WYNN

Business Context and Reporting Period

This Form 8-K was filed by Wynn Resorts, Limited on October 30, 2016. The report addresses a material development regarding the Wynn Palace construction project in Macau, involving an indirect subsidiary, Wynn Macau, Limited (WML), and its general contractor, Leighton Contractors (Asia) Limited.

Key Financial Metrics

The filing does not provide standard financial metrics such as revenue, profit, cash flow, margins, or debt levels. The primary financial disclosure relates to the capital budget for the Wynn Palace project:

• Revised Guaranteed Maximum Price (GMP): HK$23.1 billion (approximately $3.0 billion).
• Final Project Budget: $4.4 billion.
• Budget Increase: $300 million increase to the GMP.

Material Changes

The company announced a final agreement to resolve all claims with its general contractor regarding the Wynn Palace project. Key changes include:

• Settlement of all outstanding claims under the GMP contract.
• Agreement by the general contractor to complete all outstanding work necessary for final completion.
• Adjustment of the project budget upward by $300 million.

Outlook, Risks, and Contingencies

Management confirmed that the general contractor's performance remains backed by a full completion guarantee from CIMIC Group Limited (parent company) and performance bonds covering approximately 5% of the GMP. The filing notes that the subsidiary's right to make future warranty claims is unaffected by this settlement agreement. No specific forward-looking guidance on revenue or earnings was provided in this report.

Investor Verification Checklist

• Verify the impact of the $300 million budget increase on the company's overall capital expenditure plan and liquidity.
• Confirm the timeline for the completion of outstanding work at Wynn Palace following the settlement.
• Review the terms of the performance bonds and the CIMIC Group completion guarantee to assess residual construction risk.
• Monitor future filings for any additional cost overruns or changes to the $4.4 billion final project budget.