WYNN RESORTS LTDWYNN
WYNN RESORTS LTD Income Taxes Disclosure
Income Taxes
Cash paid for income taxes, net of refunds received, was $10.2 million and $10.3 million during the years ended December 31, 2024 and 2023, respectively.
Consolidated income before taxes for U.S. and foreign operations consisted of the following (in thousands):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| U.S. | $ | 336,489 | $ | 251,003 | $ | 142,775 | |||||||||||
| Foreign | 177,651 | 392,395 | 142,608 | ||||||||||||||
| Total | $ | 514,140 | $ | 643,398 | $ | 285,383 | |||||||||||
The income tax provision (benefit) attributable to income before income taxes is as follows (in thousands):
| December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Current | |||||||||||||||||
| U.S. Federal | $ | (427) | $ | 894 | $ | (248) | |||||||||||
| U.S. State | 8,321 | 9,496 | 6,337 | ||||||||||||||
| Foreign | (106) | 141 | (194) | ||||||||||||||
| Total | 7,788 | 10,531 | 5,895 | ||||||||||||||
| Deferred | |||||||||||||||||
| U.S. Federal | 99,383 | (4,585) | (483,786) | ||||||||||||||
| U.S. State | (2,166) | (2,264) | (20,310) | ||||||||||||||
| Foreign | — | — | 1,367 | ||||||||||||||
| Total | 97,217 | (6,849) | (502,729) | ||||||||||||||
| Total income tax provision (benefit) | $ | 105,005 | $ | 3,682 | $ | (496,834) | |||||||||||
The Company adopted ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09") on a prospective basis for the year ended December 31, 2025. The following table presents the required disclosures pursuant to ASU 2023-09, and reconciles the U.S. federal statutory tax amount and rate to the effective tax amount and rate for the year ended December 31, 2025 (amounts in thousands):
Amount | Percent | ||||||||||
U.S. Federal Statutory Rate | $ | 107,969 | 21.0 | % | |||||||
State and local income tax, net of federal income tax effect | |||||||||||
Massachusetts | 7,028 | 1.4 | % | ||||||||
Foreign tax effects | |||||||||||
Macau | |||||||||||
Foreign tax rate differential | (42,944) | (8.4) | % | ||||||||
Nontaxable foreign income | (97,891) | (19.0) | % | ||||||||
Valuation allowance | 30,572 | 5.9 | % | ||||||||
Other | 10,060 | 2.0 | % | ||||||||
Cayman Islands | |||||||||||
Foreign tax rate differential | 54,960 | 10.7 | % | ||||||||
Other | 7,830 | 1.5 | % | ||||||||
Effects in changes in tax laws or rates | 37,239 | 7.2 | % | ||||||||
Effects of cross-border tax laws | (99) | (0.1) | % | ||||||||
Tax credits | (3,536) | (0.7) | % | ||||||||
Increase (decrease) in valuation allowances | |||||||||||
Foreign tax credits | 1,640 | 0.3 | % | ||||||||
Other deferred tax assets | (1,379) | (0.3) | % | ||||||||
Nontaxable or nondeductible items | 2,004 | 0.5 | % | ||||||||
Other adjustments | |||||||||||
Investments in unconsolidated affiliates | (8,448) | (1.6) | % | ||||||||
| Effective income tax | $ | 105,005 | 20.4 | % | |||||||
The following table presents the required disclosures prior to the adoption of ASU 2023-09 and reconciles the U.S. statutory income tax rate to the effective income tax rate for the following periods:
| December 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| U.S. Federal statutory rate | 21.0 | % | 21.0 | % | |||||||
| State tax | 1.0 | % | (2.8) | % | |||||||
| Foreign tax credits, net of valuation allowance | (12.2) | % | (139.8) | % | |||||||
| Nontaxable foreign income | (6.3) | % | (9.6) | % | |||||||
| Foreign tax rate differential | (3.9) | % | 0.4 | % | |||||||
| Valuation allowance, other | (6.6) | % | (43.8) | % | |||||||
| Other, net | 7.6 | % | 0.5 | % | |||||||
| Effective income tax rate | 0.6 | % | (174.1) | % | |||||||
In 2024, Wynn Macau SA received an exemption from Macau's 12% Complementary Tax on casino gaming profits from January 1, 2023 through December 31, 2027. For the year ended December 31, 2025, the Company was exempt from the payment of Macau Complementary Tax totaling $77.1 million or $0.74 per diluted share. For the year ended December 31, 2024, the Company was exempt from the payment of Macau Complementary Tax totaling $107.3 million or $0.97 per diluted share. 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.
The tax effects of significant temporary differences representing net deferred tax assets and liabilities consisted of the following (in thousands):
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Deferred tax assets—U.S.: | |||||||||||
| Foreign tax credit carryforwards | $ | 449,852 | $ | 533,473 | |||||||
| Disallowed interest expense carryforward | 144,113 | 157,586 | |||||||||
| Net operating loss carryforward | 140,836 | 169,598 | |||||||||
| Lease liabilities | 368,804 | 370,110 | |||||||||
| Property and equipment | 83,576 | 72,286 | |||||||||
| Receivables, inventories, accrued liabilities and other | 24,259 | 21,491 | |||||||||
| Stock-based compensation | 14,919 | 9,020 | |||||||||
| Other tax credit carryforwards | 26,666 | 21,562 | |||||||||
| Intangible assets | 26,967 | 36,371 | |||||||||
| Other | 902 | 1,858 | |||||||||
| 1,280,894 | 1,393,355 | ||||||||||
| Less: valuation allowance | (479,298) | (479,854) | |||||||||
| 801,596 | 913,501 | ||||||||||
| Deferred tax liabilities—U.S.: | |||||||||||
| Lease assets | (368,804) | (370,110) | |||||||||
| Prepaid insurance, maintenance and taxes | (7,240) | (15,447) | |||||||||
| Intangible and other assets | (4,248) | — | |||||||||
| Investment in unconsolidated affiliates | (7,209) | — | |||||||||
| Other | (3,596) | (20,228) | |||||||||
| (391,097) | (405,785) | ||||||||||
| Deferred tax assets—Foreign: | |||||||||||
| Net operating loss carryforwards | 42,977 | 32,114 | |||||||||
| Property and equipment | 95,420 | 91,884 | |||||||||
| Other | 2,677 | 2,952 | |||||||||
| 141,074 | 126,950 | ||||||||||
| Less: valuation allowance | (138,855) | (124,791) | |||||||||
| 2,219 | 2,159 | ||||||||||
| Deferred tax liabilities—Foreign: | |||||||||||
| Property and equipment | (3,648) | (2,159) | |||||||||
| (3,648) | (2,159) | ||||||||||
| Net deferred tax asset | $ | 409,070 | $ | 507,716 | |||||||
As of December 31, 2025, the Company had foreign tax credit ("FTC") carryforwards (net of uncertain tax positions) of $449.9 million, all of which will expire in 2027. The Company has a disallowed interest carryforward of $629.4 million which does not expire. As of December 31, 2025, the Company had U.S. federal loss carryforwards of $670.6 million. As of December 31, 2024, the Company had U.S. federal and state tax loss carryforwards of $658.9 million. U.S. federal tax loss carryforwards do not expire. State net operating losses generally carry forward 20 years and will begin to expire in 2040. The Company has foreign tax losses available of $250.7 million, $35.0 million and $55.1 million related to losses incurred in the tax years ended December 31, 2025, 2024, and 2023, respectively. The majority of foreign tax loss carryforwards expire in 2028, 2027, and 2026, respectively.
The Company records valuation allowances on certain of its U.S. and foreign deferred tax assets. In assessing the need for a valuation allowance, the Company considers whether it is more likely than not that the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income. In the assessment of the valuation allowance, appropriate consideration is given to all positive and negative evidence including recent operating profitability, forecast of future earnings, ability to carry back, the reversal of net taxable temporary differences, the duration of statutory carryforward periods and tax planning strategies. The need for valuation allowances against deferred tax assets will be assessed on a continuous basis and, as a result, the allowance may increase or decrease based on changes in facts and circumstances.
In 2025, the Company recorded a $13.5 million net increase to valuation allowances, including a $38.9 million increase to valuation allowance on FTC carryforwards. The increase primarily relates to U.S. federal tax law changes that increase tax deductions and reduce the utilization of FTC carryforwards. The decrease to valuation allowances primarily relates to NOL carryforwards that were used or expired in the current year.
In 2024, the Company recorded a $735.9 million net decrease to valuation allowances, including a $693.3 million decrease to valuation allowance on FTC carryforwards. Of the $693.3 million net decrease, $614.9 million relates to expirations of FTCs in 2024 and the remaining $78.4 million represents FTCs more likely than not to be realized based on changes in future taxable income and tax planning strategies.
As of December 31, 2025 and 2024, the Company had valuation allowances on its deferred tax assets as follows (in thousands):
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Foreign tax credits | $ | 286,852 | $ | 247,973 | |||||||
| Intangible assets | 26,967 | 36,850 | |||||||||
| U.S. loss carryforwards | 140,836 | 169,598 | |||||||||
| Other U.S. deferred tax assets | 24,643 | 25,432 | |||||||||
| Foreign loss carryforwards | 43,099 | 32,674 | |||||||||
| Other foreign deferred tax assets | 95,756 | 92,118 | |||||||||
| Total | $ | 618,153 | $ | 604,645 | |||||||
The Company had the following activity for unrecognized tax benefits as follows (in thousands):
| December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Balance at beginning of period | $ | 131,018 | $ | 135,671 | $ | 135,979 | |||||||||||
| Increases based on tax positions of the current year | 11,088 | 11,635 | 15,818 | ||||||||||||||
| Increases based on tax positions of prior years | 27,328 | — | — | ||||||||||||||
| Reductions due to lapse in statutes of limitations | (9,021) | (16,288) | (16,126) | ||||||||||||||
| Balance at end of period | $ | 160,413 | $ | 131,018 | $ | 135,671 | |||||||||||
As of December 31, 2025, 2024 and 2023, unrecognized tax benefits of $160.4 million, $130.9 million and $135.7 million, respectively, were recorded as reductions in deferred income taxes, net. The Company had $0.1 million of unrecognized tax benefits recorded in other long-term liabilities as of December 31, 2024. The Company had no unrecognized tax benefits recorded in other long-term liabilities as of December 31, 2025 and 2023.
As of December 31, 2025, 2024 and 2023, $96.6 million, $65.8 million and $69.0 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 each of the years ended December 31, 2025, 2024 and 2023, the Company recognized no interest and penalties.
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 2021 domestic income tax returns remain subject to examination by the IRS to the extent tax attributes carryforward to future years. The Company's 2022 to 2024 domestic income tax returns also remain subject to examination by the IRS. The Company's 2021 to 2024 Macau income tax returns remain subject to examination by the Financial Services Bureau.
The Company has participated in the IRS Compliance Assurance Program ("CAP") for the 2012 through 2025 tax years and will continue to participate in the IRS CAP for the 2026 tax year.
In January 2025, the Financial Services Bureau commenced an examination of the 2021 Macau income tax return of Wynn Macau SA and concluded the examination with no changes.
The Company has included the following table as a result of adopting ASU 2023-09, which presents income taxes paid, net of refunds received, for the year ended December 31 (in thousands):
| 2025 | ||||||||
| Federal taxes | $ | 50 | ||||||
| State taxes | 9,469 | |||||||
| Foreign taxes | (276) | |||||||
| Total | $ | 9,243 | ||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Feb 13, 2025 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Feb 28, 2018 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.