CONDENSED CONSOLIDATING FINANCIAL INFORMATION

Pursuant to the prior registrations of our 9.125% Senior Notes due 2018, certain 100% owned subsidiaries provided joint and several and full and unconditional guarantees of the debt. Under the Securities Act of 1933, separate condensed consolidating information for our subsidiary guarantors and non-guarantors 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 December 31, 2012 and 2011 and the condensed consolidating statements of operations and cash flows for each of the three years in the period ended December 31, 2012.

Condensed Consolidating Balance Sheets



	December 31, 2012
									Non-				Non-
									Guarantor				Guarantor
									Subsidiaries				Subsidiaries
					Guarantor				(100%				(Not 100%
	Parent				Subsidiaries				Owned)				Owned)				Eliminations				Consolidated
									(In thousands)
Assets
Cash and cash equivalents	$	2,520			$	118,714			$	37,002			$	34,592			$	—			$	192,828
Other current assets	87,967				(4,905		)		36,491				49,843				(6,631		)		162,765
Property and equipment, net	67,499				1,691,120				500,660				1,365,709				—				3,624,988
Assets held for development	775				330,995				—				—				—				331,770
Investments in subsidiaries	3,093,287				(191,180		)		—				—				(2,902,107		)		—
Intercompany receivable	—				264,687				—				—				(264,687		)		—
Other assets, net	45,844				12,791				81,891				64,749				—				205,275
Intangible assets, net	—				468,229				589,845				61,564				—				1,119,638
Goodwill, net	—				212,795				482,134				—				—				694,929
Total assets	$	3,297,892			$	2,903,246			$	1,728,023			$	1,576,457			$	(3,173,425	)		$	6,332,193

Liabilities and Stockholders' Equity
Current maturities of long-term debt	$	42,500			$	10,341			$	8,729			$	—			$	—		—	$	61,570
Non-recourse debt	—				—				—				225,113				—				225,113
Current liabilities	70,721				203,484				83,090				109,441				(2,855		)		463,881
Intercompany payable	134,386				—				129,985				—				(264,371		)		—
Long-term debt, net of current maturities	2,723,232				—				1,311,296				793,325				—				4,827,853
Due from affiliates	—				—				—				—				—				—
Other long-term liabilities	23,262				185,350				42,595				35,442				—				286,649
Non-recourse debt	—				—				—				—				—				—

Preferred stock	—				—				—				—				—				—
Common stock	869				31,097				305,387				—				(336,484		)		869
Additional paid-in capital	655,694				2,538,402				502,742				476,733				(3,517,877		)		655,694
Retained earnings (deficit)	(351,810		)		(65,428		)		(654,839		)		(63,597		)		783,864				(351,810		)
Accumulated other comprehensive loss, net	(962		)		—				(962		)		—				962				(962		)
Total Boyd Gaming Corporation stockholders' equity (deficit)	303,791				2,504,071				152,328				413,136				(3,069,535		)		303,791
Noncontrolling interest	—			—	—			—	—			—	—			—	163,336				163,336
Total stockholders' equity (deficit)	303,791				2,504,071				152,328				413,136				(2,906,199		)		467,127
Total liabilities and stockholders' equity	$	3,297,892			$	2,903,246			$	1,728,023			$	1,576,457			$	(3,173,425	)		$	6,332,193

Condensed Consolidating Balance Sheets - continued



	December 31, 2011
					Non-			Non-
					Guarantor			Guarantor
					Subsidiaries			Subsidiaries
			Guarantor		(100%			(Not 100%
	Parent		Subsidiaries		Owned)			Owned)			Eliminations			Consolidated
					(In thousands)
Assets
Cash and cash equivalents	$	364	$	128,185	$	3,944		$	46,263		$	—		$	178,756
Other current assets	29,818		70,448		13,459			50,413			—			164,138
Property and equipment, net	115,346		2,120,227		75,739			1,230,796			—			3,542,108
Assets held for development	—		926,013		—			163,806			—			1,089,819
Investments in subsidiaries	3,777,298		353,740		32			—			(4,131,070		)	—
Intercompany receivable	—		187,911		—			—			(187,911		)	—
Other assets, net	28,501		15,068		5,993			71,077			—			120,639
Intangible assets, net	—		487,907		21,374			64,737			—			574,018
Goodwill, net	—		212,794		782			—			—			213,576
Total assets	$	3,951,327	$	4,502,293	$	121,323		$	1,627,092		$	(4,318,981	)	$	5,883,054

Liabilities and Stockholders' Equity
Current maturities of long-term debt	$	42,500	$	730	$	—		$	—		$	—		$	43,230
Non-recourse debt	—		—		—			29,686			—			29,686
Current liabilities	146,054		152,437		16,725			102,484			(18,596		)	399,104
Intercompany payable	455		—		216,211			—			(216,666		)	—
Long-term debt, net of current maturities	2,527,076		10,341		—			809,809			—			3,347,226
Other long-term liabilities	33,150		404,463		1,537			57,599			—			496,749
Non-recourse debt	—		—		—			192,980			—			192,980

Preferred stock	—		—		—			—			—			—
Common stock	863		31,128		32			—			(31,160		)	863
Additional paid-in capital	644,174		2,984,250		41,724			476,733			(3,502,707		)	644,174
Retained earnings (deficit)	557,055		918,944		(154,906		)	(42,199		)	(721,839		)	557,055
Total Boyd Gaming Corporation stockholders' equity (deficit)	1,202,092		3,934,322		(113,150		)	434,534			(4,255,706		)	1,202,092
Noncontrolling interest	—		—		—			—			171,987			171,987
Total stockholders' equity (deficit)	1,202,092		3,934,322		(113,150		)	434,534			(4,083,719		)	1,374,079
Total liabilities and stockholders' equity	$	3,951,327	$	4,502,293	$	121,323		$	1,627,092		$	(4,318,981	)	$	5,883,054

Condensed Consolidating Statements of Operations



	Year Ended December 31, 2012
							Non-			Non-
							Guarantor			Guarantor
							Subsidiaries			Subsidiaries
				Guarantor			(100%			(Not 100%
	Parent			Subsidiaries			Owned)			Owned)			Eliminations			Consolidated
							(In thousands)
Net revenues	$	138,926		$	1,689,284		$	111,921		$	697,118		$	(149,823	)	$	2,487,426

Costs and expenses
Operating	—			940,450			85,419			371,722			—			1,397,591
Selling, general and administrative	—			296,840			16,931			139,155			—			452,926
Maintenance and utilities	—			92,312			4,281			58,423			—			155,016
Depreciation and amortization	7,984			126,121			15,963			64,264			—			214,332
Corporate expense	86,084			368			1,631			—			(37,364		)	50,719
Preopening expenses	1,207			15,438			5,552			240			(10,896		)	11,541
Impairment of assets	97,868			1,044,112			—			2,811			(91,265		)	1,053,526
Other operating items, net	15,575			(5,503		)	3,081			(6,503		)	—			6,650
Total costs and expenses	208,718			2,510,138			132,858			630,112			(139,525		)	3,342,301

Equity in loss (earnings) of subsidiaries	929,465			(535		)	(87,151		)	—			(841,779		)	—
Operating income (loss)	(999,257		)	(820,319		)	66,214			67,006			831,481			(854,875		)

Other expense (income)
Interest expense, net	174,345			634			18,630			95,226			—			288,835
Other income	—			—			(91,128		)	—			91,265			137
Total other expense, net	174,345			634			(72,498		)	95,226			91,265			288,972

Income (loss) before income taxes	(1,173,602		)	(820,953		)	138,712			(28,220		)	740,216			(1,143,847		)
Income taxes	264,737			(50,745		)	5,501			1,279			—			220,772
Net income (loss)	(908,865		)	(871,698		)	144,213			(26,941		)	740,216			(923,075		)
Net loss attributable to noncontrolling interest	—			—			—			—			14,210			14,210
Net income (loss) attributable to Boyd Gaming Corporation	$	(908,865	)	$	(871,698	)	$	144,213		$	(26,941	)	$	754,426		$	(908,865	)
Comprehensive income (loss)	$	(909,827	)	$	(871,698	)	$	144,213		$	(21,402	)	$	740,216		$	(918,498	)

Condensed Consolidating Statements of Operations - continued



	Year Ended December 31, 2011
							Non-			Non-
							Guarantor			Guarantor
							Subsidiaries			Subsidiaries
				Guarantor			(100%			(Not 100%
	Parent			Subsidiaries			Owned)			Owned)			Eliminations			Consolidated
							(In thousands)
Net revenues	$	149,168		$	1,550,197		$	55,767		$	730,274		$	(149,168	)	$	2,336,238

Costs and expenses
Operating	—			848,973			57,620			383,041			—			1,289,634
Selling, general and administrative	—			258,026			10,023			126,942			—			394,991
Maintenance and utilities	—			89,092			2,255			62,165			—			153,512
Depreciation and amortization	8,371			118,621			2,914			65,437			—			195,343
Corporate expense	95,847			147			1,194			—			(48,226		)	48,962
Preopening expenses	907			16,356			—			(10,629		)	—			6,634
Other operating items, net	6,054			1,602			3			6,399			—			14,058
Total costs and expenses	111,179			1,332,817			74,009			633,355			(48,226		)	2,103,134

Equity in loss (earnings) of subsidiaries	(75,144		)	1,345			—			—			73,799			—
Operating income (loss)	113,133			216,035			(18,242		)	96,919			(174,741		)	233,104

Other expense (income)
Interest expense, net	151,931			687			—			98,067			—			250,685
Fair value adjustment of derivative instruments	265			—			—			—			—			265
Gain on early retirements of debt	20			—			—			(6		)	—			14
Other income	(7,000		)	(4,582		)	—			—			—			(11,582		)
Total other expense, net	145,216			(3,895		)	—			98,061			—			239,382

Income (loss) before income taxes	(32,083		)	219,930			(18,242		)	(1,142		)	(174,741		)	(6,278		)
Income taxes	28,229			(34,349		)	5,652			(1,253		)	—			(1,721		)
Net income (loss)	(3,854		)	185,581			(12,590		)	(2,395		)	(174,741		)	(7,999		)
Net loss attributable to noncontrolling interest	—			—			—			—			4,145			4,145
Net income (loss) attributable to Boyd Gaming Corporation	$	(3,854	)	$	185,581		$	(12,590	)	$	(2,395	)	$	(170,596	)	$	(3,854	)
Comprehensive income (loss)	$	3,740		$	185,581		$	(12,590	)	$	1,573		$	(174,741	)	$	3,563

Consolidating Statements of Operations - continued



	Year Ended December 31, 2010
							Non-			Non-
							Guarantor			Guarantor
							Subsidiaries			Subsidiaries
				Guarantor			(100%			(Not 100%
	Parent			Subsidiaries			Owned)			Owned)			Eliminations			Consolidated
							(In thousands)
Net revenues	$	134,190		$	1,501,899		$	58,860		$	580,140		$	(134,190	)	$	2,140,899

Costs and expenses
Operating	—			835,489			54,984			298,966			—			1,189,439
Selling, general and administrative	—			265,376			8,858			94,983			—			369,217
Maintenance and utilities	—			87,499			4,256			48,967			—			140,722
Depreciation and amortization	11,955			129,693			4,741			52,886			—			199,275
Corporate expense	83,437			59,710			9,295			—			(103,581		)	48,861
Preopening expenses	1,580			—			7,523			—			(1,644		)	7,459
Other operating items, net	4,456			68			197			(8		)	—			4,713
Total costs and expenses	101,428			1,377,835			89,854			495,794			(105,225		)	1,959,686

Equity in loss (earnings) of subsidiaries	(65,159		)	(47,393		)	—			—			104,406			(8,146		)
Operating income (loss)	97,921			171,457			(30,994		)	84,346			(133,371		)	189,359

Other expense (income)
Interest expense, net	118,585			731			(6		)	61,243			—			180,553
Fair value adjustment of derivative instruments	480			—			—			—			—			480
Gain on early retirements of debt	(2,758		)	—			—			—			—			(2,758		)
Other income	—			(12,535		)	—			—			—			(12,535		)
Other non-operating expenses, net	—			3,133			—			—			—			3,133
Total other expense, net	116,307			(8,671		)	(6		)	61,243			—			168,873

Income (loss) before income taxes	(18,386		)	180,128			(30,988		)	23,103			(133,371		)	20,486
Income taxes	28,696			(32,838		)	(27		)	(4,067		)	—			(8,236		)
Net income (loss)	10,310			147,290			(31,015		)	19,036			(133,371		)	12,250
Net loss attributable to noncontrolling interest	—			—			—			—			(1,940		)	(1,940		)
Net income (loss) attributable to Boyd Gaming Corporation	$	10,310		$	147,290		$	(31,015	)	$	19,036		$	(135,311	)	$	10,310
Comprehensive income	$	20,842		$	147,290		$	(31,015	)	$	14,920		$	(133,371	)	$	18,666

Condensed Consolidating Statements of Cash Flows



	Year Ended December 31, 2012
							Non-			Non-
							Guarantor			Guarantor
							Subsidiaries			Subsidiaries
				Guarantor			(100%			(Not 100%
	Parent			Subsidiaries			Owned)			Owned)			Eliminations			Consolidated
							(In thousands)
Cash flows from operating activities
Net cash from operating activities	$	77,534		$	16,372		$	9,995		$	34,252		$	4,292		$	142,445

Cash flows from investing activities
Capital expenditures	(50,536		)	(33,088		)	(7,894		)	(34,456		)	—			(125,974		)
Cash paid for acquisition, net of cash received	(198,726		)	—			(1,125,472		)	—			—			(1,324,198		)
Investment in and advances to unconsolidated subsidiaries, net	4,292			—			—			—			(4,292		)	—
Other investing activities	(790		)	7,245			1,828			6,730			—			15,013
Net cash from investing activities	(245,760		)	(25,843		)	(1,131,538		)	(27,726		)	(4,292		)	(1,435,159		)

Cash flows from financing activities
Borrowings under bank credit facility	787,100			—			871,100			632,700			—			2,290,900
Payments under bank credit facility	(951,250		)	—			(16,700		)	(652,900		)	—			(1,620,850		)
Debt issuance costs, net	(16,651		)	—			(47,989		)	(443		)	—			(65,083		)
Proceeds from issuance of senior secured notes	350,000			—			350,000			—			—			700,000
Proceeds from variable interest entities' issuance of debt	—			—			—			3,374			—			3,374
Proceeds on loans to members of variable interest entity	—			—			—			(928		)	—			(928		)
Other financing activities	1,183			—			(1,810		)	—			—			(627		)
Net cash from financing activities	170,382			—			1,154,601			(18,197		)	—			1,306,786

Net change in cash and cash equivalents	2,156			(9,471		)	33,058			(11,671		)	—			14,072
Cash and cash equivalents, beginning of period	364			128,185			3,944			46,263			—			178,756
Cash and cash equivalents, end of period	$	2,520		$	118,714		$	37,002		$	34,592		$	—		$	192,828

Condensed Consolidating Statements of Cash Flows - continued



	Year Ended December 31, 2011
							Non-			Non-
							Guarantor			Guarantor
							Subsidiaries			Subsidiaries
				Guarantor			(100%			(Not 100%
	Parent			Subsidiaries			Owned)			Owned)			Eliminations		Consolidated
							(In thousands)
Cash flows from operating activities
Net cash from operating activities	$	97,965		$	68,797		$	26,294		$	60,454		$	—	$	253,510

Cash flows from investing activities
Capital expenditures	(24,815		)	(28,204		)	(1,579		)	(32,626		)	—		(87,224		)
Cash paid for business acquisition, net	(278,456		)	—			—			—			—		(278,456		)
Cash paid for development agreement	—			—			(24,450		)	—			—		(24,450		)
Other investing activities	895			—			—			26,448			—		27,343
Net cash from investing activities	(302,376		)	(28,204		)	(26,029		)	(6,178		)	—		(362,787		)

Cash flows from financing activities
Borrowings under bank credit facility	391,329			—			—			741,300			—		1,132,629
Payments under bank credit facility	(183,579		)	—			—			(762,000		)	—		(945,579		)
Debt financing costs, net	(14,221		)	—			—			(1,153		)	—		(15,374		)
Proceeds from issuance of debt	—			—			—			7,199			—		7,199
Payments on long-term debt	—			(690		)	—			—			—		(690		)
Payments on retirements of long-term debt	—			—			—			(8,198		)	—		(8,198		)
Proceed from stock options exercised	15			—			—			—			—		15
Payments under note payable by variable interest entity	—			—			—			(27,000		)	—		(27,000		)
Other financing activities	—			—			—			(592		)	—		(592		)
Net cash from financing activities	193,544			(690		)	—			(50,444		)	—		142,410

Net change in cash and cash equivalents	(10,867		)	39,903			265			3,832			—		33,133
Cash and cash equivalents, beginning of period	11,231			88,282			3,679			42,431			—		145,623
Cash and cash equivalents, end of period	$	364		$	128,185		$	3,944		$	46,263		$	—	$	178,756

Condensed Consolidating Statements of Cash Flows - continued



	Year Ended December 31, 2010
							Non-			Non-
							Guarantor			Guarantor
							Subsidiaries			Subsidiaries
				Guarantor			(100%			(Not 100%
	Parent			Subsidiaries			Owned)			Owned)			Eliminations			Consolidated
							(In thousands)
Cash flows from operating activities
Net cash from operating activities	$	226,650		$	78,597		$	970		$	91,379		$	(128,205	)	$	269,391

Cash flows from investing activities
Capital expenditures	(6,463		)	(56,884		)	(2,059		)	(10,552		)	—			(75,958		)
Net cash effect upon change in controlling interest of Borgata	—			26,025			—			26,025			(26,025		)	26,025
Other investing activities	69			—			—			987			—			1,056
Net cash from investing activities	(6,394		)	(30,859		)	(2,059		)	16,460			(26,025		)	(48,877		)

Cash flows from financing activities
Borrowings under bank credit facility	758,774			—			—			533,673			—			1,292,447
Payments under bank credit facility	(1,250,674		)	—			—			(1,105,062		)	—			(2,355,736		)
Debt financing costs, net	(20,617		)	—			—			(6,440		)	—			(27,057		)
Proceeds from issuance of debt	490,000			—			—			773,176			—			1,263,176
Proceeds from issuance of debt by variable interest entity	—			—			—			18,091			—			18,091
Payments on long-term debt	—			(46,875		)	—			(1,194		)	—			(48,069		)
Payments on retirements of long-term debt	(187,041		)	(652		)	—			—			—			(187,693		)
Other financing activities	170			—			—			(277,652		)	154,230			(123,252		)
Net cash from financing activities	(209,388		)	(47,527		)	—			(65,408		)	154,230			(168,093		)

Net change in cash and cash equivalents	10,868			211			(1,089		)	42,431			—			52,421
Cash and cash equivalents, beginning of period	363			88,071			4,768			—			—			93,202
Cash and cash equivalents, end of period	$	11,231		$	88,282		$	3,679		$	42,431		$	—		$	145,623