CONDENSED CONSOLIDATING FINANCIAL INFORMATION

Separate condensed consolidating financial information for our subsidiary guarantors and non-guarantors of our 9.125% Senior Notes due December 2018 and 6.875% Senior Notes due May 2023 is presented below. The notes are fully and unconditionally guaranteed, on a joint and several basis, by certain of our current and future domestic restricted subsidiaries, all of which are 100% owned by us. The non-guarantors primarily represent special purpose entities, tax holding companies, our less significant operating subsidiaries and our less than wholly owned subsidiaries.

Condensed Consolidating Balance Sheets



	December 31, 2015
					Non-			Non-
					Guarantor			Guarantor
					Subsidiaries			Subsidiaries
			Guarantor		(100%			(Not 100%
(In thousands)	Parent		Subsidiaries		Owned)			Owned)			Eliminations			Consolidated
Assets
Cash and cash equivalents	$	2	$	124,426	$	34,172		$	221		$	—		$	158,821
Other current assets	14,602		61,157		23,660			—			(1,008		)	98,411
Property and equipment, net	68,515		1,745,203		411,624			—			—			2,225,342
Investments in subsidiaries	3,547,690		138,116		—			—			(3,441,185		)	244,621
Intercompany receivable	—		1,867,783		—			—			(1,867,783		)	—
Other assets, net	12,521		8,982		26,838			—			—			48,341
Intangible assets, net	—		406,540		483,514			—			—			890,054
Goodwill, net	—		212,794		472,516			—			—			685,310
Total assets	$	3,643,330	$	4,565,001	$	1,452,324		$	221		$	(5,309,976	)	$	4,350,900

Liabilities and Stockholders' Equity
Current maturities of long-term debt	$	21,500	$	—	$	8,250		$	—		$	—		$	29,750
Current liabilities	102,946		146,178		76,482			—			(285		)	325,321
Accumulated losses of subsidiaries in excess of investment	—		—		3,192			—			(3,192		)	—
Intercompany payable	720,400		—		1,147,082			475			(1,867,957		)	—
Long-term debt, net of current maturities	2,255,800		—		983,999			—			—			3,239,799
Other long-term liabilities	34,723		154,633		58,663			—			—			248,019

Boyd Gaming Corporation stockholders' equity (deficit)	507,961		4,264,190		(825,344		)	(254		)	(3,438,592		)	507,961
Noncontrolling interest	—		—		—			—			50			50
Total stockholders' equity (deficit)	507,961		4,264,190		(825,344		)	(254		)	(3,438,542		)	508,011
Total liabilities and stockholders' equity	$	3,643,330	$	4,565,001	$	1,452,324		$	221		$	(5,309,976	)	$	4,350,900

Condensed Consolidating Balance Sheets - continued



	December 31, 2014
					Non-			Non-
					Guarantor			Guarantor
					Subsidiaries			Subsidiaries
			Guarantor		(100%			(Not 100%
(In thousands)	Parent		Subsidiaries		Owned)			Owned)			Eliminations			Consolidated
Assets
Cash and cash equivalents	$	2	$	111,452	$	33,668		$	219		$	—		$	145,341
Other current assets	10,234		69,012		21,980			—			(4,617		)	96,609
Property and equipment, net	65,365		1,775,486		445,257			—			—			2,286,108
Investments in subsidiaries	3,345,735		150,694		—			—			(3,273,712		)	222,717
Intercompany receivable	—		1,637,101		—			—			(1,637,101		)	—
Other assets, net	12,595		9,149		30,306			—			—			52,050
Intangible assets, net	—		425,083		509,166			—			—			934,249
Goodwill, net	—		212,794		472,516			—			—			685,310
Total assets	$	3,433,931	$	4,390,771	$	1,512,893		$	219		$	(4,915,430	)	$	4,422,384

Liabilities and Stockholders' Equity
Current maturities of long-term debt	$	21,500	$	—	$	8,253		$	—		$	—		$	29,753
Other current liabilities	82,711		160,542		84,427			—			(238		)	327,442
Accumulated losses of subsidiaries in excess of investment	—		—		3,619			—			(3,619		)	—
Intercompany payable	668,310		—		972,425			397			(1,641,132		)	—
Long-term debt, net of current maturities	2,183,485		—		1,191,613			—			—			3,375,098
Other long-term liabilities	39,888		169,824		42,292			—			—			252,004

Boyd Gaming Corporation stockholders' equity (deficit)	438,037		4,060,405		(789,736		)	(178		)	(3,270,491		)	438,037
Noncontrolling interest	—		—		—			—			50			50
Total stockholders' equity (deficit)	438,037		4,060,405		(789,736		)	(178		)	(3,270,441		)	438,087
Total liabilities and stockholders' equity	$	3,433,931	$	4,390,771	$	1,512,893		$	219		$	(4,915,430	)	$	4,422,384

Condensed Consolidating Statements of Operations



	Year Ended December 31, 2015
					Non-			Non-
					Guarantor			Guarantor
					Subsidiaries			Subsidiaries
			Guarantor		(100%			(Not 100%
(In thousands)	Parent		Subsidiaries		Owned)			Owned)			Eliminations			Consolidated
Net revenues	$	121,541	$	1,670,301	$	551,199		$	—		$	(143,609	)	$	2,199,432
Operating costs and expenses
Operating	1,800		892,039		296,985			—			—			1,190,824
Selling, general and administrative	48,173		215,362		58,903			—			(18		)	322,420
Maintenance and utilities	—		89,800		14,748			—			—			104,548
Depreciation and amortization	6,179		128,269		72,670			—			—			207,118
Corporate expense	71,700		227		5,014			—			—			76,941
Project development, preopening and writedowns	884		1,101		4,846			76			—			6,907
Impairment of assets	—		17,500		1,065			—			—			18,565
Other operating items, net	599		112		196			—			—			907
Intercompany expenses	1,204		121,727		20,660			—			(143,591		)	—
Total operating costs and expenses	130,539		1,466,137		475,087			76			(143,609		)	1,928,230
Equity in earnings of subsidiaries	189,980		50,228		(76		)	—			(166,711		)	73,421
Operating income (loss)	180,982		254,392		76,036			(76		)	(166,711		)	344,623
Other expense (income)
Interest expense, net	125,890		10,867		85,975			—			—			222,732
Loss on early extinguishments of debt	30,829		—		9,904			—			—			40,733
Other, net	396		2,660		620			—			—			3,676
Boyd's share of Borgata's non-operating items, net	—		37,422		—			—			—			37,422
Total other expense, net	157,115		50,949		96,499			—			—			304,563
Income (loss) before income taxes	23,867		203,443		(20,463		)	(76		)	(166,711		)	40,060
Income taxes benefit (provision)	23,367		1,981		(18,174		)	—			—			7,174
Net income (loss)	$	47,234	$	205,424	$	(38,637	)	$	(76	)	$	(166,711	)	$	47,234
Comprehensive income (loss)	$	46,971	$	205,161	$	(38,900	)	$	(76	)	$	(166,185	)	$	46,971

Condensed Consolidating Statements of Operations - continued



	Year Ended December 31, 2014
							Non-			Non-
							Guarantor			Guarantor
							Subsidiaries			Subsidiaries
				Guarantor			(100%			(Not 100%
(In thousands)	Parent			Subsidiaries			Owned)			Owned)			Eliminations			Consolidated
Net revenues	$	117,159		$	1,620,170		$	542,538		$	559,064		$	(137,612	)	$	2,701,319
Operating costs and expenses
Operating	1,800			879,073			303,570			290,005			—			1,474,448
Selling, general and administrative	46,708			223,741			57,370			101,930			(220		)	429,529
Maintenance and utilities	—			94,654			14,871			47,211			—			156,736
Depreciation and amortization	5,667			126,444			76,804			42,129			—			251,044
Corporate expense	71,951			220			3,455			—			—			75,626
Project development, preopening and writedowns	105			7,130			6,350			805			—			14,390
Impairment of assets	320			51,489			8,971			—			—			60,780
Other operating items, net	164			—			(177		)	(2,111		)	—			(2,124		)
Intercompany expenses	1,204			116,105			20,083			—			(137,392		)	—
Total operating costs and expenses	127,919			1,498,856			491,297			479,969			(137,612		)	2,460,429
Equity in earnings of subsidiaries	85,360			(20,191		)	(162		)	—			(54,381		)	10,626
Operating income (loss)	74,600			101,123			51,079			79,095			(54,381		)	251,516
Other expense (income)
Interest expense, net	132,204			5,527			90,450			53,327			—			281,508
Loss on early extinguishments of debt	—			—			1,536			—			—			1,536
Other, net	(793		)	—			841			—			—			48
Boyd's share of Borgata's non-operating items, net	—			9,309			—			—			—			9,309
Total other expense, net	131,411			14,836			92,827			53,327			—			292,401
Income (loss) before income taxes	(56,811		)	86,287			(41,748		)	25,768			(54,381		)	(40,885		)
Income taxes benefit (provision)	3,770			13,127			(14,525		)	(3,125		)	—			(753		)
Net income (loss)	(53,041		)	99,414			(56,273		)	22,643			(54,381		)	(41,638		)
Net income attributable to noncontrolling interest	—			—			—			—			(11,403		)	(11,403		)
Net income (loss) attributable to controlling interest	$	(53,041	)	$	99,414		$	(56,273	)	$	22,643		$	(65,784	)	$	(53,041	)
Comprehensive income (loss)	$	(51,577	)	$	100,878		$	(54,809	)	$	22,643		$	(57,309	)	$	(40,174	)

Consolidating Statements of Operations - continued



	Year Ended December 31, 2013
							Non-			Non-
							Guarantor			Guarantor
							Subsidiaries			Subsidiaries
				Guarantor			(100%			(Not 100%
(In thousands)	Parent			Subsidiaries			Owned)			Owned)			Eliminations			Consolidated
Net revenues	$	123,951		$	1,650,002		$	570,267		$	697,633		$	(147,415	)	$	2,894,438
Operating costs and expenses
Operating	1,848			901,668			315,365			367,981			—			1,586,862
Selling, general and administrative	46,880			231,260			63,349			148,779			(42		)	490,226
Maintenance and utilities	—			92,014			14,680			59,704			—			166,398
Depreciation and amortization	6,619			121,893			90,155			59,746			—			278,413
Corporate expense	59,128			119			4,002			—			—			63,249
Project development, preopening and writedowns	1,586			1,804			8,874			4,277			(1,933		)	14,608
Impairment of assets	—			13,634			4,450			5,033			(12,734		)	10,383
Other operating items, net	427			2,075			359			3,137			—			5,998
Intercompany expenses	1,213			122,630			21,598			—			(145,441		)	—
Total operating costs and expenses	117,701			1,487,097			522,832			648,657			(160,150		)	2,616,137
Equity in earnings of subsidiaries	101,148			(38,981		)	—			—			(62,167		)	—
Operating income (loss)	107,398			123,924			47,435			48,976			(49,432		)	278,301
Other expense (income)
Interest expense, net	153,893			9,662			94,917			83,711			—			342,183
Loss on early extinguishments of debt	25,001			—			3,343			25,858			—			54,202
Other, net	137			—			(2,227		)	—			—			(2,090		)
Total other expense, net	179,031			9,662			96,033			109,569			—			394,295
Income (loss) from continuing operations before income taxes	(71,633		)	114,262			(48,598		)	(60,593		)	(49,432		)	(115,994		)
Income taxes benefit (provision)	(8,631		)	3,959			(3,093		)	4,415			—			(3,350		)
Income (loss) from continuing operations, net of tax	(80,264		)	118,221			(51,691		)	(56,178		)	(49,432		)	(119,344		)
Income (loss) from discontinued operations, net of tax	—			—			23,524			—			(12,734		)	10,790
Net income (loss)	(80,264		)	118,221			(28,167		)	(56,178		)	(62,166		)	(108,554		)
Net loss attributable to noncontrolling interest	—			—			—			—			28,290			28,290
Net income (loss) attributable to controlling interest	$	(80,264	)	$	118,221		$	(28,167	)	$	(56,178	)	$	(33,876	)	$	(80,264	)
Comprehensive income	$	(80,819	)	$	117,666		$	(28,722	)	$	(56,178	)	$	(61,056	)	$	(109,109	)

Condensed Consolidating Statements of Cash Flows



	Year Ended December 31, 2015
							Non-			Non-
							Guarantor			Guarantor
							Subsidiaries			Subsidiaries
				Guarantor			(100%			(Not 100%
(In thousands)	Parent			Subsidiaries			Owned)			Owned)			Eliminations			Consolidated
Cash flows from operating activities
Net cash from operating activities	$	102,080		$	318,391		$	(76,692	)	$	(76	)	$	(3,857	)	$	339,846

Cash flows from investing activities
Capital expenditures	(48,591		)	(63,635		)	(18,944		)	—			—			(131,170		)
Net activity with affiliates	—			(230,682		)	—			—			230,682			—
Distributions from subsidiary	11,200			—			—			—			(11,200		)	—
Other investing activities	3,292			—			1,236			—			—			4,528
Net cash from investing activities	(34,099		)	(294,317		)	(17,708		)	—			219,482			(126,642		)

Cash flows from financing activities
Borrowings under bank credit facility	1,033,500			—			345,500			—			—			1,379,000
Payments under bank credit facility	(1,211,200		)	—			(425,150		)	—			—			(1,636,350		)
Proceeds from issuance of senior notes, net	750,000			—			—			—			—			750,000
Debt financing costs, net	(14,004		)	—			—			—			—			(14,004		)
Payments on retirements of long-term debt	(500,000		)	—			(157,813		)	—			—			(657,813		)
Premium and consent fees paid	(24,246		)	—			—			—			—			(24,246		)
Net activity with affiliates	(105,720		)	—			332,467			78			(226,825		)	—
Distributions to parent	—			(11,100		)	(100		)	—			11,200			—
Share-based compensation activities, net	3,689			—			—			—			—			3,689
Other financing activities	—			—			—			—			—			—
Net cash from financing activities	(67,981		)	(11,100		)	94,904			78			(215,625		)	(199,724		)

Net change in cash and cash equivalents	—			12,974			504			2			—			13,480
Cash and cash equivalents, beginning of period	2			111,452			33,668			219			—			145,341
Cash and cash equivalents, end of period	$	2		$	124,426		$	34,172		$	221		$	—		$	158,821

Condensed Consolidating Statements of Cash Flows - continued



	Year Ended December 31, 2014
							Non-			Non-
							Guarantor			Guarantor
							Subsidiaries			Subsidiaries
				Guarantor			(100%			(Not 100%
(In thousands)	Parent			Subsidiaries			Owned)			Owned)			Eliminations			Consolidated
Cash flows from operating activities
Net cash from operating activities	$	(39,524	)	$	234,242		$	92,617		$	35,832		$	(308	)	$	322,859

Cash flows from investing activities
Capital expenditures	(43,164		)	(60,686		)	(33,901		)	(11,623		)	—			(149,374		)
Deconsolidation of Borgata	—			—			—			(26,891		)	—			(26,891		)
Net activity with affiliates	—			(162,689		)	—			—			162,689			—
Distributions from subsidiary	5,300			—			—			—			(5,300		)	—
Other investing activities	—			(660		)	(5,252		)	2,197			—			(3,715		)
Net cash from investing activities	(37,864		)	(224,035		)	(39,153		)	(36,317		)	157,389			(179,980		)

Cash flows from financing activities
Borrowings under bank credit facility	830,400			—			317,400			410,900			—			1,558,700
Payments under bank credit facility	(910,700		)	—			(377,150		)	(444,900		)	—			(1,732,750		)
Debt financing costs, net	(83		)	—			—			(205		)	—			(288		)
Payments under note payable	—			—			(9		)	—			—			(9		)
Payments on retirements of long-term debt	—			—			—			(2,850		)	—			(2,850		)
Net activity with affiliates	155,952			—			6,297			132			(162,381		)	—
Distributions to parent	—			(5,200		)	(100		)	—			5,300			—
Share-based compensation activities, net	1,791			—			—			—			—			1,791
Other financing activities	30			—			—			—			—			30
Net cash from financing activities	77,390			(5,200		)	(53,562		)	(36,923		)	(157,081		)	(175,376		)

Net change in cash and cash equivalents	2			5,007			(98		)	(37,408		)	—			(32,497		)
Cash and cash equivalents, beginning of period	—			106,445			33,766			37,627			—			177,838
Cash and cash equivalents, end of period	$	2		$	111,452		$	33,668		$	219		$	—		$	145,341

Condensed Consolidating Statements of Cash Flows - continued



	Year Ended December 31, 2013
							Non-			Non-
							Guarantor			Guarantor
							Subsidiaries			Subsidiaries
				Guarantor			(100%			(Not 100%
(In thousands)	Parent			Subsidiaries			Owned)			Owned)			Eliminations			Consolidated
Cash flows from operating activities
Net cash from operating activities	$	(229,447	)	$	407,349		$	42,719		$	51,748		$	4,666		$	277,035

Cash flows from investing activities
Capital expenditures	(44,985		)	(49,847		)	(27,331		)	(22,357		)	—			(144,520		)
Proceeds from sale of Echelon, net	343,750			—			—			—			—			343,750
Proceeds from sale of other assets, net	4,875			—			—			—			—			4,875
Cash paid for exercise of LVE option	(187,000		)	—			—			—			—			(187,000		)
Investments in and advances to unconsolidated subsidiaries, net	(2,400		)	—			—			—			2,400			—
Net activity with affiliates	—			(372,171		)	759			42			371,370			—
Distribution from subsidiary	9,620			—			—			—			(9,620		)	—
Other investing activities	—			—			(1,253		)	3,726			—			2,473
Net cash from investing activities	123,860			(422,018		)	(27,825		)	(18,589		)	364,150			19,578

Cash flows from financing activities
Borrowings under bank credit facility	2,920,675			—			354,700			444,500			—			3,719,875
Payments under bank credit facility	(2,927,800		)	—			(406,950		)	(424,600		)	—			(3,759,350		)
Debt financing costs, net	(24,349		)	—			(10,288		)	(10,115		)	—			(44,752		)
Payments under note payable	(10,341		)	—			(479		)	—			—			(10,820		)
Payments on retirements of long-term debt	(459,278		)	—			—			(416,209		)	—			(875,487		)
Net proceeds from issuance of term loan	—			—			—			376,200			—			376,200
Advances from parent	—			2,400			—			—			(2,400		)	—
Net activity with affiliates	376,036			—			—			—			(376,036		)	—
Distributions to parent	—			—			(9,620		)	—			9,620			—
Stock options exercised	13,752			—			—			—			—			13,752
Proceeds from sale of common stock, net	216,467			—			—			—			—			216,467
Other financing activities	(2,095		)	—			—			—			—			(2,095		)
Net cash from financing activities	103,067			2,400			(72,637		)	(30,224		)	(368,816		)	(366,210		)

Cash flows from discontinued operations
Cash flows from operating activities	—			—			(2,144		)	—			—			(2,144		)
Cash flows from investing activities	—			—			56,751			—			—			56,751
Cash flows from financing activities	—			—			—			—			—			—
Net cash from discontinued operations	—			—			54,607			—			—			54,607

Net change in cash and cash equivalents	(2,520		)	(12,269		)	(3,136		)	2,935			—			(14,990		)
Cash and cash equivalents, beginning of period	2,520			118,714			36,619			34,692			—			192,545
Change in cash classified as discontinued operations	—			—			283			—			—			283
Cash and cash equivalents, end of period	$	—		$	106,445		$	33,766		$	37,627		$	—		$	177,838