CONDENSED CONSOLIDATING FINANCIAL INFORMATION

Separate condensed consolidating financial information for our subsidiary guarantors and non-guarantors of our 9.00% Senior Notes due July 2020, our 6.875% Senior Notes due May 2023 and our 6.375% Senior Notes due April 2026 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 those entities comprising our Peninsula segment, special purpose entities, tax holding companies, our less significant operating subsidiaries and our less than wholly owned subsidiaries.

Condensed Consolidating Balance Sheets



	March 31, 2016
					Non-			Non-
					Guarantor			Guarantor
					Subsidiaries			Subsidiaries
			Guarantor		(100%			(Not 100%
(In thousands)	Parent		Subsidiaries		Owned)			Owned)			Eliminations			Consolidated
Assets
Cash and cash equivalents	$	502,247	$	84,304	$	29,429		$	221		$	—		$	616,201
Other current assets	12,635		56,330		28,564			—			(1,046		)	96,483
Property and equipment, net	64,989		1,740,847		404,646			—			—			2,210,482
Investments in subsidiaries	3,616,657		174,761		—			—			(3,537,820		)	253,598
Intercompany receivable	—		1,974,486		—			—			(1,974,486		)	—
Other assets, net	13,033		9,180		26,734			—			—			48,947
Intangible assets, net	—		406,265		479,797			—			—			886,062
Goodwill, net	—		212,794		472,516			—			—			685,310
Total assets	$	4,209,561	$	4,658,967	$	1,441,686		$	221		$	(5,513,352	)	$	4,797,083

Liabilities and Stockholders' Equity
Current maturities of long-term debt	$	21,500	$	—	$	6,188		$	—		$	—		$	27,688
Other current liabilities	77,920		143,293		89,367			—			(286		)	310,294
Accumulated losses of subsidiaries in excess of investment	—		—		315			—			(315		)	—
Intercompany payable	840,588		—		1,133,504			475			(1,974,567		)	—
Long-term debt, net of current maturities and debt issuance costs	2,688,486		—		969,425			—			—			3,657,911
Other long-term liabilities	37,518		156,198		63,875			—			—			257,591

Boyd Gaming Corporation stockholders' equity (deficit)	543,549		4,359,476		(820,988		)	(254		)	(3,538,234		)	543,549
Noncontrolling interest	—		—		—			—			50			50
Total stockholders' equity (deficit)	543,549		4,359,476		(820,988		)	(254		)	(3,538,184		)	543,599
Total liabilities and stockholders' equity	$	4,209,561	$	4,658,967	$	1,441,686		$	221		$	(5,513,352	)	$	4,797,083

Condensed Consolidating Balance Sheets - continued



	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
Other 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 and debt issuance costs	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 Statements of Income



	Three Months Ended March 31, 2016
							Non-			Non-
							Guarantor			Guarantor
							Subsidiaries			Subsidiaries
				Guarantor			(100%			(Not 100%
(In thousands)	Parent			Subsidiaries			Owned)			Owned)		Eliminations			Consolidated
Net revenues	$	31,201		$	419,641		$	138,316		$	—	$	(36,780	)	$	552,378
Operating costs and expenses
Operating	450			221,709			73,000			—		—			295,159
Selling, general and administrative	12,386			54,173			15,290			—		2			81,851
Maintenance and utilities	—			20,447			3,401			—		—			23,848
Depreciation and amortization	1,778			31,175			14,700			—		—			47,653
Corporate expense	16,309			53			1,545			—		—			17,907
Project development, preopening and writedowns	756			376			709			—		—			1,841
Impairments of assets	1,440			—			—			—		—			1,440
Other operating items, net	106			323			—			—		—			429
Intercompany expenses	301			31,238			5,243			—		(36,782		)	—
Total operating costs and expenses	33,526			359,494			113,888			—		(36,780		)	470,128
Equity in earnings of subsidiaries	68,519			23,094			—			—		(72,777		)	18,836
Operating income (loss)	66,194			83,241			24,428			—		(72,777		)	101,086
Other expense (income)
Interest expense, net	32,928			2,286			17,354			—		—			52,568
Loss on early extinguishments of debt	—			—			427			—		—			427
Other, net	1			—			76			—		—			77
Boyd's share of Borgata's non-operating items, net	—			7,206			—			—		—			7,206
Total other expense, net	32,929			9,492			17,857			—		—			60,278
Income (loss) before income taxes	33,265			73,749			6,571			—		(72,777		)	40,808
Income taxes benefit (provision)	(75		)	(1,918		)	(5,625		)	—		—			(7,618		)
Net income (loss)	$	33,190		$	71,831		$	946		$	—	$	(72,777	)	$	33,190
Comprehensive income (loss)	$	33,712		$	72,353		$	1,468		$	—	$	(73,821	)	$	33,712

Condensed Consolidating Statements of Income - continued



	Three Months Ended March 31, 2015
							Non-			Non-
							Guarantor			Guarantor
							Subsidiaries			Subsidiaries
				Guarantor			(100%			(Not 100%
(In thousands)	Parent			Subsidiaries			Owned)			Owned)			Eliminations			Consolidated
Net revenues	$	30,796		$	418,592		$	137,525		$	—		$	(36,335	)	$	550,578
Costs and expenses
Operating	450			223,587			73,920			—			—			297,957
Selling, general and administrative	12,403			54,342			14,944			—			—			81,689
Maintenance and utilities	—			21,711			3,608			—			—			25,319
Depreciation and amortization	1,287			32,687			17,968			—			—			51,942
Corporate expense	18,467			54			1,131			—			—			19,652
Project development, preopening and writedowns	(52		)	(17		)	983			41			—			955
Impairments of assets	—			—			1,065			—			—			1,065
Other operating items, net	—			70			46			—			—			116
Intercompany expenses	301			30,841			5,193			—			(36,335		)	—
Total operating costs and expenses	32,856			363,275			118,858			41			(36,335		)	478,695
Equity in earnings of subsidiaries	47,768			7,652			(41		)	—			(43,704		)	11,675
Operating income (loss)	45,708			62,969			18,626			(41		)	(43,704		)	83,558
Other expense (income)
Interest expense, net	33,396			702			22,366			—			—			56,464
Loss on early extinguishments of debt	—			—			508			—			—			508
Other, net	416			—			202			—			—			618
Boyd's share of Borgata's non-operating items, net	—			7,661			—			—			—			7,661
Total other expense, net	33,812			8,363			23,076			—			—			65,251
Income (loss) before income taxes	11,896			54,606			(4,450		)	(41		)	(43,704		)	18,307
Income taxes benefit (provision)	23,207			(1,927		)	(4,484		)	—			—			16,796
Net income (loss)	$	35,103		$	52,679		$	(8,934	)	$	(41	)	$	(43,704	)	$	35,103
Comprehensive income (loss)	$	35,374		$	52,950		$	(8,663	)	$	(41	)	$	(44,246	)	$	35,374

Condensed Consolidating Statements of Cash Flows



	Three Months Ended March 31, 2016
							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	$	(35,967	)	$	86,355		$	32,735		$	—	$	(93	)	$	83,030

Cash flows from investing activities
Capital expenditures	(11,143		)	(19,774		)	(4,380		)	—		—			(35,297		)
Net activity with affiliates	—			(106,703		)	—			—		106,703			—
Other investing activities	—			—			5			—		—			5
Net cash from investing activities	(11,143		)	(126,477		)	(4,375		)	—		106,703			(35,292		)

Cash flows from financing activities
Borrowings under bank credit facility	223,900			—			95,200			—		—			319,100
Payments under bank credit facility	(530,350		)	—			(114,725		)	—		—			(645,075		)
Proceeds from issuance of senior notes	750,000			—			—			—		—			750,000
Debt financing costs, net	(12,996		)	—			—			—		—			(12,996		)
Net activity with affiliates	120,188			—			(13,578		)	—		(106,610		)	—
Share-based compensation activities, net	(1,387		)	—			—			—		—			(1,387		)
Net cash from financing activities	549,355			—			(33,103		)	—		(106,610		)	409,642

Net change in cash and cash equivalents	502,245			(40,122		)	(4,743		)	—		—			457,380
Cash and cash equivalents, beginning of period	2			124,426			34,172			221		—			158,821
Cash and cash equivalents, end of period	$	502,247		$	84,304		$	29,429		$	221	$	—		$	616,201

Condensed Consolidating Statements of Cash Flows - continued



	Three Months Ended March 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	$	(26,888	)	$	75,990		$	5,730		$	(41	)	$	4,847		$	59,638

Cash flows from investing activities
Capital expenditures	(6,152		)	(6,006		)	(7,111		)	—			—			(19,269		)
Net activity with affiliates	—			(83,331		)	—			—			83,331			—
Other investing activities	—			—			2,316			—			—			2,316
Net cash from investing activities	(6,152		)	(89,337		)	(4,795		)	—			83,331			(16,953		)

Cash flows from financing activities
Borrowings under bank credit facility	203,700			—			91,400			—			—			295,100
Payments under bank credit facility	(245,675		)	—			(108,625		)	—			—			(354,300		)
Payments on long-term debt	—			—			(2		)	—			—			(2		)
Net activity with affiliates	73,815			—			14,322			41			(88,178		)	—
Share-based compensation activities, net	1,973			—			—			—			—			1,973
Net cash from financing activities	33,813			—			(2,905		)	41			(88,178		)	(57,229		)

Net change in cash and cash equivalents	773			(13,347		)	(1,970		)	—			—			(14,544		)
Cash and cash equivalents, beginning of period	2			111,452			33,668			219			—			145,341
Cash and cash equivalents, end of period	$	775		$	98,105		$	31,698		$	219		$	—		$	130,797