CONDENSED CONSOLIDATING FINANCIAL INFORMATION

Separate condensed consolidating financial information for our subsidiary guarantors and non-guarantors of our 9.125% senior notes due 2018 is presented below. The non-guarantors primarily represent special purpose entities, tax holding companies, our less significant operating subsidiaries and our less than wholly-owned subsidiaries.

The tables below present the condensed consolidating balance sheets as of September 30, 2011 and December 31, 2010 and the condensed consolidating statements of operations for the three and nine month periods ended September 30, 2011 and 2010 and the condensed consolidating statements of cash flows for the nine months ended September 30, 2011 and 2010.

Condensed Consolidating Balance Sheets



	September 30, 2011
	Parent		Guarantor Subsidiaries			Non-Guarantor Subsidiaries (100% Owned)			Non-Guarantor Subsidiaries (Not 100% Owned)			Eliminations				Consolidated
						(In thousands)
Assets
Cash and cash equivalents	$	75,603	$	76,185		$	3,145		$	32,185		$	—			$	187,118
Other current assets	15,570		67,686			16,951			46,215			—				146,422
Property and equipment, net	109,909		1,882,468			72,562			1,231,457			—				3,296,396
Assets held for development	—		923,793			—			196,052			—				1,119,845
Investments in subsidiaries	3,721,284		262,357			32			4,175			(3,987,848		)		—
Intercompany receivable	—		634,230			—			—			(634,230		)		—
Other assets, net	78,833		(21,388		)	2,898			68,047			—				128,390
Intangible assets, net	21,373		459,933			—			65,769			—				547,075
Goodwill, net	—		212,794			782			—			—				213,576
Total assets	$	4,022,572	$	4,498,058		$	96,370		$	1,643,900		$	(4,622,078	)		$	5,638,822

Liabilities and Stockholders' Equity
Current maturities of long-term debt	$	362,878	$	720		$	—		$	—		$	—		—	$	363,598
Non-recourse obligations	—		—			—			221,912			—			243,059	221,912
Current liabilities	51,861		182,205			14,899			114,834			—				363,799
Intercompany payable	378,661		—			192,900			—			(571,561		)		—
Long-term debt, net of current maturities	2,007,821		10,528			—			783,726			—				2,802,075
Other long-term liabilities	20,699		403,686			1,401			57,760			—				483,546

Preferred stock	—		—			—			—			—				—
Common stock	863		31,128			32			—			(31,160		)		863
Additional paid-in capital	642,243		2,914,250			41,724			476,733			(3,432,707		)		642,243
Retained earnings (deficit)	557,546		955,541			(154,586		)	(11,065		)	(789,890		)		557,546
Total Boyd Gaming Corporation stockholders' equity (deficit)	1,200,652		3,900,919			(112,830		)	465,668			(4,253,757		)		1,200,652
Noncontrolling interest	—		—			—			—			203,240				203,240
Total stockholders' equity (deficit)	1,200,652		3,900,919			(112,830		)	465,668			(4,050,517		)		1,403,892
Total liabilities and stockholders' equity	$	4,022,572	$	4,498,058		$	96,370		$	1,643,900		$	(4,622,078	)		$	5,638,822

Condensed Consolidating Balance Sheets, continued



	December 31, 2010
	Parent			Guarantor Subsidiaries		Non-Guarantor Subsidiaries (100% Owned)			Non-Guarantor Subsidiaries (Not 100% Owned)		Eliminations			Consolidated
						(In thousands)
Assets
Cash and cash equivalents	$	11,231		$	88,282	$	3,679		$	42,431	$	—		$	145,623
Other current assets	10,395			61,829		15,246			46,546		—			134,016
Property and equipment, net	111,921			1,939,834		77,949			1,253,667		—			3,383,371
Assets held for development	—			923,038		—			196,365		—			1,119,403
Investments in subsidiaries	3,373,486			424,707		—			5,185		(3,803,378		)	—
Intercompany receivable	50,824			—		69,931			—		(120,755		)	—
Other assets, net	73,420			46,885		2,979			89,836		(59,534		)	153,586
Intangible assets, net	—			460,714		—			79,000		—			539,714
Goodwill, net	—			212,794		782			—		—			213,576
Total assets	$	3,631,277		$	4,158,083	$	170,566		$	1,713,030	$	(3,983,667	)	$	5,689,289

Liabilities and Stockholders' Equity
Current maturities of long-term debt	$	25,000		$	690	$	—		$	—	$	—		$	25,690
Non-recourse obligations	—			—		—			243,059		—			243,059
Current liabilities	39,663			175,870		17,462			109,161		—			342,156
Intercompany payable	—			472,794		246,144			—		(718,938		)	—
Long-term debt, net of current maturities	2,346,623			11,072		—			835,370		—			3,193,065
Other long-term liabilities	30,786			399,148		1,538			59,104		—			490,576

Preferred stock	—			—		—			—		—			—
Common stock	862			30,298		32			—		(30,330		)	862
Additional paid-in capital	635,028			2,320,477		41,724			421,472		(2,783,673		)	635,028
Retained earnings (deficit)	560,909			747,734		(136,334		)	44,864		(656,264		)	560,909
Accumulated other comprehensive loss	(7,594		)	—		—			—		—			(7,594		)
Total Boyd Gaming Corporation stockholders' equity (deficit)	1,189,205			3,098,509		(94,578		)	466,336		(3,470,267		)	1,189,205
Noncontrolling interest	—			—		—			—		205,538			205,538
Total stockholders' equity (deficit)	1,189,205			3,098,509		(94,578		)	466,336		(3,264,729		)	1,394,743
Total liabilities and stockholders' equity	$	3,631,277		$	4,158,083	$	170,566		$	1,713,030	$	(3,983,667	)	$	5,689,289

Condensed Consolidating Statements of Operations



	Three months ended September 30, 2011
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries (100% Owned)			Non-Guarantor Subsidiaries (Not 100% Owned)			Eliminations			Consolidated
							(In thousands)
Net revenues	$	39,028		$	374,328		$	13,869		$	204,742		$	(41,752	)	$	590,215

Costs and expenses
Operating	—			207,138			14,033			102,575			—			323,746
Selling, general and administrative	—			61,739			1,703			32,859			—			96,301
Maintenance and utilities	—			23,067			1,182			16,676			—			40,925
Depreciation and amortization	2,158			27,943			770			15,163			—			46,034
Corporate expense	23,160			76,993			1,157			—			(90,285		)	11,025
Preopening expenses	229			1,176			4,039			—			(3,724		)	1,720
Write-downs and other items, net	1,875			428			4			(7		)	—			2,300
Total costs and expenses	27,422			398,484			22,888			167,266			(94,009		)	522,051

Equity in earnings of subsidiaries	16,322			24,950			—			—			(41,272		)	—
Operating income	27,928			794			(9,019		)	37,476			10,985			68,164

Other expense (income)
Interest expense, net	33,902			170			—			25,996			—			60,068
Other income	(1,000		)	—			—			—			—			(1,000		)
Gain on early retirement of debt	—			—			—			(54		)	—			(54		)
Total other expense, net	32,902			170			—			25,942			—			59,014

Income (loss) before income taxes	(4,974		)	624			(9,019		)	11,534			10,985			9,150
Income taxes	8,083			(15,244		)	6,458			(1,467		)	—			(2,170		)
Net income (loss)	3,109			(14,620		)	(2,561		)	10,067			10,985			6,980
Net loss attributable to controlling interest	—			—			—			—			(3,871		)	(3,871		)
Net income (loss) attributable to Boyd Gaming Corporation	$	3,109		$	(14,620	)	$	(2,561	)	$	10,067		$	7,114		$	3,109

Condensed Consolidating Statements of Operations, continued



	Three months ended September 30, 2010
	Parent		Guarantor Subsidiaries			Non-Guarantor Subsidiaries (100% Owned)			Non-Guarantor Subsidiaries (Not 100% Owned)			Eliminations			Consolidated
						(In thousands)
Net revenues	$	33,574	$	375,916		$	12,506		$	207,688		$	(34,306	)	$	595,378

Costs and expenses
Operating	—		211,371			13,689			104,981			—			330,041
Selling, general and administrative	—		67,337			2,187			31,173			—			100,697
Maintenance and utilities	—		24,174			1,272			17,215			—			42,661
Depreciation and amortization	2,914		32,893			191			16,453			—			52,451
Corporate expense	12,513		72,071			2,131			—			(75,694		)	11,021
Preopening expenses	553		4,355			(2,224		)	—			—			2,684
Write-downs and other items, net	1,078		69			197			(4		)	—			1,340
Total costs and expenses	17,058		412,270			17,443			169,818			(75,694		)	540,895

Equity in earnings of subsidiaries	14,600		4,160			—			—			(18,760		)	—
Operating income	31,116		(32,194		)	(4,937		)	37,870			22,628			54,483

Other expense (income)
Interest expense, net	28,326		(1,635		)	1,815			17,275			—			45,781
Other income	—		(12,535		)	—			—			—			(12,535		)
Total other expense, net	28,326		(14,170		)	1,815			17,275			—			33,246

Income (loss) before income taxes	2,790		(18,024		)	(6,752		)	20,595			22,628			21,237
Income taxes	2,801		(11,377		)	4,251			(2,046		)	—			(6,371		)
Net income (loss)	5,591		(29,401		)	(2,501		)	18,549			22,628			14,866
Net loss attributable to noncontrolling interest	—		—			—			—			(9,275		)	(9,275		)
Net income (loss) attributable to Boyd Gaming Corporation	$	5,591	$	(29,401	)	$	(2,501	)	$	18,549		$	13,353		$	5,591

Condensed Consolidating Statements of Operations, continued



	Nine months ended September 30, 2011
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries (100% Owned)			Non-Guarantor Subsidiaries (Not 100% Owned)			Eliminations			Consolidated
							(In thousands)
Net revenues	$	115,728		$	1,133,248		$	42,452		$	561,998		$	(123,862	)	$	1,729,564

Costs and expenses
Operating	—			618,299			43,086			289,700			—			951,085
Selling, general and administrative	—			186,489			5,978			96,405			—			288,872
Maintenance and utilities	—			63,551			3,119			48,443			—			115,113
Depreciation and amortization	6,186			86,140			2,203			50,577			—			145,106
Corporate expense	71,814			78,405			2,078			—			(115,728		)	36,569
Preopening expenses	724			12,610			—			92			(8,134		)	5,292
Write-downs and other items, net	2,244			1,263			4			5,758			—			9,269
Total costs and expenses	80,968			1,046,757			56,468			490,975			(123,862		)	1,551,306

Equity in earnings of subsidiaries	46,471			19,716			—			—			(66,187		)	—
Operating income	81,231			106,207			(14,016		)	71,023			(66,187		)	178,258

Other expense (income)
Interest expense, net	113,472			514			—			70,042			—			184,028
Fair value adjustment of derivative instruments	265			—			—			—			—			265
Other income	(1,000		)	—			—			—			—			(1,000		)
(Gain) loss on early retirements of debt	20			—			—			(54		)	—			(34		)
Total other expense, net	112,757			514			—			69,988			—			183,259

Income (loss) before income taxes	(31,526		)	105,693			(14,016		)	1,035			(66,187		)	(5,001		)
Income taxes	28,163			(32,064		)	4,904			(975		)	—			28
Net income (loss)	(3,363		)	73,629			(9,112		)	60			(66,187		)	(4,973		)
Net loss attributable to noncontrolling interest	—			—			—			—			1,610			1,610
Net income (loss) attributable to Boyd Gaming Corporation	$	(3,363	)	$	73,629		$	(9,112	)	$	60		$	(64,577	)	$	(3,363	)

Condensed Consolidating Statements of Operations, continued



	Nine months ended September 30, 2010
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries (100% Owned)			Non-Guarantor Subsidiaries (Not 100% Owned)			Eliminations			Consolidated
							(In thousands)
Net revenues	$	103,400		$	1,131,724		$	46,611		$	411,356		$	(104,132	)	$	1,588,959

Costs and expenses
Operating	—			627,911			41,767			209,364			—			879,042
Selling, general and administrative	—			199,487			6,681			64,473			—			270,641
Maintenance and utilities	—			66,075			3,358			35,337			—			104,770
Depreciation and amortization	9,330			99,704			2,557			36,314			—			147,905
Corporate expense	59,781			72,071			8,916			—			(104,132		)	36,636
Preopening expenses	709			4,281			—			—			—			4,990
Write-downs and other items, net	4,658			69			197			8			—			4,932
Total costs and expenses	74,478			1,069,598			63,476			345,496			(104,132		)	1,448,916

Equity in earnings of subsidiaries	52,297			18,325			—			—			(62,476		)	8,146
Operating income	81,219			80,451			(16,865		)	65,860			(62,476		)	148,189

Other expense (income)
Interest expense, net	85,539			(1,267		)	1,815			23,347			—			109,434
Gain on early retirements of debt	(3,949		)	—			—			—			—			(3,949		)
Other income	—			(12,535		)										(12,535		)
Other non-operating expenses, net	—			3,133			—			—			—			3,133
Total other expense, net	81,590			(10,669		)	1,815			23,347			—			96,083

Income (loss) before income taxes	(371		)	91,120			(18,680		)	42,513			(62,476		)	52,106
Income taxes	17,779			(35,393		)	6,265			(4,183		)	—			(15,532		)
Net income (loss)	17,408			55,727			(12,415		)	38,330			(62,476		)	36,574
Noncontrolling interest	—			—			—			—			(19,166		)	(19,166		)
Net income (loss) attributable to Boyd Gaming Corporation	$	17,408		$	55,727		$	(12,415	)	$	38,330		$	(81,642	)	$	17,408

Condensed Consolidating Statements of Cash Flows



	Nine months ended September 30, 2011
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries (100% Owned)			Non-Guarantor Subsidiaries (Not 100% Owned)			Eliminations		Consolidated
							(In thousands)
Cash flows from operating activities
Net cash from operating activities	$	108,892		$	10,671		$	(317	)	$	63,670		$	—	$	182,916

Cash flows from investing activities
Capital expenditures	(13,441		)	(22,768		)	(217		)	(19,065		)	—		(55,491		)
Acquisitions of assets	(34,495		)	—			—			—			—		(34,495		)
Decrease in restricted investment	—			—			—			27,184			—		27,184
Net cash from investing activities	(47,936		)	(22,768		)	(217		)	8,119			—		(62,802		)

Cash flows from financing activities
Borrowings under bank credit facility	109,650			—			—			574,700			—		684,350
Payments under bank credit facility	(111,503		)	—			—			(620,600		)	—		(732,103		)
Payments on long-term debt	—			—			—			(8,198		)	—		(8,198		)
Debt financing costs, net	—			—			—			(27,000		)	—		(27,000		)
Other financing activities	5,269			—			—			(937		)	—		4,332
Net cash from financing activities	3,416			—			—			(82,035		)	—		(78,619		)

Net change in cash and cash equivalents	64,372			(12,097		)	(534		)	(10,246		)	—		41,495
Cash and cash equivalents, beginning of period	11,231			88,282			3,679			42,431			—		145,623
Cash and cash equivalents, end of period	$	75,603		$	76,185		$	3,145		$	32,185		$	—	$	187,118

Condensed Consolidating Statements of Cash Flows



	Nine months ended September 30, 2010
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries (100% Owned)			Non-Guarantor Subsidiaries (Not 100% Owned)			Eliminations			Consolidated
							(In thousands)
Cash flows from operating activities
Net cash from operating activities	$	229,108		$	28,372		$	45,355		$	89,109		$	(150,983	)	$	240,961

Cash flows from investing activities
Capital expenditures	(12,082		)	(42,240		)	(129		)	(9,618		)	—			(64,069		)
Net cash upon change in control of Borgata	—			—						26,025			—			26,025
Other investing activities	54			—			—			(785		)	—			(731		)
Net cash from investing activities	(12,028		)	(42,240		)	(129		)	15,622			—			(38,775		)

Cash flows from financing activities
Borrowings under bank credit facility	525,700			—			—			369,773			—			895,473
Payments under bank credit facility	(714,800		)	—			—			(954,962		)	—			(1,669,762		)
Payments under note payable	—			—			(46,875		)	—			—			(46,875		)
Distributions to noncontrolling interest	—			—			—			(271,159		)	150,983			(120,176		)
Proceeds from stock options exercised	—			—			—			773,176			—			773,176
Payments on long-term debt	(28,181		)	(680		)	—			—			—			(28,861		)
Other financing activities	237			—			—			(5,925		)	—			(5,688		)
Net cash from financing activities	(217,044		)	(680		)	(46,875		)	(89,097		)	150,983			(202,713		)

Net change in cash and cash equivalents	36			(14,548		)	(1,649		)	15,634			—			(527		)
Cash and cash equivalents, beginning of period	363			88,071			4,768			—			—			93,202
Cash and cash equivalents, end of period	$	399		$	73,523		$	3,119		$	15,634		$	—		$	92,675