Melco Resorts & Entertainment(MLCO) - 2024 Q4 - Annual Report

Financial Performance - The company recognized an impairment of long-lived assets related to Altira Macau of US$207.6 million for the year ended December 31, 2023, and a further impairment of US$3.3 million for the year ended December 31, 2024[778]. - The company's allowances for casino credit losses were 48.2% of gross casino accounts receivable as of December 31, 2024, down from 64.4% in 2023[783]. - As of December 31, 2024, valuation allowances for deferred tax assets were recorded at US$477.8 million, compared to US$374.6 million in 2023[785]. - In 2024, the company received dividend payments of US$121.0 million from its Macau operating subsidiary, while no dividends were paid to shareholders[756]. - The company's total long-term debt obligations amount to US$9,778.9 million, with significant payments due in the next 1-3 years totaling US$2,428.5 million[759]. Asset Management - As of December 31, 2024, net property and equipment amounted to US$5.27 billion, representing 66.0% of total assets[772]. - The fair values of long-lived assets for Altira Macau were estimated using a combination of income and cost approaches, with discount rates of 12.6% and 12.3% for 2024 and 2023, respectively[778]. - The discount rates used for the impairment test of Mocha Clubs were 10.5% and 11.7% for the years ended December 31, 2024 and 2023, respectively[776]. - The company evaluates property and equipment for impairment whenever indicators exist, estimating undiscounted future cash flows based on significant assumptions[774]. - No impairment of goodwill was recognized during the years ended December 31, 2024, 2023, and 2022[775]. Corporate Governance - The company’s board consists of seven directors, including four independent directors, complying with Nasdaq's corporate governance rules[832]. - The audit and risk committee is responsible for overseeing the audits of the financial statements and the performance of independent auditors[840]. - The compensation committee evaluates and approves compensation plans for executives and directors[841]. - The nominating and corporate governance committee oversees compliance with legal and regulatory requirements, particularly in the gaming industry[844]. - The compensation committee has the authority to amend or terminate the 2021 Share Incentive Plan with Board approval[887]. Executive Management - Mr. Clarence Yuk Man Chung has been appointed as a director since November 21, 2006, and has extensive experience in the financial industry, including roles as CFO and M&A specialist[798]. - Mr. Evan Andrew Winkler joined Melco International as managing director in August 2016 and became president on September 4, 2019, bringing significant experience from Moelis & Company and UBS Investment Bank[799][800]. - Mr. Alec Yiu Wa Tsui has served as an independent non-executive director since December 18, 2006, and has held key positions in various financial institutions, including the Securities and Futures Commission of Hong Kong[801][802]. - Mr. Thomas Jefferson Wu has been an independent non-executive director since December 18, 2006, and has extensive experience in public service and corporate governance, including roles in Hopewell Holdings Limited[804][806]. - Mr. John William Crawford has been an independent non-executive director since January 12, 2017, and has a strong background in public accounting and education, having founded International Quality Education Limited[811][813]. Employee Compensation and Benefits - The total compensation for all directors and executive officers amounted to approximately US$30.6 million for the year ended December 31, 2024[822]. - A total of 4,621,653 restricted shares were granted to directors and executive officers at a fair value of US$2.52 per share on April 3, 2024[824]. - Approximately US$0.5 million was set aside for pension, retirement, or similar benefits for senior executive officers for the year ended December 31, 2024[830]. - The company has implemented various employee attraction and retention initiatives, including a unique in-house learning academy[855]. - The company is not a party to any collective bargaining agreements, except for the Table Games Division of City of Dreams Manila[853]. Shareholder Information - As of December 31, 2024, a total of 1,276,540,382 ordinary shares were outstanding[897]. - Lawrence Yau Lung Ho holds 710,691,045 ordinary shares, representing 55.67% of the total issued shares[893]. - ARGA Investment Management, LP holds 86,275,437 ordinary shares, representing 6.76% of the total issued shares[893]. - EuroPacific Growth Fund holds 81,804,750 ordinary shares, representing 6.41% of the total issued shares[893]. - The share ownership of directors and executive officers collectively represents 56.40% of the total outstanding shares as of March 15, 2025[858].