax benefits from stock-based

compensation . . . . . . . . . . . . . . . . . . . . .
Stock-based compensation . . . . . . . . . . . . .

—
—

—
50,716
132,765

—
—

—

1
1

—
—

—
—
—

—
3,025
(1)

(1,086)
—
—

(50,869) —

(7,199)

—

—
—

—
—

—
—

—
—

—
—

—
—

(3,169)
—

387
34,323

—

—
—

—
—

—
—
—

—

—

(304,445)

(1,086)
3,026
—

(7,199)

—
—
—

—

(1,086)
3,026
—

(7,199)

(3,169)
(304,445)

(1,222)
(195,439)

(4,391)
(499,884)

—
—

387
34,323

—
4,502

387
38,825

21,845

Balances, December 31, 2015 . . . . . . . . . 101,571,909

1,146

(1,152,680)

983,131

1,092

55,332

(111,979)

133,824

Net income . . . . . . . . . . . . . . . . . . . . . . . . .
Currency translation adjustment
. . . . . . . .
Net unrealized gain on investment

securities . . . . . . . . . . . . . . . . . . . . . . . . .
Exercise of stock options . . . . . . . . . . . . . .
Issuance of restricted stock . . . . . . . . . . . .
Cancellation of restricted stock . . . . . . . . .
Shares repurchased by the Company and

held as treasury shares . . . . . . . . . . . . . .
Shares of subsidiary repurchased for share
award plan . . . . . . . . . . . . . . . . . . . . . . .

Sale of ownership interest in subsidiary,

net of income tax of $49.8 million . . . . .
Cash dividends declared . . . . . . . . . . . . . . .
Distribution to noncontrolling interest . . . .
Excess tax benefits from stock-based

compensation . . . . . . . . . . . . . . . . . . . . .
Stock-based compensation . . . . . . . . . . . . .

—
—

—
74,000
412,504
(60,000)

—
—

—
1
4
(1)

—
—

—
—
—
—

—
—

—
3,486
(4)
1

(198,942) —

(14,017)

—

—

—
—
—

—
—

—

—
—
—

—
—

—

—
—
—

—
—

(5,471)

224,013

—
—

802
20,957

—
(130)

241,975
—

241,975
(130)

60,494
(50)

302,469
(180)

522
—
—
—

—

—

—
—
—

—
—

—
—
—
—

—

—

—

(202,210)

—

—
—

522
3,487
—
—

(14,017)

—
—
—
—

—

522
3,487
—
—

(14,017)

(5,471)

(2,109)

(7,580)

224,013
(202,210)

—

15,890
(111,716)
(33)

239,903
(313,926)
(33)

802
20,957

—
3,632

802
24,589

Balances, December 31, 2016 . . . . . . . . . 101,799,471 $1,150 $(1,166,697) $1,226,915

$ 1,484

$ 95,097

$ 157,949

$ 99,932

$ 257,881

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

76

WYNN RESORTS, LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

Years Ended December 31,
2015

2014

2016

Cash flows from operating activities:

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

302,469 $

281,524 $

962,644

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

Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Stock-based compensation expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Excess tax benefits from stock-based compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization and write off of deferred financing costs and other . . . . . . . . . . . . . . . . . . . . . . . .
Loss on extinguishment of debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provision for doubtful accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Property charges and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity in income of unconsolidated affiliates, net of distributions . . . . . . . . . . . . . . . . . . . . . . .
Change in interest rate swap fair value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Change in Redemption Note fair value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Increase (decrease) in cash from changes in:

Receivables, net
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Inventories and prepaid expenses and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Customer deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accounts payable and accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

404,730
6,356
43,722
(742)
24,326
—
8,203
42,670
—
(433)
(65,043)

(39,272)
(36,642)
163,217
116,985

322,629
6,498
38,475
(792)
19,785
126,004
11,115
9,664
1,615
5,300
(52,041)

314,119
(8,086)
39,196
(9,339)
36,649
9,569
3,906
10,466
(95)
4,393
—

47,011
(23,613)
(112,748)
(107,613)

38
(6,917)
(155,399)
(102,827)

Net cash provided by operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

970,546

572,813

1,098,317

Cash flows used in investing activities:

Capital expenditures, net of construction payables and retention . . . . . . . . . . . . . . . . . . . . . . . .
Purchase of investment securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sale or maturity of investment securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Restricted cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Return of investment in unconsolidated affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchase of intangibles and other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sale of assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(1,225,943)
(196,750)
144,829
—
727
(14,985)
3,872

(1,921,240)
(253,284)
247,723
—
1,901
(3,912)
37,254

(1,221,357)
(200,258)
200,090
198,943
—

(124,583)
32,813

Net cash used in investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(1,288,250)

(1,891,558)

(1,114,352)

Cash flows from financing activities:

Proceeds from exercise of stock options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Excess tax benefits from stock-based compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sale of ownership interest in subsidiary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Distribution to noncontrolling interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from issuance of long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Repayments of long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Restricted cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Repurchase of common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shares of subsidiary repurchased for share award plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payments on long-term land concession obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payment of financing costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3,487
742
217,000
(325,217)
(33)
1,430,313
(400,707)
(190,763)
(14,017)
(7,580)
(15,978)
(5,381)

3,026
792
—

11,859
9,339
—

(499,107)

(942,928)

—

5,290,747
(3,342,106)
(1,083)
(7,199)
(4,391)
(30,833)
(193,588)

—

958,008
(199,739)

—
(2,062)
(2,081)
(29,338)
(38,683)

Net cash provided by (used in) financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . .

691,866

1,216,258

(235,625)

Effect of exchange rate on cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(1,129)

412

(1,217)

Cash and cash equivalents:

Increase (decrease) in cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Balance, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

373,033
2,080,089

(102,075)
2,182,164

(252,877)
2,435,041

Balance, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,453,122 $ 2,080,089 $ 2,182,164

Supplemental cash flow disclosures

Cash paid for interest, net of amounts capitalized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Cash paid for income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Stock-based compensation capitalized into construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Change in accounts and construction payables related to property and equipment . . . . . . . . . . . $
Change in dividends payable on unvested restricted stock included in other accrued

265,076 $
2,040 $
92 $
(34,049) $

291,313 $
2,873 $
350 $
13,031 $

295,041
3,041
5,710
132,079

liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Note receivable acquired from sale of ownership interest in subsidiary . . . . . . . . . . . . . . . . . . . $

(11,291) $
72,464 $

777 $
— $

2,497
—

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

77

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1—Organization

Wynn Resorts, Limited, a Nevada corporation (together with its subsidiaries, “Wynn Resorts” or the
“Company”) is a developer, owner and operator of destination casino resorts (integrated resorts). In the Macau
Special Administrative Region of the People’s Republic of China (“Macau”), the Company owns approximately
72% of Wynn Macau, Limited (“WML”) and the Company operates the Wynn Macau and Wynn Palace resorts,
which it refers to as Macau Operations. In Las Vegas, Nevada, with the exception of the retail space described
below, the Company owns 100% of and operates Wynn Las Vegas, which it also refers to as its Las Vegas
Operations.

Macau Operations

Wynn Macau features two luxury hotel towers with a total of 1,008 guest rooms and suites, approximately

284,000 square feet of casino space, casual and fine dining in eight restaurants, approximately 31,000 square feet
of meeting and convention space, approximately 57,000 square feet of retail space, a rotunda show and recreation
and leisure facilities.

On August 22, 2016, the Company opened Wynn Palace, an integrated resort in the Cotai area of Macau.

Wynn Palace features a luxury hotel tower with 1,706 guest rooms, suites and villas, approximately 420,000
square feet of casino space, 10 food and beverage outlets, approximately 40,000 square feet of meeting and
convention space, approximately 105,000 square feet of retail space, public attractions, including a performance
lake and floral art displays, and recreation and leisure facilities.

Las Vegas Operations

Wynn Las Vegas features two luxury hotel towers with a total of 4,748 guest rooms, suites and villas,
approximately 189,000 square feet of casino space, 33 food and beverage outlets, an on-site 18-hole golf course,
approximately 290,000 square feet of meeting and convention space, approximately 99,000 square feet of retail
space, as well as two showrooms, three nightclubs and a beach club, and recreation and leisure facilities.

In December 2016, the Company formed a joint venture with Crown Acquisitions Inc. (“Crown”) to own
and operate approximately 88,000 square feet of existing retail space (of which the Company owns 50.1%) and
signed an agreement with Crown to form a joint venture to own and operate approximately 73,000 square feet of
additional retail space currently under construction at Wynn Las Vegas. The Company expects to open the
additional retail space in the first quarter of 2018. For more information on the joint venture, see Note 3, “Retail
Joint Venture.”

Development Project

In November 2014, the Company was awarded a gaming license to develop and construct Wynn Boston
Harbor, an integrated resort in Everett, Massachusetts, adjacent to Boston along the Mystic River. The resort will
contain a hotel, a waterfront boardwalk, meeting and convention space, casino space, a spa, retail offerings and
food and beverage outlets. The Company expects to open Wynn Boston Harbor in mid-2019.

Note 2—Summary of Significant Accounting Policies

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of the Company, its majority-
owned subsidiaries and entities the Company identifies as a variable interest entity (“VIE”) and of which the

78

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Company is determined to be the primary beneficiary. In April 2016, the Company dissolved its 50%-owned
joint venture operating the Ferrari and Maserati automobile dealership inside Wynn Las Vegas, which was closed
in October 2015 and accounted for under the equity method. All significant intercompany accounts and
transactions have been eliminated. Certain amounts in the consolidated financial statements for the previous
years have been reclassified to be consistent with the current year presentation. These reclassifications had no
effect on the previously reported net income.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles
(“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period. Actual results could differ from those
estimates.

Cash and Cash Equivalents

Cash and cash equivalents are comprised of highly liquid investments with original maturities of three

months or less and include both U.S. dollar-denominated and foreign currency-denominated securities. Cash
equivalents are carried at cost, which approximates fair value. Cash equivalents of $1.11 billion and
$846.3 million as of December 31, 2016 and 2015, respectively, were invested in bank time deposits, money
market funds and commercial paper. In addition, the Company held bank deposits and cash on hand of
approximately $1.34 billion and $1.23 billion as of December 31, 2016 and 2015, respectively.

Restricted Cash

The Company’s restricted cash consists of collateral associated with borrowings under a revolving credit

facility and cash held in trust in accordance with the Company’s majority owned subsidiary’s share award plan.

Investment Securities

Investment securities consist of domestic and foreign short-term and long-term investments in corporate
bonds and commercial paper reported at fair value, with unrealized gains and losses, net of tax, reported in other
comprehensive income (loss). Short-term investments have a maturity date of less than one year and long-term
investments are those with a maturity date greater than one year. The Company’s investment policy limits the
amount of exposure to any one issuer with the objective of minimizing the potential risk of principal loss.
Management determines the appropriate classification of its securities at the time of purchase and reevaluates
such designation as of each balance sheet date. Adjustments are made for amortization of premiums and
accretion of discounts to maturity computed under the effective interest method. Such amortization is included in
interest income together with realized gains and losses and the stated interest on such securities.

Accounts Receivable and Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist
principally of casino accounts receivable. The Company issues credit in the form of “markers” to approved
casino customers following investigations of creditworthiness. As of December 31, 2016 and 2015, 88.1% and
85.1%, 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 these countries could affect the
collectability of such receivables.

79

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Accounts receivable, including casino and hotel receivables, are typically non-interest bearing and are
initially recorded at cost. An estimated allowance for doubtful accounts is maintained to reduce the Company’s
receivables to their carrying amount, which approximates fair value. The allowance estimate reflects specific
review of customer accounts and outstanding gaming promoter accounts as well as management’s experience
with historical and current collection trends and current economic and business conditions. Accounts are written
off when management deems them to be uncollectible. Recoveries of accounts previously written off are
recorded when received.

Inventories

Inventories consist of retail merchandise and food and beverage items, which are stated at the lower of cost
or market value and certain operating supplies. Cost is determined by the first-in, first-out, weighted average and
specific identification methods.

Property and Equipment

Purchases of property and equipment are stated at cost. Depreciation is provided over the estimated useful

lives of the assets using the straight-line method as follows:

Buildings and improvements . . . . . . . . . . . . . . . . . . . . . . . 10 to 45 years
Land improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 to 45 years
Leasehold interest in land . . . . . . . . . . . . . . . . . . . . . . . . . . 25 years
Airplanes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 years
Furniture, fixtures and equipment

. . . . . . . . . . . . . . . . . . . 3 to 20 years

Costs related to improvements are capitalized, while costs of repairs and maintenance are charged to

expense as incurred. The cost and accumulated depreciation of property and equipment retired or otherwise
disposed of are eliminated from the respective accounts and any resulting gain or loss is included in property
charges and other.

Capitalized Interest

The interest cost associated with major development and construction projects is capitalized and included in

the cost of the project. Interest capitalization ceases once a project is substantially complete or no longer
undergoing construction activities to prepare it for its intended use. When no debt is specifically identified as
being incurred in connection with a construction project, the Company capitalizes interest on amounts expended
on the project using the weighted average cost of the Company’s outstanding borrowings. Interest of
$94.1 million, $53.3 million and $33.5 million was capitalized for the years ended December 31, 2016, 2015 and
2014, respectively.

Intangible Assets

The Company’s indefinite-lived intangible assets consist primarily of water rights acquired as part of the
original purchase price of the property on which Wynn Las Vegas is located, and trademarks. Indefinite-lived
intangible assets are not amortized, but are reviewed for impairment annually. The Company’s finite-lived
intangible assets consist primarily of its Macau gaming concession and Massachusetts gaming license. Finite-
lived intangible assets are amortized over the shorter of their contractual terms or estimated useful lives.

80

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Long-Lived Assets

Long-lived assets, which are to be held and used, including intangible assets and property and equipment,

are periodically reviewed by management for impairment whenever events or changes in circumstances indicate
that the carrying value of the asset may not be recoverable. If an indicator of impairment exists, the Company
compares the estimated future cash flows of the asset, on an undiscounted basis, to the carrying value of the
asset. If the undiscounted cash flows exceed the carrying value, no impairment is indicated. If the undiscounted
cash flows do not exceed the carrying value, then impairment is measured as the difference between fair value
and carrying value, with fair value typically based on a discounted cash flow model. If an asset is still under
development, future cash flows include remaining construction costs.

Deferred Financing Costs

Direct and incremental costs and original issue discounts and premiums incurred in connection with the
issuance of long-term debt are deferred and amortized to interest expense using the effective interest method or,
if the amounts approximate the effective interest method, on a straight-line basis. Deferred financing costs
incurred in connection with the issuance of the Company’s revolving credit facilities are presented in noncurrent
assets on the Consolidated Balance Sheets. All other deferred financing costs are presented as a direct reduction
of long-term debt on the Consolidated Balance Sheets. See the Recently Issued and Adopted Accounting
Standards section below for details on the presentation change of deferred financing costs. Approximately
$18.1 million, $16.9 million and $12.6 million was amortized to interest expense during the years ended
December 31, 2016, 2015 and 2014, respectively.

Derivative Financial Instruments

Derivative financial instruments are used to manage interest rate and foreign currency exposures. These
derivative financial instruments include interest rate swaps and foreign currency forward contracts. The fair value
of derivative financial instruments is recognized as an asset or liability at each balance sheet date, with changes
in fair value affecting net income as the Company’s derivative financial instruments do not qualify for hedge
accounting.

Redemption Price Promissory Note

The Redemption Price Promissory Note (the “Redemption Note”) is recorded at fair value in accordance
with applicable accounting guidance. As of December 31, 2016 and 2015, the fair value of the Redemption Note
was $1.82 billion and $1.88 billion, respectively. In determining this fair value, the Company estimated the
Redemption Note’s present value using discounted cash flows with a probability weighted expected return for
redemption assumptions and a discount rate, which included time value and non-performance risk adjustments
commensurate with risk of the Redemption Note.

Considerations for the redemption assumptions included the stated maturity of the Redemption Note,
uncertainty of the related cash flows, as well as potential effects of the following: uncertainties surrounding the
potential outcome and timing of pending litigation with Aruze USA, Inc. (“Aruze”), Universal Entertainment
Corporation and Mr. Kazuo Okada (collectively, the “Okada Parties”) (see Note 17 “Commitments and
Contingencies”); the outcome of ongoing investigations of Aruze by the U.S. Attorney’s Office, the U.S.
Department of Justice and the Nevada Gaming Control Board; and other potential legal and regulatory actions. In
addition, in the furtherance of various future business objectives, the Company considered its ability, at its sole
option, to prepay the Redemption Note at any time in accordance with its terms without penalty. Accordingly, the
Company reasonably determined that the estimated life of the Redemption Note could be less than its contractual
life.

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WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

In determining the appropriate discount rate to be used to calculate the estimated present value, the

Company considered the Redemption Note’s subordinated position and credit risk relative to all other debt in the
Company’s capital structure and credit ratings associated with the Company’s traded debt. Observable inputs for
the risk free rate were based on Federal Reserve rates for U.S. Treasury securities and the credit risk spread was
based on a yield curve index of similarly rated debt.

Revenue Recognition and Promotional Allowances

The Company recognizes revenues at the time persuasive evidence of an arrangement exists, the service is

provided or the retail goods are sold, prices are fixed or determinable and collection is reasonably assured.

Casino revenues are measured by the aggregate net difference between gaming wins and losses. The
commissions rebated directly or indirectly through games promoters to customers, cash discounts, other cash
incentives and points earned by customers from the Company’s loyalty programs are recorded as a reduction to
casino revenues. Rooms, food and beverage, entertainment and other operating revenues are recognized when
services are performed. Entertainment, retail and other revenue includes rental income, which is recognized on a
time proportion basis over the lease term. Contingent rental income is recognized when the right to receive such
rental income is established according to the lease agreements. Advance deposits on rooms and advance ticket
sales are recorded as customer deposits until services are provided to the customer.

The retail value of accommodations, food and beverage, and other services furnished to guests without
charge is included in gross revenues. Such amounts are then deducted as promotional allowances. The estimated
retail value of providing such promotional allowances is as follows (in thousands):

Years Ended December 31,

2016

2015

2014

Rooms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Food and beverage . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Entertainment, retail and other . . . . . . . . . . . . . . . . . . .

$211,822
131,479
26,757

$184,779
133,984
23,975

$199,896
162,712
26,596

$370,058

$342,738

$389,204

The estimated cost of providing such promotional allowances, which is included primarily in casino

expenses, is as follows (in thousands):

Years Ended December 31,

2016

2015

2014

Rooms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Food and beverage . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Entertainment, retail and other . . . . . . . . . . . . . . . . . . .

$ 63,448
113,341
17,170

$ 51,775
106,840
14,414

$ 54,981
120,070
14,977

$193,959

$173,029

$190,028

Customer Loyalty Programs

The Company offers loyalty programs at both its Macau Operations and its Las Vegas Operations. Under
the program at its Las Vegas Operations, customers earn points based on their level of slots play, which can be
redeemed for free play. Under the program at its Macau Operations, customers earn points based on their level of
table games and slots play, which can be redeemed for free play, gifts and complimentary dining and retail

82

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

shopping. The points are recognized as a liability and as a separate element of the gaming transaction with
allocation of the consideration received between the points and gaming transaction. The initial recognition of the
point liability is at fair value based on points earned multiplied by redemption value, less an estimate for points
not expected to be redeemed. The revenue from the points is recognized when redeemed.

Gaming Taxes

The Company is subject to taxes based on gross gaming revenue in the jurisdictions in which it operates,

subject to applicable jurisdictional adjustments. These gaming taxes are an assessment on the Company’s gross
gaming revenues and are recorded as casino expenses in the accompanying Consolidated Statements of Income.
These taxes totaled $1.32 billion, $1.15 billion and $1.82 billion for the years ended December 31, 2016, 2015
and 2014, respectively.

Advertising Costs

The Company expenses advertising costs the first time the advertising takes place. Advertising costs

incurred in development periods are included in pre-opening costs. Once a project is completed, advertising costs
are primarily included in general and administrative expenses. Total advertising costs were $37.0 million,
$25.2 million and $23.3 million for the years ended December 31, 2016, 2015 and 2014, respectively.

Pre-Opening Costs

Pre-opening costs represent personnel and other costs incurred prior to the opening of new ventures and are

expensed as incurred. During the years ended December 31, 2016, 2015 and 2014, the Company incurred
pre-opening costs primarily in connection with the development of Wynn Palace and Wynn Boston Harbor.

Income Taxes

The Company is subject to income taxes in the U.S. and foreign jurisdictions where it operates. Accounting
standards require the recognition of deferred tax assets, net of applicable reserves, and liabilities for the estimated
future tax consequences attributable to differences between financial statement carrying amounts of existing
assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax
assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary
differences are expected to be recovered or settled. The effect of a change in tax rates on the income tax
provision and deferred tax assets and liabilities is recognized in the results of operations in the period that
includes the enactment date. Accounting standards also require recognition of a future tax benefit to the extent
that realization of such benefit is more likely than not; otherwise, a valuation allowance is applied.

The Company’s income tax returns are subject to examination by the Internal Revenue Service (“IRS”) and
other tax authorities in the locations where it operates. The Company assesses potentially unfavorable outcomes
of such examinations based on accounting standards for uncertain income taxes. The accounting standards
prescribe a minimum recognition threshold a tax position is required to meet before being recognized in the
financial statements.

Uncertain tax position accounting standards apply to all tax positions related to income taxes. These

accounting standards utilize a two-step approach for evaluating tax positions. If a tax position, based on its
technical merits, is deemed more likely than not to be sustained, then the tax benefit is measured as the largest
amount of benefit that is more likely than not to be realized upon settlement.

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WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

As applicable, the Company will recognize accrued penalties and interest related to unrecognized tax

benefits in the provision for income taxes.

Foreign Currency

Gains or losses from foreign currency remeasurements are included in other income (expense) in the
accompanying Consolidated Statements of Income. Balance sheet accounts are translated at the exchange rate in
effect at each balance sheet date and income statement accounts are translated at the average rate of exchange
prevailing during the year. Translation adjustments resulting from this process are charged or credited to other
comprehensive income.

Comprehensive Income

Comprehensive income includes net income and all other non-stockholder changes in equity, or other

comprehensive income (loss). Components of the Company’s comprehensive income are reported in the
accompanying Consolidated Statements of Stockholders’ Equity and Consolidated Statements of Comprehensive
Income. The balance of accumulated other comprehensive income consists of currency translation adjustments
and net unrealized gains or losses on available-for-sale securities.

Fair Value Measurements

The Company measures certain of its financial assets and liabilities, at fair value on a recurring basis
pursuant to accounting standards for fair value measurements. Fair value is the price that would be received to
sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date. These accounting standards establish a three-tier fair value hierarchy, which prioritizes the
inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted
prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either
directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data
exists, therefore requiring an entity to develop its own assumptions.

The following table presents assets and liabilities carried at fair value (in thousands):

Fair Value Measurements Using:

Quoted
Market
Prices in
Active
Markets
(Level 1)

December 31,
2016

Other
Observable
Inputs
(Level 2)

Unobservable
Inputs
(Level 3)

Assets:
Cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Available-for-sale securities . . . . . . . . . . . . . . . . . . . . . . . . . .
Restricted cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest rate swaps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Liabilities:
Redemption Note . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$1,106,606
$ 301,460
$ 192,823
1,056
$

$3,868

$1,102,738
— $ 301,460
— $ 192,823
1,056
— $

$1,819,359

— $1,819,359

—
—
—
—

—

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WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Assets:
Cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Available-for-sale securities . . . . . . . . . . . . . . . . . . . . . . . . . .
Restricted cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest rate swaps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Liabilities:
Redemption Note . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest rate swaps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Fair Value Measurements Using:

Quoted
Market
Prices in
Active
Markets
(Level 1)

Other
Observable
Inputs
(Level 2)

Unobservable
Inputs
(Level 3)

December 31,
2015

$ 846,281
$ 251,553
2,060
$
726
$

$ 186

$ 846,095
— $ 251,553
—
726

— $

$2,060

$1,884,402
108
$

— $1,884,402
108
— $

—
—
—
—

—
—

As of December 31, 2016, there were no cash equivalents categorized as Level 2 held in foreign currencies.
As of December 31, 2015, 16% of the Company’s cash equivalents categorized as Level 2 were deposits held in
foreign currencies.

Earnings Per Share

Basic earnings per share (“EPS”) is computed by dividing net income attributable to Wynn Resorts by the
weighted average number of shares outstanding during the year. Diluted EPS is computed by dividing net income
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. Potentially dilutive securities include outstanding stock options and
unvested restricted stock.

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WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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):

Years Ended December 31,

2016

2015

2014

Numerator:

Net income attributable to Wynn Resorts,

Limited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$241,975

$195,290

$731,554

Denominator:

Weighted average common shares

outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . .

101,445

101,163

100,927

Potential dilutive effect of stock options and

restricted stock . . . . . . . . . . . . . . . . . . . . . . . . .

410

508

1,004

Weighted average common and common

equivalent shares outstanding . . . . . . . . . . . . .

101,855

101,671

101,931

Net income attributable to Wynn Resorts, Limited per
common share, basic . . . . . . . . . . . . . . . . . . . . . . . .

Net income attributable to Wynn Resorts, Limited per
common share, diluted . . . . . . . . . . . . . . . . . . . . . . .

Anti-dilutive stock options and restricted stock

excluded from the calculation of diluted earnings
per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$

$

2.39

2.38

$

$

1.93

1.92

$

$

7.25

7.18

758

677

26

Stock-Based Compensation

The Company accounts for stock-based compensation in accordance with accounting standards which require the

compensation cost relating to share-based payment transactions be recognized in the Company’s Consolidated
Statements of Income. The cost is measured at the grant date, based on the estimated fair value of the award using the
Black-Scholes option pricing model for stock options, and based on the closing share price of the Company’s stock on
the grant date for nonvested share awards. The cost is recognized as an expense on a straight-line basis over the
employee’s requisite service period (the vesting period of the award) net of estimated forfeitures. The Company’s
stock-based employee compensation arrangements are more fully discussed in Note 15 “Stock-Based Compensation.”

Recently Issued and Adopted Accounting Standards

In November 2016, the Financial Accounting Standards Board (“FASB”) issued an accounting standards
update that changes the classification of restricted cash in the statement of cash flows. The new guidance requires
that amounts generally described as restricted cash or restricted cash equivalents should be included with cash
and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the
statement of cash flows. The effective date for this guidance is for financial statements for fiscal years beginning
after December 15, 2017, and interim periods within those fiscal periods and early application is permitted. The
new guidance should be adopted on a retrospective basis. The Company is currently assessing the impact the
adoption of this standard will have on its consolidated financial statements.

In October 2016, the FASB issued an accounting standards update to require the recognition of the income

tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs, rather than

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WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

deferring such recognition until the asset is sold to an outside party. The effective date for this guidance is for
financial statements for fiscal years beginning after December 15, 2017, and interim periods within those fiscal
periods and early application is permitted. The amendments in the new guidance should be adopted on a
retrospective basis. The Company is currently assessing the impact the adoption of this standard will have on its
consolidated financial statements.

In August 2016, the FASB issued an accounting standards update that clarifies the classification of certain

cash receipts and cash payments on the statement of cash flows. In particular, the new guidance clarifies the
classification related to several types of cash flows; including items such as debt extinguishment costs and
distributions received from equity method investees. The new guidance also provides a three-step approach for
classifying cash receipts and payments that have aspects of more than one class of cash flows. The effective date
for this guidance is for financial statements for fiscal years beginning after December 15, 2017, and interim
periods within those fiscal periods and early application is permitted. The Company is currently assessing the
impact the adoption of this guidance will have on its consolidated financial statements.

In March 2016, the FASB issued an accounting standards update that involves several aspects of the
accounting for share-based payment transactions, including the income tax consequences, classification of
awards as either equity or liabilities, and classification on the statement of cash flows. Under the new guidance,
income tax benefits and deficiencies are to be recognized as income tax expense or benefit in the income
statement and the tax effects of exercised or vested awards should be treated as discrete items in the reporting
period in which they occur. An entity should also recognize excess tax benefits regardless of whether the benefit
reduces taxes payable in the current period. Excess tax benefits should be classified along with other income tax
cash flows as an operating activity. In regard to forfeitures, the entity may make an entity-wide accounting policy
election to either estimate the number of awards that are expected to vest or account for forfeitures when they
occur. The effective date for this guidance is for financial statements for fiscal years beginning after
December 15, 2016, and interim periods within those fiscal periods and early application is permitted. The
Company adopted this guidance on January 1, 2017, and does not expect the adoption of this update to have a
material effect on its consolidated financial statements.

In February 2016, the FASB issued an accounting standards update that changes the accounting for leases
and requires expanded disclosures about leasing activities. Under the new guidance, lessees will be required to
recognize a right-of-use asset and lease liability, measured on a discounted basis, at the commencement date for
all leases with terms greater than 12 months. Lessor accounting will remain largely unchanged, other than certain
targeted improvements intended to align lessor accounting with the lessee accounting model and with the
updated revenue recognition guidance issued in 2014. Lessees and lessors are required to apply a modified
retrospective transition approach for leases existing at the beginning of the earliest comparative period presented
in the adoption-period financial statements. The new standard is effective for fiscal years beginning after
December 15, 2018, including interim periods within those fiscal years and early adoption is permitted. The
Company is currently assessing the impact the adoption of this standard will have on its consolidated financial
statements.

In January 2016, the FASB issued an accounting standards update requiring all equity investments to be
measured at fair value with changes in fair value recognized through net income (other than those accounted for
under the equity method of accounting or those that result in consolidation of the investee). The update also
requires an entity to present separately in other comprehensive income the portion of the total change in the fair
value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to
measure the liability at fair value in accordance with the fair value option for financial instruments. This update
eliminates the requirement to disclose the methods and significant assumptions used to estimate the fair value

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WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet for
public business entities. The effective date for this guidance is for financial statements issued for fiscal years
beginning after December 15, 2017. Early application is permitted as of the beginning of the fiscal year of
adoption. The Company is currently assessing the impact the adoption of this standard will have on its
consolidated financial statements.

In April 2015, the FASB issued an accounting standards update that requires deferred financing costs related

to a recognized debt liability to be presented on the balance sheet as a direct reduction from the carrying amount
of that debt liability, consistent with debt discounts. The recognition and measurement guidance for deferred
financing costs are not affected by the amendments in this update. In August 2015, the FASB issued an
accounting standards update that clarifies that the guidance issued in April 2015 does not apply to line-of-credit
arrangements. According to the additional guidance, deferred financing costs related to line-of-credit
arrangements will continue to be presented as an asset and subsequently amortized ratably over the term of the
arrangement. The effective date for this guidance is for financial statements for fiscal years beginning after
December 15, 2015, and interim periods within those fiscal years. The Company adopted the guidance on
January 1, 2016, with retrospective application in the accompanying Consolidated Balance Sheet as of
December 31, 2015. This change in accounting principle resulted in net deferred financing costs of $63.1 million
incurred in connection with the issuance of the Company’s long-term debt (excluding revolving credit facilities)
being reclassified from noncurrent assets to a direct reduction of the long-term debt balance as of December 31,
2015. The presentation of the $41.3 million of net deferred financing costs incurred in connection with the
issuance of the Company’s revolving credit facilities as of December 31, 2015, are not affected by the adoption
of this new accounting guidance and are included in other assets on the Consolidated Balance Sheets.

In May 2014, the FASB issued an accounting standards update that amends the FASB Accounting Standards
Codification and creates a new topic for Revenue from Contracts with Customers. The new guidance is expected
to clarify the principles for revenue recognition and to develop a common revenue standard for GAAP applicable
to revenue transactions. This guidance provides that an entity should recognize revenue to depict the transfer of
promised goods or services to customers in an amount that reflects the consideration to which the entity expects
to be entitled in exchange for those goods and services. This guidance also provides substantial revision of
interim and annual disclosures. The update allows for either full retrospective adoption, meaning the guidance is
applied for all periods presented, or modified retrospective adoption, meaning the guidance is applied only to the
most current period presented in the financial statements with the cumulative effect of initially applying the
guidance recognized at the date of initial application. In August 2015, the FASB issued an accounting standards
update that defers the effective date of the new revenue recognition accounting guidance by one year, to annual
and interim periods beginning after December 15, 2017. Early application is permitted for annual and interim
periods beginning after December 15, 2016. The Company will adopt this standard effective January 1, 2018.
The Company is currently assessing the impact the adoption of this guidance will have on its consolidated
financial statements. The Company expects the goods and services provided to customers without charge
currently included in both gross revenues and promotional allowances in the accompanying Consolidated
Statements of Income will be presented on a net basis.

Prior Period Adjustments

During the three months ended March 31, 2016, the Company identified $21.9 million and $3.7 million of

additional interest that should have been capitalized instead of being expensed during the years ended
December 31, 2015 and 2014, respectively. Considering both quantitative and qualitative factors, the Company
determined the amounts were immaterial to any previously issued financial statements and to the full year results
for 2016. Accordingly, the Company corrected these immaterial amounts during the first quarter of the year

88

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

ended December 31, 2016, resulting in a decrease to interest expense of $25.6 million and increases to net
income attributable to Wynn Resorts, Limited of $18.5 million and basic and diluted net income per common
share of $0.18. Had these amounts been corrected in the appropriate periods, it would have resulted in a decrease
to interest expense of $21.9 million and increases to net income attributable to Wynn Resorts, Limited of
$15.8 million and basic and diluted net income per common share of $0.16, for the year ended December 31,
2015, and a decrease to interest expense of $3.7 million and increases to net income attributable to Wynn
Resorts, Limited of $2.7 million and basic and diluted net income per common share of $0.03 and $0.02,
respectively, for the year ended December 31, 2014.

Note 3—Retail Joint Venture

On December 28, 2016, the Company formed a joint venture (the “Retail Joint Venture”) with Crown to
own and operate approximately 88,000 square feet of existing retail space at Wynn Las Vegas. In connection
with the transaction, the Company transferred certain assets and liabilities with a net book value of $31.8 million
associated with the existing Wynn Las Vegas retail stores from Wynn Las Vegas, LLC, to the Retail Joint
Venture. The Company sold Crown a 49.9% ownership interest in the Retail Joint Venture for consideration of
$292.0 million, which consisted of $217.0 million in cash and a $75.0 million interest-free note that matures in
full on January 3, 2018. The cash proceeds will be used to fund future development opportunities and for general
corporate purposes. Wynn Las Vegas, LLC transferred all interests as lessor in third-party retail store leases to
the Retail Joint Venture as part of the transaction and the majority of the retail stores previously operated by
Wynn Las Vegas, LLC are now operated under a master lease agreement between a newly formed retail entity
owned by Wynn Resorts, as lessee, and the Retail Joint Venture, as lessor. The Company maintains a 50.1%
ownership in the Retail Joint Venture and is the managing member. The Company’s responsibilities with respect
to the Retail Joint Venture include day-to-day business operations, property management services and a role in
the leasing decisions of the retail space.

Also in December 2016, the Company entered into an agreement with Crown to form a joint venture that
will own approximately 73,000 square feet of additional retail space that is currently under construction at Wynn
Las Vegas. Crown will pay the Company a fixed amount of $180.0 million for a 49.9% ownership interest in the
new joint venture prior to the expected opening for business in the first quarter of 2018.

The Company assessed its ownership in the Retail Joint Venture based on consolidation accounting
guidance with an evaluation being performed to determine if the Retail Joint Venture is a VIE, if the Company
has a variable interest in the Retail Joint Venture and if the Company is the primary beneficiary of the Retail
Joint Venture. The primary beneficiary is the party who has the power to direct the activities of a VIE that most
significantly impact the entity’s economic performance and who has an obligation to absorb losses of the entity
or a right to receive benefits from the entity that could potentially be significant to the entity.

The Company concluded that the Retail Joint Venture is a VIE and the Company is the primary beneficiary

based on its involvement in the leasing activities of the Retail Joint Venture. As a result, the Company
consolidates all of the Retail Joint Venture’s assets, liabilities and results of operations. The Company will
evaluate its primary beneficiary designation on an ongoing basis and will assess the appropriateness of the Retail
Joint Venture’s VIE status when changes occur.

As of December 31, 2016, the Retail Joint Venture had total assets of $33.6 million and total liabilities of

$2.1 million.

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WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Note 4—Accumulated Other Comprehensive Income

The following table presents the changes by component, net of tax and noncontrolling interests, in

accumulated other comprehensive income of the Company (in thousands):

December 31, 2015 . . . . . . . . . . . . . . . . . . . . . . . .
Current period other comprehensive income

Foreign
currency
translation

Unrealized
loss on
investment
securities

Accumulated
other
comprehensive
income

$2,343

$(1,251)

$1,092

(loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(130)

522

392

December 31, 2016 . . . . . . . . . . . . . . . . . . . . . . . .

$2,213

$ (729)

$1,484

Note 5—Investment Securities

Investment securities consisted of the following (in thousands):

December 31, 2016

December 31, 2015

Amortized
cost

Gross
unrealized
gains

Gross
unrealized
losses

Fair value
(net carrying
amount)

Amortized
cost

Gross
unrealized
gains

Gross
unrealized
losses

Fair value
(net carrying
amount)

Domestic and
foreign
corporate
bonds . . . . . . . . $245,425

Commercial

paper . . . . . . . .

56,764

$302,189

$19

5

$24

$(720)

$244,724

$243,857

$—

$(1,243)

$242,614

(33)

56,736

8,947

$(753)

$301,460

$252,804

—

$—

(8)

8,939

$(1,251)

$251,553

For investments with unrealized losses as of December 31, 2016, the Company has determined that (i) it
does not have the intent to sell any of these investments, and (ii) it is not likely that the Company will be required
to sell these investments prior to the recovery of the amortized cost. Accordingly, the Company has determined
that no other-than-temporary impairments exist at the reporting date.

The Company obtains pricing information in determining the fair value of its available-for-sale securities
from independent pricing vendors. Based on management’s inquiries, the pricing vendors use various pricing
models consistent with what other market participants would use. The assumptions and inputs used by the pricing
vendors are derived from market observable sources including: reported trades, broker/dealer quotes, issuer
spreads, benchmark curves, bids, offers and other market-related data. The Company has not made adjustments
to such prices. Each quarter, the Company validates the fair value pricing methodology to determine the fair
value is consistent with applicable accounting guidance and to confirm that the securities are classified properly
in the fair value hierarchy. The Company compares the pricing received from its vendors to independent sources
for the same or similar securities.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

The fair value of these investment securities as of December 31, 2016, by contractual maturity, are as

follows (in thousands):

Available-for-sale securities
Due in one year or less . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Due after one year through two years . . . . . . . . . . . . . . . . . .
Due after two years through three years . . . . . . . . . . . . . . . .

Fair value

$173,437
100,589
27,434

$301,460

Note 6—Receivables, net

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

December 31,

2016

2015

Casino . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Hotel
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$211,557
21,897
40,256

$190,294
20,661
43,989

Less: allowance for doubtful accounts . . . . . . . . . . . . . . .

273,710
(54,742)

254,944
(67,057)

$218,968

$187,887

Note 7—Property and Equipment, net

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

Land and improvements . . . . . . . . . . . . . . . . . . . . .
Buildings and improvements . . . . . . . . . . . . . . . . . .
Airplanes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Furniture, fixtures and equipment . . . . . . . . . . . . . .
Leasehold interest in land . . . . . . . . . . . . . . . . . . . .
Construction in progress . . . . . . . . . . . . . . . . . . . . .

Less: accumulated depreciation . . . . . . . . . . . . . . .

December 31,

2016

2015

$

834,420
7,623,069
179,730
2,181,515
316,516
299,686

$

804,512
3,975,419
194,412
1,809,938
316,681
3,217,117

11,434,936
(3,175,305)

10,318,079
(2,840,601)

$ 8,259,631

$ 7,477,478

Depreciation expense for the years ended December 31, 2016, 2015, and 2014 was $398.2 million,

$317.8 million, and $311.6 million, respectively.

As of December 31, 2016, construction in progress consisted primarily of costs capitalized, including
interest, for the construction of Wynn Boston Harbor. As of December 31, 2015, construction in progress
consisted primarily of costs capitalized, including interest, for the construction of Wynn Palace and Wynn
Boston Harbor. On August 22, 2016, the Company opened Wynn Palace. Accordingly, amounts relating to Wynn
Palace were transferred to the appropriate property and equipment categories.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Note 8—Intangible Assets, net

Intangible assets, net consisted of the following (in thousands):

Indefinite-lived intangible assets:
Water rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trademarks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total indefinite-lived intangible assets . . . . . . . . . . .

Finite-lived intangible assets:
Macau Gaming Concession . . . . . . . . . . . . . . . . . . . . . . . .
Less: accumulated amortization . . . . . . . . . . . . . . . . . . . .

Massachusetts Gaming License . . . . . . . . . . . . . . . . . . . .
Less: accumulated amortization . . . . . . . . . . . . . . . . . . . .

Total finite-lived intangible assets . . . . . . . . . . . . . .

December 31,

2016

2015

$

6,400
1,387

7,787

$

6,400
1,387

7,787

42,300
(29,199)

42,300
(26,815)

13,101
92,700
—

92,700
105,801

15,485
87,700
—

87,700
103,185

Total intangible assets, net

. . . . . . . . . . . . . . . . . . . .

$113,588

$110,972

Water rights and trademarks are indefinite-lived assets and, accordingly, are not amortized. Water rights

reflect the fair value allocation determined in the purchase of the property on which Wynn Las Vegas is located
in April 2000. The value of the trademarks primarily represents the costs to acquire the “Le Rêve” name.

The Macau gaming concession is a finite-lived intangible asset that is being amortized over the 20-year life
of the concession. The Company expects that amortization of the Macau gaming concession will be $2.4 million
each year from 2017 through 2021, and $1.2 million in 2022.

In November 2014, the Company was awarded a license to operate a casino in Massachusetts. The

consideration paid to the State of Massachusetts for the license fee and certain costs incurred in connection with
and contractually related to obtaining the license will be considered a finite-lived intangible asset. These amounts
will be amortized over a period of 15 years beginning upon the opening of the resort.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Note 9—Long-Term Debt

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

December 31,

2016

2015

Macau Related:
Wynn Macau Credit Facilities:

Senior Term Loan Facility (as amended September 2015), due September 2021;
interest at LIBOR or HIBOR plus 1.50%—2.25% (2.76% and 2.08% as of
December 31, 2016 and 2015, respectively), net of debt issuance costs and
original issue discount of $28,091 and $35,112 as of December 31, 2016 and
2015, respectively.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,278,682 $2,272,200

Senior Revolving Credit Facility (as amended September 2015), due September
2020; interest at LIBOR or HIBOR plus 1.50%—2.25% (2.75% and 2.07% as
. . . . . . . . . . . . . . . . . . . . . . . . .
of December 31, 2016 and 2015, respectively)

5 1/4% Senior Notes, due October 15, 2021, net of debt issuance costs and original

issue premium of $6,709 and $7,896 as of December 31, 2016 and 2015,
respectively . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
WML Finance Revolving Credit Facility, due July 2018; interest at 1.50% . . . . . . . . .
U.S. and Corporate Related:
Wynn America Credit Facilities:

Senior Term Loan Facility, due November 2020; interest at base rate plus 0.75%
or LIBOR plus 1.75% (2.52% and 1.99% as of December 31, 2016 and 2015,
respectively), net of debt issuance costs of $15,436 and $15,712 as of
December 31, 2016 and 2015, respectively . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5 3/8% First Mortgage Notes, due March 15, 2022, net of debt issuance costs of

340,846

431,172

1,343,291
189,651

1,342,104

—

984,564

54,288

$6,709 and $7,791 as of December 31, 2016 and 2015, respectively . . . . . . . . . . . .

893,291

892,209

4 1/4% Senior Notes, due May 30, 2023, net of debt issuance costs of $2,819 and

$3,183 as of December 31, 2016 and 2015, respectively . . . . . . . . . . . . . . . . . . . . . .

497,181

496,817

5 1/2% Senior Notes, due March 1, 2025, net of debt issuance costs of $21,513 and

$23,527 as of December 31, 2016 and 2015, respectively . . . . . . . . . . . . . . . . . . . . .

1,778,487

1,776,473

Redemption Price Promissory Note with former stockholder and related party, due
February 18, 2022; interest at 2%, net of fair value adjustment of $117,085 and
$52,041 as of December 31, 2016 and 2015, respectively . . . . . . . . . . . . . . . . . . . . .

Current portion of long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,819,359

1,884,402

10,125,352
—

9,149,665

—

$10,125,352 $9,149,665

Macau Related Debt

Wynn Macau Credit Facilities

The Company’s credit facilities include a $2.30 billion equivalent fully funded senior secured term loan facility

(the “Wynn Macau Senior Term Loan Facility”) and a $750 million equivalent senior secured revolving credit facility
(the “Wynn Macau Senior Revolving Credit Facility” and together with the Wynn Macau Senior Term Loan Facility,
the “Wynn Macau Credit Facilities”). The borrower is Wynn Resorts (Macau) S.A. (“Wynn Macau SA”), an indirect
subsidiary of WML. As of December 31, 2016, the Company had $409.2 million of available borrowing capacity
under the Wynn Macau Senior Revolving Credit Facility. Wynn Macau SA has the ability to upsize the Wynn Macau
Credit Facilities by an additional $1 billion in equivalent senior secured loans upon satisfaction of various conditions.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Borrowings under the Wynn Macau Credit Facilities consist of both United States dollar and Hong Kong
dollar tranches and were used to refinance Wynn Macau SA’s existing indebtedness and fund the construction
and development of Wynn Palace and will be used for general corporate purposes.

On September 30, 2015, the Wynn Macau Credit Facilities were amended, to, among other things, increase
borrowing capacity and extend maturity dates. Upon closing the amendment, the Company received proceeds of
$2.27 billion, net of deferred financing costs, from the Wynn Macau Senior Term Loan Facility. The proceeds
were used to repay $953.3 million in outstanding borrowing under the senior secured term loan facility dated
July 30, 2012, and $815.8 million in outstanding borrowings under the senior secured revolving credit facility
dated July 30, 2012. In connection with the amendment, the Company expensed $2.1 million of unamortized
deferred financing costs that are included in loss on extinguishment of debt in the accompanying Consolidated
Statements of Income.

The Wynn Macau Senior Term Loan Facility is repayable in graduating installments of between 2.50% to

7.33% of the principal amount on a quarterly basis commencing December 2018, with a final installment of 50%
of the principal amount repayable in September 2021. The Wynn Macau Senior Revolving Credit Facility will
mature in September 2020, at which time any outstanding borrowings must be repaid. 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 Macau
SA’s Leverage Ratio (as defined in the Wynn Macau Credit Facilities). The commitment fee required to be paid
for unborrowed amounts under the Wynn Macau Senior Revolving Credit Facility, if any, is between 0.52% and
0.79%, per annum, based on Wynn Macau SA’s Leverage Ratio. The annual commitment fee is payable
quarterly in arrears and is calculated based on the daily average of the unborrowed amounts.

The Wynn Macau Credit Facilities contain a requirement that Wynn Macau SA must make mandatory
repayments of indebtedness from specified percentages of excess cash flow. If Wynn Macau SA’s Leverage
Ratio is greater than 4.5 to 1, then 25% of Excess Cash Flow (as defined in the Wynn Macau Credit Facilities)
must be used for prepayment of indebtedness and cancellation of available borrowings under the Wynn Macau
Credit Facilities. There is no mandatory prepayment in respect of Excess Cash Flow if Wynn Macau SA’s
Leverage Ratio is equal to or less than 4.5 to 1. The Wynn Macau Credit Facilities contain customary covenants
restricting certain activities including, but not limited to: the incurrence of additional indebtedness, the
incurrence or creation of liens on any of its property, sale and leaseback transactions, the ability to dispose of
assets, and making loans or other investments. In addition, Wynn Macau SA is required by the financial
covenants to maintain a Leverage Ratio of not greater than 5.5 to 1 for the fiscal year ending December 31, 2016,
and an Interest Coverage Ratio (as defined in the Wynn Macau Credit Facilities) of not less than 2.00 to 1 at any
time.

Borrowings under the Wynn Macau Credit Facilities are guaranteed by Palo Real Estate Company Limited
(“Palo”), a subsidiary of Wynn Macau SA, and by certain subsidiaries of the Company that own equity interests
in Wynn Macau SA, and are secured by substantially all of the assets of Wynn Macau SA and Palo, and the
equity interests in Wynn Macau SA. Borrowings under the Wynn Macau Credit Facilities are not guaranteed by
the Company or WML.

In connection with the gaming concession contract of Wynn Macau SA, Wynn Macau SA entered into a
Bank Guarantee Reimbursement Agreement with Banco Nacional Ultramarino, S.A. (“BNU”) for the benefit of
the Macau government. This guarantee assures Wynn Macau SA’s performance under the casino concession
agreement, including the payment of premiums, fines and indemnity for any material failure to perform under the
terms of the concession agreement and the payment of any gaming taxes. As of December 31, 2016, the
guarantee was in the amount of 300 million Macau patacas (“MOP”) (approximately $37.6 million) and will

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WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

remain at such amount until 180 days after the end of the term of the concession agreement in 2022. BNU, as
issuer of the guarantee, is currently secured by a second priority security interest in the senior lender collateral
package. From and after repayment of all indebtedness under the Wynn Macau Credit Facilities, Wynn Macau
SA is obligated to promptly, upon demand by BNU, repay any claim made on the guarantee by the Macau
government. BNU is paid an annual fee for the guarantee of MOP 2.3 million (approximately $0.3 million).

5 1/4% Senior Notes due 2021

On March 20, 2014, WML issued $750 million aggregate principal amount of 5 1/4% Senior Notes due
2021 (the “Additional 2021 Notes”), which were consolidated and form a single series with the $600 million
aggregate principal amount of 5 1/4% Senior Notes due 2021 issued by WML on October 16, 2013 (the “Original
2021 Notes” and together with the “Additional 2021 Notes,” the “2021 Notes”). The aggregate principal amount
of the 2021 Notes is $1.35 billion.

Upon issuance of the Additional 2021 Notes in March 2014, WML received net proceeds of $748.8 million

after adding the original issue premium and deducting commissions and expenses of the offering.

The 2021 Notes bear interest at the rate of 5 1/4% per annum and mature on October 15, 2021. Interest on

the 2021 Notes is payable semi-annually in arrears on April 15 and October 15 of each year, beginning on
April 15, 2014. At any time on or before October 14, 2016, WML may redeem the 2021 Notes, in whole or in
part, at a redemption price equal to the greater of (a) 100% of the aggregate principal amount of the 2021 Notes
or (b) a “make-whole” amount as determined by an independent investment banker in accordance with the terms
of the indenture for the 2021 Notes, dated as of October 16, 2013 (the “WML Indenture”). In either case, the
redemption price would include accrued and unpaid interest. In addition, on or after October 15, 2016, WML
may redeem the 2021 Notes, in whole or in part, at a premium decreasing annually from 103.94% of the principal
amount to zero, plus accrued and unpaid interest. If WML undergoes a Change of Control (as defined in the
WML Indenture), it must offer to repurchase the 2021 Notes at a price equal to 101% of the aggregate principal
amount thereof, plus accrued and unpaid interest. In addition, the Company may redeem the 2021 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 2021 Notes fails to meet certain requirements imposed by any Gaming Authority (as
defined in the WML Indenture), WML may require the holder or beneficial owner to dispose of or redeem its
2021 Notes.

The 2021 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 Wynn Macau SA’s existing credit facilities. The 2021 Notes
are not registered under the Securities Act of 1933, as amended (the “Securities Act”), and the 2021 Notes are
subject to restrictions on transferability and resale.

The WML 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 WML Indenture contain
customary events of default, including, but not limited to: default for 30 days in the payment when due of interest
on the 2021 Notes; default in the payment when due of the principal of, or premium, if any, on the 2021 Notes;
failure to comply with any payment obligations relating to the repurchase by WML of the 2021 Notes upon a

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WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

change of control; failure to comply with certain covenants in the WML 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 2021 Notes then outstanding will become due and payable
immediately without further action or notice.

WML Finance Revolving Credit Facility

On July 18, 2016, the Company entered into a HK$1.55 billion (approximately $199.7 million) cash-
collateralized revolving credit facility (“WML Finance Credit Facility”) under which WML Finance I, Limited,
an indirect subsidiary of WML, is the borrower. Borrowings under the WML Finance Credit Facility are in Hong
Kong dollars and are used for working capital requirements and general corporate purposes. As of December 31,
2016, the Company had $309.4 million of available borrowing capacity under the WML Finance Credit Facility.

The WML Finance Credit Facility matures in July 2018, at which time any outstanding borrowings must be
repaid. The WML Finance Credit Facility bears interest initially at 1.50% per annum, such rate calculated as the
interest rate paid by the lender as the deposit bank for the cash collateral deposited and pledged with the lender
plus a margin of 0.40%. Under terms of the agreement, mandatory repayment is required upon a Change in
Control or Material Adverse Effect, as defined in the agreement.

On October 25, 2016, the Company amended the WML Finance Credit Facility to increase the principal

amount up to HK$3.87 billion (approximately $499.0 million). The terms of borrowing for the increased
principal amount under the amendment are equivalent to the terms of the original credit agreement, including the
requirement for cash collateral to be deposited and pledged with the lender, and interest borne at the same rate as
described above.

Subsequent to December 31, 2016, the Company repaid the $189.7 million outstanding borrowings under

the WML Finance Credit Facility.

U.S. and Corporate Related Debt

Wynn America Credit Facilities

The Company’s credit facilities include a fully funded $1.0 billion senior secured term loan facility and a
$375 million secured revolving credit facility (the “Wynn America Credit Facilities”). The borrower is Wynn
America, LLC (“Wynn America”), an indirect wholly owned subsidiary of Wynn Resorts, Limited. The
Company expects to use the proceeds primarily to fund the development, construction and pre-opening expenses
of Wynn Boston Harbor and for general corporate purposes.

The Company has executed amendments to extend the available borrowing periods. Most recently, on

June 30, 2016, the Company amended the Wynn America Credit Facilities to extend the available borrowing
period for the majority of the existing $875 million senior secured term loan facility (the “WA Senior Term Loan
Facility I”) from June 30, 2016 to December 31, 2016. In addition, on July 1, 2016, the Company amended the
Wynn America Credit Facilities to increase the WA Senior Term Loan Facility I by a principal amount of
$125 million with the available borrowing period ending on December 31, 2016 (such increase, the “WA Senior
Term Loan Facility II” and together with WA Senior Term Loan Facility I, the “WA Senior Term Loan
Facilities”). The Company paid customary fees and expenses in connection with these amendments.

As of December 31, 2016, the Company had available borrowing capacity of $361.3 million under the

senior secured revolving credit facility (“WA Senior Revolving Credit Facility”), net of $13.7 million in
outstanding letters of credit.

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WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

The WA Senior Revolving Credit Facility matures in November 2019. WA Senior Term Loan Facility I is

repayable in quarterly installments of $21.9 million commencing June 2018, with a final installment of
$656.3 million repayable in November 2020. WA Senior Term Loan Facility II has no required scheduled
repayments until maturity in November 2020. Subject to certain exceptions, the Wynn America Credit Facilities
bear interest at either base rate plus 0.75% per annum or LIBOR plus 1.75% per annum. The annual fee required
to pay for unborrowed amounts, if any, is 0.30% per annum, payable quarterly in arrears, calculated based on the
daily average of the unborrowed amounts under such credit facilities.

The Wynn America Credit Facilities contain customary representations and warranties, events of default and

negative and affirmative covenants, including, among other things, limitations on: indebtedness; investments;
restricted payments; mergers and acquisitions; payment of indebtedness; negative pledges; liens; transactions
with affiliates and sales of assets. In addition, Wynn America is subject to financial covenants including
maintaining a Maximum Consolidated Senior Secured Net Leverage Ratio and a Minimum Consolidated
EBITDA, each as defined in the Wynn America Credit Facilities. Commencing with the second full fiscal quarter
ending after the fiscal quarter in which the opening of Wynn Boston Harbor occurs, the Maximum Consolidated
Senior Secured Net Leverage Ratio is not to exceed 2.75 to 1. Commencing with the fiscal quarter ending
December 31, 2015, the Minimum Consolidated EBITDA is not to be less than $200.0 million.

The Company has provided a completion guaranty in favor of the lenders under the Wynn America Credit

Facilities to support the development of Wynn Boston Harbor.

Wynn America and the guarantors have entered into a security agreement in favor of the lenders under the

Wynn America Credit Facilities pursuant to which, subject to certain exceptions, Wynn America and the
guarantors have pledged all equity interests in the guarantors to the extent permitted by applicable law and
granted a first priority security interest in substantially all of the other existing and future assets of the guarantors.

5 3/8% First Mortgage Notes due 2022

In March 2012, Wynn Las Vegas, LLC and Wynn Las Vegas Capital Corp. (“Capital Corp.”), an indirect
wholly owned subsidiary of Wynn Resorts (together, the “Issuers”) issued, in a private offering, $900 million
aggregate principal amount of 5 3/8% First Mortgage Notes due 2022 (the “2022 Notes”). A portion of the
proceeds was used to repay all amounts outstanding under the Wynn Las Vegas, LLC term loan facilities. In
October 2012, the Issuers commenced an offer to exchange all of the 2022 Notes for notes registered under the
Securities Act. The exchange offer closed on November 6, 2012. Interest is due on the 2022 Notes on March 15
and September 15 of each year. Commencing March 15, 2017, the 2022 Notes are redeemable at the Issuers’
option at a price equal to 102.688% of the principal amount redeemed and the premium over the principal
amount declines ratably on March 15 of each year thereafter to zero on or after March 15, 2020. The 2022 Notes
are senior obligations of the Issuers and are unsecured (except by the first priority pledge by Wynn Las Vegas
Holdings, LLC (“WLVH”), a direct wholly owned subsidiary of Wynn America, of its equity interests in Wynn
Las Vegas, LLC). The Issuers’ obligations under the 2022 Notes rank pari passu in right of payment with the
2023 Notes and 2025 Notes (each as defined below). The 2022 Notes are not guaranteed by any of the
Company’s subsidiaries. If the Issuers undergo a change of control, they must offer to repurchase the 2022 Notes
at 101% of the principal amount, plus accrued and unpaid interest. The indenture governing the 2022 Notes
contains customary negative covenants and financial covenants, including, but not limited to, covenants that
restrict Wynn Las Vegas, LLC’s ability to: pay dividends or distributions or repurchase equity; incur additional
debt; make investments; create liens on assets to secure debt; enter into transactions with affiliates; enter into
sale-leaseback transactions; merge or consolidate with another company; transfer and sell assets or create
dividend and other payment restrictions affecting subsidiaries.

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WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

4 1/4% Senior Notes due 2023

In May 2013, the Issuers completed the issuance of $500 million aggregate principal amount of 4 1/4%

Senior Notes due 2023 (the “2023 Notes”) pursuant to an indenture, dated as of May 22, 2013 (the “2023
Indenture”), among the Issuers, the Guarantors (as defined below) and U.S. Bank National Association, as
trustee. The 2023 Notes were issued at par. The Issuers used the net proceeds from the 2023 Notes to cover the
cost of purchasing the previously issued notes that were to mature in November 2017. In addition, the Issuers
satisfied and discharged the indenture governing the 7 7/8% First Mortgage Notes due 2017 (the “2017 Notes”)
and, in November 2013, used the remaining net proceeds to redeem any and all of the 2017 Notes not previously
tendered.

The 2023 Notes will mature on May 30, 2023 and bear interest at the rate of 4 1/4% per annum. The Issuers

may, at their option, redeem the 2023 Notes, in whole or in part, at any time or from time to time prior to their
stated maturity. The redemption price for the 2023 Notes that are redeemed before February 28, 2023 will be
equal to the greater of (a) 100% of the principal amount of the 2023 Notes to be redeemed or (b) a “make-whole”
amount described in the 2023 Indenture, plus in either case accrued and unpaid interest to, but not including, the
redemption date. The redemption price for the 2023 Notes that are redeemed on or after February 28, 2023 will
be equal to 100% of the principal amount of the 2023 Notes to be redeemed, plus accrued and unpaid interest to,
but not including, the redemption date. In the event of a change of control triggering event, the Issuers will be
required to offer to repurchase the 2023 Notes at 101% of the principal amount, plus accrued and unpaid interest
to but not including the repurchase date. The 2023 Notes are also subject to mandatory redemption requirements
imposed by gaming laws and regulations of gaming authorities in Nevada.

The 2023 Notes are the Issuers’ senior unsecured obligations and rank pari passu in right of payment with
the Issuers’ 2022 Notes and 2025 Notes (as defined below). The 2023 Notes are unsecured (except by the first
priority pledge by WLVH of its equity interests in Wynn Las Vegas, LLC). Such equity interests in Wynn Las
Vegas, LLC also secure the Issuers’ 2022 Notes and 2025 Notes. If Wynn Resorts receives an investment grade
rating from one or more ratings agencies, the first priority pledge securing the 2023 Notes will be released.

The 2023 Notes are jointly and severally guaranteed by all of the Issuers’ subsidiaries, other than Capital

Corp., which was a co-issuer (the “Guarantors”). The guarantees are senior unsecured obligations of the
Guarantors and rank senior in right of payment to all of their existing and future subordinated debt. The
guarantees rank equally in right of payment with all existing and future liabilities of the Guarantors that are not
so subordinated and will be effectively subordinated in right of payment to all of such Guarantors’ existing and
future secured debt (to the extent of the collateral securing such debt).

The 2023 Indenture contains covenants limiting the Issuers’ and the Guarantors’ ability to create liens on
assets to secure debt; enter into sale-leaseback transactions; and merge or consolidate with another company.
These covenants are subject to a number of important and significant limitations, qualifications and exceptions.

Events of default under the 2023 Indenture include, among others, the following: default for 30 days in the

payment of interest when due on the 2023 Notes; default in payment of the principal when due, or premium, if
any, on the 2023 Notes; failure to comply with certain covenants in the 2023 Indenture; and certain events of
bankruptcy or insolvency. In the case of an event of default arising from certain events of bankruptcy or
insolvency with respect to the Issuers or any Guarantor, all 2023 Notes then outstanding will become due and
payable immediately without further action or notice.

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5 1/2% Senior Notes due 2025

On February 18, 2015, the Issuers completed the issuance of $1.8 billion aggregate principal amount of 5

1/2% Senior Notes due March 1, 2025 (the “2025 Notes”) pursuant to an indenture, dated as of February 18,
2015 (the “2025 Indenture”), among the Issuers, Guarantors and U.S. Bank National Association, as trustee. The
2025 Notes were issued at par. The Company used the net proceeds from the 2025 Notes to cover the cost of
purchasing the 7 7/8% First Mortgage Notes due May 1, 2020 (the “7 7/8% 2020 Notes”) and the 7 3/4% First
Mortgage Notes due August 15, 2020 (the “7 3/4% 2020 Notes” and together with the 7 7/8% 2020 Notes, the
“2020 Notes”) and for general corporate purposes.

The 2025 Notes will mature on March 1, 2025 and bear interest at the rate of 5 1/2% per annum. The Issuers

may, at their option, redeem the 2025 Notes, in whole or in part, at any time or from time to time prior to their
stated maturity. The redemption price for 2025 Notes that are redeemed before December 1, 2024 will be equal
to the greater of (a) 100% of the principal amount of the 2025 Notes to be redeemed and (b) a “make-whole”
amount described in the 2025 Indenture, plus in either case accrued and unpaid interest, if any, to, but not
including, the redemption date. The redemption price for the 2025 Notes that are redeemed on or after
December 1, 2024 will be equal to 100% of the principal amount of the 2025 Notes to be redeemed, plus accrued
and unpaid interest, if any, to, but not including, the redemption date. In the event of a change of control
triggering event, the Issuers will be required to offer to repurchase the 2025 Notes at 101% of the principal
amount, plus accrued and unpaid interest, if any, to, but not including, the repurchase date. The 2025 Notes also
are subject to mandatory redemption requirements imposed by gaming laws and regulations of gaming
authorities in Nevada.

The 2025 Notes are the Issuers’ senior unsecured obligations and rank pari passu in right of payment with
the Issuers’ 2022 Notes and 2023 Notes (together, the “Existing Notes”). The 2025 Notes are unsecured (except
by the first priority pledge by WLVH of its equity interests in Wynn Las Vegas, LLC). Such equity interests in
Wynn Las Vegas, LLC also secure the Existing Notes. If Wynn Resorts receives an investment grade rating from
one or more ratings agencies, the first priority pledge securing the 2025 Notes will be released.

The 2025 Notes are jointly and severally guaranteed by all of the Guarantors. The guarantees are senior

unsecured obligations and rank senior in right of payment to all of their existing and future subordinated debt.
The guarantees rank equally in right of payment with all existing and future liabilities of the Issuers’ subsidiaries
that are not so subordinated and will be effectively subordinated in right of payment to all of such existing and
future secured debt (to the extent of the collateral securing such debt).

The 2025 Indenture contains covenants limiting the Issuers’ and the Guarantors’ ability to create liens on

assets to secure debt, enter into sale-leaseback transactions and merge or consolidate with another company.
These covenants are subject to a number of important and significant limitations, qualifications and exceptions.

Events of default under the 2025 Indenture include, among others, the following: default for 30 days in the

payment of interest when due on the 2025 Notes; default in payment of the principal when due, or premium, if
any, on the 2025 Notes; failure to comply with certain covenants in the 2025 Indenture; and certain events of
bankruptcy or insolvency. In the case of an event of default arising from certain events of bankruptcy or
insolvency with respect to the Issuers or any Guarantor, all 2025 Notes then outstanding will become due and
payable immediately without further action or notice.

The 2023 Notes and 2025 Notes were offered pursuant to an exemption under the Securities Act. The 2023

Notes and 2025 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

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Act. The 2023 Notes and 2025 Notes have not been and will not be registered under the Securities Act or under
any state securities laws. Therefore, the 2023 Notes and 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.

First Mortgage Notes due 2020

On February 10, 2015, the Issuers commenced a cash tender offer for any and all of the outstanding
aggregate principal amounts of the 2020 Notes. The premium portion of the aggregate total consideration was
$98.9 million and was recorded as a loss on extinguishment of debt in the accompanying Consolidated
Statements of Income. In connection with the cash tender, the Company expensed $17.2 million of unamortized
deferred financing costs and original issue discount related to the 2020 Notes and incurred other fees of
$0.1 million that are included in loss on extinguishment of debt in the accompanying Consolidated Statements of
Income.

On May 1, 2015, the Company redeemed the remaining $71.1 million principal amount of the untendered 7
7/8% 2020 Notes. The Company recorded a loss for the premium portion of the consideration of $2.8 million and
expensed $1.0 million of unamortized deferred financing costs and original discount that are included in loss on
extinguishment of debt in the accompanying Consolidated Statements of Income.

On August 15, 2015, the Company redeemed the remaining $80.1 million principal amount of the
untendered 7 3/4% 2020 Notes. The Company recorded a loss for the premium portion of the consideration
of $3.1 million and expensed $0.8 million of unamortized deferred financing costs that are included in loss on
extinguishment of debt in the accompanying Consolidated Statements of Income.

During the year ended December 31, 2014, Wynn Las Vegas, LLC repurchased and canceled $98.4 million

in principal, plus interest, of the 2020 Notes through the open market. The Company incurred $9.6 million in
expenses associated primarily with the premium paid for the repurchases and unamortized deferred financing
costs included in loss on extinguishment of debt in the accompanying Consolidated Statements of Income.

Redemption Price Promissory Note

Based on the Board of Directors’ finding of “unsuitability,” on February 18, 2012, the Company redeemed

and canceled Aruze’s 24,549,222 shares of Wynn Resorts’ common stock. Following a finding of “unsuitability,”
Wynn Resorts’ articles of incorporation authorize redemption of the shares held by unsuitable persons at a “fair
value” redemption price. The Company engaged an independent financial advisor to assist in the fair value
calculation and concluded that a discount to the then-current trading price was appropriate because of, among
other things, restrictions on most of the shares held by Aruze under the terms of the Stockholders Agreement (as
defined below). Pursuant to its articles of incorporation, the Company issued the Redemption Note to Aruze, a
former stockholder and related party, in redemption of the shares. The Redemption Note has a principal amount
of approximately $1.94 billion, matures on February 18, 2022 and bears interest at the rate of 2% per annum
payable annually in arrears on each anniversary of the date of the Redemption Note. The Company may, in its
sole and absolute discretion, at any time and from time to time, and without penalty or premium, prepay the
whole or any portion of the principal or interest due under the Redemption Note. In no instance shall any
payment obligation under the Redemption Note be accelerated except in the sole and absolute discretion of the
Company or as specifically mandated by law. The indebtedness evidenced by the Redemption Note is and shall
be subordinated in right of payment, to the extent and in the manner provided in the Redemption Note, to the
prior payment in full of all existing and future obligations of Wynn Resorts and any of its affiliates in respect of
indebtedness for borrowed money of any kind or nature.

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The Company recorded the Redemption Note at fair value in accordance with applicable accounting

guidance. As of December 31, 2016 and 2015, the fair value of the Redemption Note was $1.82 billion and
$1.88 billion, respectively.

The Okada Parties have challenged the redemption of Aruze’s shares and the Company is currently involved

in litigation with those parties as well as related litigation. See further discussion in Note 17 “Commitments and
Contingencies.”

On each of February 14, 2013 and February 13, 2014, the Company issued a check to Aruze in the amount
of $38.7 million, representing the interest payments due on the Redemption Note at those times. However, those
checks were not cashed. In February 2014, the Okada Parties advised of their intent to deposit any checks for
interest and principal, past and future, due under the terms of the Redemption Note to the clerk of the court for
deposit into the clerk’s trust account. On March 17, 2014, the parties stipulated that the checks be returned to the
Company for reissue in the same amounts, payable to the clerk of the court for deposit into the clerk’s trust
account. Pursuant to the stipulation, on March 20, 2014, the Company delivered to the clerk of the court the
reissued checks that were deposited into the clerk’s trust account and filed a notice with the court with respect to
the same. On each of February 13, 2015, February 12, 2016, and February 13, 2017, the Company issued a check
for the interest payment due at those times to the clerk of the court for deposit into the clerk’s trust account.

Cross Claim

As further discussed in Note 17 “Commitments and Contingencies,” on June 19, 2012, Elaine Wynn
asserted a cross claim against Mr. Wynn and Aruze seeking a declaration that (1) any and all of Elaine Wynn’s
duties under the Stockholders Agreement shall be discharged; (2) the Stockholders Agreement is subject to
rescission and is rescinded; (3) the Stockholders Agreement is an unreasonable restraint on alienation in violation
of public policy; and/or (4) the restrictions on sale of shares shall be construed as inapplicable to Elaine Wynn.
On March 28, 2016, Elaine Wynn filed an amended cross claim which added Wynn Resorts and Wynn Resorts’
General Counsel (together with Mr. Wynn, the “Wynn Cross Defendants”) as cross defendants. On May 5, 2016,
the court granted Wynn Resorts’ and Wynn Resorts’ General Counsel’s motions to dismiss. The 2023 Indenture
provides that if Mr. Wynn, together with certain related parties, in the aggregate beneficially owns a lesser
percentage of the voting power of the outstanding common stock of the Company than is beneficially owned by
any other person, a change of control will have occurred. The 2025 Indenture provides that if any event
constitutes a “change of control” under the 2023 Indenture, it will constitute a change of control under the 2025
Indenture. If the Stockholders Agreement is determined not to be enforceable pursuant to Elaine Wynn’s cross
claim, Mr. Wynn would not beneficially own or control Elaine Wynn’s shares, which could increase the
likelihood that a change in control may occur under the Wynn Las Vegas, LLC debt documents. Under the 2023
Indenture and the 2025 Indenture, if (1) a change of control occurs and (2) at any time within 60 days after that
occurrence, the 2023 Notes or the 2025 Notes, as applicable, are rated below investment grade by both rating
agencies that rate such notes, the Company is required to make an offer to each applicable holder to repurchase
all or any part of such holder’s notes at a purchase price equal to 101% of the aggregate principal amount thereof
plus accrued and unpaid interest on the notes purchased, if any, to the date of repurchase (unless the notes have
been previously called for redemption). Mr. Wynn is continuing to oppose Elaine Wynn’s cross claim.

Debt Covenant Compliance

As of December 31, 2016, management believes the Company was in compliance with all debt covenants.

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Fair Value of Long-Term Debt

The estimated fair value of the Company’s long-term debt, excluding the Redemption Note, as of

December 31, 2016 and 2015, was approximately $7.35 billion and $6.86 billion, respectively, compared to its
carrying value, excluding debt issuance costs and original issue discount and premium, of $8.39 billion and
$7.36 billion, respectively. The estimated fair value of the Company’s long-term debt, excluding the Redemption
Note, is based on recent trades, if available, and indicative pricing from market information (Level 2 inputs). See
Note 2 “Summary of Significant Accounting Policies” for discussion on the estimated fair value of the
Redemption Note.

Scheduled Maturities of Long-Term Debt

Scheduled maturities of long-term debt as of December 31, 2016 are as follows (in thousands):

Years Ending December 31,

2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Thereafter

. . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fair value adjustment
Debt issuance costs, premiums and discounts, net . . . . . .

$

312,945
364,313
1,668,300
2,841,713
5,136,443

10,323,714
(117,085)
(81,277)

$10,125,352

Note 10—Derivative Financial Instruments

The Company has entered into floating-for-fixed interest rate swap arrangements in order to manage interest rate

risk relating to certain of its debt facilities. These interest rate swap agreements modify the Company’s exposure to
interest rate risk by converting a portion of the Company’s floating-rate debt to a fixed rate. These interest rate swaps
essentially fix the interest rate at the percentages noted below; however, changes in the fair value of the interest rate
swaps for each reporting period have been recorded as a change in interest rate swap fair value in the accompanying
Consolidated Statements of Income, as the interest rate swaps do not qualify for hedge accounting.

The Company utilized Level 2 inputs as described in Note 2 “Summary of Significant Accounting Policies”
to determine fair value. The fair value approximates the amount the Company would pay if these contracts were
settled at the respective valuation dates. Fair value is estimated based upon current, and predictions of future,
interest rate levels along a yield curve, the remaining duration of the instruments and other market conditions,
and therefore, is subject to significant estimation and a high degree of variability and fluctuation between
periods. The fair value is adjusted, to reflect the impact of credit ratings of the counterparties or the Company, as
applicable. These adjustments resulted in a reduction in the fair values as compared to their settlement values.

The Company currently has three interest rate swap agreements intended to hedge a portion of the
underlying interest rate risk on borrowings under the Wynn Macau Credit Facilities. Under two of the swap
agreements, the Company pays a fixed interest rate (excluding the applicable interest margin) of 0.73% on
notional amounts corresponding to borrowings of HK$3.95 billion (approximately $509.4 million) incurred
under the Wynn Macau Credit Facilities in exchange for receipts on the same amount at a variable interest rate
based on the applicable HIBOR at the time of payment. These interest rate swaps fix the all-in interest rate on
such amounts at 2.23% to 2.98%. These interest rate swap agreements mature in July 2017.

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Under the third swap agreement, the Company pays a fixed interest rate (excluding the applicable interest

margin) of 0.68% on notional amounts corresponding to borrowings of $243.8 million incurred under the Wynn
Macau Credit Facilities in exchange for receipts on the same amount at a variable rate based on the applicable
LIBOR at the time of payment. This interest rate swap fixes the all-in interest rate on such amounts at 2.18% to
2.93%. This interest rate swap agreement matures in July 2017.

As of December 31, 2016, interest rate swaps of $1.1 million were included in prepaid expenses and other in

the accompanying Consolidated Balance Sheets. As of December 31, 2015, interest rate swaps of $0.7 million
were included in other assets and $0.1 million were included in other long-term liabilities in the accompanying
Consolidated Balance Sheets.

Note 11—Related Party Transactions

Related Party Share Redemption

Based on the Board of Directors’ finding of “unsuitability,” on February 18, 2012, the Company redeemed

and canceled Aruze’s 24,549,222 shares of Wynn Resorts’ common stock. Following a finding of “unsuitability,”
Wynn Resorts’ articles of incorporation authorize redemption of the shares held by unsuitable persons at a “fair
value” redemption price. The Company engaged an independent financial advisor to assist in the fair value
calculation and concluded that a discount to the then-current trading price was appropriate because of, among
other things, restrictions on most of the shares which were subject to the terms of an existing stockholder
agreement. Pursuant to its articles of incorporation, the Company issued the Redemption Note to Aruze, a former
stockholder and related party, in redemption of the shares. The Okada Parties have challenged the redemption of
Aruze’s shares and the Company is currently involved in litigation with those parties as well as related
shareholder derivative litigation. The outcome of these various proceedings cannot be predicted. The Company’s
claims and the Okada Parties’ counterclaims are in a preliminary stage and management has determined that
based on proceedings to date, it is currently unable to determine the probability of the outcome of this matter or
the range of reasonably possible loss, if any. An adverse judgment or settlement involving payment of a material
amount could cause a material adverse effect on our financial condition.

Amounts Due to Officers

The Company periodically provides services to Stephen A. Wynn, Chairman of the Board of Directors and

Chief Executive Officer (“Mr. Wynn”), and certain other officers and directors of the Company, including the
personal use of employees, construction work and other personal services. Mr. Wynn and other officers and
directors have deposits with the Company to prepay any such items, which are replenished on an ongoing basis
as needed. As of December 31, 2016 and 2015, Mr. Wynn and the other officers and directors had a net deposit
balance with the Company of $0.3 million and $1.0 million, respectively.

Villa Lease

Mr. Wynn currently leases property at Wynn Las Vegas for use as his personal residence and pays Wynn
Las Vegas, LLC annual rent at its fair market value of the accommodations based on independent third-party
expert opinions of value. Pursuant to the 2013 Second Amended and Restated Agreement of Lease, as amended
(the “Second A&R Lease”), Mr. Wynn leased three fairway villas as his personal residence and paid $525,000
per year from November 5, 2013 through February 28, 2015, and $559,295 per year from March 1, 2015 through
November 3, 2016. In December 2016, Mr. Wynn and Wynn Las Vegas, LLC replaced the Second A&R Lease
with a Third Amended and Restated Agreement of Lease, which was effective November 3, 2016 (the “Third
A&R Lease”), to reduce the space leased to Mr. Wynn as his personal residence and to adjust the annual rent

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

paid to $305,680 per year. The lease, including each amendment and restatement, have been approved by the
Audit Committee of the Board of Directors of Wynn Resorts and provides that Wynn Las Vegas, LLC pays for
all capital improvements to the villas; certain services for, and maintenance of, the villas are included in the
annual rent; and the annual rent will be re-determined every two years during the term of the lease.

Home Purchase

In May 2010, the Company entered into an employment agreement with Linda Chen, who is the Chief
Operating Officer of Wynn Macau. The term of the employment agreement is through February 24, 2020. Under
the terms of the employment agreement, the Company purchased a home in Macau for use by Ms. Chen and has
made renovations to the home with total costs of $9.4 million through December 31, 2016. Upon the occurrence
of certain events set forth below, Ms. Chen has the option to purchase the home at the then fair market value of
the home (as determined by an independent appraiser) less a discount equal to ten percentage points multiplied
by each anniversary of the term of the agreement that has occurred (the “Discount Percentage”). The option is
exercisable for (a) no consideration at the end of the term, (b) $1.00 in the event of termination of Ms. Chen’s
employment without “cause” or termination of Ms. Chen’s employment for “good reason” following a “change
of control” or (c) at a price based on the applicable Discount Percentage in the event Ms. Chen terminates the
agreement due to material breach by the Company. Upon Ms. Chen’s termination for “cause,” Ms. Chen will be
deemed to have elected to purchase the Macau home based on the applicable Discount Percentage unless the
Company determines to not require Ms. Chen to purchase the home. If Ms. Chen’s employment terminates for
any other reason before the expiration of the term (e.g., because of her death or disability or due to revocation of
her gaming license), the option will terminate.

Plane Option Agreement

On January 3, 2013, the Company and Mr. Wynn entered into an agreement pursuant to which Mr. Wynn
agreed to terminate a previously granted option to purchase an approximately two acre tract of land located on
the Wynn Las Vegas golf course and, in return, the Company granted Mr. Wynn the right to purchase any or all
of the aircraft owned by the Company or its direct wholly owned subsidiaries. The aircraft purchase option is
exercisable upon 30 days written notice and at a price equal to the book value of such aircraft, and will terminate
on the date of termination of the employment agreement between the Company and Mr. Wynn, which expires in
October 2022.

The “Wynn” Surname Rights Agreement

On August 6, 2004, the Company entered into agreements with Mr. Wynn that confirm and clarify the

Company’s rights to use the “Wynn” surname and Mr. Wynn’s persona in connection with its casino resorts.
Under the parties’ Surname Rights Agreement, Mr. Wynn granted the Company an exclusive, fully paid-up,
perpetual, worldwide license to use, and to own and register trademarks and service marks incorporating the
“Wynn” surname for casino resorts and related businesses, together with the right to sublicense the name and
marks to its affiliates. Under the parties’ Rights of Publicity License, Mr. Wynn granted the Company the
exclusive, royalty-free, worldwide right to use his full name, persona and related rights of publicity for casino
resorts and related businesses, together with the ability to sublicense the persona and publicity rights to its
affiliates, until October 24, 2017.

Consulting Agreement

From March 1, 2015 to September 30, 2015, Wynn Resorts Development, LLC, a direct subsidiary of the
Company (“WRD”), was party to a consulting agreement with a consulting firm of which Clark T. Randt, Jr.,

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

current member of the Company’s Board of Directors, is the president and sole owner, pursuant to which
Ambassador Randt provided advice to WRD. The consulting agreement was terminated in connection with
Ambassador Randt joining the Company’s Board of Directors. WRD paid the consulting firm $0.6 million in fees
and reimbursed expenses under the consulting agreement.

Note 12—Stockholders’ Equity

Common Stock

The Company is authorized to issue up to 400,000,000 shares of its common stock, $0.01 par value per
share (the “Common Stock”). As of December 31, 2016 and 2015, 101,799,471 shares and 101,571,909 shares,
respectively, of the Company’s Common Stock were outstanding. Except as otherwise provided by the
Company’s articles of incorporation or Nevada law, each holder of the Common Stock is entitled to one vote for
each share held of record on each matter submitted to a vote of stockholders. Holders of the Common Stock have
no cumulative voting, conversion, redemption or preemptive rights or other rights to subscribe for additional
shares. Subject to any preferences that may be granted to the holders of the Company’s preferred stock, each
holder of Common Stock is entitled to receive ratably such dividends as may be declared by the Board of
Directors out of funds legally available therefore, as well as any distributions to the stockholders and, in the event
of liquidation, dissolution or winding up of the Company, is entitled to share ratably in all assets of the Company
remaining after payment of liabilities.

The Board of Directors of Wynn Resorts has authorized an equity repurchase program of up to $1.7 billion.
The repurchase program may include repurchases from time to time through open market purchases or negotiated
transactions, depending upon market conditions. As of December 31, 2016, the Company had repurchased a
cumulative total of 12,804,954 shares of the Company’s Common Stock for a net cost of $1.1 billion under the
program. Under the repurchase program, there were no repurchases made during the years ended December 31,
2016, 2015 and 2014.

During 2016, 2015 and 2014, the Company withheld a total of 198,942 shares, 50,869 shares and 9,578

shares, respectively, in satisfaction of tax withholding obligations on vested restricted stock.

In February 2016, May 2016, August 2016, and November 2016, the Company paid a cash dividend of
$0.50 per share. During the year ended December 31, 2016, the Company recorded $202.2 million as a reduction
of retained earnings from cash dividends declared.

In February 2015, the Company paid a cash dividend of $1.50 per share. In each of May 2015, August 2015,
and November 2015, the Company paid a cash dividend of $0.50 per share. During the year ended December 31,
2015, the Company recorded $304.4 million as a reduction of retained earnings from cash dividends declared.

In February 2014, May 2014 and August 2014, the Company paid a cash dividend of $1.25 per common
share. In November 2014, the Company paid a cash dividend of $1.50 per common share and an additional cash
dividend of $1.00 per share. During the year ended December 31, 2014, the Company recorded $633.2 million as
a reduction of retained earnings from cash dividends declared.

Preferred Stock

The Company is authorized to issue up to 40,000,000 shares of undesignated preferred stock, $0.01 par

value per share (the “Preferred Stock”). As of December 31, 2016, the Company had not issued any Preferred
Stock. The Board of Directors, without further action by the holders of Common Stock, may designate and issue

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

shares of Preferred Stock in one or more series and may fix or alter the rights, preferences, privileges and
restrictions, including the voting rights, redemption provisions (including sinking fund provisions), dividend
rights, dividend rates, liquidation rates, liquidation preferences, conversion rights and the description and number
of shares constituting any wholly unissued series of Preferred Stock. The issuance of such shares of Preferred
Stock could adversely affect the rights of the holders of Common Stock. The issuance of shares of Preferred
Stock under certain circumstances could also have the effect of delaying or preventing a change of control of the
Company or other corporate action.

Redemption of Securities

Wynn Resorts’ articles of incorporation provide that, to the extent a gaming authority makes a determination

of unsuitability or to the extent the Board of Directors determines, in its sole discretion, that a person is likely to
jeopardize the Company or any affiliates application for, receipt of, approval for, right to the use of, or
entitlement to, any gaming license, Wynn Resorts may redeem shares of its capital stock that are owned or
controlled by an unsuitable person or its affiliates. The redemption price will be the amount, if any, required by
the gaming authority or, if the gaming authority does not determine the price, the sum deemed by the Board of
Directors to be the fair value of the securities to be redeemed. If Wynn Resorts determines the redemption price,
the redemption price will be capped at the closing price of the shares on the principal national securities
exchange on which the shares are listed on the trading day before the redemption notice is given. If the shares are
not listed on a national securities exchange, the redemption price will be capped at the closing sale price of the
shares as quoted on The NASDAQ Global Select Market or if the closing price is not reported, the mean between
the bid and ask prices, as quoted by any other generally recognized reporting system. Wynn Resorts’ right of
redemption is not exclusive of any other rights that it may have or later acquire under any agreement, its bylaws
or otherwise. The redemption price may be paid in cash, by promissory note, or both, as required, and pursuant to
the terms established by, the applicable Gaming Authority and, if not, as the Board of Directors of Wynn Resorts
elects.

Based on the Board of Directors’ finding of “unsuitability,” on February 18, 2012, Wynn Resorts redeemed

and canceled Aruze’s 24,549,222 shares of Wynn Resorts’ common stock. For more information, refer to Note
17 “Commitments and Contingencies.”

Note 13—Noncontrolling Interests

WML

In October 2009, WML, an indirect wholly owned subsidiary of the Company and the developer, owner and

operator of Wynn Macau and Wynn Palace, listed its ordinary shares of common stock on The Stock Exchange
of Hong Kong Limited through an initial public offering. The Company currently owns approximately 72% of
this subsidiary’s common stock. The shares of WML were not and will not be registered under the Securities Act
and may not be offered or sold in the United States absent a registration under the Securities Act, or an applicable
exception from such registration requirements.

On April 27, 2016, WML paid a dividend of HK$0.60 per share for a total of $401.9 million. The
Company’s share of this dividend was $290.1 million with a reduction of $111.8 million to noncontrolling
interests in the accompanying Consolidated Balance Sheets.

On March 31, 2015, WML paid a dividend of HK$1.05 per share for a total of $702.6 million. The
Company’s share of this dividend was $507.1 million with a reduction of $195.5 million to noncontrolling
interests in the accompanying Consolidated Balance Sheets.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

On September 23, 2014, WML paid a dividend of HK$0.70 per share for a total of $469.2 million. The

Company’s share of this dividend was $338.7 million with a reduction of $130.6 million to noncontrolling
interests in the accompanying Consolidated Balance Sheets.

On June 6, 2014, WML paid a dividend of HK$0.98 per share for a total of $655.8 million. The Company’s

share of this dividend was $474.0 million with a reduction of $181.8 million to noncontrolling interests in the
accompanying Consolidated Balance Sheets.

Other

On December 28, 2016, the Company sold a 49.9% interest in the Retail Joint Venture to Crown for
consideration of $292.0 million. For more information on the transaction, see Note 3, “Retail Joint Venture.” In
connection with this transaction, the Company recorded $15.9 million of noncontrolling interest in the
accompanying Consolidated Balance Sheets.

Note 14—Benefit Plans

Defined contribution plans

The Company established a retirement savings plan under Section 401(k) of the Internal Revenue Code
covering its U.S. non-union employees in July 2000. The plan allows employees to defer, within prescribed
limits, a percentage of their income on a pre-tax basis through contributions to this plan. The Company matches
50% of employee contributions, up to 6% of employees’ eligible compensation, with a one-time annual matching
cap per employee of $1,200 and $750 for the years ended December 31, 2015 and 2014, respectively. There was
no matching cap for the year ended December 31, 2016. During the years ended December 31, 2016, 2015 and
2014, the Company recorded matching contribution expenses of $6.1 million, $3.2 million and $2.0 million
respectively.

Wynn Macau also operates a defined contribution retirement benefits plan (the “Wynn Macau
Plan”). Eligible employees are allowed to contribute 5% of their salary to the Wynn Macau Plan and the
Company matches any contributions. The assets of the Wynn Macau Plan are held separately from those of the
Company in an independently administered fund. The Company’s matching contributions vest to the employee at
10% per year with full vesting in ten years. Forfeitures of unvested contributions are used to reduce the
Company’s liability for its contributions payable. During the years ended December 31, 2016, 2015 and 2014,
the Company recorded matching contribution expenses of $12.9 million, $11.2 million and $8.7 million,
respectively.

Multi-employer pension plan

Wynn Las Vegas, LLC contributes to a multi-employer defined benefit pension plan for certain of its union

employees under the terms of the Southern Nevada Culinary and Bartenders Union collective-bargaining
agreement. The collective-bargaining agreement that covers these union-represented employees was set to expire
in July 2015. An extension was in place until February 2017 when the Company entered into a new collective
bargaining agreement, which expires July 2021. The legal name of the multi-employer pension plan is the
Southern Nevada Culinary and Bartenders Pension Plan (the “Plan”) (EIN: 88-6016617 Plan Number: 1). The
Company recorded an expense of $9.3 million, $9.4 million and $9.2 million for contributions to the Plan for the
years ended December 31, 2016, 2015 and 2014, respectively. For the 2015 plan year, the most recent for which
plan data is available, the Company’s contributions were identified by the Plan to exceed 5% of total
contributions for that year. Based on information the Company received from the Plan, it was certified to be in

107

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

neither endangered nor critical status for the 2015 plan year. Risks of participating in a multi-employer plan
differ from single-employer plans for the following reasons: (1) assets contributed to a multi-employer plan by
one employer may be used to provide benefits to employees of other participating employers; (2) if a
participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the
remaining participating employers; and (3) if a participating employer stops participating, it may be required to
pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability.

Note 15—Stock-Based Compensation

Wynn Resorts, Limited

The Company’s 2002 Stock Incentive Plan, as amended and restated (the “WRL 2002 Plan”), allowed it to

grant stock options and nonvested shares of Wynn Resorts’ common stock to eligible directors, officers,
employees, and consultants of the Company. Under the WRL 2002 Plan, a maximum of 12,750,000 shares of the
Company’s common stock was reserved for issuance.

On May 16, 2014, the Company adopted the Wynn Resorts, Limited 2014 Omnibus Incentive Plan (the
“Omnibus Plan”) after approval from its stockholders. The Omnibus Plan allows for the grant of stock options,
restricted stock, restricted stock units, stock appreciation rights, performance awards and other share-based
awards to the same eligible participants as the WRL 2002 Plan. Under the approval of the Omnibus Plan, no new
awards may be made under the WRL 2002 Plan. The outstanding awards under the WRL 2002 Plan were
transferred to the Omnibus Plan and will remain pursuant to their existing terms and related award agreements.
The Company reserved 4,409,390 shares of its common stock for issuance under the Omnibus Plan. These shares
were transferred from the remaining available amount under the WRL 2002 Plan.

The Omnibus Plan is administered by the Compensation Committee (the “Committee”) of the Wynn
Resorts, Limited Board of Directors. The Committee has discretion under the Omnibus Plan regarding which
type of awards to grant, the vesting and service requirements, exercise price and other conditions, in all cases
subject to certain limits. For stock options, the exercise price of stock options must be at least equal to the fair
market value of the stock on the date of grant and the maximum term of such an award is 10 years.

As of December 31, 2016, the Company had an aggregate of 3,872,121 shares of its common stock available

for grant as share-based awards under the Omnibus Plan.

108

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Stock Options

The summary of stock option activity under the plans for the year ended December 31, 2016 is presented

below:

Outstanding as of January 1, 2016 . . . . . . . . . . .
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exercised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Forfeited or expired . . . . . . . . . . . . . . . . . . . . . .

Options

1,370,260
10,000
(74,000)
—

Outstanding as of December 31, 2016 . . . . . . . .

1,306,260

Weighted
Average
Exercise
Price

$81.49
$97.10
$47.12
$ —

$83.56

Fully vested and expected to vest as of

December 31, 2016 . . . . . . . . . . . . . . . . . . . .

1,304,109

$83.58

Exercisable as of December 31, 2016 . . . . . . . .

1,007,758

$89.72

Weighted
Average
Remaining
Contractual
Term

Aggregate
Intrinsic
Value

2.60

$23,139,020

2.60

2.47

$23,072,465

$13,094,570

The following is provided for stock options from the plans (in thousands, except weighted average grant

date fair value):

Weighted average grant date fair value . . . . . . . . . . . . . . . . .

$34.90

$31.83

$ 58.03

Intrinsic value of stock options exercised . . . . . . . . . . . . . . .

$3,657

$1,684

$30,485

Cash received from the exercise of stock options . . . . . . . . .

$3,487

$3,026

$11,086

Years Ended December 31,

2016

2015

2014

As of December 31, 2016, there was a total of $6.9 million of unamortized compensation related to stock

options, which is expected to be recognized over a weighted average period of 2.2 years.

Nonvested shares

The summary of nonvested share activity under the plans for the year ended December 31, 2016 is presented

below:

Nonvested as of January 1, 2016 . . . . . . . . . . . . . . . . . . . .
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Vested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Weighted
Average
Grant Date
Fair Value

$118.61
63.56
78.84
124.32

Shares

354,206
412,504
(554,954)
(60,000)

Nonvested as of December 31, 2016 . . . . . . . . . . . . . . . . .

151,756

$112.14

109

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

The following is provided for the share award vesting from the plans (in thousands, except weighted average

grant date fair value):

Weighted average grant date fair value . . . . . . . . . . . . . . .

$ 63.56

$145.92

$209.92

Fair value of shares vested . . . . . . . . . . . . . . . . . . . . . . . . .

$39,380

$22,877

$ 9,430

Years Ended December 31,

2016

2015

2014

As of December 31, 2016, there was a total of $12.2 million of unamortized compensation related to

nonvested shares, which is expected to be recognized over a weighted average period of 3.8 years.

Wynn Macau, Limited

The Company’s majority-owned subsidiary, WML, has two stock-based compensation plans that provide

awards based on shares of WML’s common stock. The shares available for issuance under these plans are
separate and distinct from the common stock of Wynn Resorts’ share plan and are not available for issuance for
any awards under the Wynn Resorts share plan.

Share Option Plan

WML adopted a stock incentive plan, effective September 16, 2009, for the grant of stock options to
purchase shares of WML to eligible directors and employees of its subsidiaries (the “Share Option Plan”). The
Share Option Plan is administered by WML’s Board of Directors, which has the discretion on the vesting and
service requirements, exercise price, performance targets to exercise if applicable and other conditions, subject to
certain limits. A maximum of 518,750,000 shares have been reserved for issuance under the Share Option
Plan.

The summary of stock option activity under the plan for the year ended December 31, 2016 is presented

below:

Weighted
Average
Exercise
Price

Weighted
Average
Remaining
Contractual
Term

Aggregate
Intrinsic
Value

Options

Outstanding as of January 1, 2016 . . . . . . . . . . . . . . . . . . . . . . . . .
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exercised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4,358,000
1,932,000
—

Outstanding as of December 31, 2016 . . . . . . . . . . . . . . . . . . . . . .

6,290,000

$2.63
$1.49
$ —

$2.28

Fully vested and expected to vest as of December 31, 2016 . . . . . .

6,290,000

$2.28

Exercisable as of December 31, 2016 . . . . . . . . . . . . . . . . . . . . . . .

2,485,200

$2.60

7.3

7.3

5.4

$—

$—

$—

110

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

The following is provided for stock options from the Share Option Plan (in thousands, except weighted

average grant date fair value):

Weighted average grant date fair value . . . . . . . . . . . . . . . . . . . .

$0.31

$0.47

$ 0.94

Intrinsic value of stock options exercised . . . . . . . . . . . . . . . . . .

Cash received from the exercise of stock options . . . . . . . . . . . .

$ —

$ —

$ —

$ —

$1,134

$ 773

Years Ended December 31,

2016

2015

2014

As of December 31, 2016, there was a total of $1.4 million of unamortized compensation related to stock

options, which is expected to be recognized over a weighted average period of 3.2 years.

Share Award Plan

On June 30, 2014, the Company’s majority-owned subsidiary, WML, approved and adopted the WML

Employee Ownership Scheme (the “Share Award Plan”). The Share Award Plan allows for the grant of
nonvested shares of WML’s common stock to eligible employees. The Share Award Plan is administered by
WML’s Board of Directors and has been mandated under the plan to allot, issue and process the transfer of a
maximum of 50,000,000 shares. The Board of Directors has discretion on the vesting and service requirements,
exercise price and other conditions, subject to certain limits.

The summary of nonvested share activity under the Share Award Plan for the year ended December 31,

2016 is presented below:

Nonvested as of January 1, 2016 . . . . . . . . . . . . . . . . . .
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Vested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Shares

8,446,838
6,599,024
—

(1,036,728)

Nonvested as of December 31, 2016 . . . . . . . . . . . . . . .

14,009,134

Weighted
Average
Grant Date
Fair Value

$3.54
$1.38
$ —
$2.41

$2.61

The weighted average grant date fair value was $1.38, $1.95 and $3.81 for nonvested shares awarded during

the years ended December 31, 2016, 2015 and 2014, respectively. As of December 31, 2016, no shares have
vested under the Share Award Plan.

111

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Compensation Cost

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

Casino . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rooms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Food and beverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Entertainment, retail and other . . . . . . . . . . . . . . . . . . . . . .
General and administrative . . . . . . . . . . . . . . . . . . . . . . . .
Pre-opening costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total stock-based compensation expense . . . . . . . . .
Total stock-based compensation capitalized . . . . . . .

Years Ended December 31,

2016

2015

2014

$11,304
374
1,060
82
30,398
504

43,722
92

$ 9,858
318
1,050
82
26,978
189

38,475
350

$ 8,360
216
753
55
29,770
42

39,196
5,710

Total stock-based compensation costs . . . . . . . . . . . . . . . .

$43,814

$38,825

$44,906

Certain members of the Company’s executive management team receive a portion of their annual incentive
bonus in shares of the Company’s stock. The number of shares is determined based on the closing stock price on
the date the annual incentive bonus is settled. As the number of shares is variable, the Company records a
liability for the fixed monetary amount over the service period. For the year ended December 31, 2016, the
Company recorded $19.2 million of stock-based compensation expense associated with these awards. The
Company settled this obligation by issuing immediately vested shares in January 2017.

During the first quarter of 2014, the Company capitalized $5.5 million of stock-based compensation into

construction for a restricted stock award granted, which immediately vested. The restricted stock award was
granted to an employee of the Company’s design, development and construction subsidiary and will be amortized
over the useful life of the related asset.

During the years ended December 31, 2016, 2015 and 2014, the Company recognized income tax benefits in

the Consolidated Statements of Income of $10.4 million, $8.3 million and $9.6 million, respectively, related to
stock-based compensation expense. Additionally, during the years ended December 31, 2016, 2015 and 2014, the
Company realized tax benefits of $6.7 million, $6.7 million and $12.6 million, respectively, related to stock
option exercises and restricted stock vests that occurred in those years.

The Company uses the Black-Scholes option pricing model to determine the estimated fair value for stock
options. Dividend yield is based on the estimate of annual dividends expected to be paid at the time of the grant.
Expected volatility is based on implied and historical factors related to the Company’s common stock. The risk-
free interest rate used for each period presented is based on the U.S. Treasury yield curve for stock options issued
under the Wynn Resorts’ plans and the Hong Kong Exchange Fund rates for stock options issued under the Share
Option Plan, both at the time of grant for the period equal to the expected term. Expected term represents the
weighted average time between the option’s grant date and its exercise date. The Company used historical award
exercise activity and termination activity in estimating the expected term for the Wynn Resorts plans and WML’s
Share Option Plan.

112

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

The fair value of stock options granted under Wynn Resorts’ stock-based compensation plans were

estimated on the date of grant using the following weighted average assumptions:

Expected dividend yield . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expected volatility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Risk-free interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expected term (years) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Years Ended December 31,

2016

2.0%
45.4%
1.1%
6.0

2015

3.6%
44.1%
1.3%
6.0

2014

4.0%
43.3%
1.6%
6.5

The fair value of stock options granted under WML’s Share Option Plan was estimated on the date of grant

using the following weighted average assumptions:

Expected dividend yield . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expected volatility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Risk-free interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expected term (years) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Years Ended December 31,

2016

6.3%
42.6%
1.0%
6.5

2015

5.0%
41.3%
1.3%
6.5

2014

5.0%
40.9%
1.1%
6.5

Note 16—Income Taxes

Consolidated income before taxes for domestic and foreign operations consisted of the following (in

thousands):

Domestic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 90,900
219,697

$ (21,880)
311,127

$122,974
835,888

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$310,597

$289,247

$958,862

Years Ended December 31,

2016

2015

2014

The income tax provision (benefit) attributable to income before income taxes is as follows (in thousands):

Current

Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Deferred

Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Years Ended December 31,

2016

2015

2014

$

60
79
1,633

1,772

5,081
1,275
—

6,356

$ (819)
—
2,044

$ 2,260
—
2,043

1,225

4,303

3,505
4,100
(1,107)

6,498

(13,286)
4,094
1,107

(8,085)

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$8,128

$ 7,723

$ (3,782)

113

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

The income tax provision (benefit) differs from that computed at the federal statutory corporate tax rate as

follows:

Years Ended December 31,

2016

2015

2014

Federal statutory rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign tax rate differential . . . . . . . . . . . . . . . . . . . . . . . .
Non-taxable foreign income . . . . . . . . . . . . . . . . . . . . . . . .
Foreign tax credits, net of valuation allowance . . . . . . . . .
Repatriation of foreign earnings . . . . . . . . . . . . . . . . . . . . .
Other, net
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Valuation allowance, other . . . . . . . . . . . . . . . . . . . . . . . . .

35.0%

35.0%
35.0%
(14.5)% (21.0)% (19.1)%
(20.7)% (23.1)% (13.1)%
(61.5)% (93.2)% (95.2)%
88.0%
97.9%
2.9%
2.7%
1.1%
4.4%

51.6%
5.2%
7.5%

Effective tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.6%

2.7%

(0.4)%

On November 30, 2010, Wynn Macau SA received an exemption from Macau’s 12% Complementary Tax

on casino gaming profits, thereby exempting the casino gaming profits of Wynn Macau SA through
December 31, 2015. In October 2015, Wynn Macau SA received an additional 5-year exemption, effective
January 1, 2016, from Macau’s Complementary Tax on casino gaming profits through December 31, 2020.
Accordingly, for the years ended December 31, 2016, 2015 and 2014, the Company was exempted from the
payment of $27.3 million, $41.6 million and $99.4 million in such taxes or $0.27, $0.41 and $0.98 per share,
respectively. 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 July 2011, Wynn Macau SA received an extension of its agreement with the Macau government that

provides for an annual payment of MOP 15.5 million (approximately $1.9 million) as complementary tax
otherwise due by shareholders of Wynn Macau SA on dividend distributions through 2015. In August 2016,
Wynn Macau SA received an extension of the agreement for an additional five years applicable to tax years 2016
through 2020. The extension agreement provides for an annual payment of MOP 12.8 million (approximately
$1.6 million). As a result of the shareholder dividend tax agreements, income tax expense includes $1.6 million
for the year ended December 31, 2016 and $1.9 million for each of the years ended December 31, 2015 and 2014.

The Macau special gaming tax is 35% of gross gaming revenue. U.S. tax laws only allow a foreign tax
credit (“FTC”) up to 35% of foreign source income. In February 2010, the Company and the IRS entered into a
Pre-Filing Agreement (“PFA”) providing that the Macau special gaming tax qualifies as a tax paid in lieu of an
income tax and could be claimed as a U.S. FTC.

During the years ended December 31, 2016, 2015 and 2014, the Company recognized tax benefits of
$170.5 million, $264.1 million and $895.0 million, respectively (net of valuation allowance and uncertain tax
positions), for FTCs generated from the earnings of Wynn Macau SA.

Accounting standards require recognition of a future tax benefit to the extent that realization of such benefit
is more likely than not; otherwise, a valuation allowance is applied. During the years ended December 31, 2016
and 2015, the aggregate valuation allowance for deferred tax assets decreased by $44.2 million and increased by
$34.1 million, respectively. The 2016 decrease is primarily related to a release of valuation allowance on prior
year FTCs expected to be utilized as a result of the sale of a 49.9% ownership interest in Retail Joint Venture.
The 2015 increase is primarily related to FTC carryforwards and other foreign deferred tax assets that are not
considered more likely than not realizable.

114

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

The Company recorded tax benefits resulting from the exercise of nonqualified stock options and the value

of vested restricted stock and accrued dividends of $0.8 million, $0.4 million and $9.4 million as of
December 31, 2016, 2015 and 2014, respectively, in excess of the amounts reported for such items as
compensation costs under accounting standards related to stock-based compensation. The Company uses a with-
and-without approach to determine if the excess tax deductions associated with compensation costs have reduced
income taxes payable.

The tax effects of significant temporary differences representing net deferred tax assets and liabilities

consisted of the following (in thousands):

Deferred tax assets—U.S.:

Foreign tax credit carryforwards . . . . . . . . . . .
Receivables, inventories, accrued liabilities

and other . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Intangibles and related other
. . . . . . . . . . . . . .
Stock based compensation . . . . . . . . . . . . . . . .
Pre-opening costs . . . . . . . . . . . . . . . . . . . . . . .
Other tax credit carryforwards . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Less: valuation allowance . . . . . . . . . . . . . . . . .

Deferred tax liabilities—U.S.:
Property and equipment
. . . . . . . . . . . . . . . . . .
Redemption Note fair value . . . . . . . . . . . . . . .
Prepaid insurance, maintenance and taxes . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Deferred tax assets—Foreign:

Net operating loss carryforwards . . . . . . . . . . .
. . . . . . . . . . . . . . . . . .
Property and equipment
Pre-opening costs . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Less: valuation allowance . . . . . . . . . . . . . . . . .

December 31,

2016

2015

$ 3,269,781

$ 3,315,737

37,391
21,404
18,740
6,516
2,413
7,958

39,743
25,129
17,986
8,696
9,087
6,344

3,364,203
(3,201,406)

3,422,722
(3,271,173)

162,797

151,549

(176,611)
(42,806)
(7,913)
(2,028)

(229,358)

50,258
29,998
12,944
2,946

96,146
(85,317)

10,829

(159,171)
(19,025)
(7,984)
(1,726)

(187,906)

22,454
27,672
13,770
3,056

66,952
(59,705)

7,247

Deferred tax liabilities—Foreign:
Property and equipment

. . . . . . . . . . . . . .

(10,829)

(7,247)

Net deferred tax liability . . . . . . . . . . . . . . . . . . . . . .

$

(66,561)

$

(36,357)

As of December 31, 2016, the Company had FTC carryforwards (net of uncertain tax positions) of

$3.27 billion. Of this amount, $574.4 million will expire in 2018, $110.9 million in 2019, $530.4 million in 2020,
$540.3 million in 2021, $756.0 million in 2023, $710.7 million in 2024 and $47.2 million in 2025. The Company

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WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

has no U.S. tax loss carryforwards. The Company incurred foreign tax losses of $315.5 million, $124.4 million
and $90.3 million during the tax years ended December 31, 2016, 2015 and 2014, respectively. These foreign tax
loss carryforwards expire in 2018, 2017 and 2016, respectively.

In assessing the need for a valuation allowance, the Company relies solely on the reversal of net taxable
temporary differences. The valuation allowance for foreign tax credits was determined by scheduling the existing
U.S. taxable temporary differences that are expected to reverse and result in foreign source income during the
10-year foreign tax credit carryover period.

As of December 31, 2016 and 2015, the Company had valuation allowances of $3.20 billion and

$3.26 billion, respectively, provided on FTCs expected to expire unutilized and valuation allowances of
$4.4 million and $7.8 million provided on other U.S. deferred tax assets. As of December 31, 2016 and 2015, the
Company had valuation allowances of $85.3 million and $59.7 million, respectively, provided on its foreign
deferred tax assets.

The Company has not provided deferred U.S. federal income taxes or foreign withholding taxes on

temporary differences in investments in foreign subsidiaries of $83.4 million and $336.4 million as of
December 31, 2016 and 2015, respectively. These amounts are not considered permanently reinvested; however,
U.S. FTCs should be sufficient to eliminate any U.S. federal income tax in the event of repatriation.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in

thousands):

December 31,

2016

2015

2014

Balance—beginning of year . . . . . . . . . . . . . . . . . . . . . . . .
Increases based on tax positions of the current year . . . . .
Increases based on tax positions of prior years . . . . . . . . .
Decreases for tax positions of prior years . . . . . . . . . . . . .
Settlements with taxing authorities . . . . . . . . . . . . . . . . . .
Lapses in statutes of limitations . . . . . . . . . . . . . . . . . . . . .

$88,314
5,930
—
—
—
(3,721)

$88,884
3,051
—
—
(354)
(3,267)

$89,544
3,297
322
(867)
(997)
(2,415)

Balance—end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$90,523

$88,314

$88,884

As of December 31, 2016, 2015 and 2014, unrecognized tax benefits of $90.3 million, $88.3 million and
$88.9 million, respectively, were recorded as reductions in deferred income taxes, net. As of December 31, 2016,
the Company recorded $0.2 million of unrecognized tax benefits in other long-term liabilities. The Company had
no unrecognized tax benefits recorded in other long-term liabilities as of December 31, 2015 and 2014.

As of December 31, 2016, 2015 and 2014, $22.6 million, $20.9 million and $20.7 million, respectively, of

unrecognized tax benefits would, if recognized, impact the effective tax rate.

The Company recognizes penalties and interest related to unrecognized tax benefits in the provision for
income taxes. During the year ended December 31, 2016, the Company recognized $0.9 million in interest in the
provision for income taxes. During the years ended December 31, 2015 and 2014, the Company recognized no
interest and penalties.

The Company anticipates that the 2012 statute of limitations will expire in the next 12 months for certain
foreign tax jurisdictions. Also, the Company’s unrecognized tax benefits include certain income tax accounting

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WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

methods, which govern the timing and deductibility of income tax deductions. As a result, the Company’s
unrecognized tax benefits could increase up to $2.2 million over the next 12 months.

The Company files income tax returns in the U.S. federal jurisdiction, various states and foreign

jurisdictions. The Company’s income tax returns are subject to examination by the IRS and other tax authorities
in the locations where it operates. The Company’s 2002 to 2012 domestic income tax returns remain subject to
examination by the IRS to the extent tax attributes carryforward to future years. The Company’s 2013 to 2015
domestic income tax returns also remain subject to examination by the IRS. The Company’s 2012 to 2015 Macau
income tax returns remain subject to examination by the Macau Financial Services Bureau.

The Company has participated in the IRS Compliance Assurance Program (“CAP”) for the 2012 through

2016 tax years and will continue to participate in the IRS CAP for the 2017 tax year.

In June 2015 and February 2016, the Company received notification that the IRS completed its examination

of the Company’s 2013 and 2014 U.S. income tax returns, respectively. There were no changes in its
unrecognized tax benefits as a result of the completion of these examinations.

In March 2013, the Macau Financial Services Bureau commenced an examination of the 2009, 2010 and
2011 Macau income tax returns of Wynn Macau SA. In December 2014, Wynn Macau SA reached an agreement
with the Macau Financial Services Bureau regarding issues raised during its examination. While no additional tax
was due as a result of the examination, adjustments were made to the Company’s foreign net operating loss
carryforwards.

In December 2015, the Financial Services Bureau completed an examination of the 2012 Macau income tax
return of Wynn Macau SA. On December 31, 2015, the statute of limitations for the 2010 Macau Complementary
Tax return expired. As a result of the exam settlement and the expiration of the statute of limitations for the
Macau Complementary Tax return, the total amount of unrecognized tax benefits decreased by $3.6 million.

On December 31, 2016, the statute of limitations for the 2011 Macau Complementary tax return expired. As
a result of the exam settlement and the expiration of the statute of limitations for the Macau Complementary Tax
return, the total amount of unrecognized tax benefits decreased by $3.7 million.

In April 2016, the Financial Services Bureau commenced an examination of the 2011 and 2012 Macau income

tax returns of Palo. In June 2016, the Financial Services Bureau concluded its examination with no changes.

Note 17—Commitments and Contingencies

Leases

The Company is the lessor under leases for retail space at its resorts. The lease agreements include
minimum base rents with contingent rental clauses primarily based on percentage of net sales exceeding
minimum base rents.

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The following table presents the future minimum rentals to be received under the operating leases (in thousands):

Years Ending December 31,

2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$103,867
87,443
89,701
89,956
21,743
68,734

$461,444

The total future minimum rentals do not include contingent rentals. Contingent rentals were $34.6 million,

$48.6 million and $87.8 million for the years ended December 31, 2016, 2015, and 2014, respectively.

The Company is the lessee under leases for office space, warehouse facilities, certain office equipment and

various parcels of land, including the land that Wynn Macau and Wynn Palace are built on.

As of December 31, 2016, the Company was obligated under non-cancelable operating leases to make future

minimum lease payments as follows (in thousands):

Years Ending December 31,

2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 20,389
18,426
17,875
11,897
10,842
101,842

$181,271

Rent expense for the years ended December 31, 2016, 2015 and 2014, was $31.0 million, $28.6 million and

$26.1 million, respectively.

Employment Agreements

The Company has entered into employment agreements with several executive officers, other members of

management and certain key employees. These agreements generally have three- to five-year terms and typically
indicate a base salary and often contain provisions for discretionary bonuses. Certain of the executives are also
entitled to a separation payment if terminated without “cause” or upon voluntary termination of employment for
“good reason” following a “change of control” (as these terms are defined in the employment contracts). As of
December 31, 2016, the Company was obligated to make future payments of $59.7 million, $37.5 million,
$17.8 million, $6.7 million, and $0.2 million during the years ending December 2017, 2018, 2019, 2020, and
2021, respectively.

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WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Other Commitments

The Company has additional commitments for gaming tax payments in Macau and performance and other

miscellaneous contracts. As of December 31, 2016, the Company was obligated under these arrangements, to
make future minimum payments as follows (in thousands):

Years Ending December 31,

2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 99,733
73,255
53,538
30,382
20,266
4,695

$281,869

The above table does not include community payments associated with the continuing operations of Wynn

Boston Harbor, which commence upon the opening of the resort. These amounts are approximately $10.5 million
per year with minimal annual increases.

Letters of Credit

As of December 31, 2016, the Company had outstanding letters of credit of $13.7 million.

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 or cash flows.

Determination of Unsuitability and Redemption of Aruze and Affiliates

On February 18, 2012, Wynn Resorts’ Gaming Compliance Committee received an independent report by

Freeh, Sporkin & Sullivan, LLP (the “Freeh Report”) detailing a pattern of misconduct by the Okada Parties. The
factual record presented in the Freeh Report included evidence that the Okada Parties had provided valuable
items to certain foreign gaming officials who were responsible for regulating gaming in a jurisdiction in which
entities controlled by Mr. Okada were developing a gaming resort. Mr. Okada denied the impropriety of such
conduct to members of the Board of Directors of Wynn Resorts and, while serving as one of the Company’s
directors, Mr. Okada refused to acknowledge or abide by Wynn Resorts’ anti-bribery policies and refused to
participate in the training all other directors received concerning these policies.

Based on the Freeh Report, the Board of Directors of Wynn Resorts determined that the Okada Parties are
“unsuitable persons” under Article VII of the Company’s articles of incorporation. The Board of Directors was
unanimous (other than Mr. Okada) in its determination. After authorizing the redemption of Aruze’s shares, as
discussed below, the Board of Directors took certain actions to protect the Company and its operations from any
influence of an unsuitable person, including placing limitations on the provision of certain operating information
to unsuitable persons and formation of an Executive Committee of the Board to manage the business and affairs
of the Company during the period between each annual meeting. The Charter of the Executive Committee
provides that “Unsuitable Persons” are not permitted to serve on the Committee. All members of the Board, other

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WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

than Mr. Okada, were appointed to the Executive Committee on February 18, 2012. The Board of Directors also
requested that Mr. Okada resign as a director of Wynn Resorts (under Nevada corporation law, a board of
directors does not have the power to remove a director) and recommended that Mr. Okada be removed as a
member of the Board of Directors of WML. On February 18, 2012, Mr. Okada was removed from the Board of
Directors of Wynn Las Vegas Capital Corp., an indirect wholly owned subsidiary of Wynn Resorts. On
February 24, 2012, Mr. Okada was removed from the Board of Directors of WML and on February 22, 2013, he
was removed from the Board of Directors of Wynn Resorts by a stockholder vote in which 99.6% of the over
86 million shares voted were cast in favor of removal. Mr. Okada resigned from the Board of Directors of Wynn
Resorts on February 21, 2013. Although the Company has retained the structure of the Executive Committee, the
Board has resumed its past role in managing the business and affairs of the Company.

Based on the Board of Directors’ finding of “unsuitability,” on February 18, 2012, Wynn Resorts redeemed
and canceled Aruze’s 24,549,222 shares of Wynn Resorts’ common stock. Following a finding of “unsuitability,”
Article VII of Wynn Resorts’ articles of incorporation authorizes redemption at “fair value” of the shares held by
unsuitable persons. The Company engaged an independent financial advisor to assist in the fair value calculation
and concluded that a discount to the then current trading price was appropriate because of, among other things,
restrictions on most of the shares held by Aruze under the terms of the Stockholders Agreement (as defined
below). Pursuant to its articles of incorporation, Wynn Resorts issued the Redemption Note to Aruze in
redemption of the shares. The Redemption Note has a principal amount of $1.94 billion, matures on February 18,
2022, and bears interest at the rate of 2% per annum, payable annually in arrears on each anniversary of the date
of the Redemption Note. The Company may, in its sole and absolute discretion, at any time and from time to
time, and without penalty or premium, prepay the whole or any portion of the principal or interest due under the
Redemption Note. In no instance shall any payment obligation under the Redemption Note be accelerated except
in the sole and absolute discretion of Wynn Resorts or as specifically mandated by law. The indebtedness
evidenced by the Redemption Note is and shall be subordinated in right of payment, to the extent and in the
manner provided in the Redemption Note, to the prior payment in full of all existing and future obligations of
Wynn Resorts or any of its affiliates in respect of indebtedness for borrowed money of any kind or nature.

The Company provided the Freeh Report to appropriate regulators and law enforcement agencies and has been
cooperating with related investigations that such regulators and agencies have undertaken. The conduct of the Okada
Parties and any resulting regulatory investigations could have adverse consequences to the Company and its
subsidiaries. A finding by regulatory authorities that Mr. Okada violated anti-corruption statutes and/or other laws or
regulations applicable to persons affiliated with a gaming licensee on Company property and/or otherwise involved the
Company in criminal or civil violations could result in actions by regulatory authorities against the Company and its
subsidiaries.

Redemption Action and Counterclaim

On February 19, 2012, Wynn Resorts filed a complaint in the Eighth Judicial District Court, Clark County,
Nevada against the Okada Parties (as amended, the “Complaint”), alleging breaches of fiduciary duty and related
claims (the “Redemption Action”) arising from the activities addressed in the Freeh Report. The Company is seeking
compensatory and special damages as well as a declaration that it acted lawfully and in full compliance with its articles
of incorporation, bylaws and other governing documents in redeeming and canceling the shares of Aruze.

On March 12, 2012, the Okada Parties removed the action to the United States District Court for the District of
Nevada (the action was subsequently remanded to Nevada state court). On that same date, the Okada Parties filed an
answer denying the claims and a counterclaim (as amended, the “Counterclaim”) that purports to assert claims against
the Company, each of the members of the Company’s Board of Directors (other than Mr. Okada) and Wynn Resorts’

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WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

General Counsel (the “Wynn Parties”). The Counterclaim alleges, among other things: (1) that the shares of Wynn
Resorts common stock owned by Aruze were exempt from the redemption-for-unsuitability provisions in the Wynn
Resorts articles of incorporation (the “Articles”) pursuant to certain agreements executed in 2002; (2) that the Wynn
Resorts directors who authorized the redemption of Aruze’s shares acted at the direction of Mr. Wynn and did not
independently and objectively evaluate the Okada Parties’ suitability, and by so doing, breached their fiduciary duties;
(3) that the Wynn Resorts directors violated the terms of the Wynn Resorts Articles by failing to pay Aruze fair value
for the redeemed shares; and (4) that the terms of the Redemption Note that Aruze received in exchange for the
redeemed shares, including the Redemption Note’s principal amount, duration, interest rate, and subordinated status,
were unconscionable. Among other relief, the Counterclaim seeks a declaration that the redemption of Aruze’s shares
was void, an injunction restoring Aruze’s share ownership, damages in an unspecified amount and rescission of the
Amended and Restated Stockholders Agreement, dated as of January 6, 2010, by and among Aruze, Mr. Wynn, and
Elaine Wynn (the “Stockholders Agreement”).

On June 19, 2012, Elaine Wynn asserted a cross claim against Mr. Wynn and Aruze seeking a declaration

that (1) any and all of Elaine Wynn’s duties under the Stockholders Agreement shall be discharged; (2) the
Stockholders Agreement is subject to rescission and is rescinded; (3) the Stockholders Agreement is an
unreasonable restraint on alienation in violation of public policy; and/or (4) the restrictions on sale of shares shall
be construed as inapplicable to Elaine Wynn. On March 28, 2016, Elaine Wynn filed an amended cross claim
which added Wynn Resorts and Wynn Resorts’ General Counsel (together with Mr. Wynn, the “Wynn Cross
Defendants”) as cross defendants. The amended cross claim substantially repeats its earlier allegations and
further alleges that Mr. Wynn engaged in acts of misconduct that, with the Wynn Cross Defendants, resulted in
Mr. Wynn allegedly breaching the Stockholders Agreement and violating alleged duties under the Stockholders
Agreement by preventing Elaine Wynn from being nominated and elected to serve as one of the Company’s
directors. In addition to continuing to seek the declarations asserted under the original cross claim, the amended
cross claim seeks an order compelling Mr. Wynn to comply with the Stockholders Agreement by assuring the
nomination and election of Elaine Wynn to the Board of Directors and seeks unspecified monetary damages from
Mr. Wynn and the Wynn Cross Defendants. The Wynn Cross Defendants filed motions to dismiss and a motion
to sever in April 2016 and will vigorously defend against the claims asserted against them. On May 5, 2016, the
court granted Wynn Resorts’ and Wynn Resorts’ General Counsel’s motions to dismiss and denied Mr. Wynn’s
motion to dismiss. On May 26, 2016, the court denied the Wynn Cross Defendants’ motion to sever. Mr. Wynn is
continuing to oppose Elaine Wynn’s cross claim.

The 2023 Indenture provides that if Mr. Wynn, together with certain related parties, in the aggregate

beneficially owns a lesser percentage of the voting power of the outstanding common stock of the Company than
is beneficially owned by any other person, a change of control will have occurred. The 2025 Indenture provides
that if any event constitutes a “change of control” under the 2023 Indenture, it will constitute a change of control
under the 2025 Indenture. If the Stockholders Agreement is determined not to be enforceable pursuant to Elaine
Wynn’s cross claim, Mr. Wynn would not beneficially own or control Elaine Wynn’s shares, which could
increase the likelihood that a change in control may occur under the Wynn Las Vegas, LLC debt documents.
Under the 2023 Indenture and the 2025 Indenture, if (1) a change of control occurs and (2) at any time within 60
days after that occurrence, the 4 1/4% Senior Notes due 2023 or the 5 1/2% Senior Notes due 2025, as applicable,
are rated below investment grade by both rating agencies that rate such notes, the Company is required to make
an offer to each applicable holder to repurchase all or any part of such holder’s notes at a purchase price equal to
101% of the aggregate principal amount thereof plus accrued and unpaid interest on the notes purchased, if any,
to the date of repurchase (unless the notes have been previously called for redemption).

The Company’s Complaint and the Okada Parties’ Counterclaim have been, and continue to be, challenged

through motion practice. At a hearing held on November 13, 2012, the Nevada state court granted the Wynn

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WYNN RESORTS, LIMITED AND SUBSIDIARIES

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Parties’ motion to dismiss the Counterclaim with respect to the Okada Parties’ claim under the Nevada Racketeer
Influenced and Corrupt Organizations Act with respect to certain Company executives but otherwise denied the
motion. At a hearing held on January 15, 2013, the court denied the Okada Parties’ motion to dismiss the
Company’s Complaint. On April 22, 2013, the Company filed a second amended complaint. On August 30, 2013,
the Okada Parties filed their third amended Counterclaim. On September 18, 2013, the Company filed a Partial
Motion to Dismiss related to a claim in the third amended Counterclaim alleging civil extortion by Mr. Wynn
and the Company’s General Counsel. On October 29, 2013, the court granted the motion and dismissed the
claim. On November 26, 2013, the Okada Parties filed their fourth amended Counterclaim, and the Company
filed an answer to that pleading on December 16, 2013. On September 16, 2014, Aruze filed a motion for partial
summary judgment related to its counterclaim alleging the Company’s directors violated the terms of the Articles
by failing to pay Aruze fair value for the redeemed shares. At a hearing held on October 21, 2014, the court
denied Aruze’s motion. On October 10, 2014, the Okada Parties filed a motion for partial judgment on the
pleadings principally to seek dismissal of certain breach of fiduciary claims against Mr. Okada included in the
Company’s Complaint. On November 13, 2014, the court denied the motion.

On each of February 14, 2013 and February 13, 2014, the Company issued a check to Aruze in the amount
of $38.7 million, representing the interest payments due on the Redemption Note at those times. However, those
checks were not cashed. In February 2014, the Okada Parties advised of their intent to deposit any checks for
interest and principal, past and future, due under the terms of the Redemption Note to the clerk of the court for
deposit into the clerk’s trust account. On March 17, 2014, the parties stipulated that the checks be returned to the
Company for reissue in the same amounts, payable to the clerk of the court for deposit into the clerk’s trust
account. Pursuant to the stipulation, on March 20, 2014, the Company delivered to the clerk of the court the
reissued checks that were deposited into the clerk’s trust account and filed a notice with the court with respect to
the same. On each of February 13, 2015, February 12, 2016, and February 13, 2017, the Company issued a check
for the interest payment due at those times to the clerk of the court for deposit into the clerk’s trust account.

On April 8, 2013, the United States Attorney’s Office and the U.S. Department of Justice filed a Motion to

Intervene and for Temporary and Partial Stay of Discovery in the Redemption Action. The parties had been
engaged in discovery at the time of the filing. The motion stated that the federal government has been conducting
a criminal investigation of the Okada Parties involving the “same underlying allegations of misconduct—that is,
potential violations of the Foreign Corrupt Practice Act and related fraudulent conduct—that form the basis of”
the Company’s complaint, as amended, in the Redemption Action. The motion sought to stay all discovery in the
Redemption Action related to the Okada Parties’ allegedly unlawful activities in connection with their casino
project in the Philippines until the conclusion of the criminal investigation and any resulting criminal
prosecution, with an interim status update to the court in six months. At a hearing on May 2, 2013, the court
granted the motion and ordered that all discovery in the Redemption Action be stayed for a period of six months
(the “Stay”). On May 30, 2013, Elaine Wynn filed a motion for partial relief from the Stay, to allow her to
conduct limited discovery related to her cross and counterclaims. The Wynn Parties opposed the motion so as to
not interfere with the United States government’s investigation. At a hearing on August 1, 2013, the court denied
the motion. On October 29, 2013, the United States Attorney’s Office and the U.S. Department of Justice filed a
Motion to Extend the Stay for a further period of six months. At a hearing on October 31, 2013, the court granted
the requested extension based upon an affidavit provided under seal that outlined, among other things, concerns
for witness safety. The court did, however, order the parties to exchange written discovery propounded prior to
May 2, 2013, including discovery related to the Elaine Wynn cross and counterclaims referred to above. The
extended Stay expired on May 5, 2014. On April 29, 2014, the United States Attorney’s Office and the U.S.
Department of Justice filed a Motion for a Second Extension of Temporary Stay of Discovery for a further six
months. At a hearing on May 1, 2014, the court denied the motion.

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WYNN RESORTS, LIMITED AND SUBSIDIARIES

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In June 2016, Wynn Resorts filed a motion to disqualify one of Ms. Wynn’s law firms and sought an injunction

related to Ms. Wynn providing her attorneys with confidential and privileged information that belongs to Wynn
Resorts. On June 23, 2016, the court stayed discovery as to both Ms. Wynn and the Okada Parties, pending an
evidentiary disqualification hearing currently scheduled for March 2017. On January 23, 2017, the court issued a
temporary restraining order that halted such law firm’s participation in the case, with the sole exception of contesting
their disqualification. The court has indicated a preliminary schedule that would have the trial begin in February 2018.

Wynn Resorts will continue to vigorously pursue its claims against the Okada Parties, and Wynn Resorts and the

Wynn Parties will continue to vigorously defend against the counterclaims asserted against them. Management has
determined that based on proceedings to date, it is currently unable to determine the probability of the outcome of this
matter or the range of reasonably possible loss, if any. An adverse judgment or settlement involving payment of a
material amount could cause a material adverse effect on Wynn Resorts’ financial condition.

Litigation Commenced by Kazuo Okada

Japan Action:

On August 28, 2012, Mr. Okada, Universal Entertainment Corporation and Okada Holdings (“Okada Japan

Parties”) filed a complaint in Tokyo District Court against the Wynn Parties, alleging that the press release issued
by the Company with respect to the redemption has damaged plaintiffs’ social evaluation and credibility. The
Okada Japan Parties seek damages and legal fees from the Wynn Parties. After asking the Okada Japan Parties to
clarify the allegations in their complaint, the Wynn Parties objected to the jurisdiction of the Japanese court. On
April 30, 2013, the Wynn Parties filed a memorandum in support of their jurisdictional position. On October 21,
2013, the court dismissed the action on jurisdictional grounds. On November 1, 2013, the Okada Japan Parties
filed an appeal moving the matter to the Tokyo High Court. On June 11, 2014, the Tokyo High Court ruled in
favor of the Wynn Parties and upheld the motion for dismissal. On June 25, 2014, the Okada Japan Parties filed a
notice of appeal to the Supreme Court of Japan. The Supreme Court of Japan dismissed the appeal as to all of the
individuals (including the Company directors) in February 2016 and as to Wynn Resorts in March 2016, thus
upholding the motion for dismissal of the Okada Japan Parties’ defamation action against the Wynn Parties.

Indemnification Action:

On March 20, 2013, Mr. Okada filed a complaint against the Company in Nevada state court for

indemnification under the Company’s Articles, bylaws and agreements with its directors. The complaint sought
advancement of Mr. Okada’s costs and expenses (including attorney’s fees) incurred pursuant to the various legal
proceedings and related regulatory investigations described above. The Company’s answer and counterclaim was
filed on April 15, 2013. The counterclaim named each of the Okada Parties as defendants and sought
indemnification under the Company’s Articles for costs and expenses (including attorney’s fees) incurred
pursuant to the various legal proceedings and related regulatory investigations described above. On April 30,
2013, Mr. Okada filed his reply to the counterclaim. On February 4, 2014, the court entered an order on the
parties’ stipulation that: (1) dismissed all claims Mr. Okada asserted against the Company; (2) reserved
Mr. Okada’s right to assert, in the future, any claims for indemnity following the resolution of the Redemption
Action; and (3) stayed the claims asserted by the Company against Mr. Okada pending the resolution of the
Redemption Action.

Macau Action:

On July 3, 2015, WML announced that the Okada Parties filed a complaint in the Court of First Instance of
Macau (“Macau Court”) against Wynn Macau SA and certain individuals who are or were directors of Wynn Macau

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

SA and or WML (collectively, the “Wynn Macau Parties”). The principal allegations in the lawsuit are that the
redemption of the Okada Parties’ shares in the Company was improper and undervalued, that the previously disclosed
payment by Wynn Macau SA to an unrelated third party in consideration of relinquishment by that party of certain
rights in and to any future development on the land in Cotai where Wynn Palace is located was unlawful and that the
previously disclosed donation by the Company to the University of Macau Development Foundation was
unlawful. The plaintiffs seek dissolution of Wynn Macau SA and compensatory damages. The Macau Court has served
the complaint on the defendants and the Wynn Macau Parties filed their response on May 17, 2016.

The Company believes these actions commenced by the Okada Parties discussed above are without merit
and will vigorously defend the Wynn Macau Parties against them. 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.

Related Investigations and Derivative Litigation

Investigations:

In the U.S. Department of Justice’s Motion to Intervene and for Temporary and Partial Stay of Discovery in

the Redemption Action, the Department of Justice states in a footnote that the government also has been
conducting a criminal investigation into the Company’s previously disclosed donation to the University of Macau
Development Foundation. The Company has not received any target letter or subpoena in connection with such
an investigation. The Company intends to cooperate fully with the government in response to any inquiry related
to the donation to the University of Macau Development Foundation.

Other regulators may pursue separate investigations into the Company’s compliance with applicable laws

arising from the allegations in the matters described above and in response to the Counterclaim and other
litigation filed by Mr. Okada suggesting improprieties in connection with the Company’s donation to the
University of Macau Development Foundation. While the Company believes that it is in full compliance with all
applicable laws, any such investigations could result in actions by regulators against the Company. Prior
investigations by the Nevada Gaming Control Board and SEC were closed with no actions taken.

Derivative Claims:

Six derivative actions were commenced against the Company and all members of its Board of Directors:
four in the United States District Court, District of Nevada, and two in the Eighth Judicial District Court of Clark
County, Nevada.

The four federal actions brought by the following plaintiffs have been consolidated: (1) The Louisiana
Municipal Police Employees’ Retirement System, (2) Maryanne Solak, (3) Excavators Union Local 731 Welfare
Fund, and (4) Boilermakers Lodge No. 154 Retirement Fund (collectively, the “Federal Plaintiffs”).

The Federal Plaintiffs filed a consolidated complaint on August 6, 2012, asserting claims for: (1) breach of

fiduciary duty; (2) waste of corporate assets; (3) injunctive relief; and (4) unjust enrichment. The claims were
against the Company and all Company directors, including Mr. Okada; however, the plaintiffs voluntarily
dismissed Mr. Okada as a defendant in this consolidated action on September 27, 2012. The Federal Plaintiffs
claimed that the individual defendants breached their fiduciary duties and wasted assets by: (a) failing to ensure
the Company’s officers and directors complied with federal and state laws and the Company’s Code of Conduct;
(b) voting to allow the Company’s subsidiary to make the donation to the University of Macau Development
Foundation; and (c) redeeming Aruze’s stock such that the Company incurs the debt associated with the

124

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

redemption. The Federal Plaintiffs seek unspecified compensatory damages, restitution in the form of
disgorgement, reformation of corporate governance procedures, an injunction against all future payments related
to the donation/pledge, and all fees (attorneys, accountants, and experts) and costs. The directors responded to the
consolidated complaint by filing a motion to dismiss on September 14, 2012. On February 1, 2013, the federal
court dismissed the complaint for failure to plead adequately the futility of a pre-suit demand on the Board. The
dismissal was without prejudice to the Federal Plaintiffs’ ability to file a motion within 30 days seeking leave to
file an amended complaint. On April 9, 2013, the Federal Plaintiffs filed their amended complaint. The Company
and the directors filed their motion to dismiss the amended complaint on May 23, 2013. On March 13, 2014, the
federal court granted the motion to dismiss and entered judgment in favor of the Company and directors and
against the Federal Plaintiffs without prejudice. On April 10, 2014, the Federal Plaintiffs filed a notice of appeal
to the United States Court of Appeals for the Ninth Circuit. On July 18, 2016, the Ninth Circuit affirmed the
federal court’s dismissal.

The two state court actions brought by the following plaintiffs also have been consolidated: (1) IBEW Local
98 Pension Fund and (2) Danny Hinson (collectively, the “State Plaintiffs”). Through a coordination of efforts by
all parties, the directors and the Company (a nominal defendant) have been served in all of the actions. The State
Plaintiffs filed a consolidated complaint on July 20, 2012 asserting claims for (1) breach of fiduciary duty;
(2) abuse of control; (3) gross mismanagement; and (4) unjust enrichment. The claims are against the Company
and all Company directors during the applicable period, including Mr. Okada, as well as the Company’s Chief
Financial Officer who signed financial disclosures filed with the SEC during the applicable periods. The State
Plaintiffs claim that the individual defendants failed to disclose to the Company’s stockholders the investigation
into, and the dispute with director Okada as well as the alleged potential violations of the FCPA related to, the
University of Macau Development Foundation donation. The State Plaintiffs seek unspecified monetary damages
(compensatory and punitive), disgorgement, reformation of corporate governance procedures, an order directing
the Company to internally investigate the donation, as well as attorneys’ fees and costs. On October 13, 2012, the
court entered the parties’ stipulation providing for a stay of the state derivative action for 90 days, subject to the
parties’ obligation to monitor the progress of the pending litigation, discussed above, between Wynn Resorts
(among others) and Mr. Okada (among others). Per the stipulation, the Company and the individual defendants
were not required to respond to the consolidated complaint while the stay remained in effect. Following the
expiration of the stay, the State Plaintiffs advised the Company and the individual defendants that they intended
to resume the action by filing an amended complaint, which they did, on April 26, 2013. The Company and
directors filed their motion to dismiss on June 10, 2013. However, on July 31, 2013, the parties agreed to a
stipulation that was submitted to, and approved by the court. The stipulation contemplates a stay of the
consolidated state court derivative action of equal duration as the Stay entered by the court in the Redemption
Action. On June 18, 2014, the court entered a new stipulation between the parties that provides for further stay of
the state derivative action and directs the parties, within 45 days of the conclusion of the latter of the Redemption
Action or the federal derivative action, to discuss how the state derivative action should proceed and to file a
joint report with the court.

The individual defendants are vigorously defending against the claims pleaded against them. 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.

Massachusetts Gaming License Related Actions

On September 17, 2014, the Massachusetts Gaming Commission (“MGC”) designated Wynn MA, LLC
(“Wynn MA”), an indirect wholly owned subsidiary of the Company, the award winner of the Greater Boston
(Region A) gaming license. On November 7, 2014, the gaming license became effective.

125

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Revere Action: On October 16, 2014, the City of Revere, the host community to the unsuccessful bidder for

the same license, and the International Brotherhood of Electrical Workers, Local 103, (“IBEW”), filed a
complaint against the MGC and each of the five gaming commissioners in Suffolk Superior Court in Boston,
Massachusetts (the “Revere Action”). The complaint challenges the MGC’s decision and alleges that the MGC
failed to follow statutory requirements outlined in the Gaming Act. The complaint (1) seeks to appeal the
administrative decision, (2) asserts that certiorari provides a remedy to correct errors in proceedings by an agency
such as the MGC, (3) challenges the constitutionality of that section of the gaming law which bars judicial
review of the MGC’s decision to deny an applicant a gaming license, and (4) alleges violations of the open
meeting law requirements. The court allowed Mohegan Sun (“Mohegan”), the other applicant for the Greater
Boston (Region A) gaming license, to intervene in the Revere Action, and on February 23, 2015, Mohegan filed
its complaint. The Mohegan complaint challenges the license award to Wynn MA, seeks judicial review of the
MGC’s decision, and seeks to vacate the MGC’s license award to Wynn MA. On July 1, 2015, the MGC filed
motions to dismiss Mohegan’s and the City of Revere’s complaints. Oral argument on these motions was heard
on September 22, 2015. On December 3, 2015, the court granted the motion to dismiss the claims asserted in the
Revere Action. Also on December 3, 2015, the court granted the motion to dismiss three of the four counts
asserted by Mohegan but denied the motion as to Mohegan’s certiorari claim. The City of Revere and IBEW
sought immediate appellate review of the dismissal of their claims and the MGC requested immediate appellate
review of the court’s denial of the MGC’s motion to dismiss Mohegan’s certiorari claim. All three petitions for
interlocutory review were denied. On April 22, 2016, the MGC filed an appeal to the Massachusetts Supreme
Judicial Court (“SJC”). On May 11, 2016, the SJC granted the application. The SJC has also granted, as of
September 20, 2016, the City of Revere and IBEW’s application for direct appellate review. The parties in both
matters filed written briefs and oral arguments were heard by the SJC on December 5, 2016. A decision by the
SJC is expected by April 2017.

Somerville Action: On December 4, 2014, the City of Somerville filed a complaint similar to the one in the
Revere Action against the MGC and each of the five gaming commissioners in Suffolk Superior Court. The case was
previously stayed at the City of Somerville’s request, pending the results of the Massachusetts Department of
Environmental Protection’s review of Wynn MA’s proposed project and the required mitigation actions. However, on
July 12, 2016, the City of Somerville filed an amended complaint to add information about certain environmental
filings and events over the last year. On August 22, 2016 the City of Somerville and Wynn MA entered into a
Settlement Agreement and Release pursuant to which all actions among the City of Somerville, Wynn MA and the
MGC were resolved. As part of that Settlement Agreement, this action has been dismissed with prejudice.

Boston Action: On January 5, 2015, the City of Boston filed a complaint against the MGC and each of the
five gaming commissioners in Suffolk Superior Court for certiorari and declaratory relief in connection with the
MGC’s award of the license to Wynn MA. The complaint seeks to contest the MGC’s decision that Boston is a
surrounding community, rather than a host community to Wynn Boston Harbor. On May 20, 2015, the City of
Boston filed an amended complaint requesting the court to nullify and vacate all decisions made by the MGC
leading to and resulting in the MGC’s license award to Wynn MA; to declare invalid the MGC’s regulations
regarding the arbitration of surrounding community agreements; and to issue a declaration disqualifying all
gaming commissioners from further participating in the gaming licensing process for Region A. The MGC filed a
motion to dismiss Boston’s amended complaint. Oral argument was heard on September 22, 2015. On
December 3, 2015, the court granted the MGC’s motion and dismissed the City of Boston’s amended complaint.
In January 2016, all actions among the City of Boston, Wynn MA and the MGC were resolved through a
settlement set forth in a Surrounding Community Agreement.

Wynn MA was not named in the above complaints. The MGC retained private legal representation at its

own nontaxpayer-funded expense.

126

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

On August 28, 2015, the Secretary of Energy and Environmental Affairs issued a certificate determining
that Wynn MA’s Second Supplemental Final Environmental Impact Report (“Report”) submitted with respect to
the project “adequately and properly complies” with the Massachusetts environmental and implementing
regulations. On September 29, 2015, following the issuance of this certificate, the City of Boston filed a
complaint against Wynn MA in Suffolk Superior Court seeking declaratory judgment that the certificate issued to
Wynn MA is invalid due to an alleged failure to comply with certain provisions of the state environmental
regulations and seeking to restrain Wynn MA from causing damage to the environment. All City of Boston
claims have been resolved by settlement between Wynn MA and the City of Boston. In addition, on
September 29, 2015, the City of Somerville filed a complaint against Wynn MA and the MGC in Suffolk
Superior Court alleging that Wynn MA’s Report failed to comply with certain provisions of the state
environmental regulations and seeking declaratory relief with respect to the effect of the issuance of Wynn MA’s
gaming license. Wynn MA responded to the complaint in June 2016. As stated above, on August 22, 2016, the
City of Somerville and Wynn MA entered into a Settlement Agreement and Release. As part of that Settlement
Agreement, this action has been dismissed with prejudice.

On February 11, 2016, the City of Somerville filed an appeal challenging the draft waterways license
(“Chapter 91 License”) issued by the Massachusetts Department of Environmental Protection (“MassDEP”) on
January 22, 2016, contending that it failed to conform to applicable regulations. The Chapter 91 License
authorized Wynn MA’s proposed remediation and redevelopment of the project site. An administrative hearing
was held on June 2, 2016. On July 15, 2016, MassDEP’s Office of Appeals and Dispute Resolution issued a
recommended final decision approving Wynn MA’s Chapter 91 License, subject to certain conditions. The
recommended final decision was adopted by MassDEP’s Commissioner on July 22, 2016, with minor
modifications. On August 3, 2016, MassDEP issued the final Chapter 91 License to Wynn MA. As a result of the
final issuance, Wynn MA has commenced construction activities. As discussed above, on August 22, 2016, the
City of Somerville and Wynn MA entered into a Settlement Agreement and Release. As part of that Settlement
Agreement, the City of Somerville and Wynn MA agreed not to seek judicial review of the Commissioner’s Final
Decision in the Chapter 91 appeal.

Note 18—Segment Information

The Company reviews the results of operations for each of its operating segments. 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 (collectively, “Macau Operations”) for geographical presentation. Wynn Las Vegas
and Encore, an expansion at Wynn Las Vegas, are managed as a single integrated resort and have been
aggregated as one reportable segment (“Las Vegas Operations”). The Company identifies each resort as a
reportable segment considering operations within each resort have similar economic characteristics, type of
customers, types of services and products, the regulatory environment of the operations and the Company’s
organizational and management reporting structure.

The Company also reviews construction and development activities for each of its projects under

development, in addition to its reportable segments. The Company separately identifies capital expenditures and
assets for its Wynn Boston Harbor development project. These amounts for previous years have been reclassified
from Corporate and Other to be consistent with the current year presentation. Other Macau primarily represents
the Company’s Macau holding company.

127

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

Years Ended December 31,

2016

2015

2014

Net revenues

Macau Operations:

Wynn Macau . . . . . . . . . . . . . . . . . . . . . . . . $2,264,087 $2,463,092 $3,796,750
Wynn Palace . . . . . . . . . . . . . . . . . . . . . . . .

583,336

—

—

Total Macau Operations . . . . . . . . . . .
Las Vegas Operations . . . . . . . . . . . . . . . . . . . . .

2,847,423
1,618,874

2,463,092
1,612,791

3,796,750
1,636,911

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,466,297 $4,075,883 $5,433,661

Adjusted Property EBITDA(1)

Macau Operations:

Wynn Macau . . . . . . . . . . . . . . . . . . . . . . . . $ 681,509 $ 708,623 $1,258,082
—
Wynn Palace . . . . . . . . . . . . . . . . . . . . . . . .

103,036

—

Total Macau Operations . . . . . . . . . . .
Las Vegas Operations . . . . . . . . . . . . . . . . .

784,545
474,782

708,623
477,166

1,258,082
515,196

Total . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,259,327

1,185,789

1,773,278

Other operating costs and expenses

Pre-opening costs . . . . . . . . . . . . . . . . . . . . .
Depreciation and amortization . . . . . . . . . . .
Property charges and other
. . . . . . . . . . . . .
Corporate expenses and other . . . . . . . . . . .
Stock-based compensation . . . . . . . . . . . . .
Equity in income from unconsolidated

affiliates . . . . . . . . . . . . . . . . . . . . . . . . . .

Total other operating costs and

expenses . . . . . . . . . . . . . . . . . . . . . .

Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other non-operating income and expenses

Interest income . . . . . . . . . . . . . . . . . . . . . .
Interest expense, net of amounts

capitalized . . . . . . . . . . . . . . . . . . . . . . . .
Change in interest rate swap fair value . . . .
Decrease in Redemption Note fair value . . .
Loss on extinguishment of debt . . . . . . . . . .
Equity in income from unconsolidated

affiliates . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other

Total other non-operating income and

154,717
404,730
54,822
80,162
43,218

77,623
322,629
10,535
76,079
38,286

30,146
314,119
10,437
111,795
39,154

16

1,823

1,349

737,665

521,662

526,975

507,000

658,814

1,266,278

13,536

7,229

20,441

(289,365)
433
65,043
—

(300,906)
(5,300)
52,041
(126,004)

(315,062)
(4,393)
—
(9,569)

16
(728)

1,823
1,550

1,349
(182)

expenses . . . . . . . . . . . . . . . . . . . . . .

(211,065)

(369,567)

(307,416)

Income before income taxes . . . . . . . . . . . . . . . . . . . .
Benefit (provision) for income taxes . . . . . . . . . . . . . .

310,597
(8,128)

289,247
(7,723)

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

302,469

281,524

958,862
3,782

962,644

Net income attributable to noncontrolling

interests . . . . . . . . . . . . . . . . . . . . . . . . . .

(60,494)

(86,234)

(231,090)

Net income attributable to Wynn Resorts, Limited . . . $ 241,975 $ 195,290 $ 731,554

128

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(1) “Adjusted Property EBITDA” is net income before interest, taxes, depreciation and amortization,

pre-opening costs, property charges and other, management and license fees, corporate expenses and other
(including intercompany golf course and water rights leases), stock-based compensation, loss on
extinguishment of debt, change in interest rate swap fair value, change in Redemption Note fair value and
other non-operating income and expenses, and includes equity in income from unconsolidated affiliates.
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. The Company also presents Adjusted Property
EBITDA because it is used by some investors as a way 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 financial measures in accordance with U.S. GAAP. In
order to view the operations of their casinos on a more stand-alone basis, gaming companies, including
Wynn Resorts, Limited, have historically excluded from their EBITDA calculations pre-opening 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 the Company’s 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 measures of 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. The Company has significant uses of cash flows, including capital expenditures, interest
payments, debt principal repayments, taxes and other non-recurring charges, which are not reflected in
Adjusted Property EBITDA. Also, Wynn Resorts’ calculation of Adjusted Property EBITDA may be
different from the calculation methods used by other companies and, therefore, comparability may be
limited.

Years ended December 31,

2016

2015

2014

Capital expenditures
Macau Operations:

Wynn Macau . . . . . . . . . . . . . . . . . . . . . . . .
Wynn Palace . . . . . . . . . . . . . . . . . . . . . . . .

$

Total Macau Operations . . . . . . . . . . . . . . .
Las Vegas Operations . . . . . . . . . . . . . . . . . . . . .
Wynn Boston Harbor
. . . . . . . . . . . . . . . . . . . . .
Corporate and other . . . . . . . . . . . . . . . . . . . . . . .

43,548
838,271

881,819
106,373
212,197
25,554

$

68,744
1,566,090

$

92,566
982,389

1,634,834
117,011
67,705
101,690

1,074,955
62,535
1,613
82,254

$1,225,943

$1,921,240

$1,221,357

129

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

December 31,

2016

2015

2014

Assets
Macau Operations:

Wynn Macau . . . . . . . . . . . . . . . . . . . . . .
Wynn Palace . . . . . . . . . . . . . . . . . . . . . .
Other Macau . . . . . . . . . . . . . . . . . . . . . .

$ 1,161,670
4,317,458
28,927

$ 1,331,312
3,439,041
570,959

Total Macau Operations . . . . . . . . . . . . .
Las Vegas Operations . . . . . . . . . . . . . . . . . . .
Wynn Boston Harbor
. . . . . . . . . . . . . . . . . . .
Corporate and other . . . . . . . . . . . . . . . . . . . . .

5,508,055
3,275,780
419,001
2,750,721

5,341,312
3,145,713
185,853
1,786,281

$1,519,339
1,854,521
960,008

4,333,868
3,442,675
111,424
1,113,953

Long-lived assets
Macau . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
United States . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$11,953,557

$10,459,159

$9,001,920

December 31,

2016

2015

2014

$4,973,854
3,442,842

$4,324,743
3,337,356

$2,799,781
3,268,576

$8,416,696

$7,662,099

$6,068,357

Note 19—Quarterly Financial Information (Unaudited)

The following tables (in thousands, except per share data) present selected quarterly financial information for
2016 and 2015, as previously reported. Because income (loss) per share amounts are calculated using the weighted
average number of common and dilutive common equivalent shares outstanding during each quarter, the sum of the
per share amounts for the four quarters may not equal the total income per share amounts for the year.

Net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating income . . . . . . . . . . . . . . . . . . . . . . .
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . .
Net income (loss) attributable to Wynn

Year Ended December 31, 2016

First

Second

Third (1)

Fourth

Year

$997,678
$158,298
$105,792

$1,058,364
$ 147,539
89,442
$

$1,300,433
$1,109,822
$
$ 138,894
76,931
$ (19,331) $ 126,566

$4,466,297
$ 521,662
$ 302,469

Resorts, Limited . . . . . . . . . . . . . . . . . . . . . .
Basic income (loss) per share . . . . . . . . . . . . . .
Diluted income (loss) per share . . . . . . . . . . . .

$ 75,221
0.74
$
0.74
$

$
$
$

70,391
0.69
0.69

$ (17,437) $ 113,800
1.19
$
1.18
$

(0.17) $
(0.17) $

$ 241,975
2.39
$
2.38
$

Net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating income . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . .
Net income (loss)
Net income (loss) attributable to Wynn Resorts,
Limited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Basic income (loss) per share . . . . . . . . . . . . . . .
Diluted income (loss) per share . . . . . . . . . . . . . .

(1) Wynn Palace opened on August 22, 2016.

Year Ended December 31, 2015

First

Second

Third

Fourth

Year

$1,092,238
$ 185,059
$ (13,902) $

$1,040,458
$ 169,121
77,203

$996,285
$152,774
$113,429

$946,902
$151,860
$104,794

$4,075,883
$ 658,814
$ 281,524

$ (44,601) $
(0.44) $
$
(0.44) $
$

56,460
0.56
0.56

$ 96,210
0.95
$
0.95
$

$ 87,221
0.86
$
0.86
$

$ 195,290
1.93
$
1.92
$

130

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Note 20—Subsequent Events

On January 26, 2017, the Company announced a cash dividend of $0.50 per share, payable on February 28,

2017, to stockholders of record as of February 14, 2017.

131

Item 9.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None.

Item 9A. Controls and Procedures

(a)

Disclosure Controls and Procedures. The Company’s management, with the participation of the

Company’s Chief Executive Officer and Chief Financial Officer, 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 Chief
Executive Officer and Chief Financial Officer have concluded that, as of December 31, 2016, the Company’s
disclosure controls and procedures are 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 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 Chief Executive Officer and Chief Financial Officer, as appropriate to
allow timely discussions regarding required disclosure.

(b)

Management Report on Internal Control Over Financial Reporting. Management of the Company is

responsible for establishing and maintaining adequate internal control over financial reporting, as defined in
Rule 13a-15(f) and 15d-15(f) under the Exchange Act.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect
misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risks that
controls may become inadequate because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.

Management assessed the effectiveness of the Company’s internal control over financial reporting as of
December 31, 2016. In making this assessment, management used the criteria set forth by the Committee of
Sponsoring Organizations of the Treadway Commission (2013 framework) (“COSO”) in Internal Control-
Integrated Framework.

Based on our assessment, management believes that, as of December 31, 2016, the Company’s internal

control over financial reporting was effective.

The Company’s independent registered public accounting firm has issued an audit report on our internal
control over financial reporting. This report appears under “Report of Independent Registered Public Accounting
Firm on Internal Control Over Financial Reporting” on page 63.

(c)

Changes in Internal Control Over Financial Reporting. There have not been any changes in the
Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f)
under the Exchange Act) during our fourth fiscal quarter to which this report relates that have materially affected,
or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Item 9B. Other Information

None.

132

Item 10. Directors, Executive Officers and Corporate Governance

PART III

The information required by this item will be contained in the Registrant’s definitive Proxy Statement for its

2017 Annual Stockholder Meeting to be filed with the Securities and Exchange Commission within 120 days
after December 31, 2016 (the “2017 Proxy Statement”) under the captions “Election of Directors,” “Executive
Officers,” “Corporate Governance” and “Section 16(a) Beneficial Ownership Reporting Compliance,” and is
incorporated herein by reference.

As part of the Company’s commitment to integrity, the Board of Directors has adopted a Code of Business
Conduct and Ethics applicable to all directors, officers and employees of the Company and its subsidiaries. This
Code is periodically reviewed by the Board of Directors. In the event we determine to amend or waive certain
provisions of this code of ethics, we intend to disclose such amendments or waivers on our website at http://
www.wynnresorts.com under the heading “Corporate Governance” within four business days following such
amendment or waiver or as otherwise required by the NASDAQ listing standards.

Item 11. Executive Compensation

The information required by this item will be contained in the 2017 Proxy Statement under the captions
“Director Compensation,” “Compensation Discussion and Analysis” and “Executive Compensation Tables,” and
is incorporated herein by reference.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder

Matters

Securities Authorized for Issuance Under Equity Compensation Plans

The following table summarizes compensation plans under which our equity securities are authorized for

issuance, aggregated as to: (i) all compensation plans previously approved by stockholders, and (ii) all
compensation plans not previously approved by stockholders. These plans are described in Item 8—“Financial
Statements and Supplementary Data” of Part II (see Notes to Consolidated Financial Statements).

Number of
Securities to
be Issued
Upon
Exercise of
Outstanding
Options,
Warrants
and Rights
(a)

Weighted-
Average
Exercise
Price of
Outstanding
Options,
Warrants
and Rights
(b)

Number of
Securities
Remaining
Available for
Future
Issuance
Under Equity
Compensation
Plans
(excluding
securities
reflected in
column (a))
(c)

1,306,260

$83.56

3,872,121

Plan Category

Equity compensation plans approved by security
holders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Equity compensation plans not approved by

security holders . . . . . . . . . . . . . . . . . . . . . . . .

—

—

—

Total

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,306,260

$83.56

3,872,121

Certain information required by this item will be contained in the 2017 Proxy Statement under the caption

“Certain Beneficial Ownership and Management,” and is incorporated herein by reference.

133

Item 13. Certain Relationships and Related Transactions, and Director Independence

The information required by this item will be contained in the 2017 Proxy Statement under the caption
“Certain Relationships and Related Transactions,” and “Corporate Governance,” and is incorporated herein by
reference.

Item 14. Principal Accountant Fees and Services

The information required by this item will be contained in the 2017 Proxy Statement under the caption

“Ratification of Appointment of Independent Auditors,” and is incorporated herein by reference.

134

Item 15. Exhibits, Financial Statement Schedules

PART IV

(a)1. The following consolidated financial statements of the Company are filed as part of this report under
Item 8—“Financial Statements and Supplementary Data.”

• Reports of Independent Registered Public Accounting Firm

• Consolidated Balance Sheets as of December 31, 2016 and 2015

• Consolidated Statements of Income for the years ended December 31, 2016, 2015 and 2014

• Consolidated Statements of Comprehensive Income for the years ended December 31, 2016, 2015 and

2014

• Consolidated Statements of Stockholders’ Equity for the years ended December 31, 2016, 2015 and

2014

• Consolidated Statements of Cash Flows for the years ended December 31, 2016, 2015 and 2014

• Notes to Consolidated Financial Statements

(a)2. Financial Statement Schedule filed in Part IV of this report:

•

Schedule II—Valuation and Qualifying Accounts

We have omitted all other financial statement schedules because they are not required or are not applicable, or
the required information is shown in the consolidated financial statements or notes to the consolidated
financial statements.

135

SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS
(in thousands)

Description

Allowance for doubtful accounts:
2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Balance at
Beginning of
Year

Provisions
for
Doubtful
Accounts

Write-offs,
Net of
Recoveries

Balance at
End of Year

$67,057

8,203

(20,518)

$54,742

2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$74,678

11,115

(18,736)

$67,057

2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$73,991

3,906

(3,219)

$74,678

Description

Deferred income tax asset valuation allowance:
2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Balance at
Beginning of
Year

Additions

Deductions

Balance at
End of Year

$3,330,878

32,130

(76,285)

$3,286,723

2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$3,296,789

52,759

(18,670)

$3,330,878

2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$2,587,025

745,112

(35,348)

$3,296,789

136

(a)3. Exhibits

Exhibits that are not filed herewith have been previously filed with the SEC and are incorporated herein by

reference.

Exhibit
No.

3.1

3.2

4.1

4.4

4.5

4.6

4.7

4.8

+10.1.1.0

+10.1.1.1

+10.1.1.2

+10.1.1.3

+10.1.1.4

+10.1.1.5

+10.1.1.6

+10.1.1.7

Description

Third Amended and Restated Articles of Incorporation of the
Registrant.

Eighth Amended and Restated Bylaws of the Registrant.

Specimen certificate for shares of Common Stock, $0.01 par value per
share of the Registrant.

Indenture, dated as of March 12, 2012, by and among Wynn Las
Vegas, LLC, Wynn Las Vegas Capital Corp., the Guarantors named
therein and U.S. Bank National Association, as trustee.

Indenture, dated as of May 22, 2013, by and among Wynn Las Vegas,
LLC, Wynn Las Vegas Capital Corp., the Guarantors named therein
and U.S. Bank National Association, as trustee.

Indenture, dated as of February 18, 2015, by and among Wynn Las
Vegas, LLC, Wynn Las Vegas Capital Corp., the Guarantors named
therein and U.S. Bank National Association, as trustee.

Supplemental Indenture, dated as of February 18, 2015, to Indenture,
dated as of March 12, 2012, by and among Wynn Las Vegas, LLC,
Wynn Las Vegas Capital Corp., the Guarantors named therein and
U.S. Bank National Association, as trustee.

Supplemental Indenture, dated as of February 18, 2015, to Indenture,
dated as of May 22, 2013, by and among Wynn Las Vegas, LLC,
Wynn Las Vegas Capital Corp., the Guarantors named therein and
U.S. Bank National Association, as trustee.

Employment Agreement, dated as of October 4, 2002, by and
between Wynn Resorts, Limited and Stephen A. Wynn.

First Amendment to Employment Agreement, dated as of August 6,
2004, by and between Stephen A. Wynn and Wynn Resorts, Limited.

Second Amendment to Employment Agreement between Wynn
Resorts, Limited and Stephen A. Wynn dated January 31, 2007.

Third Amendment to Employment Agreement, dated as of
September 11, 2008, between Wynn Resorts, Limited and Stephen A.
Wynn.

Fourth Amendment to Employment Agreement, dated as of
December 31, 2008, between Wynn Resorts, Limited and Stephen A.
Wynn.

Amendment to Employment Agreement, dated as of February 16,
2009, by and between Wynn Resorts, Limited and Stephen A. Wynn.

Sixth Amendment to Employment Agreement, dated as of
February 24, 2011, between Wynn Resorts, Limited and Stephen A.
Wynn.

Seventh Amendment to Employment Agreement, dated as of
January 15, 2015, between Wynn Resorts, Limited and Stephen A.
Wynn.

137

Incorporated by Reference

Form

Filing Date

10-Q

10-Q

S-1

5/8/2015

11/6/2015

10/7/2002

8-K

3/13/2012

8-K

5/22/2013

8-K

2/18/2015

10-K

3/2/2015

10-K

3/2/2015

S-1

10/7/2002

10-Q

11/4/2004

10-K

3/1/2007

8-K

9/15/2008

10-K

3/2/2009

10-Q

5/11/2009

8-K

2/28/2011

10-K

3/2/2015

+10.1.2.0

+10.1.3.1

+10.1.3.2

+10.1.3.3

+10.1.3.4

+10.1.3.5

+10.1.3.6

+10.1.4.0

+10.1.4.1

+10.1.4.2

+10.1.4.3

+10.1.4.4

+10.1.4.5

+10.1.4.6

+10.1.5.0

+10.1.5.1

+10.1.5.2

+10.2.0

+10.2.1

10.3.1.0

10.3.1.1

Employment Agreement, dated as of November 18, 2013, by and between
Wynn Resorts, Limited and Matt Maddox.

10-K 2/28/2014

Employment Agreement, dated as of April 24, 2007, by and between Wynn
Resorts, Limited and Kim Sinatra.

10-K

3/1/2010

First Amendment to Employment Agreement, dated as of December 31,
2008, by and between Wynn Resorts, Limited and Kim Sinatra.

10-K

3/1/2010

Amendment to Employment Agreement, dated as of February 12, 2009, by
and between Wynn Resorts, Limited and Kim Sinatra.

10-K

3/1/2010

Second Amendment to Employment Agreement, dated as of November 30,
2009, by and between Wynn Resorts, Limited and Kim Sinatra.

10-K

3/1/2010

Third Amendment to Employment Agreement, dated as of May 5, 2014, by
and between Wynn Resorts, Limited and Kim Sinatra.

10-Q

8/8/2014

Fourth Amendment to Employment Agreement, dated as of April 27, 2015,
by and between Wynn Resorts, Limited and Kim Sinatra.

10-Q

8/7/2015

Employment Agreement, dated as of August 31, 2005, by and between
Wynn Resorts, Limited and John Strzemp.

10-K 2/28/2014

First Amendment to Employment Agreement, dated as of March 26, 2008,
by and between Wynn Resorts, Limited and John Strzemp.

10-K 2/28/2014

Second Amendment to Employment Agreement, dated as of December 31,
2008, by and between Wynn Resorts, Limited and John Strzemp.

10-K 2/28/2014

Amendment to Employment Agreement, dated as of February 12, 2009, by
and between Wynn Resorts, Limited and John Strzemp.

10-K 2/28/2014

Fourth Amendment to Employment Agreement, dated as of March 23,
2009, by and between Wynn Resorts, Limited and John Strzemp.

Fifth Amendment to Employment Agreement, dated as of February 25,
2013, by and between Wynn Resorts, Limited and John Strzemp.

10-K 2/28/2014

10-K 2/28/2014

Sixth Amendment to Employment Agreement, dated as of September 10,
2013, by and between Wynn Resorts, Limited and John Strzemp.

10-K 2/28/2014

Employment Agreement, dated as of November 7, 2013, by and between
Wynn Resorts, Limited and Stephen Cootey.

10-Q

8/8/2014

First Amendment to Employment Agreement, dated as of January 6, 2014,
by and between Wynn Resorts, Limited and Stephen Cootey.

10-Q

8/8/2014

Second Amendment to Employment Agreement, dated as of February 24,
2015, by and between Wynn Resorts, Limited and Stephen Cootey.

10-K

3/2/2015

2014 Omnibus Incentive Plan effective May 16, 2014.

Amended and Restated 2014 Omnibus Incentive Plan, dated January 1,
2017.

S-8

5/20/2014

10-K

*

Amended and Restated Stockholder Agreement, dated January 6, 2010, by
and among Stephen A. Wynn, Elaine P. Wynn and Aruze USA, Inc.

8-K

1/6/2010

Waiver and Consent, dated November 24, 2010, by and among Aruze USA,
Inc., Stephen A. Wynn and Elaine P. Wynn.

8-K 11/26/2010

138

10.3.1.2

10.3.2.0

10.4.1.0

10.4.1.1

10.4.1.2

10.4.1.3

10.5.1.0

10.5.1.1

10.5.1.2

10.5.2.0

10.5.2.1

10.5.2.2

10.5.2.3

10.5.2.4

Waiver and Consent, dated December 15, 2010, by and among Aruze USA,
Inc., Stephen A. Wynn and Elaine P. Wynn.

8-K 12/15/2010

Amended and Restated Shareholders Agreement, dated as of September 16,
2004, by and among Wynn Resorts (Macau), Ltd., Wong Chi Seng and
Wynn Resorts (Macau), S.A.

10-Q 11/4/2004

Concession Contract for the Operation of Games of Chance or Other Games
in Casinos in the Macau Special Administrative Region, dated June 24,
2002, between the Macau Special Administrative Region and Wynn Resorts
(Macau), S.A. (English translation of Portuguese version of Concession
Agreement).

Concession Contract for Operating Casino Gaming or Other Forms of
Gaming in the Macao Special Administrative Region, dated June 24, 2002,
between the Macau Special Administrative Region and Wynn Resorts
(Macau), S.A. (English translation of Chinese version of Concession
Agreement).

S-1

8/20/2002

S-1

9/18/2002

Unofficial English translation of Land Concession Contract between the
Macau Special Administrative Region and Wynn Resorts (Macau), S.A.

10-Q

8/3/2004

Land Concession Contract, published on May 2, 2012, by and among Palo
Real Estate Company Limited, Wynn Resorts (Macau), S.A. and the Macau
Special Administrative Region of the People’s Republic of China (translated
to English from traditional Chinese and Portuguese).

8-K

5/2/2012

Surname Rights Agreement, dated as of August 6, 2004, by and between
Stephen A. Wynn and Wynn Resorts Holdings, LLC.

10-Q 11/4/2004

Rights of Publicity License, dated as of August 6, 2004, by and between
Stephen A. Wynn and Wynn Resorts Holdings, LLC.

10-Q 11/4/2004

Trademark Assignment, dated as of August 6, 2004, by and between Stephen
A. Wynn and Wynn Resorts Holdings, LLC.

10-Q 11/4/2004

Intellectual Property License Agreement, dated as of December 14, 2004, by
and among Wynn Resorts Holdings, Wynn Resorts, Limited and Wynn Las
Vegas, LLC.

10-K 3/15/2005

Intellectual Property License Agreement, dated as of September 19, 2009, by
and among Wynn Resorts Holdings, LLC, Wynn Resorts, Limited and Wynn
Macau, Limited.

10-K

3/2/2015

Amended and Restated Intellectual Property License Agreement, dated as of
September 19, 2009, by and among Wynn Resorts Holdings, LLC, Wynn
Resorts, Limited and Wynn Resorts (Macau), S.A.

10-K

3/2/2015

2015 Intellectual Property License Agreement, dated as of February 26,
2015, by and between Wynn Resorts Holdings, LLC, Wynn Resorts, Limited
and Wynn Las Vegas, LLC.

10-Q

5/8/2015

2014 Intellectual Property License Agreement, dated as of November 20,
2014, by and between Wynn Resorts Holdings, LLC, Wynn Resorts, Limited
and Wynn MA, LLC.

10-K 2/29/2016

139

10.6.1.0

10.6.1.1

10.6.1.2

10.6.1.3

10.6.1.4

10.6.1.5

10.6.2.0

10.6.2.1

10.6.2.2

10.6.2.3

Common Terms Agreement, dated as of September 14, 2004, by and among
Wynn Resorts (Macau), S.A., certain financial institutions as Hotel Facility
Lenders, Project Facility Lenders and Revolving Credit Facility Lenders,
Deutsche Bank AG, Hong Kong Branch and Société Générale Asia Limited as
Global Coordinating Lead Arrangers and Société Générale Asia Limited as Hotel
Facility Agent, Project Facility Agent, Intercreditor Agent and Security Agent.

Common Terms Agreement Amendment Agreement, dated as of September 14,
2005, between Wynn Resorts (Macau), S.A. as the Company, Certain Financial
Institutions as Hotel Facility Lenders, Project Facility Lenders, Revolving Credit
Facility Lenders and Hedging Counterparties, Banc of America Securities Asia
Limited, Deutsche Bank AG, Hong Kong Branch and Société Générale Asia
Limited as Global Coordinating Lead Arrangers, Société Générale Asia Limited
as Hotel Facility Agent and Project Facility Agent, Société Générale Asia Limited
as Intercreditor Agent, and Société Générale, Hong Kong Branch as Security
Agent.

Common Terms Agreement Second Amendment Agreement, dated June 27,
2007, by and among Wynn Resorts (Macau), S.A., certain financial institutions as
Hotel Facility Lenders, Project Facility Lenders, and Revolving Credit Facility
Lenders and Hedging Counterparties, Banc of America Securities Asia Limited,
Deutsche Bank A.G. Hong Kong Branch, and Société Générale Asia Limited as
Global Lead Arrangers and Société Générale Asia Limited as Hotel Facility
Agent and Project Facility Agent, Société Générale Hong Kong Branch as
Revolving Credit Facility Agent, Société Générale Hong Kong Branch as
Intercreditor Agent, and Société Générale Hong Kong Branch as Security Agent.

Common Terms Agreement Third Amendment Agreement, dated
September 8, 2009, between, among others, Wynn Resorts (Macau), S.A. as
the company and Société Générale, Hong Kong Branch as security agent.

Common Terms Agreement Fourth Amendment Agreement, dated as of
July 31, 2012, between, among others, Wynn Resorts (Macau), S.A. as the
company and Bank of China Limited Macau Branch as security agent.

Common Terms Agreement Fifth Amendment Agreement, dated September 30,
2015, between, among others, Wynn Resorts (Macau), S.A. as the company and
Bank of China Limited Macau Branch as security agent.

10-Q 11/4/2004

10-Q 11/8/2005

10-Q 8/9/2007

10-K 3/1/2010

10-Q 11/9/2012

10-Q 11/6/2015

Hotel Facility Agreement, dated as of September 14, 2004, by and among
Wynn Resorts (Macau), S.A., Société Générale Asia Limited as Hotel Facility
Agent and the several Hotel Facility Lenders named therein.

10-Q 11/4/2004

Hotel Facility Agreement Amendment Agreement, dated as of September 14,
2005, between Wynn Resorts (Macau), S.A. as Company, Société Générale
Asia Limited, as Hotel Facility Agent and certain financial institutions as
Hotel Facility Lenders.

Hotel Facility Agreement Second Amendment Agreement, dated June 27,
2007, by and among Wynn Resorts (Macau), S.A., Société Générale Asia
Limited as Hotel Facility Agent, and certain financial institutions as Hotel
Facility Lenders.

10-Q 11/8/2005

10-Q 8/9/2007

Hotel Facility Agreement Third Amendment Agreement, dated July 31, 2012,
by and among Wynn Resorts, (Macau), S.A., Bank of China Limited Macau
Branch, and certain financial institutions as Hotel Facility Lenders.

10-Q 11/9/2012

140

10.6.2.4

10.6.3.0

10.6.3.1

10.6.3.2

10.6.4.0

10.6.4.1

10.6.4.2

10.6.4.3

10.6.4.4

10.6.5.0

10.6.5.1

Hotel Facility Agreement Fourth Amendment Agreement, dated
September 30, 2015, by and among Wynn Resorts (Macau), S.A. and Bank of
China Limited Macau Branch as Hotel Facility Agent and Hotel Facility
Lender.

Project Facility Agreement, dated as of September 14, 2004, by and among
Wynn Resorts (Macau), S.A., Société Générale Asia Limited as Project
Facility Agent and the several Project Facility Lenders named therein.

Project Facility Agreement Amendment Agreement, dated as of
September 14, 2005, between Wynn Resorts (Macau), S.A. as Company,
Societe Generale Asia Limited, as Project Facility Agent and certain financial
institutions as Project Facility Lenders.

Project Facility Agreement, Second Amendment Agreement, dated as of June 27,
2007, by and among Wynn Resorts (Macau), S.A., Société Générale Asia Limited
as Project Facility Agent, and certain financial institutions as Project Facility
Lenders.

10-Q 11/6/2015

10-Q 11/4/2004

10-Q 11/8/2005

10-Q 8/9/2007

Revolving Credit Facility Agreement, dated as of September 14, 2004, by and
among Wynn Resorts (Macau), S.A. and the several Revolving Credit Facility
Lenders named therein.

10-Q 11/4/2004

Revolving Credit Facility Agreement Amendment Agreement, dated as of
September 14, 2005, between Wynn Resorts (Macau), S.A. as Company and
certain financial institutions as Revolving Credit Facility Lenders.

Revolving Credit Facility Second Amendment Agreement, dated as of
June 27, 2007, by and among Wynn Resorts (Macau), S.A. and Societe
Generale, Hong Kong Branch as Revolving Credit Facility Agent and certain
financial institutions as revolving credit facility lenders.

10-Q 11/8/2005

10-Q 11/6/2015

Revolving Credit Facility Agreement, dated as of July 31, 2012, by and
among Wynn Resorts (Macau), S.A., Bank of China, Limited Macau Branch,
and several Revolving Credit Facility Lenders named therein.

10-Q 11/9/2012

10-Q 11/6/2015

10-Q 11/4/2004

10-Q 11/8/2005

Revolving Credit Facility Agreement Amendment Agreement, dated as of
September 30, 2015, by and among Wynn Resorts (Macau), S.A. and Bank of
China Limited Macau Branch as Revolving Credit Facility Agent and
Revolving Credit Facility Lender.

Deed of Appointment and Priority, dated as of September 14, 2004, among Wynn
Resorts (Macau), S.A., certain financial institutions as Original First Ranking
Lenders, Banco Nacional Ultramarino, S.A. as Second Ranking Finance Party,
Wynn Group Asia, Inc. as Third Ranking Finance Party, Société Générale, Hong
Kong Branch as Security Agent, Société Générale Asia Limited as Intercreditor
Agent and Hotel Facility Agent and Project Facility Agent, and others.

Deed of Appointment and Priority Deed of Amendment, dated as of
September 14, 2005, between Wynn Resorts (Macau), S.A., certain financial
institutions as Original First Ranking Lenders, Certain Financial Institutions as
Original Hedging Counterparties, Banco Nacional Ultramarino, S.A. as Second
Ranking Finance Party, Wynn Group Asia, Inc. as Third Ranking Finance Party,
Société Générale Asia Limited as Security Agent, Société Générale Asia Limited
as Intercreditor Agent, Société Générale Asia Limited as Hotel Facility Agent and
Project Facility Agent, and others.

141

10.6.6

10.6.7

10.6.8.0

10.6.8.1

10.6.9

10.6.10

10.6.11

10.7.0

10.7.1

10.7.2

10.7.3

10.7.4

10.7.5

Floating Charge (unofficial English Translation), dated as of September 14,
2004, between Wynn Resorts (Macau), S.A. and Société Générale, Hong
Kong Branch as the Security Agent.

10-Q 11/4/2004

Debenture, dated as of September 14, 2004, between Wynn Resorts (Macau),
S.A. and Société Générale, Hong Kong Branch as the Security Agent.

10-Q 11/4/2004

Wynn Resorts Support Agreement, dated as of September 14, 2004, between
Wynn Resorts, Limited, Wynn Resorts (Macau), S.A. and Société Générale,
Hong Kong Branch as the Security Agent.

10-Q 11/4/2004

Wynn Resorts Support Agreement Deed of Amendment, dated as of
September 14, 2005, between Wynn Resorts, Limited, Wynn Resorts (Macau),
S.A. and Société Générale, Hong Kong Branch as the Security Agent.

Wynn Pledgors’ Guarantee, dated as of September 14, 2004, between Wynn
Group Asia, Inc., Wynn Resorts International, Ltd., Wynn Resorts (Macau)
Holdings, Ltd., and Wynn Resorts (Macau), Ltd. as Guarantors; and Société
Générale, Hong Kong Branch as the Security Agent.

Bank Guarantee Reimbursement Agreement, dated as of September 14,
2004, between Wynn Resorts (Macau), S.A. and Banco Nacional
Ultramarino.

Sponsors’ Subordination Deed, dated as of September 14, 2004, between
Wynn Resorts (Macau), S.A., Wynn Group Asia, Inc., Wynn Resorts
International, Ltd., Wynn Resorts (Macau) Holdings, Ltd. and Wynn Resorts
(Macau), Ltd. as the Wynn Companies and Société Générale, Hong Kong
Branch as the Security Agent.

Amended and Restated Master Disbursement Agreement, dated as of
October 25, 2007, by and among Wynn Las Vegas, LLC, Deutsche Bank Trust
Company Americas, as the initial Bank Agent, and Deutsche Bank Trust
Company Americas, as the initial Disbursement Agent.

First Amendment to Amended and Restated Master Disbursement Agreement,
dated as of October 31, 2007, by and among Wynn Las Vegas, LLC, Deutsche
Bank Trust Company Americas, as the initial Bank Agent, and Deutsche Bank
Trust Company Americas, as the initial Disbursement Agent.

Second Amendment to Amended and Restated Master Disbursement
Agreement, dated as of November 6, 2007, by and among Wynn Las Vegas,
LLC, Deutsche Bank Trust Company Americas, as the Bank Agent, and
Deutsche Bank Trust Company Americas, as the Disbursement Agent.

Third Amendment to Amended and Restated Master Disbursement
Agreement, dated as of October 19, 2009, by and among Wynn Las Vegas,
LLC, Deutsche Bank Trust Company Americas, as the Bank Agent, and
Deutsche Bank Trust Company Americas, as the Disbursement Agent.

Fourth Amendment to Amended and Restated Master Disbursement
Agreement, dated as of April 28, 2010, by and among Wynn Las Vegas,
LLC, Deutsche Bank Trust Company Americas, as the Bank Agent, and
Deutsche Bank Trust Company Americas, as the Disbursement Agent.

Fifth Amendment to the Amended and Restated Master Disbursement
Agreement, dated as of August 4, 2010, by and among Wynn Las Vegas,
LLC, Deutsche Bank Trust Company Americas, as the Bank Agent, and
Deutsche Bank Trust Company Americas, as the Disbursement Agent.

142

10-Q 11/8/2005

10-Q 11/4/2004

10-Q 11/4/2004

10-Q 11/4/2004

8-K 10/31/2007

8-K

11/1/2007

8-K 11/13/2007

8-K 10/20/2009

8-K

4/28/2010

10-K

3/1/2013

10.7.6

10.8.1

10.8.2

10.8.3

10.8.4

10.9.1.0

10.9.2.0

Sixth Amendment to Amended and Restated Master Disbursement
Agreement, dated as of March 12, 2012, by and among Wynn Las Vegas,
LLC, Deutsche Bank Trust Company Americas, as the Bank Agent, and
Deutsche Bank Trust Company Americas, as the Disbursement Agent.

8-K

3/13/2012

2013 Second Amended and Restated Agreement of Lease, dated as of
November 7, 2013, by and between Wynn Las Vegas, LLC and Stephen A.
Wynn.

8-K 11/14/2013

First Amendment to 2013 Second Amended and Restated Agreement of
Lease, dated as of February 25, 2015, by and between Wynn Las Vegas,
LLC and Stephen A. Wynn.

10-K

3/2/2015

Third Amended and Restated Agreement of Lease, dated as of December 1,
2016, by and between Wynn Las Vegas, LLC and Stephen A. Wynn.

10-K

*

Sixth Amended and Restated Art Rental and Licensing Agreement, dated as
of July 1, 2012, between Stephen A. Wynn, as lessor, Wynn Las Vegas,
LLC, as lessee.

10-Q 11/9/2012

Aircraft Time Sharing Agreement, dated as of January 15, 2015, by and
between Wynn Resorts, Limited and Stephen A. Wynn.

10-K

3/2/2015

Aircraft Purchase Option Agreement, dated as of January 3, 2013, between
Wynn Resorts, Limited and Stephen A. Wynn.

10-K

3/1/2013

10.10.0

Form of Indemnity Agreement.

10.11.0

10.11.1

10.11.2

10.11.3

10.11.4

10.11.5

Corporate Allocation Agreement, dated as of September 19, 2009, by Wynn
Macau, Limited and Wynn Resorts, Limited.

Amended and Restated Corporate Allocation Agreement, dated as of
September 19, 2009, by Wynn Resorts (Macau), S.A., and Wynn Resorts,
Limited.

Management Fee and Corporate Allocation Agreement, dated as of
February 26, 2015, by and between Wynn Las Vegas, LLC and Wynn
Resorts, Limited.

Management Fee and Corporate Allocation Agreement, dated as of
November 20, 2014, by and among Wynn MA, LLC and Wynn Resorts,
Limited.

Promissory Note, dated as of February 18, 2012, made by Wynn Resorts,
Limited to Aruze USA, Inc.

Registration Rights Agreement, dated as of March 12, 2012, by and among
Wynn Las Vegas, LLC, Wynn Las Vegas Capital Corp, Wynn Show
Performers, LLC, Wynn Golf, LLC, Las Vegas Jet, LLC, World Travel,
LLC, Wynn Sunrise, LLC, Kevyn, LLC, Deutsche Bank Securities Inc.,
Merrill Lynch, Pierce, Fenner & Smith Incorporated and J.P. Morgan
Securities LLC.

S-1

9/18/2002

10-K

3/2/2015

10-K

3/2/2015

10-K

3/2/2015

10-K 2/29/2016

8-K

2/21/2012

8-K

3/13/2012

143

10.12.0

10.12.1

10.12.2

10.12.3

10.12.4

10.12.5

10.12.6

21.1

23.1

31.1

Credit Agreement, dated as of November 20, 2014, by and among Wynn
America, LLC, as borrower, Wynn Las Vegas Holdings, LLC, Everett
Property, LLC and Wynn MA, LLC, as guarantors, Deutsche Bank AG New
York Branch, as administrative agent and collateral agent, Deutsche Bank
Securities Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Credit
Agricole Corporate and Investment Bank, Fifth Third Bank, SunTrust
Robinson Humphrey, Inc., The Bank of Nova Scotia, BNP Paribas Securities
Corp., Sumitomo Mitsui Banking Corporation and UBS Securities LLC, as
joint lead arrangers and joint bookrunners, Morgan Stanley Senior Funding,
Inc. and Bank of China, Los Angeles Branch, as arrangers, and Merrill Lynch,
Pierce, Fenner & Smith Incorporated, as documentation agent, and the other
lenders party thereto.

First Amendment to Credit Agreement, dated as of November 5, 2015, by and
among Wynn America, LLC, as borrower, the Guarantors named therein,
Deutsche Bank AG New York Branch, as administrative agent on behalf of the
several banks and other financial institutions or entities from time to time
party to Wynn America, LLC’s Credit Agreement, dated as of November 20,
2014.

Second Amendment to Credit Agreement, dated as of December 21, 2015, by
and among Wynn America, LLC, as borrower, the Guarantors named therein,
Deutsche Bank AG New York Branch, as administrative agent on behalf of the
several banks and other financial institutions or entities from time to time
party to Wynn America, LLC’s Credit Agreement, dated as of November 20,
2014.

Third Amendment to Credit Agreement, dated as of June 21, 2016, by and
among Wynn America, LLC, as borrower, the Guarantors named therein,
Deutsche Bank AG New York Branch, as administrative agent on behalf of the
several banks and other financial institutions or entities from time to time
party to Wynn America, LLC’s Credit Agreement, dated as of November 20,
2014.

Fourth Amendment to Credit Agreement, dated as of July 1, 2016, by and
among Wynn America, LLC, as borrower, the Guarantors named therein,
Deutsche Bank AG New York Branch, as administrative agent on behalf of the
several banks and other financial institutions or entities from time to time
party to Wynn America, LLC’s Credit Agreement, dated as of November 20,
2014.

10-K 3/2/2015

10-Q 11/6/2015

10-K 2/29/2016

10-Q 8/9/2016

10-Q 8/9/2016

Completion Guaranty, dated as of November 20, 2014, by and between Wynn
Resorts, Limited, and Deutsche Bank AG New York Branch, as administrative
agent.

10-K 3/2/2015

Security Agreement, dated as of November 20, 2014, by and among Wynn
America, LLC, Wynn Las Vegas Holdings, LLC, Everett Property, LLC and
Wynn MA, LLC, as pledgors, and Deutsche Bank AG New York Branch, as
collateral agent.

10-K 3/2/2015

Subsidiaries of the Registrant.

Consent of Ernst & Young LLP, Independent Registered Accounting Firm.

Certification of Chief Executive Officer pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.

10-K

10-K

10-K

*

*

*

144

31.2

Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act
of 2002.

10-K *

32.1

Certification of CEO and CFO pursuant to 18 U.S.C. Section 1350.

101

The following financial information from the Company’s Annual Report on Form 10-K
for the year ended December 31, 2015, filed with the SEC on February 24, 2017 formatted
in Extensible Business Reporting Language (XBRL): (i) the Consolidated Balance Sheets
as of December 31, 2016 and December 31 2015, (ii) the Consolidated Statements of
Income for the years ended December 31, 2016, 2015 and 2014, (iii) the Consolidated
Statements of Cash Flows for the years ended December 31, 2016, 2015 and 2014, (iv) the
Consolidated Statements of Stockholders’ Equity as of December 31, 2016, 2015 and
2014, (v) the Consolidated Statements of Comprehensive Income for the years ended
December 31, 2016, 2015 and 2014 and (vi) Notes to Consolidated Financial Statements.

10-K *

10-K *

*
+

Filed herein
Denotes management contract or compensatory plan or arrangement.

145

Pursuant to the requirements of Section 13 or 15(d) 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.

SIGNATURES

Dated: February 24, 2017

By:

/s/ Stephen A. Wynn

WYNN RESORTS, LIMITED

Stephen A. Wynn
Chairman of the Board and Chief Executive
Officer (Principal Executive Officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by

the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

Signature

Title

Date

/s/ Stephen A. Wynn
Stephen A. Wynn

/s/ John J. Hagenbuch

John J. Hagenbuch

/s/ Dr. Ray R. Irani

Dr. Ray R. Irani

/s/ Jay L. Johnson

Jay L. Johnson

/s/ Robert J. Miller

Robert J. Miller

/s/ Patricia Mulroy

Patricia Mulroy

/s/ Clark T. Randt, Jr.

Clark T. Randt, Jr.

/s/ Alvin V. Shoemaker

Alvin V. Shoemaker

/s/ J. Edward Virtue

J. Edward Virtue

/s/ D. Boone Wayson

D. Boone Wayson

/s/ Stephen Cootey

Stephen Cootey

Chairman of the Board and
Chief Executive Officer (Principal
Executive Officer)

February 24, 2017

Director

Director

Director

Director

Director

Director

Director

Director

Director

Chief Financial Officer and
Treasurer (Principal Financial and
Accounting Officer)

146

February 24, 2017

February 24, 2017

February 24, 2017

February 24, 2017

February 24, 2017

February 24, 2017

February 24, 2017

February 24, 2017

February 24, 2017

February 24, 2017

Corporate Headquarters

Board of Directors

3131 Las Vegas Boulevard South
Las Vegas, Nevada 89109

Web Site

Visit the Company’s websites at:
www.wynnresorts.com
www.wynnlasvegas.com
www.wynnmacau.com
www.wynnmacaulimited.com
www.wynnpalace.com
www.wynnbostonharbor.com

Annual Report on Form 10-K

Our Annual Report on Form 10-K (including the
financial statements and financial statement
schedules relating thereto) filed with the Securities
and Exchange Commission may be obtained upon
written request and without charge. Requests
should be directed to Wynn Resorts, Limited, c/o
Investor Relations, 3131 Las Vegas Boulevard South,
Las Vegas, Nevada 89109, telephone (702) 770-7555
or investorrelations@wynnresorts.com. In addition,
the electronic version of the Annual Report can be
found at www.wynnresorts.com.

Annual Meeting

Our Annual Meeting of Stockholders will be held on
Friday, April 21, 2017 at 9:00 a.m., local time, in the
Encore Ballroom at Wynn Las Vegas, 3131 Las Vegas
Boulevard South, Las Vegas, Nevada 89109.
February 24, 2017 is the record date for determining
the stockholders entitled to notice of, and to vote at,
the Annual Meeting of Stockholders.

Common stock

Our common stock is traded on the NASDAQ Global
Select Market under the symbol “WYNN.”

Common Stock Transfer Agent and Registrar

American Stock Transfer & Trust Co.
6201 15th Avenue
Brooklyn, NY 11219
(800) 937-5449

Wynn and Encore are registered trademarks of Wynn
Resorts Holdings, LLC.

Stephen A. Wynn
Chairman of the Board and Chief Executive Officer

John J. Hagenbuch
Director
Chairman of M&H Realty Partners and WestLand
Capital Partners

Dr. Ray R. Irani
Director
Former Executive Chairman, Chairman and Chief
Executive Officer of Occidental Petroleum Corporation

Admiral Jay L. Johnson
Director
Former Chairman and Chief Executive Officer of
General Dynamics Corporation
Chief of Naval Operations and a member of the Joint
Chiefs of Staff from August 1996 to July 2000

Robert J. Miller
Director
Founder of Robert J. Miller Consulting
Governor of the State of Nevada from January 1989
until January 1999

Patricia Mulroy
Director
General Manager of the Southern Nevada Water
Authority from 1993 to 2014
Member of Global Agenda Council on Water of the
World Economic Forum

Ambassador Clark T. Randt, Jr.
Director
U.S. Ambassador to the People’s Republic of China
from July 2001 to January 2009

Alvin V. Shoemaker
Director
Former Chairman of First Boston Inc. and First
Boston Corp.

J. Edward Virtue
Director
Chief Executive Officer of MidOcean Partners

D. Boone Wayson
Director
Principal of Wayson’s Properties, Incorporated

Executive Officers

Stephen A. Wynn
Chairman and Chief Executive Officer

Matt Maddox
President

Kim Sinatra
Executive Vice President, General Counsel and
Secretary

John Strzemp
Executive Vice President and Chief Administrative
Officer

Craig Billings
Chief Financial Officer and Treasurer

Information on this page is as of March 1, 2017.