The following discussion should be read in conjunction with, and is qualified in its entirety by, the audited consolidated financial statements and the notes thereto, and other financial information included in this Form 10-K. Certain statements in this "Management's Discussion and Analysis of Financial Condition and Results of Operations" are forward-looking statements. See "Special Note Regarding Forward-Looking Statements." Overview We view each of ourIntegrated Resorts as an operating segment. Our operating segments inMacao consist of The Venetian Macao; The Londoner Macao; The Parisian Macao; ThePlaza Macao and Four Seasons Macao; and the Sands Macao. Our operating segment inSingapore isMarina Bay Sands . Our operating segments in theU.S. consist of theLas Vegas Operating Properties , which includes The Venetian Resort Las Vegas and the Sands Expo Center. During 2021, we achieved milestones in advancing several of our strategic objectives. We continued progress on our key development projects inMacao for the conversion of Sands Cotai Central into The Londoner Macao, we openedThe Londoner Macao Hotel inJanuary 2021 , featuring 594 London-themed suites, and we opened Londoner Court inSeptember 2021 , featuring approximately 370 luxury suites. InSingapore , we initiated development activities associated with theMBS Expansion Project . We continued to strengthen our balance sheet with the issuance of SCL 2027, 2029 and 2031 Senior Notes with an aggregate principal amount of$1.95 billion . We used the net proceeds from the issuance and cash on hand to redeem in full the outstanding principal amount of the$1.80 billion 4.600% Senior Notes due 2023, and are prepared to complete the sale of theLas Vegas property. OnMarch 2, 2021 , we entered into definitive agreements to sell ourLas Vegas real property and operations, including The Venetian Resort Las Vegas and theSands Expo and Convention Center , for a total enterprise value of$6.25 billion toPioneer OpCo, LLC , an affiliate of certain funds managed by affiliates of Apollo Global Management, Inc., and VICI Properties L.P, a subsidiary of VICI Properties Inc. The closing of the transaction is subject to regulatory review and other closing conditions and we anticipate the closing of the transaction in the first quarter of 2022. COVID-19 Pandemic Update In earlyJanuary 2020 , an outbreak of a respiratory illness caused by a novel coronavirus ("COVID-19") was identified and the disease spread rapidly across the world causing theWorld Health Organization to declare the outbreak of a pandemic onMarch 12, 2020 (the "COVID-19 Pandemic"). Governments around the world mandated actions to contain the spread of the virus that included stay-at-home orders, quarantines, capacity limits, closures of non-essential businesses, including entertainment activities, and significant restrictions on travel. The government actions varied based upon a number of factors, including the extent and severity of the COVID-19 Pandemic within their respective countries and jurisdictions. Visitation to theMacao Special Administrative Region ("Macao") ofthe People's Republic of China ("China") has remained substantially below pre-COVID-19 levels as a result of various government policies limiting or discouraging travel. As of the date of this report, other than people from mainlandChina who in general may enterMacao without quarantine subject to them holding the appropriate travel documents, a negative COVID-19 test result issued within a specified time period and a green health-code, there remains in place a complete ban on entry or a need to undergo various quarantine requirements depending on the person's residency and recent travel history. Our operations inMacao will continue to be impacted and subject to changes in the government policies ofMacao, China ,Hong Kong and other jurisdictions inAsia addressing travel and public health measures associated with COVID-19. OnMarch 3, 2021 , the negative COVID-19 test requirement to enter casinos was removed; however, various other health safeguards implemented by theMacao government remain in place, including mandatory mask protection, limitation on the number of seats per table game, slot machine spacing and temperature checks. Management is currently unable to determine when the remaining measures will be eased or cease to be necessary. 41
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As of the date of this report, most businesses are allowed to remain open, subject to social distancing and health code checking requirements as designated by theMacao government. InJanuary 2022 , theMacao government commenced the roll out and trial of a non-mandatory contact tracing QR code function at a range of businesses including government buildings, restaurants, hotels and other public venues. In support of theMacao government's initiatives to fight the COVID-19 Pandemic, we provided one tower (approximately 2,100 hotel rooms) at the Sheraton GrandMacao to theMacao government to house individualswho returned toMacao for quarantine purposes. This tower has been utilized for quarantine purposes on several occasions during 2020 and 2021. FromOctober 4, 2021 toOctober 30, 2021 , an additional tower (approximately 1,800 hotel rooms) at the Sheraton Grand Macao was provided. OurMacao gaming operations remained open during the year endedDecember 31, 2021 , compared to the same period in 2020 when ourMacao gaming operations were suspended fromFebruary 5, 2020 toFebruary 19, 2020 due to a government mandate, except for gaming operations at The Londoner Macao, which resumed onFebruary 27, 2020 . Some of ourMacao hotel facilities were also closed during the casino suspension in response to the decrease in visitation and were gradually reopened fromFebruary 20, 2020 , with the exception of the ConradMacao at The Londoner Macao (the "Conrad hotel"), which reopened onJune 13, 2020 . Operating hours at restaurants and other venues across ourMacao properties are continuously being adjusted in line with fluctuations in guest visitation. The majority of retail outlets in our various shopping malls are open with reduced operating hours. The timing and manner in which these areas will return to full operation are currently unknown. Our ferry operations betweenMacao andHong Kong remain suspended. The timing and manner in which our ferry operations will be able to resume are currently unknown. Our operations inMacao have been significantly impacted by the reduced visitation toMacao . TheMacao government announced total visitation from mainlandChina toMacao increased 48.2% and decreased 74.8% for 2021, as compared to 2020 and 2019, respectively. TheMacao government also announced gross gaming revenue increased by 43.7% and decreased by 70.3% for 2021, as compared to 2020 and 2019, respectively. As of the date of this report, entry intoSingapore is largely limited toSingapore citizens and permanent residents, with certain visitors allowed from specified countries on a quarantine-free basis, subject to certain requirements and health control measures. Additionally, there are no stay-at-home orders or curfews except for certain individuals arriving intoSingapore who are subject to quarantine and individualswho may be assessed to have been exposed to COVID-19 as a result of the government's contact tracing efforts. All operations are currently subject to limited capacities and other social distancing measures. As of the date of this report,Marina Bays Sands has implemented vaccination-differentiated safe management measures ("VDS"), allowing only fully vaccinated individuals; individualswho have recovered from COVID-19 within the past 180 days; or individuals medically ineligible for COVID-19 vaccination to enter the casino and other attractions.Vaccinated Travel Lanes (VTLs) (travel corridors for vaccinated visitors in receipt of a negative COVID-19 test) were introduced for a number of key source markets in November and December of 2021, however, due to the emergence of the Omicron variant, new ticket sales for the VTLs were suspended onDecember 23, 2021 throughJanuary 20, 2022 . Our operations at Marina Bay Sands will continue to be impacted and subject to changes in the government policies ofSingapore and other jurisdictions inAsia addressing travel and public health measures associated with COVID-19. These government policies will continue to impact (i) the number of people allowed at business-to-business events, sporting events and live performances; (ii) closure or limited seating at food and beverage or entertainment establishments; and (iii) casino capacity limits, among other restrictions. During the year endedDecember 31, 2021 , gaming operations at Marina Bay Sands were closed fromMay 17 untilMay 18 , and fromJuly 22 untilAugust 4 due to pandemic-related measures in consultation with theSingapore government authorities. As a result of the border closures, visitation toMarina Bay Sands continues to be impacted by the effects of the COVID-19 Pandemic. TheSingapore Tourism Board ("STB") announced for the 12 months endedDecember 31, 2021 , total visitation toSingapore decreased approximately 88.0% and 98.3%, as compared to the same period in 2020 and 2019, respectively. 42
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EffectiveJune 1, 2021 , pursuant to State ofNevada and Nevada Gaming Control Board decisions, all capacity limits, restrictions on large gatherings and other restrictions, which had been implemented in response to the impact of the COVID-19 Pandemic, were lifted and ourLas Vegas Operating Properties are operating under pre-pandemic guidelines. During the year endedDecember 31, 2021 , ourLas Vegas Operating Properties were open subject to various capacity limits in place at various times throughout the year. This compares to the same period in 2020 when ourLas Vegas Operating Properties operations were suspended onMarch 18, 2020 , due to a government mandate, and onJune 4, 2020 ,The Venetian Tower ,The Palazzo Tower and select food and beverage outlets reopened, with certain operations subject to reduced capacity. Convention, meeting and certain entertainment related operations remained closed for a portion of the year endedDecember 31, 2020 . Visitation to ourLas Vegas Operating Properties continues to be impacted by the effects of the COVID-19 Pandemic; however, visitation has increased since restrictions have been lifted. TheLas Vegas Convention and Visitors Authority ("LVCVA") announced for the twelve months endedDecember 31, 2021 , total visitation toLas Vegas increased 69.4% and decreased 24.2%, respectively, as compared to the same period in 2020 and 2019. The LVCVA also announced for the twelve months endedDecember 31, 2021 , gross gaming revenue for theLas Vegas Strip increased 89.9%, and 7.6%, as compared to the same period in 2020 and 2019, respectively. At ourMacao properties andMarina Bay Sands , we are adhering to social distancing requirements, which include reduced seating at table games and a decreased number of active slot machines on the casino floor. Additionally, there is uncertainty of the impact the COVID-19 Pandemic will continue to have on operations in future periods. If ourIntegrated Resorts are not permitted to resume normal operations, travel restrictions such as those related to inbound travel from other countries are not modified or eliminated, there is a resumption of the suspension of the China Individual Visit Scheme, or the global response to contain the COVID-19 Pandemic escalates or is unsuccessful, our operations, cash flows and financial condition will be further materially impacted. While ourMacao andSingapore properties were open and operating at reduced levels due to lower visitation and the implementation of required safety measures as described above during the year endedDecember 31, 2021 , the current economic and regulatory environment on a global basis and in each of our jurisdictions continues to evolve. We cannot predict the manner in which governments will react as the global and regional impact of the COVID-19 Pandemic changes over time, which could significantly alter our current operations. We have a strong balance sheet and sufficient liquidity in place, including total cash and cash equivalents balance, excluding restricted cash and cash equivalents, of$1.85 billion and access to$1.50 billion ,$1.75 billion and$438 million of available borrowing capacity from our LVSC Revolving Facility, 2018 SCL Revolving Facility and the 2012 Singapore Revolving Facility, respectively, andSGD 3.69 billion (approximately$2.73 billion at exchange rates in effect onDecember 31, 2021 ) under our Singapore Delayed Draw Term Facility, exclusively for capital expenditures for theMBS Expansion Project (subject to restrictions as described further in Part I - Item 1 - Business - Development Projects), as ofDecember 31, 2021 . We believe we are able to support continuing operations, complete the major construction projects that are underway and respond to the current COVID-19 Pandemic challenges. We have taken various mitigating measures to manage through the current environment, including a cost and capital expenditure reduction program to minimize cash outflow of non-essential items. Macao Subconcession Gaming inMacao is administered by the government through concession agreements awarded to three different concessionaires and three subconcessionaires, of whichVenetian Macau Limited ("VML," a subsidiary of Sands China Ltd.) is one. These concession agreements expire onJune 26, 2022 . If VML's subconcession is not extended or renewed, VML may be prohibited from conducting gaming operations inMacao , and VML could cease to generate revenues from the gaming operations when the subconcession agreement expires onJune 26, 2022 . In addition, all of VML's casino premises and gaming-related equipment could be automatically transferred to theMacao government without any compensation to VML. OnJanuary 18, 2022 , theMacao Legislative Assembly published a draft bill entitled Amendment to Law No. 16/2001 to amendMacao's gaming Law 16/2002 (the "Gaming Law"). 43
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Certain changes to the Gaming Law set out in the draft bill include a reduction in the term of future gaming concessions to ten (10) years; authorization of up to six (6) gaming concession contracts; an increase in the minimum capital contribution of concessionaires to5 billion patacas (approximately$622 million at exchange rates in effect onDecember 31, 2021 ); and a prohibition of revenue sharing arrangements between gaming promoters and concessionaires. We are actively monitoring developments with respect to theMacao government's Gaming Law amendment and concession renewal process and we continue to believe we will be successful in extending the term of our subconcession and/or obtaining a new gaming concession when our current subconcession expires; however, it is possible theMacao government could further change or interpret the associated gaming laws in a manner that could negatively impact us. Under our SCL senior notes indentures, upon the occurrence of any event resulting from any change in Gaming Law (as defined in the indentures) after which none of Sands China Ltd. ("SCL") or any of its subsidiaries own or manage casino or gaming areas or operate casino games of fortune and chance inMacao in substantially the same manner as they are owning or managing casino or gaming areas or operating casino games as of the issue date of the SCL senior notes, for a period of 30 consecutive days or more, and such event has a material adverse effect on the financial condition, business, properties or results of operations of SCL and its subsidiaries, taken as a whole, each holder of the SCL senior notes would have the right to require us to repurchase all or any part of such holder's SCL senior notes at par, plus any accrued and unpaid interest (the "Investor Put Option"). Additionally, under the 2018 SCL Credit Facility, the events that trigger an Investor Put Option under the SCL senior notes (as described above) would be an event of default, which may result in commitments being immediately cancelled, in whole or in part, and the related outstanding balances and accrued interest, if any, becoming immediately due and payable. The subconcession not being extended or renewed and the potential impact if holders of the notes and the agent have the ability to, and make the election to, accelerate the repayment of our debt would have a material adverse effect on our business, financial condition, results of operations and cash flows. We intend to follow the process for a concession renewal once the process and requirements are announced by theMacao government. Key Operating Revenue Measurements Operating revenues at The Venetian Macao, The Londoner Macao, The ParisianMacao , ThePlaza Macao and Four Seasons Macao,Marina Bay Sands and ourLas Vegas Operating Properties are dependent upon the volume of customerswho stay at the hotel, which affects the price charged for hotel rooms and our gaming volume. Operating revenues at Sands Macao are principally driven by casino customerswho visit the property on a daily basis. Management utilizes the following volume and pricing measures in order to evaluate past performance and assist in forecasting future revenues. The various volume measurements indicate our ability to attract customers to ourIntegrated Resorts . In casino operations, win and hold percentages indicate the amount of revenue to be expected based on volume. In hotel operations, average daily rate and revenue per available room indicate the demand for rooms and our ability to capture that demand. In mall operations, base rent per square foot indicates our ability to attract and maintain profitable tenants for our leasable space. The following are the key measurements we use to evaluate operating revenues: Casino revenue measurements forMacao andSingapore :Macao andSingapore table games are segregated into two groups: Rolling Chip play (composed of VIP players) and Non-Rolling Chip play (mostly non-VIP players). The volume measurement for Rolling Chip play is non-negotiable gaming chips wagered and lost. The volume measurement for Non-Rolling Chip play is table games drop ("drop"), which is net markers issued (credit instruments), cash deposited in the table drop boxes and gaming chips purchased and exchanged at the cage. Rolling Chip and Non-Rolling Chip volume measurements are not comparable as they are two distinct measures of volume. The amounts wagered and lost for Rolling Chip play are substantially higher than the amounts dropped for Non-Rolling Chip play. Slot handle, also a volume measurement, is the gross amount wagered for the period cited. We view Rolling Chip win as a percentage of Rolling Chip volume, Non-Rolling Chip win as a percentage of drop and slot hold (amount won by the casino) as a percentage of slot handle. Win or hold percentage represents the percentage of Rolling Chip volume, Non-Rolling Chip drop or slot handle that is won by the casino and recorded as 44
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casino revenue. Our win and hold percentages are calculated before discounts, commissions, deferring revenue associated with our loyalty programs and allocating casino revenues related to goods and services provided to patrons on a complimentary basis. Our Rolling Chip win percentage is expected to be 3.15% to 3.45% inMacao andSingapore . Actual win percentage may vary from our expected win percentage and historical win and hold percentages. Generally, slot machine play is conducted on a cash basis. InMacao andSingapore , 14.5% and 7.9%, respectively, of our table games play was conducted on a credit basis for the year endedDecember 31, 2021 . Casino revenue measurements for theU.S. : The volume measurements in theU.S. are slot handle, as previously described, and table games drop, which is the total amount of cash and net markers issued deposited in the table drop box. We view table games win as a percentage of drop and slot hold as a percentage of slot handle. Our win and hold percentages are calculated before discounts, commissions, deferring revenue associated with our loyalty programs and allocating casino revenues related to goods and services provided to patrons on a complimentary basis. Based upon our mix of table games, our table games are expected to produce a win percentage of 18% to 26% for Baccarat and 16% to 24% for non-Baccarat. Actual win percentage may vary from our expected win percentage and historical win and hold percentages. Similar toMacao andSingapore , slot machine play is generally conducted on a cash basis. Approximately 53.9% of our table games play at ourLas Vegas Operating Properties was conducted on a credit basis for the year endedDecember 31, 2021 . Hotel revenue measurements: Performance indicators used are occupancy rate (a volume indicator), which is the average percentage of available hotel rooms occupied during a period, and average daily room rate ("ADR," a price indicator), which is the average price of occupied rooms per day. Available rooms exclude those rooms unavailable for occupancy during the period due to renovation, development or other requirements (such as government mandated closure, lodging for team members and usage by theMacao andSingapore governments for quarantine measures). The calculations of the occupancy rate and ADR include the impact of rooms provided on a complimentary basis. Revenue per available room ("RevPAR") represents a summary of hotel ADR and occupancy. Because not all available rooms are occupied, ADR is normally higher than RevPAR. Reserved rooms where the guests do not show up for their stay and lose their deposit, or where guests check out early, may be re-sold to walk-in guests. Mall revenue measurements: Occupancy, base rent per square foot and tenant sales per square foot are used as performance indicators. Occupancy represents gross leasable occupied area ("GLOA") divided by gross leasable area ("GLA") at the end of the reporting period. GLOA is the sum of: (1) tenant occupied space under lease and (2) tenants no longer occupying space, but paying rent. GLA does not include space currently under development or not on the market for lease. Base rent per square foot is the weighted average base or minimum rent charge, excluding rent concessions, in effect at the end of the reporting period for all tenants that would qualify to be included in occupancy. Tenant sales per square foot is the sum of reported comparable sales for the trailing 12 months divided by the comparable square footage for the same period. Only tenants that have been open for a minimum of 12 months are included in the tenant sales per square foot calculation. Year EndedDecember 31, 2021 Compared to the Year EndedDecember 31, 2020 Summary Financial Results Our financial results continued to be adversely impacted by continued decreased visitation at each of our operating properties inAsia due to the COVID-19 Pandemic. See "COVID-19 Pandemic" for further information. Net revenues for the year endedDecember 31, 2021 were$4.23 billion , compared to$2.94 billion for the year endedDecember 31, 2020 . Operating loss was$689 million , compared to operating loss of$1.39 billion for the year endedDecember 31, 2020 . Net loss from continuing operations was$1.47 billion for the year endedDecember 31, 2021 , compared to net loss from continuing operations of$1.90 billion for the year endedDecember 31, 2020 . 45
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Operating Revenues
Our net revenues consisted of the following:
Year Ended December 31,
Percent
2021 2020 Change
(Dollars in millions)
Casino $ 2,892 $ 2,041 41.7 %
Rooms 415 280 48.2 %
Food and beverage 199 156 27.6 %
Mall 649 381 70.3 %
Convention, retail and other 79 82 (3.7) %
Total net revenues $ 4,234 $ 2,940 44.0 %
Consolidated net revenues were $4.23 billion for the year ended December 31,
2021 , an increase of $1.29 billion compared to $2.94 billion for the year ended
December 31, 2020 . The increase consists of increases of $1.19 billion and
$107 million at our Macao operations and Marina Bay Sands , respectively, due to
increased casino and rooms revenue from increased visitation related to fewer
days in which our gaming operations were closed in 2021 compared to 2020.
Net casino revenues increased $851 million compared to the year ended December
31, 2020 . Revenues at our Macao properties and Marina Bay Sands increased
$818 million and $33 million , respectively, driven by increases in Non-Rolling
Chip drop and slot handle. The following table summarizes the results of our
casino activity:
Year Ended December 31,
2021 2020 Change
(Dollars in millions)
Macao Operations:
The Venetian Macao
Total casino revenues $ 944 $ 531 77.8 %
Non-Rolling Chip drop $ 3,234 $ 1,925 68.0 %
Non-Rolling Chip win percentage 27.4 % 25.4 % 2.0 pts
Rolling Chip volume $ 4,412 $ 3,775 16.9 %
Rolling Chip win percentage 3.99 % 3.12 % 0.87 pts
Slot handle $ 1,841 $ 1,041 76.8 %
Slot hold percentage 3.9 % 4.2 % (0.3) pts
The Londoner Macao
Total casino revenues $ 396 $ 192 106.3 %
Non-Rolling Chip drop $ 1,755 $ 881 99.2 %
Non-Rolling Chip win percentage 21.6 % 22.6 % (1.0) pts
Rolling Chip volume $ 3,674 $ 167 2,100.0 %
Rolling Chip win percentage 3.23 % 5.85 % (2.62) pts
Slot handle $ 962 $ 531 81.2 %
Slot hold percentage 3.8 % 4.3 % (0.5) pts
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Year Ended December 31,
2021 2020 Change
(Dollars in millions)
The Parisian Macao
Total casino revenues $ 244 $ 180 35.6 %
Non-Rolling Chip drop $ 1,146 $ 844 35.8 %
Non-Rolling Chip win percentage 22.3 % 23.1 % (0.8) pts
Rolling Chip volume $ 502 $ 3,141 (84.0) %
Rolling Chip win percentage 3.73 % 1.13 % 2.60 pts
Slot handle $ 787 $ 763 3.1 %
Slot hold percentage 3.3 % 3.7 % (0.4) pts
The Plaza Macao and Four Seasons Macao
Total casino revenues $ 298 $ 159 87.4 %
Non-Rolling Chip drop $ 1,140 $ 544 109.6 %
Non-Rolling Chip win percentage 23.5 % 24.6 % (1.1) pts
Rolling Chip volume $ 2,659 $ 3,656 (27.3) %
Rolling Chip win percentage 4.64 % 2.46 % 2.18 pts
Slot handle $ 42 $ 37 13.5 %
Slot hold percentage 5.7 % 4.6 % 1.1 pts
Sands Macao
Total casino revenues $ 105 $ 107 (1.9) %
Non-Rolling Chip drop $ 433 $ 451 (4.0) %
Non-Rolling Chip win percentage 17.1 % 18.7 % (1.6) pts
Rolling Chip volume $ 1,073 $ 1,361 (21.2) %
Rolling Chip win percentage 4.39 % 2.44 % 1.95 pts
Slot handle $ 606 $ 549 10.4 %
Slot hold percentage 3.1 % 3.1 % - pts
Singapore Operations:
Marina Bay Sands
Total casino revenues $ 905 $ 872 3.8 %
Non-Rolling Chip drop $ 2,679 $ 2,111 26.9 %
Non-Rolling Chip win percentage 15.0 % 18.6 % (3.6) pts
Rolling Chip volume $ 3,901 $ 9,495 (58.9) %
Rolling Chip win percentage 5.79 % 3.56 % 2.23 pts
Slot handle $ 12,084 $ 8,915 35.5 %
Slot hold percentage 4.2 % 4.4 % (0.2) pts
U.S. Operations:
Las Vegas Operating Properties (1)
Total casino revenues $ 443 $ 228 94.3 %
Table games drop $ 1,630 $ 1,258 29.6 %
Table games win percentage 16.4 % 13.2 % 3.2 pts
Slot handle $ 3,830 $ 1,951 96.3 %
Slot hold percentage 8.5 % 8.0 % 0.5 pts
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(1) The Las Vegas Operating Properties are classified as a discontinued
operation held for sale.
In our experience, average win percentages remain fairly consistent when
measured over extended periods of time with a significant volume of wagers, but
can vary considerably within shorter time periods as a result of the statistical
variances associated with games of chance in which large amounts are wagered.
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Room revenues increased$135 million compared to the year endedDecember 31, 2020 . The increase was primarily due to increased occupancy rates driven by higher visitation across our properties, as well as our properties being closed for longer periods and select number of rooms being utilized for government quarantine purposes during the year endedDecember 31, 2020 . The following table summarizes the results of our room activity: Year Ended December 31, 2021 2020 Change (Room revenues in millions) Macao Operations: The Venetian Macao Total room revenues$ 77 $ 46 67.4 % Occupancy rate 49.7 % 27.2 % 22.5 pts Average daily room rate (ADR)$ 155 $ 197 (21.3) % Revenue per available room (RevPAR)$ 77 $ 53 45.3 % The Londoner Macao Total room revenues$ 90 $ 42 114.3 % Occupancy rate 40.3 % 18.3 % 22.0 pts Average daily room rate (ADR)$ 160 $ 164 (2.4) % Revenue per available room (RevPAR)$ 64 $ 30 113.3 % The Parisian Macao Total room revenues$ 54 $ 33 63.6 % Occupancy rate 52.1 % 27.3 % 24.8 pts Average daily room rate (ADR)$ 118 $ 145 (18.6) % Revenue per available room (RevPAR)$ 61 $ 39 56.4 % ThePlaza Macao and Four Seasons Macao Total room revenues$ 45 $ 17 164.7 % Occupancy rate 44.3 % 28.5 % 15.8 pts Average daily room rate (ADR)$ 438 $ 394 11.2 % Revenue per available room (RevPAR)$ 194 $ 113 71.7 % Sands Macao Total room revenues$ 10 $ 6 66.7 % Occupancy rate 68.2 % 39.4 % 28.8 pts Average daily room rate (ADR)$ 138 $ 157 (12.1) % Revenue per available room (RevPAR)$ 94 $ 62 51.6 % Singapore Operations: Marina Bay Sands(1) Total room revenues$ 139 $ 136 2.2 % Occupancy rate 70.1 % 69.1 % 1.0 pts Average daily room rate (ADR)$ 236 $ 313 (24.6) % Revenue per available room (RevPAR)$ 165 $ 216 (23.6) % U.S. Operations:Las Vegas Operating Properties (2) Total room revenues$ 454 $ 218 108.3 % Occupancy rate 82.4 % 56.3 % 26.1 pts Average daily room rate (ADR)$ 221 $ 220 0.5 % Revenue per available room (RevPAR)$ 182 $ 124
46.8%
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(1) During the year ended
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Food and beverage revenues increased$43 million compared to the year endedDecember 31, 2020 . The increase was$34 million and$9 million at ourMacao properties andMarina Bay Sands , respectively. The increase was due to increased visitation during the year endedDecember 31, 2021 . Mall revenues increased$268 million compared to the year endedDecember 31, 2020 . The increase was primarily due to a$207 million decrease in rent concessions granted to our mall tenants inMacao andSingapore compared to the year endedDecember 31, 2020 , as well as a$76 million increase in turnover rents. These items were partially offset by a decrease in occupancy rates for ourMacao mall operations. For further information related to the financial performance of our malls, see "Additional Information Regarding our Retail Mall Operations." The following table summarizes the results of our malls on the Cotai Strip inMacao and inSingapore : Year Ended December 31, 2021 2020 Change (Mall revenues in millions) Macao Operations: Shoppes at Venetian Total mall revenues$ 194 $ 125 55.2 % Mall gross leasable area (in square feet) 814,784 812,936 0.2 % Occupancy 79.7 % 83.8 % (4.1) pts Base rent per square foot$ 292 $ 302 (3.3) % Tenant sales per square foot(1)$ 1,348 $ 794 69.8 % Shoppes at Londoner(2) Total mall revenues$ 55 $ 37 48.6 % Mall gross leasable area (in square feet) 532,175 525,206 1.3 % Occupancy 54.4 % 83.9 % (29.5) pts Base rent per square foot$ 152 $ 96 58.3 % Tenant sales per square foot(1)$ 1,462 $ 409 257.5 % Shoppes at Parisian Total mall revenues$ 39 $ 27 44.4 % Mall gross leasable area (in square feet) 296,322 295,963 0.1 % Occupancy 74.5 % 78.5 % (4.0) pts Base rent per square foot$ 133 $ 156 (14.7) % Tenant sales per square foot(1)$ 648 $ 349 85.7 % Shoppes at Four Seasons Total mall revenues$ 184 $ 79 132.9 % Mall gross leasable area (in square feet) 244,208 244,104 - % Occupancy 94.3 % 94.9 % (0.6) pts Base rent per square foot$ 549 $ 540 1.7 % Tenant sales per square foot(1)$ 6,300 $ 2,744 129.6 % Singapore Operations: The Shoppes at Marina Bay Sands Total mall revenues$ 176 $ 112 57.1 % Mall gross leasable area (in square feet) 622,362 620,330 0.3 % Occupancy 98.2 % 98.2 % - pts Base rent per square foot$ 277 $ 258 7.4 % Tenant sales per square foot(1)$ 1,614 $ 1,053
53.3%
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Note: This table excludes the results of mall operations at Sands Macao. As a result of the COVID-19 Pandemic, tenants were provided rent concessions during the year endedDecember 31, 2021 and 2020. Base rent per square foot presented above excludes the impact of these rent concessions. 49
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(1)Tenant sales per square foot is the sum of reported comparable sales for the
trailing 12 months divided by the comparable square footage for the same period.
(2)The Shoppes at Londoner will feature more than 600,000 square feet of gross
leasable area upon completion of all phases of the renovation and expansion to
The Londoner Macao.
Operating Expenses
Our operating expenses consisted of the following:
Year Ended December 31,
Percent
2021 2020 Change
(Dollars in millions)
Casino $ 2,068 $ 1,585 30.5 %
Rooms 164 136 20.6 %
Food and beverage 244 236 3.4 %
Mall 65 59 10.2 %
Convention, retail and other 85 103 (17.5) %
Provision for credit losses 3 86 (96.5) %
General and administrative 831 798 4.1 %
Corporate 211 168 25.6 %
Pre-opening 19 19 - %
Development 109 18 505.6 %
Depreciation and amortization 1,041 997 4.4 %
Amortization of leasehold interests in land 56 55 1.8 %
Loss on disposal or impairment of assets 27 73 (63.0) %
Total operating expenses $ 4,923 $ 4,333 13.6 %
Operating expenses were $4.92 billion for the year ended December 31, 2021 , an
increase of $590 million compared to $4.33 billion for the year ended December
31, 2020 . The increase was driven by increased visitation due to fewer days in
which our properties were closed during 2021 compared to 2020, and an increase
in payroll-related costs due to an increase of $121 million in bonuses and
incentives and a decrease in payments from the Job Support Scheme in Singapore
received in 2021. The increase was partially offset by certain cost reduction
programs implemented by management beginning in 2020 due to the impact of the
COVID-19 Pandemic. Operating margins in each business segment remain negatively
impacted as we have maintained our staffing levels across our jurisdictions
through significantly reduced visitation. We have also continued our payroll
cost saving initiatives across each of our properties, implemented in 2020,
which included utilization of paid time off and voluntary unpaid leave.
Casino expenses increased $483 million compared to the year ended December 31,
2020 . The increase was primarily attributable to an increase of $412 million in
gaming taxes due to increased casino revenues, as previously described.
Room expenses increased $28 million compared to the year ended December 31,
2020 . The increase consisted of increases of $17 million and $11 million at our
Macao properties and Marina Bay Sands , respectively, consistent with the
increase in room revenue.
Convention, retail and other expenses decreased $18 million compared to the year
ended December 31, 2020 , driven by a $13 million decrease in ferry expenses
resulting from decreases in contract labor costs due to a reduction in
headcount, lower repair and maintenance costs, and lower fuel costs as ferries
were under dry dock. Additionally, convention, retail and other expenses at our
Macao properties decreased $5 million as a result of the cancellation of MICE
and entertainment events.
The provision for credit losses was $3 million for the year ended December 31,
2021 , compared to $86 million for the year ended December 31, 2020 . The decrease
was primarily due to an increased level of provision recorded during the year
ended December 31, 2020 due to the aging of patron receivables in connection
with the impact of the
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COVID-19 Pandemic. The amount of this provision can vary over short periods of time because of factors specific to the patronswho owe us money from gaming activities. We believe the amount of our provision for credit losses in the future will depend upon the state of the economy, our credit standards, our risk assessments and the judgment of our employees responsible for granting credit. General and administrative expenses increased$33 million compared to the year endedDecember 31, 2020 , consisted of increases of$18 million and$15 million at ourMacao properties andMarina Bay Sands , respectively. The increases were primarily driven by increases in marketing, payroll and property operation costs. Corporate expenses increased$43 million compared to the year endedDecember 31, 2020 . The increase was primarily driven by$36 million related to payroll and related costs, driven by no bonus expense recorded during the year endedDecember 31, 2020 . In addition, travel and related expenses increased by$8 million due to increases in corporate aircraft usage and the related fuel costs, as well as higher fuel prices. Pre-opening expenses represent personnel and other costs incurred prior to the opening of new ventures, which are expensed as incurred. The majority of pre-opening expenses incurred related to The Londoner Macao. Development expenses were$109 million for the year endedDecember 31, 2021 , and include the costs associated with our evaluation and pursuit of new business opportunities, primarily inFlorida andTexas , as well as our digital gaming efforts. Development costs are also expensed as incurred. Loss on disposal or impairment of assets was$27 million for the year endedDecember 31, 2021 , compared to$73 million for the year endedDecember 31, 2020 . The decrease was primarily due to fewer asset disposals and related demolition costs incurred during the construction of The Londoner Macao compared to 2020. Segment Adjusted Property EBITDA The following table summarizes information related to our segments (see "Item 8 - Financial Statements and Supplementary Data - Notes to Consolidated Financial Statements - Note 18 - Segment Information" for discussion of our operating segments and a reconciliation of consolidated adjusted property EBITDA to net income/loss): Year Ended December 31, Percent 2021 2020 Change (Dollars in millions) Macao: The Venetian Macao$ 297 $ (53) (660.4) % The Londoner Macao (84) (184) (54.3) % The Parisian Macao (17) (131) (87.0) % The Plaza Macao and Four Seasons Macao 219 33 563.6 % Sands Macao (69) (76) (9.2) % Ferry Operations and Other (8) (20) (60.0) % 338 (431) (178.4) % Marina Bay Sands 448 383 17.0 % Consolidated adjusted property EBITDA(1)$ 786 $
(48) (1,737.5)%
Las Vegas Operating Properties (2) 290
(124) (333.9)%
_________________________
(1)Consolidated adjusted property EBITDA, which is a non-GAAP financial measure,
is used by management as the primary measure of the operating performance of our
segments. Consolidated adjusted property EBITDA is net income/loss before
stock-based compensation expense, corporate expense, pre-opening expense,
development expense, depreciation and amortization, amortization of leasehold
interests in land, gain or loss on disposal or impairment of assets, interest,
other income or expense, gain or loss on modification or early retirement of
debt and income taxes. Consolidated adjusted property EBITDA is a supplemental
non-GAAP financial measure used by management, as well as industry analysts, to
evaluate operations and operating
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performance. In particular, management utilizes consolidated adjusted property EBITDA to compare the operating profitability of our operations with those of our competitors, as well as a basis for determining certain incentive compensation.Integrated Resort companies have historically reported adjusted property EBITDA as a supplemental performance measure to GAAP financial measures. In order to view the operations of their properties on a more stand-alone basis,Integrated Resort companies, includingLas Vegas Sands Corp. , have historically excluded certain expenses that do not relate to the management of specific properties, such as pre-opening expense, development expense and corporate expense, from their adjusted property EBITDA calculations. Consolidated adjusted property EBITDA should not be interpreted as an alternative to income from operations (as an indicator of operating performance) or to cash flows from operations (as a measure of liquidity), in each case, as determined in accordance with GAAP. We have significant uses of cash flow, including capital expenditures, dividend payments, interest payments, debt principal repayments and income taxes, which are not reflected in consolidated adjusted property EBITDA. Not all companies calculate adjusted property EBITDA in the same manner. As a result, our presentation of consolidated adjusted property EBITDA may not be directly comparable to similarly titled measures presented by other companies. (2)The Las Vegas Operating Properties are classified as a discontinued operation held for sale. Adjusted property EBITDA at ourMacao operations increased$769 million compared to the year endedDecember 31, 2020 . The increase is primarily due to an increase in casino, mall, and rooms revenues due to fewer property closures as a result of the COVID-19 Pandemic. The increases were due to increases in table drop and slot handle, reduced rent concessions and increases in occupancy and number of rooms available for sale, respectfully. Adjusted property EBITDA at Marina Bay Sands increased$65 million compared to the year endedDecember 31 , 2020.The increase was primarily due to an increase in casino revenue and mall operations due to fewer property closures as a result of the COVID-19 Pandemic. The increases were due to increased slot handle and reduced rent concessions, respectfully. Adjusted property EBITDA at ourLas Vegas Operating Properties increased$414 million compared to the year endedDecember 31, 2020 . The increase was primarily due to increased casino and room revenue due to no property closures in 2021 as a result of the COVID-19 Pandemic. The increases were due to increases in table drop and slot handle and increased occupancy, respectfully. Interest Expense The following table summarizes information related to interest expense: Year Ended December 31, 2021 2020 (Dollars in millions) Interest cost$ 636 $ 544 Less - capitalized interest (15) (21) Interest expense, net$ 621 $ 523 Cash paid for interest$ 606 $ 440 Weighted average total debt balance$ 14,592 $ 13,412 Weighted average interest rate 4.4 % 4.0 % Interest cost increased$92 million compared to the year endedDecember 31, 2020 , resulting primarily from increases in our weighted average interest rate and weighted average total debt balance. The weighted average debt balance increased in connection with the issuance of the SCL 2026 and 2030 Senior Notes inJune 2020 and draws on the SCL revolver during the year endedDecember 31, 2021 . Additionally, the weighted average interest rate increased from 4.0% to 4.4% during the year endedDecember 31, 2021 as a result of the expiration of interest rate swaps inAugust 2020 related to the SCL senior notes (see "Item 8 - Financial Statements and Supplementary Data - Notes to Consolidated Financial Statements - Note 10 - Long-Term Debt"). 52
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Other Factors Affecting Earnings Other expense was$31 million for the year endedDecember 31, 2021 , compared to other income of$19 million during the year endedDecember 31, 2020 . The change is primarily attributable to$51 million of foreign currency transaction losses, mostly driven by theU.S. dollar-denominated debt held by SCL. Our income tax benefit was$5 million on a loss from continuing operations before income taxes of$1.47 billion for the year endedDecember 31, 2021 , resulting in a (0.3%) effective income tax rate. This compares to a 1.3% effective income tax rate for the year endedDecember 31, 2020 . The income tax benefit for the year endedDecember 31, 2021 , reflects a 17% statutory tax rate on ourSingapore operations, a 21% corporate income tax rate on ourU.S. operations, and a zero percent tax rate on ourMacao gaming operations due to our income tax exemption inMacao . OurU.S. operations recorded a tax benefit associated with the pre-tax book losses incurred for the year endedDecember 31, 2021 . OurU.S. tax benefit was partially offset by a valuation allowance recorded on certainU.S. foreign tax credits, which we no longer expect to utilize due to lower royalty income resulting from a decrease in revenues from ourMacao andSingapore operations compared to prior estimates. The net loss attributable to our noncontrolling interests from continuing operations was$315 million for the year endedDecember 31, 2021 , compared to net loss attributable to our noncontrolling interest from continuing operations of$458 million for the year endedDecember 31, 2020 . These amounts were related to the noncontrolling interest of SCL. 53
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Additional Information Regarding our Retail Mall Operations The following tables summarize the results of our mall operations on the Cotai Strip and at Marina Bay Sands for the years endedDecember 31, 2021 and 2020: Shoppes at Shoppes at Four Shoppes at Shoppes at The Shoppes at Venetian Seasons Londoner Parisian Marina Bay Sands (In millions) For the year endedDecember 31, 2021 Mall revenues: Minimum rents(1)$ 181 $ 121 $ 29 $ 29 $ 144 Overage rents 15 54 15 6 25 Rent concessions(2) (31) (1) (3) (6) (24) Other(3) - - - - 6 Total overage rents and rent concessions (16) 53 12 - 7 CAM, levies and direct recoveries 29 10 14 10 25 Total mall revenues 194 184 55 39 176 Mall operating expenses: Common area maintenance 12 5 7 4 16 Marketing and other direct operating expenses 6 4 3 2 6 Mall operating expenses 18 9 10 6 22 Property taxes(4) 1 - - - 2 Provision for (recovery of) credit losses (1) - - 3 - Mall-related expenses(5)$ 18 $ 9 $ 10 $ 9 $ 24 For the year endedDecember 31, 2020 Mall revenues: Minimum rents(1)$ 192 $ 121 $ 37 $ 34 $ 137 Overage rents 13 10 4 2 11 Rent concessions(2) (111) (61) (22) (20) (56) Total overage rents and rent concessions (98) (51) (18) (18) (45) CAM, levies and direct recoveries 31 9 18 11 20 Total mall revenues 125 79 37 27 112 Mall operating expenses: Common area maintenance 11 4 6 4 13 Marketing and other direct operating expenses 5 5 2 3 5 Mall operating expenses 16 9 8 7 18 Property taxes(4) 2 - - - 2 Provision for credit losses 1 - 1 - - Mall-related expenses(5)$ 19 $ 9 $ 9 $ 7 $ 20 ____________________ Note: This table excludes the results of our mall operations at Sands Macao. (1) Minimum rents include base rents and straight-line adjustments of base rents. (2) Rent concessions were provided to tenants as a result of the COVID-19 Pandemic and the related impact on mall operations. (3) The amount forMarina Bay Sands of$6 million related to a grant provided by theSingapore government to lessors to support small and medium enterprises impacted by the COVID-19 Pandemic in connection with their rent obligations. 54
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(4) Commercial property that generates rental income is exempt from property tax for the first six years for newly constructed buildings in Cotai. Each property is also eligible to obtain an additional six-year exemption, provided certain qualifications are met. To date, The Venetian Macao, ThePlaza Macao and Four Seasons Macao, The Londoner Macao and The Parisian Macao have obtained a second exemption. The exemption for The Venetian Macao and ThePlaza Macao and Four Seasons Macao expired inAugust 2019 andAugust 2020 , respectively, and the exemption for The Londoner Macao and The Parisian Macao will be expiring inDecember 2027 andSeptember 2028 , respectively. (5) Mall-related expenses consist of CAM, marketing fees and other direct operating expenses, property taxes and provision for credit losses, but excludes depreciation and amortization and general and administrative costs. It is common in the mall operating industry for companies to disclose mall net operating income ("NOI") as a useful supplemental measure of a mall's operating performance. Because NOI excludes general and administrative expenses, interest expense, impairment losses, depreciation and amortization, gains and losses from property dispositions, allocations to noncontrolling interests and provision for income taxes, it provides a performance measure that, when compared year over year, reflects the revenues and expenses directly associated with owning and operating commercial real estate properties and the impact on operations from trends in occupancy rates, rental rates and operating costs. In the table above, we believe taking total mall revenues less mall-related expenses provides an operating performance measure for our malls. Other mall operating companies may use different methodologies for deriving mall-related expenses. As such, this calculation may not be comparable to the NOI of other mall operating companies. Year EndedDecember 31, 2020 Compared to the Year EndedDecember 31, 2019 A discussion of changes in our results of operations between 2020 and 2019 has been omitted from this Form 10-K and can be found in "Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations - Year EndedDecember 31, 2020 Compared to the Year EndedDecember 31, 2019 " of the
Company’s Annual Report on Form 10-K for the fiscal year ended
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Liquidity and Capital Resources
Cash Flows - Summary
Our cash flows consisted of the following:
Year Ended December 31,
2021 2020
(In millions)
Net cash generated from (used in) operating activities $ (243) $ (1,191)
Cash flows from investing activities:
Net proceeds from sale of Sands Bethlehem - -
Capital expenditures (828) (1,227)
Proceeds from disposal of property and equipment 7 1
Acquisition of intangible assets and other (11) -
Net cash generated from (used in) investing activities (832) (1,226)
Cash flows from financing activities:
Proceeds from exercise of stock options 19 24
Repurchase of common stock - -
Dividends paid and noncontrolling interest payments - (911)
Proceeds from long-term debt 2,702 1,945
Repayments of long-term debt (1,867) (467)
Payments of financing costs (38) (31)
Make-whole premium on early extinguishment of debt (131) -
Transaction with discontinued operations 178 (205)
Net cash provided by (used in) financing activities from continuing operations
863 355 Net cash generated from (used in) discontinued operations 16 (19)
Effect of exchange rate on cash, cash equivalents and restricted cash
(16) (24)
Decrease in cash, cash equivalents and restricted cash and cash equivalents
(212) (2,105)
Cash, cash equivalents and restricted cash and cash equivalents at the beginning of the year
2,137 4,242
Cash, cash equivalents and restricted cash and cash equivalents at year-end
1,925 2,137
Less: cash, cash equivalents and restricted cash at end of period for discontinued operations
(55) (39)
Cash, cash equivalents and restricted cash at the end of the period from continuing operations
$
1,870
A discussion of changes in cash flows between 2020 and 2019 has been omitted from this Form 10-K and can be found in "Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources" of the Company's Annual Report on Form 10-K for the fiscal year endedDecember 31, 2020 . Cash Flows - Operating Activities Table games play at our properties is conducted on a cash and credit basis, while slot machine play is primarily conducted on a cash basis. Our rooms, food and beverage and other non-gaming revenues are conducted primarily on a cash basis or as a trade receivable, resulting in operating cash flows being generally affected by changes in operating income and accounts receivable. For the year endedDecember 31, 2021 , cash used in operations was$243 million , a decrease of$948 million compared to$1.19 billion for the year endedDecember 31, 2020 , primarily resulting from a decrease in net loss as our properties remained opened during the year endedDecember 31, 2021 , with the exception of the closure of the casino at Marina Bay Sands on two different occasions (approximately 15 days total), compared to the year endedDecember 31, 2020 , in which our properties were closed at various times 56
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and for an extended period. Additionally, our net working capital requirements decreased during the year endedDecember 31, 2021 . Cash Flows - Investing Activities Capital expenditures for the year endedDecember 31, 2021 , totaled$828 million , including$653 million inMacao , which consisted of$551 million for The Londoner Macao,$71 million for The Venetian Macao and$19 million for ThePlaza Macao and Four Seasons Macao;$148 million at Marina Bay Sands inSingapore ; and$27 million for corporate and other. Capital expenditures for the year endedDecember 31, 2020 , totaled$1.23 billion , including$1.06 billion inMacao , which consisted of$739 million for The Londoner Macao,$157 million for ThePlaza Macao and Four Seasons Macao primarily for The Grand Suites at Four Seasons, and$140 million for The Venetian Macao;$164 million inSingapore ; and$5 million for corporate and other. Cash Flows - Financing Activities Net cash flows generated from financing activities were$863 million for the year endedDecember 31, 2021 , which was primarily attributable to net proceeds of$756 million , received from the drawdown of our SCL revolving facility, and transactions with discontinued operations. These items were partially offset by a$131 million make-whole premium for the early redemption of the SCL senior note due 2023 and$38 million in financing costs related to the issuance of the new unsecured notes at SCL and the covenant waivers obtained on the LVSC Revolving Facility, 2018 SCL Credit Facility and 2012 Singapore Credit Facility. Net cash flows generated from financing activities were$355 million for the year endedDecember 31, 2020 , which was primarily attributable to the issuance of$1.50 billion of unsecured notes at SCL, partially offset by$911 million in dividend payments, and transactions with discontinued operations. As ofDecember 31, 2021 , we had$3.68 billion available for borrowing under ourU.S. ,Macao andSingapore revolving facilities, net of letters of credit. Additionally, we had$2.73 billion available for borrowing under the 2012 Singapore Delayed Draw Term Facility to finance construction costs incurred in connection with theMBS Expansion Project . Capital Financing Overview We fund our development projects primarily through borrowings from our debt instruments (see "Item 8 - Financial Statements and Supplementary Data - Notes to Consolidated Financial Statements - Note 10 - Long-Term Debt") and operating cash flows. InSeptember 2021 , SCL issued, in a private offering, three series of unsecured notes in an aggregate principal amount of$1.95 billion . The net proceeds from the offering, along with cash on hand, was used to redeem in full the outstanding principal amount of the$1.80 billion 4.600% senior notes due 2023, any accrued interest and the associated make-whole premium as determined under the related senior notes indenture dated as ofAugust 9, 2018 . (See "Item 8 - Financial Statements and Supplementary Data - Notes to Consolidated Financial Statements - Note 10 - Long-Term Debt - Corporate andU.S. Related Debt - SCL Senior Notes"). OurU.S. , SCL andSingapore credit facilities, as amended, contain various financial covenants, which include maintaining a maximum leverage ratio or net debt, as defined, to trailing twelve-month adjusted earnings before interest, income taxes, depreciation and amortization, as defined. InSeptember 2021 , LVSC extended the amendment, pursuant to which lenders, among other things, removed LVSC's requirement to maintain a maximum leverage ratio as of the last day of the fiscal quarter, through and includingDecember 31, 2022 . InJuly 2021 , SCL extended the waiver and amendment request letter, pursuant to which lenders, among other things, waived SCL's requirement to ensure the leverage ratio does not exceed 4.0x and the interest coverage ratio is greater than 2.50x, throughJanuary 1, 2023 . InSeptember 2021 , MBS extended the amendment letter, pursuant to which MBS will not have to comply with the leverage or interest coverage covenants as of the last day of the fiscal quarter, through and includingDecember 31, 2022 . Our compliance with our financial covenants for periods beyondDecember 31, 2022 could be affected by certain factors beyond our control, such as the impact of the COVID-19 Pandemic, including current travel and border restrictions continuing in the future. We will pursue additional waivers to meet the required financial covenant ratios, which include a maximum leverage ratio of 4.0x, 4.0x and 4.5x under ourU.S. ,Macao and 57
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Singapore credit facilities, respectively, for periods beyondDecember 31, 2022 for LVSC and MBS andJanuary 1, 2023 for SCL, if deemed necessary. We believe we will be successful in obtaining the additional waivers, although no assurance can be provided that such waivers will be granted, which could negatively impact our ability to be in compliance with our debt covenants for periods beyondDecember 31, 2022 for LVSC and MBS andJanuary 1, 2023 for SCL. In addition, pursuant to the Second Amendment and subject to the satisfaction of certain conditions specified therein, the requisite lenders under the existing LVSC Revolving Credit Agreement consented to, and waived any applicable restrictions prohibiting, the consummation of the announced sale of the Las Vegas Operations. Any defaults under our debt agreements would allow the lenders, in each case, to exercise their rights and remedies as defined under their respective agreements. If the lenders were to exercise their rights to accelerate the due dates of the indebtedness outstanding, there can be no assurance we would be able to repay or refinance any amounts that may become due and payable under such agreements, which could force us to restructure or alter our operations or debt obligations. We held unrestricted cash and cash equivalents of$1.85 billion and restricted cash and cash equivalents of$16 million as ofDecember 31, 2021 , of which approximately$1.06 billion of the unrestricted amount is held by non-U.S. subsidiaries. Of the$1.06 billion , approximately$706 million is available to be repatriated to theU.S. , and we do not expect withholding taxes or other foreign income taxes to apply should these earnings be distributed in the form of dividends or otherwise. The remaining unrestricted amounts held by non-U.S. subsidiaries are not available for repatriation primarily due to dividend requirements to third-party public stockholders in the case of funds being repatriated from SCL. We believe the cash on hand and cash flow generated from operations, as well as the$3.68 billion available for borrowing under ourU.S. ,Macao andSingapore credit facilities, net of outstanding letters of credit, andSGD 3.69 billion (approximately$2.73 billion at exchange rates in effect onDecember 31, 2021 ) under the 2012 Singapore Delayed Draw Term Facility, as ofDecember 31, 2021 , will be sufficient to maintain compliance with the financial covenants of our credit facilities and fund our working capital needs, committed and planned capital expenditures, development opportunities and debt obligations. If the construction cost estimate and construction schedule to theMBS Expansion Project are not delivered by the extended deadline, we will not be permitted to make further draws on the Singapore Delayed Draw Term Facility afterMarch 31, 2022 until these items are delivered to lenders. In the normal course of our activities, we will continue to evaluate global capital markets to consider future opportunities for enhancements of our capital structure. During 2020, we entered into an amendment request letter on the 2018 SCL Credit Facility, which provides us with the option to increase the total borrowing capacity by an aggregate amount of up to$1.0 billion . Subsequently, onJanuary 25, 2021 , we increased the amount available under the SCL revolving credit facility byHKD 3.83 billion (approximately$491 million in exchange rates in effect onDecember 31, 2021 ) to further enhance our liquidity. During the year endedDecember 31, 2021 , SCL drew down$71 million andHKD 5.31 billion (approximately$681 million at exchange rates in effect onDecember 31, 2021 ) under this facility for general corporate purposes. We have suspended our quarterly dividend program beginning inApril 2020 , and SCL suspended its dividend payments after paying its interim dividend for 2019 onFebruary 21, 2020 . InJune 2018 , our Board of Directors authorized the repurchase of$2.50 billion of our outstanding common stock, which was to expire inNovember 2020 . InOctober 2020 , our Board of Directors authorized the extension of the expiration date of the remaining repurchase amount of$916 million toNovember 2022 . During the year endedDecember 31, 2021 , no shares of our common stock were repurchased under this program. All share repurchases of our common stock have been recorded as treasury stock. Repurchases of our common stock are made at our discretion in accordance with applicable federal securities laws in the open market or otherwise. The timing and actual number of shares to be repurchased in the future will depend on a variety of factors, including our financial position, earnings, cash flows, legal requirements, other investment opportunities and market conditions. We believe we have a strong balance sheet and sufficient liquidity in place, including access to available borrowing capacity under our credit facilities. We also believe we are well positioned to support our continuing operations, complete the major construction projects inMacao andSingapore that are underway and respond to the current COVID-19 Pandemic challenges. We have taken various mitigating measures to manage through the current 58
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environment, including a cost and capital expenditure reduction program to minimize cash outflow for non-essential items. Total Debt and Other Contractual Obligations Our total long-term debt and other contractual obligations are summarized below as of
Payments Due by Period(1)
2022 2023 - 2024 2025 - 2026 Thereafter Total
(In millions)
Long-Term Debt Obligations(2)
LVSC Senior Notes $ - $ 1,750 $ 1,500 $ 750 $ 4,000
SCL Senior Notes - - 2,600 4,550 7,150
2018 SCL Credit Facility - Revolving - 753 - - 753
2012 Singapore Credit Facility 62 200 2,683 - 2,945
Singapore Delayed Draw Term Facility - - 46 - 46
Finance Leases, Including Imputed
Interest 10 14 2 - 26
Fixed Interest Payments 441 890 649 552 2,532
Variable Interest Payments(3) 79 133 71 - 283
Contractual Obligations
Operating Leases, Including Imputed
Interest(4) 16 19 11 310 356
Mall Deposits(5) 58 58 16 11 143
Macao Annual Premium(6) 22 - - - 22
Other(7) 92 126 85 149 452
Total $ 780 $ 3,943 $ 7,663 $ 6,322 $ 18,708
_______________________
(1)As of December 31, 2021 , we had a $79 million liability related to uncertain
tax positions; we do not expect this liability to result in a payment of cash
within the next 12 months. We are unable to reasonably estimate the timing of
the liability in individual years beyond 12 months due to uncertainties in the
timing of the effective settlement of tax positions; therefore, such amounts are
not included in the table.
(2)See "Item 8 - Financial Statements and Supplementary Data - Notes to
Consolidated Financial Statements - Note 10 - Long-Term Debt" for further
details on these financing transactions and "Item 8 - Financial Statements and
Supplementary Data - Notes to Consolidated Financial Statements - Note 14 -
Leases" for further details on finance leases.
(3)Based on the 1-month rate as of December 31, 2021 , London Inter-Bank Offered
Rate ("LIBOR") of 0.10%, Hong Kong Inter-Bank Offer Rate ("HIBOR") of 0.16% and
Singapore Swap Offer Rate ("SOR") of 0.32%, plus the applicable interest rate
spread in accordance with the respective debt agreements.
(4)We are party to certain operating leases for real estate, which primarily
include $324 million related to long-term land leases in Macao with an
anticipated lease term of 50-years and $17 million related to a long-term land
lease in Las Vegas with a 40-year lease term. See "Item 8 - Financial Statements
and Supplementary Data - Notes to Consolidated Financial Statements - Note 14 -
Leases" for further details on operating leases.
(5)Mall deposits consist of refundable security deposits received from mall
tenants.
(6)In addition to the 39% gross gaming win tax in Macao (which is not included
in this table as the amount we pay is variable in nature), we are required to
pay an annual premium with a fixed portion and a variable portion, which is
based on the number and type of gaming tables and gaming machines we operate.
Based on
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the gaming tables and gaming machines in operation as ofDecember 31, 2021 , the annual premium payable to theMacao government is approximately$22 million through the termination of the gaming subconcession inJune 2022 . (7)Primarily consists of all other non-cancellable contractual obligations and primarily relates to certain hotel and restaurant management and service agreements. The amounts exclude open purchase orders with our suppliers that have not yet been received as these agreements generally allow us the option to cancel, reschedule and adjust terms based on our business needs prior to the delivery of goods or performance of services. Off-Balance Sheet Arrangements We have not entered into any transactions with special purpose entities, nor have we engaged in any derivative transactions other than foreign currency swaps. Refer to Note 9 - Derivative Instruments for outstanding foreign currency swaps as ofDecember 31, 2021 . Restrictions on Distributions We are a parent company with limited business operations. Our main asset is the stock and membership interests of our subsidiaries. Certain of our debt instruments contain restrictions that, among other things, limit the ability of certain subsidiaries to incur additional indebtedness, issue disqualified stock or equity interests, pay dividends or make other distributions, repurchase equity interests or certain indebtedness, create certain liens, enter into certain transactions with affiliates, enter into certain mergers or consolidations or sell certain assets of our Company without prior approval of the lenders or noteholders. Special Note Regarding Forward-Looking Statements This report contains forward-looking statements made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include the discussions of our business strategies and expectations concerning future operations, margins, profitability, liquidity and capital resources. In addition, in certain portions included in this report, the words: "anticipates," "believes," "estimates," "seeks," "expects," "plans," "intends" and similar expressions, as they relate to our Company or management, are intended to identify forward-looking statements. Although we believe these forward-looking statements are reasonable, we cannot assure you any forward-looking statements will prove to be correct. These forward-looking statements involve known and unknown risks, uncertainties and other factors beyond our control, which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. These factors include, among others, the risks associated with: •the uncertainty of the extent, duration and effects of the COVID-19 Pandemic and the response of governments and other third parties, including government-mandated property closures, increased operational regulatory requirements or travel restrictions, on our business, results of operations, cash flows, liquidity and development prospects; •our ability to maintain our gaming licenses and subconcession inMacao ,Singapore andLas Vegas , including the renewal or extension of the subconcession inMacao that expires onJune 26, 2022 ; •our ability to invest in future growth opportunities; •the ability to execute our previously announced capital expenditure programs in bothMacao andSingapore , and produce future returns; •the satisfaction of the conditions precedent to the consummation of the proposed sale of ourLas Vegas real property and operations, including the Venetian Resort Las Vegas and theSands Expo and Convention Center (the "Proposed Transaction"), including the receipt of regulatory approvals; •unanticipated difficulties or expenditures relating to the Proposed Transaction; •legal proceedings, judgments or settlements that may be instituted in connection with the Proposed Transaction, including those against us, our board of directors and executive officers and others; 60
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•disruptions of current plans and operations caused by the announcement and pendency of the Proposed Transaction; •potential difficulties in employee retention due to the announcement and pendency of the Proposed Transaction; •the response of patrons, suppliers, business partners and regulators to the announcement of the Proposed Transaction; •general economic and business conditions in theU.S. and internationally, which may impact levels of disposable income, consumer spending, group meeting business, pricing of hotel rooms and retail and mall tenant sales; •disruptions or reductions in travel and our operations due to natural or man-made disasters, pandemics, epidemics or outbreaks of infectious or contagious diseases, political instability, civil unrest, terrorist activity or war; •the uncertainty of consumer behavior related to discretionary spending and vacationing at ourIntegrated Resorts ; •the extensive regulations to which we are subject and the costs of compliance or failure to comply with such regulations; •new developments, construction projects and ventures, including our Cotai Strip developments andMBS Expansion Project ; •regulatory policies inChina or other countries in which our patrons reside, or where we have operations, including visa restrictions limiting the number of visits or the length of stay for visitors fromChina toMacao , restrictions on foreign currency exchange or importation of currency, and the judicial enforcement of gaming debts; •our leverage, debt service and debt covenant compliance, including the pledge of certain of our assets (other than our equity interests in our subsidiaries) as security for our indebtedness and ability to refinance our debt obligations as they come due or to obtain sufficient funding for our planned, or any future, development projects; •fluctuations in currency exchange rates and interest rates; •increased competition for labor and materials due to planned construction projects inMacao andSingapore and quota limits on the hiring of foreign workers; •our ability to compete for limited management and labor resources inMacao andSingapore , and policies of those governments may also affect our ability to employ imported managers or labor from other countries; •our dependence upon properties primarily inMacao ,Singapore andLas Vegas for all of our cash flow and the ability of our subsidiaries to make distribution payments to us; •the passage of new legislation and receipt of governmental approvals for our operations inMacao andSingapore and other jurisdictions where we are planning to operate; •our insurance coverage may not be adequate to cover all possible losses that our properties could suffer and our insurance costs may increase in the future; •our ability to collect gaming receivables from our credit players; •our relationship with gaming promoters inMacao ; •our dependence on chance and theoretical win rates; •fraud and cheating; •our ability to establish and protect our intellectual property rights; 61
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•conflicts of interest that arise because certain of our directors and officers are also directors and officers of SCL; •government regulation of the casino industry (as well as new laws and regulations and changes to existing laws and regulations), including gaming license regulation, the requirement for certain beneficial owners of our securities to be found suitable by gaming authorities, the legalization of gaming in other jurisdictions and regulation of gaming on the internet; •increased competition inMacao andLas Vegas , including recent and upcoming increases in hotel rooms, meeting and convention space, retail space, potential additional gaming licenses and online gaming; •the popularity ofMacao ,Singapore andLas Vegas as convention and trade show destinations; •new taxes, changes to existing tax rates or proposed changes in tax legislation; •the continued services of our key officers; •any potential conflict between the interests of our Principal Stockholders and us; •labor actions and other labor problems; •our failure to maintain the integrity of our information and information systems or comply with applicable privacy and data security requirements and regulations could harm our reputation and adversely affect our business; •the completion of infrastructure projects inMacao ; •potential negative impacts from environmental, social and governance and sustainability matters; and •the outcome of any ongoing and future litigation. All future written and verbal forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect us. Readers are cautioned not to place undue reliance on these forward-looking statements. We assume no obligation to update any forward-looking statements after the date of this report as a result of new information, future events or developments, except as required by federal securities laws. Investors and others should note we announce material financial information using our investor relations website (https://investor.sands.com), our company website,SEC filings, investor events, news and earnings releases, public conference calls and webcasts. We use these channels to communicate with our investors and the public about our company, our products and services, and other issues. In addition, we post certain information regarding SCL, a subsidiary ofLas Vegas Sands Corp. with ordinary shares listed onThe Stock Exchange of Hong Kong Limited , from time to time on our company website and our investor relations website. It is possible the information we post regarding SCL could be deemed to be material information. Critical Accounting Policies and Estimates The preparation of our consolidated financial statements in conformity with accounting principles generally accepted inthe United States of America requires our management to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. These estimates and judgments are based on historical information, information currently available to us and on various other assumptions management believes to be reasonable under the circumstances. Actual results could vary from those estimates and we may change our estimates and assumptions in future evaluations. Changes in these estimates and assumptions may have a material effect on our results of operations and financial condition. We believe the critical accounting policies discussed below affect our more significant judgments and estimates used in the preparation of our consolidated financial statements. 62
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Provision for Expected Credit Losses We maintain a provision for expected credit losses on casino, hotel and mall receivables and regularly evaluate the balances. We apply standard reserve percentages to aged account balances, which are grouped based on shared credit risk characteristics and days past due. The reserve percentages are based on estimated loss rates supported by historical observed default rates over the expected life of the receivable and are adjusted for forward-looking information. We also specifically analyze the collectability of each account with a balance over a specified dollar amount, based upon the age of the account, the customer's financial condition, collection history and any other known information and adjust the aforementioned reserve with the results from the individual reserve analysis. We also monitor regional and global economic conditions and forecasts, which include the impact of the COVID-19 Pandemic, in our evaluation of the adequacy of the recorded reserves. During the year endedDecember 31, 2021 , there continued to be a delay in payments on casino receivables due to the inability of patrons to travel to our properties or to accomplish financial transactions due to the travel restrictions caused by the COVID-19 Pandemic. The collection of casino receivables has also been impacted by liquidity issues faced by certain patrons also stemming from the COVID-19 Pandemic. We have increased the provision for credit losses in each jurisdiction accordingly to account for the expected credit losses due to the COVID-19 Pandemic. We continue to closely monitor any delays in payments due to the COVID-19 Pandemic and will increase the provision accordingly depending on the facts and circumstances. Although we believe the provision on our casino receivables is adequate as ofDecember 31, 2021 , it is possible our provisions could increase if we experience further delays on payments from patrons. Account balances are written off against the provision when we believe it is probable the receivable will not be recovered. Credit or marker play was 14.5%, 7.9% and 53.9% of table games play at ourMacao properties,Marina Bay Sands andLas Vegas Operating Properties , respectively, during the year endedDecember 31, 2021 . Our provision for casino credit losses was 72.5% and 59.8% of gross casino receivables as ofDecember 31, 2021 and 2020, respectively. The credit extended to gaming promoters can be offset by the commissions payable to said gaming promoters, which is considered in the establishment of the provision for credit losses. Our provision for credit losses from our hotel and other receivables is not material. Litigation Accrual We are subject to various claims and legal actions. We estimate the accruals for these claims and legal actions based on all relevant facts and circumstances currently available and include such accruals in other accrued liabilities in the consolidated balance sheets when it is determined such contingencies are both probable and reasonably estimable. Property and Equipment As ofDecember 31, 2021 , we had net property and equipment of$11.85 billion , representing 59.1% of our total assets. We depreciate property and equipment on a straight-line basis over their estimated useful lives. The estimated useful lives are based on the nature of the assets as well as current operating strategy and legal considerations, such as contractual life. Future events, such as property expansions, property developments, new competition or new regulations, could result in a change in the manner in which we use certain assets requiring a change in the estimated useful lives of such assets. The estimated useful lives of assets are periodically reviewed and adjusted as necessary on a prospective basis. For assets to be held and used (including projects under development), fixed assets are reviewed for impairment whenever indicators of impairment exist. If an indicator of impairment exists, we first group our assets with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities (the "asset group"). Secondly, we estimate the undiscounted future cash flows directly associated with and expected to arise from the completion, use and eventual disposition of such asset group. We estimate the undiscounted cash flows over the remaining useful life of the primary asset within the asset group. If the undiscounted cash flows exceed the carrying value, no impairment is indicated. If the undiscounted cash flows do not exceed the carrying value, then an impairment is measured based on fair value compared to carrying value, with fair value typically based on a discounted cash flow model. If an asset is still under development, future cash flows include remaining construction costs. 63
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To estimate the undiscounted cash flows of our asset groups, we consider all potential cash flows scenarios, which are probability weighted based on management's estimates given current conditions. Determining the recoverability of our asset groups is judgmental in nature and requires the use of significant estimates and assumptions, including estimated cash flows, probability weighting of potential scenarios, costs to complete construction for assets under development, growth rates and future market conditions, among others. Future changes to our estimates and assumptions based upon changes in macro-economic factors, regulatory environments, operating results or management's intentions may result in future changes to the recoverability of our asset groups. For assets to be held for sale, the fixed assets (the "disposal group") are measured at the lower of their carrying amount or fair value less costs to sell. Losses are recognized for any initial or subsequent write-down to fair value less costs to sell, while gains are recognized for any subsequent increase in fair value less costs to sell, but not in excess of the cumulative loss previously recognized. Any gains or losses not previously recognized that result from the sale of the disposal group shall be recognized at the date of sale. Fixed assets are not depreciated while classified as held for sale. Income Taxes We are subject to income taxes in theU.S. (including federal and state) and numerous foreign jurisdictions in which we operate. We record income taxes under the asset and liability method, whereby deferred tax assets and liabilities are recognized based on the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and attributable to operating loss and tax credit carryforwards. Our foreign andU.S. tax rate differential reflects the fact thatU.S. tax rates are higher than the statutory tax rates inSingapore andMacao of 17% and 12%, respectively. InAugust 2018 , we received an additional exemption fromMacao's corporate income tax on profits generated by the operation of casino games of chance for the periodJanuary 1, 2019 throughJune 26, 2022 , the date our subconcession agreement expires. Additionally, we entered into an agreement with theMacao government inApril 2019 , effective throughJune 26, 2022 , providing for payments as a substitution for a 12% tax otherwise due from VML shareholders on dividend distributions paid from VML gaming profits, namely a payment of38 million patacas (approximately$5 million at exchange rates in effect onDecember 31, 2021 ) for each of the years 2021, 2020 and 2019, each payment to be made on or beforeJanuary 31 of the following year, and a payment of18 million patacas (approximately$2 million at exchange rates in effect onDecember 31, 2021 ) for the period betweenJanuary 1, 2022 throughJune 26, 2022 , to be paid on or beforeJuly 26, 2022 . There is no assurance either of these tax arrangements will be extended beyond their expiration dates. Accounting standards regarding income taxes require a reduction of the carrying amounts of deferred tax assets by a valuation allowance, if based on the available evidence, it is "more-likely-than-not" such assets will not be realized. Accordingly, the need to establish valuation allowances for deferred tax assets is assessed at each reporting period based on a "more-likely-than-not" realization threshold. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of statutory carryforward periods, our experience with operating loss and tax credit carryforwards not expiring and tax planning strategies. We recorded a valuation allowance on the net deferred tax assets of certain foreign jurisdictions of$416 million and$342 million as ofDecember 31, 2021 and 2020, respectively, and a valuation allowance on certain net deferred tax assets of ourU.S. operations of$4.62 billion and$4.58 billion as ofDecember 31, 2021 and 2020, respectively. Due to the impact of the COVID-19 Pandemic and the resulting reduction in estimated royalty income from an expected decrease in ourMacao andSingapore operations, we recorded a valuation allowance on certainU.S. foreign tax credits, which we no longer expect to utilize during the period 2022 through 2027 before their expiration. We believe we made reasonable estimates and judgments in performing the analysis in light of the uncertainties surrounding the COVID-19 Pandemic; however, should the effects of the COVID-19 Pandemic persist for a prolonged duration, we could be required to record additional valuation allowances. Management will reassess the realization of deferred tax assets each reporting period and consider the scheduled reversal of deferred tax liabilities, sources of taxable income and tax planning strategies. To the extent the financial results of these operations improve and it becomes "more-likely-than-not" the deferred tax assets are realizable, we will be able to reduce the valuation allowance in the period such determination is made, as appropriate. 64
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Significant judgment is required in evaluating our tax positions and determining our provision for income taxes. During the ordinary course of business, there are many transactions for which the ultimate tax determination is uncertain. Accounting standards regarding uncertainty in income taxes provides a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is "more-likely-than-not" the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely, based solely on the technical merits, of being sustained on examinations. We recorded unrecognized tax benefits of$136 million and$131 million as ofDecember 31, 2021 and 2020, respectively. We consider many factors when evaluating and estimating our tax positions and tax benefits, which may require periodic adjustments and for which actual outcomes may be different. Our major tax jurisdictions are theU.S. ,Macao , andSingapore . We could be subject to examination for tax years beginning in 2017 inMacao andSingapore and tax years 2010 through 2015 and 2018 through 2020 in theU.S. Recent Accounting Pronouncements See related disclosure at "Item 8 - Financial Statements and Supplementary Data - Notes to Consolidated Financial Statements - Note 2 - Summary of Significant Accounting Policies - Recent Accounting Pronouncements." ITEM 7A. - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Market risk is the risk of loss arising from adverse changes in market rates and prices, such as interest rates, foreign currency exchange rates and commodity prices. Our primary exposures to market risk are interest rate risk associated with our long-term debt and foreign currency exchange rate risk associated with our operations outsidethe United States , which we may manage through the use of futures, options, caps, forward contracts and similar instruments. We do not hold or issue financial instruments for trading purposes and do not enter into derivative transactions that would be considered speculative positions. As ofDecember 31, 2021 , the estimated fair value of our long-term debt was approximately$15.06 billion , compared to its contractual value of$14.90 billion . The estimated fair value of our long-term debt is based on recent trades, if available, and indicative pricing from market information (level 2 inputs). A hypothetical 100 basis point change in market rates would cause the fair value of our long-term debt to change by$515 million . A hypothetical 100 basis point change in LIBOR, HIBOR and SOR would cause our annual interest cost on our long-term debt to change by approximately$37 million . Foreign currency transaction losses for the year endedDecember 31, 2021 , were$34 million primarily due toU.S. dollar denominated debt issued by SCL and bySingapore dollar denominated intercompany debt reported inU.S. dollars. We may be vulnerable to changes in theU.S. dollar/SGD andU.S. dollar/pataca exchange rates. Based on balances as ofDecember 31, 2021 , a hypothetical 10% weakening of theU.S. dollar/SGD exchange rate would cause a foreign currency transaction loss of approximately$22 million and a hypothetical 1% weakening of theU.S. dollar/pataca exchange rate would cause a foreign currency transaction loss of approximately$53 million (net of the impact from the foreign currency swap agreements). The pataca is pegged to theHong Kong dollar and theHong Kong dollar is pegged to theU.S. dollar (within a narrow range). We maintain a significant amount of our operating funds in the same currencies in which we have obligations thereby reducing our exposure to currency fluctuations. 65
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