What does reportable legal entities — business exit costs1 mean?

Expenses related to closing down business operations or facilities.

How do you interpret reportable legal entities — business exit costs1?

Higher costs indicate significant restructuring activity, which may be a short-term drag on earnings but potentially beneficial for long-term margins.

How does reportable legal entities — business exit costs1 compare across companies?

Commonly seen in companies undergoing major strategic pivots or cost-reduction programs.

MGM Resorts International MGM Reportable Legal Entities — Business Exit Costs1

Discontinued — last reported Q4 '16

Similar metrics at other companies

BALLCorporate Non — Business Exit Costs1

$500K—

TSNCorporate and Other — Business Exit Costs

$1.5M—

PKGCorporate And Other — Business Exit Costs1

$250K—

EMNCorporate and Other — Business Exit Costs

$0-100%

RUNITED KINGDOM — Business exit costs

$500K-95.9%

ZTSMaterial Reconciling Items — Business Exit Costs1

$1M0.0%

Other financials

Income statement

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Revenue$4.5B+4.2%

Operating income$301.2M-21.8%

Net income$125.1M-15.8%

EPS (diluted)$0.48-5.9%

Balance sheet

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Cash & equivalents$2.3B+1.0%

Total debt$31.7B-0.6%

Total equity$2.4B-14.7%

Total assets$41.4B-1.2%

Cash flow

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Operating cash flow$567.8M+3.8%

CapEx$154.7M-32.2%

Free cash flow$413.1M+29.5%

Valuation

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Market cap$11.98B+11.9%

Enterprise value$41.38B+2.1%

P/E65.7×+49.9×

P/S0.7×+0.1×

Profitability

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Operating margin5.2%-3.1pp

Net margin1%-2.9pp

FCF margin8.8%+2.0pp

Returns & leverage

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Return on equity6.9%-14.6pp

Debt / equity13×+1.9×

Current ratio1.3×0.0×

Where this comes from

Reported directly by MGM Resorts International in its filing.

Tagged under the XBRL concept us-gaap:BusinessExitCosts1.

The official record: MGM Resorts International’s 10-K, filed March 1, 2017, on SEC EDGAR. View the filing →

Questions, answered.

What does reportable legal entities — business exit costs1 mean?: Expenses related to closing down business operations or facilities.
How do you interpret reportable legal entities — business exit costs1?: Higher costs indicate significant restructuring activity, which may be a short-term drag on earnings but potentially beneficial for long-term margins.
How does reportable legal entities — business exit costs1 compare across companies?: Commonly seen in companies undergoing major strategic pivots or cost-reduction programs.