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INCOME TAXES
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The Company recognizes deferred income tax assets, net of applicable reserves, related to net operating losses, tax credit carryforwards and certain temporary differences. The Company recognizes future tax benefits to the extent that realization of such benefit is more likely than not. Otherwise, a valuation allowance is applied.

The domestic and foreign components of income before income taxes were as follows:

 
Year Ended December 31,
 202520242023
 (In thousands)
Domestic operations$(237,067)$256,890 $1,214,888 
Foreign operations517,846 860,175 257,875 
 $280,779 $1,117,065 $1,472,763 
The components of the provision for (benefit from) income taxes were as follows:
 
Year Ended December 31,
 202520242023
Federal:(In thousands)
Current$(17,647)$126,933 $259,128 
Deferred (excluding separate components)113,941 (22,919)48,363 
Deferred – valuation allowance change
(283,694)(9,506)(153,768)
Other noncurrent(13,658)1,458 (10,969)
(Benefit) provision for federal income taxes(201,058)95,966 142,754 
State:
Current32,865 10,477 24,931 
Deferred (excluding separate components)(28,878)(3,731)(11,206)
Deferred – operating loss carryforward
4,150 (880)12,219 
Deferred – valuation allowance change
(1,020)3,177 2,140 
Provision for state income taxes7,117 9,043 28,084 
Foreign:
Current3,423 (2,363)(223)
Deferred (excluding separate components)(72,232)(4,250)(5,611)
Deferred – operating loss carryforward
(10,807)(39,769)57,485 
Deferred – valuation allowance change
33,464 (6,170)(64,650)
Benefit for foreign income taxes(46,152)(52,552)(12,999)
 $(240,093)$52,457 $157,839 
A reconciliation of the federal income tax statutory rate and the Company’s effective tax rate for the year ended December 31, 2025 was as follows (in thousands, except percentages):
Year ended December 31, 2025
Amount
Percent
U.S. federal statutory rate$58,965 21.0 %
State and local income taxes, net of federal income tax effect1
6,248 2.2 %
Foreign tax effects
Macau
Statutory tax rate differential(75,044)(26.7)%
Tax holiday benefit(144,831)(51.6)%
Other(7,478)(2.7)%
Brazil
Statutory tax rate differential(7,505)(2.7)%
Changes in valuation allowance20,217 7.2 %
Other(588)(0.2)%
Hong Kong40,868 14.6 %
Malta23,513 8.4 %
Other foreign jurisdictions10,939 3.9 %
Effects of cross-border tax laws12,682 4.5 %
Tax credits(16,486)(5.9)%
Changes in valuation allowance(283,694)(101.0)%
Nontaxable and nondeductible items
Foreign currency transaction gain or loss60,501 21.5 %
Goodwill impairment53,788 19.2 %
Other25,997 9.3 %
Other adjustments(18,185)(6.5)%
Effective tax rate$(240,093)(85.5)%
1State taxes in New Jersey comprise the majority (greater than 50 percent) of the tax effect in this category.

A reconciliation of the federal income tax statutory rate and the Company’s effective tax rate was as follows:
 
Year Ended December 31,
 20242023
Federal income tax statutory rate21.0 %21.0 %
Noncontrolling interest(0.2)(0.1)
Foreign income/losses taxed at other than U.S. statutory rate(19.5)(3.6)
Federal valuation allowance(0.9)(10.4)
State taxes, net0.6 1.5 
General business credits(1.5)(1.2)
Incremental U.S. tax on foreign earnings4.5 2.4 
Permanent and other items0.7 1.1 
 4.7 %10.7 %
The tax-effected components of the Company’s net deferred tax liability were as follows:
 December 31,
 20252024
Deferred tax assets – federal and state:(In thousands)
Net operating loss carryforward$10,915 $14,193 
Accruals, reserves and other52,615 66,328 
Lease liabilities5,732,208 5,750,744 
Tax credits334,468 1,008,363 
Intangibles
95,100 — 
 6,225,306 6,839,628 
Less: Valuation allowance(277,391)(867,416)
 5,947,915 5,972,212 
Deferred tax assets – foreign:
Net operating loss carryforward191,777 180,970 
Accruals, reserves and other9,049 6,673 
Property and equipment39,059 37,832 
Lease liabilities207 1,488 
 240,092 226,963 
Less: Valuation allowance(144,108)(173,984)
 95,984 52,979 
Total deferred tax assets$6,043,899 $6,025,191 
Deferred tax liabilities – federal and state:
Property and equipment$(548,951)$(438,455)
Investments in unconsolidated affiliates(585,266)(583,865)
Investment in equity securities(2,234,665)(2,232,601)
ROU assets(5,187,169)(5,283,821)
Intangibles— (237,107)
 (8,556,051)(8,775,849)
Deferred tax liabilities – foreign:
Intangibles
(15,123)(21,414)
 (15,123)(21,414)
Total deferred tax liability(8,571,174)(8,797,263)
Net deferred tax liability$(2,527,275)$(2,772,072)

A reconciliation of income taxes paid (refunds received), net was as follows:
Year Ended December 31,
2025
U.S. federal
$(53,373)
U.S. state and local
19,519 
Foreign (765)
Income tax refunds received, net
$(34,619)
For the years ended December 31, 2024 and 2023, income taxes paid, net was $267 million and $344 million, respectively.
Deferred income tax valuation allowance consisted of the following:
Balance at Beginning of PeriodIncreaseDecreaseBalance at End of Period
Deferred income tax valuation allowance:(In thousands)
Year Ended December 31, 2025
$1,041,400 $— $(619,901)$421,499 
Year Ended December 31, 2024
1,778,446 — (737,046)1,041,400 
Year Ended December 31, 2023
2,886,575 — (1,108,129)1,778,446 

The Company has recorded a valuation allowance of $265 million on its foreign tax credit (“FTC”) carryover of $334 million as of December 31, 2025, resulting in an FTC net deferred tax asset of approximately $69 million. The FTCs are attributable to the Macau Special Gaming Tax, which is 35% of gross gaming revenue in Macau. The Company believes payment of the Macau Special Gaming Tax qualifies as a tax paid in lieu of an income tax that is creditable against U.S. taxes. While the Company generally does not expect to generate new FTC carryovers after the year ended December 31, 2017, it will be able to utilize its existing FTC carryovers only to the extent it has active foreign source income during the applicable 10-year FTC carryforward period. The Company relies on future U.S.-source operating income in assessing, future FTC realization during the applicable 10-year FTC carryover period. The FTC carryovers will expire if not utilized as follows: $134 million in 2026 and $200 million in 2027.

The Company’s assessment of the realization of its FTC deferred tax asset is based on available evidence, including assumptions concerning future U.S. operating profits and foreign source income. As a result, significant judgment is required in assessing the possible need for a valuation allowance and changes to such assumptions could result in a material change in the valuation allowance with a corresponding impact on the provision for income taxes in the period including such change.

At December 31, 2025, gross foreign net operating loss carryforwards consisted primarily of a complementary tax exempt net operating loss (“NOL”) carryforward of $1.1 billion at MGM Grand Paradise resulting from non-gaming operations that will expire if not utilized in years 2026 through 2028.

As of December 31, 2025, there is a $144 million valuation allowance on certain foreign deferred tax assets, which relates primarily to MGM Grand Paradise’s NOLs.

The Company has NOLs in some of the states in which it operates that total $171 million as of December 31, 2025, which equates to deferred tax assets of $11 million after federal tax effect and before valuation allowance. The NOL carryforwards in most of the states will expire, if not utilized, between 2030 through 2044. Otherwise, the NOL carryforward can be carried forward indefinitely. The Company has provided a valuation allowance of $12 million on its state deferred tax assets, including the NOLs described above.

The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate was not material at December 31, 2025 and 2024, respectively. The Company recognizes interest and penalties related to unrecognized tax benefits as well as overpayments and underpayment of income taxes in income tax expense, which were not material for each of the periods presented.

The Company files income tax returns in the U.S. federal jurisdiction, various state and local jurisdictions, and foreign jurisdictions. As of December 31, 2025, the federal, state, and local tax jurisdictions in which the Company files tax returns generally cannot assess tax with respect to years ended prior to 2021. However, NOLs and other available carryforwards generated or utilized in earlier years may be subject to adjustment.

The examination by the IRS of the Company’s 2015 through 2019 U.S. consolidated federal income tax returns concluded in the first half of 2025 following approval of the examination findings by the Joint Committee on Taxation. The Company received $102 million in tax refunds and related interest in 2025 and an additional $85 million in January 2026. Additional interest remains outstanding and is expected to be received by the Company in 2026.

In addition, the Company is subject to state income tax examinations for various tax years ranging from 2022 through 2024. The Company does not anticipate any material adjustments upon resolution of these examinations.