Item 8. — FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

INDEX TO FINANCIAL STATEMENTS

Financial Statements:
Report of Independent Registered Public Accounting Firm			72
Consolidated Balance Sheets at December 31, 2010 and 2009			73
Consolidated Statements of Operations for each of the three years in the period ended December 31, 2010			74
Consolidated Statements of Equity and Comprehensive Income (Loss) for each of the three years in the period ended December 31, 2010			75
Consolidated Statements of Cash Flows for each of the three years in the period ended December 31, 2010			76
Notes to Consolidated Financial Statements			78
Financial Statement Schedule:
Schedule II — Valuation and Qualifying Accounts			129

The financial information included in the financial statement schedule should be read in conjunction with the consolidated financial statements. All other financial statement schedules have been omitted because they are not applicable or the required information is included in the consolidated financial statements or the notes thereto.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Directors and Stockholders of Las Vegas Sands Corp.

In our opinion, the consolidated financial statements listed in the accompanying index, present fairly, in all material respects, the financial position of Las Vegas Sands Corp. and its subsidiaries at December 31, 2010 and 2009, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2010 in conformity with accounting principles generally accepted in the United States of America. In addition, in our opinion, the financial statement schedule listed in the accompanying index presents fairly, in all material respects, the information set forth therein when read in conjunction with the related consolidated financial statements. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2010, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The Company’s management is responsible for these financial statements and financial statement schedule, for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Annual Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on these financial statements, on the financial statement schedule, and on the Company’s internal control over financial reporting based on our integrated audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

As discussed in Note 2 to the consolidated financial statements, the Company changed the manner in which it accounts for noncontrolling interests in 2009.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ PricewaterhouseCoopers LLP

Las Vegas, Nevada February 28, 2011

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LAS VEGAS SANDS CORP. AND SUBSIDIARIES

Consolidated Balance Sheets

		December 31,
		2010				2009
		(In thousands,
		except share data)
ASSETS
Current assets:
Cash and cash equivalents		$	3,037,081			$	4,955,416
Restricted cash and cash equivalents			164,315				118,641
Accounts receivable, net			716,919				460,766
Inventories			32,260				27,073
Deferred income taxes, net			61,606				26,442
Prepaid expenses and other			46,726				35,336
Total current assets			4,058,907				5,623,674
Property and equipment, net			14,502,197				13,351,271
Deferred financing costs, net			155,378				138,454
Restricted cash and cash equivalents			645,605				—
Deferred income taxes, net			10,423				22,219
Leasehold interests in land, net			1,398,840				1,209,820
Intangible assets, net			89,805				50,129
Other assets, net			183,153				176,539
Total assets		$	21,044,308			$	20,572,106
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable		$	113,505			$	82,695
Construction payables			516,981				778,771
Accrued interest payable			42,625				18,332
Other accrued liabilities			1,160,234				786,192
Current maturities of long-term debt			767,068				173,315
Total current liabilities			2,600,413				1,839,305
Other long-term liabilities			78,240				81,959
Deferred income taxes			115,219				—
Deferred proceeds from sale of The Shoppes at The Palazzo			243,928				243,928
Deferred gain on sale of The Grand Canal Shoppes			50,808				54,272
Deferred rent from mall transactions			147,378				149,074
Long-term debt			9,373,755				10,852,147
Total liabilities			12,609,741				13,220,685
Preferred stock, $0.001 par value, issued to Principal Stockholder’s family, 5,250,000 shares issued and outstanding, after allocation of fair value of attached warrants, aggregate redemption/liquidation value of $577,500 (Note 10)			503,379				410,834
Commitments and contingencies (Note 14)
Equity:
Preferred stock, $0.001 par value, 50,000,000 shares authorized, 3,614,923 and 4,089,999 shares issued and outstanding with warrants to purchase up to 22,663,212 and 68,166,786 shares of common stock			207,356				234,607
Common stock, $0.001 par value, 1,000,000,000 shares authorized, 707,507,982 and 660,322,749 shares issued and outstanding			708				660
Capital in excess of par value			5,444,705				5,114,851
Accumulated other comprehensive income			129,519				26,748
Retained earnings			880,703				473,833
Total Las Vegas Sands Corp. stockholders’ equity			6,662,991				5,850,699
Noncontrolling interests			1,268,197				1,089,888
Total equity			7,931,188				6,940,587
Total liabilities and equity		$	21,044,308			$	20,572,106

The accompanying notes are an integral part of these consolidated financial statements.

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LAS VEGAS SANDS CORP. AND SUBSIDIARIES

Consolidated Statements of Operations

		Year Ended December 31,
		2010				2009				2008
		(In thousands, except share and per share data)
Revenues:
Casino		$	5,533,088			$	3,524,798			$	3,192,099
Rooms			797,499				657,783				767,129
Food and beverage			446,558				327,699				369,062
Convention, retail and other			540,792				419,164				406,836
			7,317,937				4,929,444				4,735,126
Less — promotional allowances			(464,755	)			(366,339	)			(345,180	)
Net revenues			6,853,182				4,563,105				4,389,946
Operating expenses:
Casino			3,249,227				2,349,422				2,214,235
Rooms			143,326				121,097				154,615
Food and beverage			207,956				165,977				186,551
Convention, retail and other			274,678				240,377				213,351
Provision for doubtful accounts			97,762				103,802				41,865
General and administrative			683,298				526,199				550,529
Corporate expense			108,848				132,098				104,355
Rental expense			41,302				29,899				33,540
Pre-opening expense			114,833				157,731				162,322
Development expense			1,783				533				12,789
Depreciation and amortization			694,971				586,041				506,986
Impairment loss			16,057				169,468				37,568
Loss on disposal of assets			38,555				9,201				7,577
			5,672,596				4,591,845				4,226,283
Operating income (loss)			1,180,586				(28,740	)			163,663
Other income (expense):
Interest income			8,947				11,122				19,786
Interest expense, net of amounts capitalized			(306,813	)			(321,870	)			(421,825	)
Other income (expense)			(8,260	)			(9,891	)			19,492
Loss on modification or early retirement of debt			(18,555	)			(23,248	)			(9,141	)
Income (loss) before income taxes			855,905				(372,627	)			(228,025	)
Income tax benefit (expense)			(74,302	)			3,884				59,700
Net income (loss)			781,603				(368,743	)			(168,325	)
Net (income) loss attributable to noncontrolling interests			(182,209	)			14,264				4,767
Net income (loss) attributable to Las Vegas Sands Corp.			599,394				(354,479	)			(163,558	)
Preferred stock dividends			(92,807	)			(93,026	)			(13,638	)
Accretion to redemption value of preferred stock issued to Principal Stockholder’s family			(92,545	)			(92,545	)			(11,568	)
Preferred stock inducement premium			(6,579	)			—				—
Net income (loss) attributable to common stockholders		$	407,463			$	(540,050	)		$	(188,764	)
Basic earnings (loss) per share		$	0.61			$	(0.82	)		$	(0.48	)
Diluted earnings (loss) per share		$	0.51			$	(0.82	)		$	(0.48	)
Weighted average shares outstanding:
Basic			667,463,535				656,836,950				392,131,375
Diluted			791,760,624				656,836,950				392,131,375

The accompanying notes are an integral part of these consolidated financial statements.

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LAS VEGAS SANDS CORP. AND SUBSIDIARIES

Consolidated Statements of Equity and Comprehensive Income (Loss)

														Accumulated
										Capital in				Other								Total
		Preferred				Common				Excess of				Comprehensive				Retained				Comprehensive				Noncontrolling
		Stock				Stock				Par Value				Income (Loss)				Earnings				Income (Loss)				Interests				Total
Balance at January 1, 2008		$	—			$	355			$	1,064,878			$	(2,493	)		$	1,197,534							$	4,926			$	2,265,200
Net loss			—				—				—				—				(163,558	)			(163,558	)			(4,767	)			(168,325	)
Currency translation adjustment			—				—				—				20,047				—				20,047				—				20,047
Total comprehensive loss																							(143,511	)			(4,767	)			(148,278	)
Exercise of stock options			—				1				6,833				—				—								—				6,834
Tax benefit from stock-based compensation			—				—				1,117				—				—								—				1,117
Stock-based compensation			—				—				59,643				—				—								—				59,643
Issuance of preferred and common stock and warrants, net of transaction costs			298,066				200				1,482,907				—				—								—				1,781,173
Extinguishment of convertible senior notes			—				86				474,914				—				—								—				475,000
Contribution from noncontrolling interests			—				—				—				—				—								2,914				2,914
Accumulated but undeclared dividend requirement on preferred stock issued to Principal Stockholder’s family			—				—				—				—				(6,854	)							—				(6,854	)
Accretion to redemption value of preferred stock issued to Principal Stockholder’s family			—				—				—				—				(11,568	)							—				(11,568	)
Balance at December 31, 2008			298,066				642				3,090,292				17,554				1,015,554								3,073				4,425,181
Net loss			—				—				—				—				(354,479	)			(354,479	)			(14,264	)			(368,743	)
Currency translation adjustment			—				—				—				10,906				—				10,906				(602	)			10,304
Total comprehensive loss																							(343,573	)			(14,866	)			(358,439	)
Exercise of stock options			—				—				51				—				—								—				51
Tax shortfall from stock-based compensation			—				—				(4,965	)			—				—								—				(4,965	)
Stock-based compensation			—				—				49,054				—				—								—				49,054
Exercise of warrants			(63,459	)			18				63,441				—				—								—				—
Deemed contribution from Principal Stockholder			—				—				519				—				—								—				519
Sale of and contribution from noncontrolling interest, net of transaction costs			—				—				1,916,459				(1,712	)			—								1,101,681				3,016,428
Dividends declared, net of amounts previously accrued			—				—				—				—				(87,843	)							—				(87,843	)
Accumulated but undeclared dividend requirement on preferred stock issued to Principal Stockholder’s family			—				—				—				—				(6,854	)							—				(6,854	)
Accretion to redemption value of preferred stock issued to Principal Stockholder’s family			—				—				—				—				(92,545	)							—				(92,545	)
Balance at December 31, 2009			234,607				660				5,114,851				26,748				473,833								1,089,888				6,940,587
Net income			—				—				—				—				599,394				599,394				182,209				781,603
Currency translation adjustment			—				—				—				102,771				—				102,771				(4,253	)			98,518
Total comprehensive income																							702,165				177,956				880,121
Exercise of stock options			—				2				16,453				—				—								—				16,455
Tax shortfall from stock-based compensation			—				—				(195	)			—				—								—				(195	)
Stock-based compensation			—				—				58,120				—				—								2,698				60,818
Exercise of warrants			(27,251	)			46				252,719				—				—								—				225,514
Deemed contribution from Principal Stockholder			—				—				412				—				—								—				412
Acquisition of remaining shares of noncontrolling interest			—				—				2,345				—				—								(2,345	)			—
Dividends declared, net of amounts previously accrued			—				—				—				—				(86,546	)							—				(86,546	)
Accumulated but undeclared dividend requirement on preferred stock issued to Principal Stockholder’s family			—				—				—				—				(6,854	)							—				(6,854	)
Accretion to redemption value of preferred stock issued to Principal Stockholder’s family			—				—				—				—				(92,545	)							—				(92,545	)
Preferred stock inducement premium			—				—				—				—				(6,579	)							—				(6,579	)
Balance at December 31, 2010		$	207,356			$	708			$	5,444,705			$	129,519			$	880,703							$	1,268,197			$	7,931,188

The accompanying notes are an integral part of these consolidated financial statements.

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LAS VEGAS SANDS CORP. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

		Year Ended December 31,
		2010				2009				2008
		(In thousands)
Cash flows from operating activities:
Net income (loss)		$	781,603			$	(368,743	)		$	(168,325	)
Adjustments to reconcile net income (loss) to net cash generated from operating activities:
Depreciation and amortization			694,971				586,041				506,986
Amortization of leasehold interests in land included in rental expense			41,302				27,011				26,165
Amortization of deferred financing costs and original issue discount			41,594				30,015				32,844
Amortization of deferred gain and rent			(5,160	)			(5,161	)			(5,082	)
Deferred rent from mall transaction			—				—				48,843
Loss on modification or early retirement of debt			3,756				23,248				9,141
Impairment and loss on disposal of assets			54,612				178,669				45,145
Stock-based compensation expense			58,021				45,545				53,854
Provision for doubtful accounts			97,762				103,802				41,865
Foreign exchange (gain) loss			6,819				(499	)			(28,548	)
Excess tax benefits from stock-based compensation			—				—				(1,112	)
Deferred income taxes			99,536				(1,339	)			(36,242	)
Non-cash legal settlement included in corporate expense			—				30,000				—
Non-cash contribution from Principal Stockholder included in corporate expense			412				519				—
Changes in operating assets and liabilities:
Accounts receivable			(332,924	)			(178,746	)			(238,425	)
Inventories			(4,941	)			1,759				(8,879	)
Prepaid expenses and other			(17,024	)			41,994				(95,744	)
Leasehold interests in land			(50,810	)			(117,314	)			(50,156	)
Accounts payable			29,270				11,388				(28,228	)
Accrued interest payable			23,091				3,257				3,260
Other accrued liabilities			348,261				227,167				17,510
Net cash generated from operating activities			1,870,151				638,613				124,872
Cash flows from investing activities:
Change in restricted cash and cash equivalents			(688,266	)			78,630				218,044
Capital expenditures			(2,023,981	)			(2,092,896	)			(3,789,008	)
Proceeds from disposal of property and equipment			49,735				4,203				—
Purchases of investments			(173,774	)			—				—
Proceeds from investments			173,774				—				—
Acquisition of intangible assets			(45,303	)			—				—
Net cash used in investing activities			(2,707,815	)			(2,010,063	)			(3,570,964	)
Cash flows from financing activities:
Proceeds from exercise of stock options			16,455				51				6,834
Proceeds from exercise of warrants			225,514				—				—
Excess tax benefits from stock-based compensation			—				—				1,112
Proceeds from sale of and contribution from noncontrolling interest, net of transaction costs			—				2,386,428				2,914
Dividends paid to preferred stockholders			(93,400	)			(94,697	)			—
Proceeds from common stock issued, net of transaction costs			—				—				1,053,695
Proceeds from convertible senior notes from Principal Stockholder’s family			—				—				475,000
Proceeds from preferred stock and warrants issued to Principal Stockholder’s family, net of transaction costs			—				—				523,720
Proceeds from preferred stock and warrants issued, net of transaction costs			—				—				503,625
Proceeds from long-term debt (Note 9)			1,397,293				1,831,528				4,616,201
Repayments of long-term debt (Note 9)			(2,600,875	)			(776,972	)			(1,725,908	)
Proceeds from sale of The Shoppes at The Palazzo			—				—				243,928
Payments of preferred stock inducement premium			(6,579	)			—				—
Payments of deferred financing costs			(65,965	)			(40,365	)			(92,968	)
Net cash generated from (used in) financing activities			(1,127,557	)			3,305,973				5,608,153
Effect of exchange rate on cash			46,886				(17,270	)			18,952
Increase (decrease) in cash and cash equivalents			(1,918,335	)			1,917,253				2,181,013
Cash and cash equivalents at beginning of year			4,955,416				3,038,163				857,150
Cash and cash equivalents at end of year		$	3,037,081			$	4,955,416			$	3,038,163

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		Year Ended December 31,
		2010				2009				2008
		(In thousands)
Supplemental disclosure of cash flow information:
Cash payments for interest, net of amounts capitalized		$	237,232			$	287,553			$	385,696
Cash payments for taxes, net of refunds		$	1,285			$	(69,005	)		$	(15,542	)
Changes in construction payables		$	(261,790	)		$	42,058			$	19,172
Non-cash investing and financing activities:
Capitalized stock-based compensation costs		$	2,797			$	3,509			$	5,789
Property and equipment acquired under capital lease		$	3,431			$	25,567			$	—
Accumulated but undeclared dividend requirement on preferred stock issued to Principal Stockholder’s family		$	6,854			$	6,854			$	6,854
Accretion to redemption value of preferred stock issued to Principal Stockholder’s family		$	92,545			$	92,545			$	11,568
Acquisition of remaining shares of noncontrolling interest		$	2,345			$	—			$	—
Warrants exercised and settled through tendering of preferred stock		$	27,251			$	63,459			$	—
Property and equipment transferred to leasehold interest in land as part of lease transaction		$	107,879			$	—			$	—
Exchange of exchangeable bonds for ordinary shares of a subsidiary’s common stock		$	—			$	600,000			$	—
Extinguishment of convertible senior notes from Principal Stockholder’s family		$	—			$	—			$	475,000

The accompanying notes are an integral part of these consolidated financial statements.

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LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1 — Organization and Business of Company

Las Vegas Sands Corp. (“LVSC” or together with its subsidiaries, the “Company”) was incorporated in Nevada during August 2004 and completed an initial public offering of its common stock in December 2004. Immediately prior to the initial public offering, LVSC acquired 100% of the capital stock of Las Vegas Sands, Inc., which was converted into a Nevada limited liability company, Las Vegas Sands, LLC (“LVSLLC”) in July 2005. LVSC’s common stock is traded on the New York Stock Exchange under the symbol “LVS.”

In November 2009, the Company’s subsidiary, Sands China Ltd. (“SCL,” the direct or indirect owner and operator of the majority of the Company’s operations in the Macau Special Administrative Region (“Macau”) of the People’s Republic of China), completed an initial public offering by listing its ordinary shares (the “SCL Offering”) on The Main Board of The Stock Exchange of Hong Kong Limited (“SEHK”). Immediately following the SCL Offering and several transactions consummated in connection with such offering (see “— Note 10 — Equity — Noncontrolling Interests”), the Company owned 70.3% of issued and outstanding ordinary shares of SCL. The shares of SCL were not, and will not, be registered under the Securities Act of 1933, as amended, and may not be offered or sold in the U.S. absent a registration under the Securities Act of 1933, as amended, or an applicable exception from such registration requirements.

Operations

United States

Las Vegas

The Company owns and operates The Venetian Resort Hotel Casino (“The Venetian Las Vegas”), a Renaissance Venice-themed resort; The Palazzo Resort Hotel Casino (“The Palazzo”), a resort featuring modern European ambience and design; and an expo and convention center of approximately 1.2 million square feet (the “Sands Expo Center”). These Las Vegas properties, situated on or near the Las Vegas Strip, form an integrated resort with approximately 7,100 suites; approximately 225,000 square feet of gaming space; a meeting and conference facility of approximately 1.1 million square feet; an enclosed retail, dining and entertainment complex located within The Venetian Las Vegas of approximately 440,000 net leasable square feet (“The Grand Canal Shoppes”), which was sold to GGP Limited Partnership (“GGP”) in 2004; and an enclosed retail and dining complex located within The Palazzo of approximately 400,000 net leasable square feet (“The Shoppes at The Palazzo”), which was sold to GGP in February 2008 (see “— Note 13 — Mall Sales — The Shoppes at The Palazzo”).

Pennsylvania

In May 2009, the Company partially opened Sands Casino Resort Bethlehem (the “Sands Bethlehem”), a gaming, hotel, retail and dining complex located on the site of the historic Bethlehem Steel Works in Bethlehem, Pennsylvania. The Sands Bethlehem currently features approximately 146,000 square feet of gaming space, which include table games operations that commenced in July 2010. The Company recommenced construction of a 300-room hotel tower in April 2010, which is expected to open in the second quarter of 2011. Subsequent to year-end, the Company is initiating construction activities on the remaining components of the integrated resort, which include an approximate 200,000-square-foot retail facility and a 50,000-square-foot multipurpose event center. Sands Bethlehem is also expected to be home to the National Museum of Industrial History, an arts and cultural center, and the broadcast home of the local PBS affiliate. The Company owns 86% of the economic interest of the gaming, hotel and entertainment portion of the property through its ownership interest in Sands Bethworks Gaming LLC and more than 35% of the economic interest of the retail portion of the property through its ownership interest in Sands Bethworks Retail, LLC. As of December 31, 2010, the Company has capitalized construction costs of $654.1 million for this project (including $12.2 million in outstanding construction payables). The Company expects to spend approximately $70 million to complete construction of the project, on furniture, fixtures and equipment (“FF&E”) and other costs, and to pay outstanding construction payables, as noted above.

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LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Macau

The Company currently owns 70.3% of SCL, which includes the operations of the Sands Macao, The Venetian Macao, Four Seasons Macao and other ancillary operations that support these properties, as further discussed below. The Company operates the gaming areas within these properties pursuant to a 20-year gaming subconcession.

The Company owns and operates the Sands Macao, the first Las Vegas-style casino in Macau. The Sands Macao offers approximately 197,000 square feet of gaming space and a 289-suite hotel tower, as well as several restaurants, VIP facilities, a theater and other high-end services and amenities.

The Company also owns and operates The Venetian Macao Resort Hotel (“The Venetian Macao”), which anchors the Cotai Striptm, the Company’s master-planned development of integrated resort properties in Macau. With a theme similar to that of The Venetian Las Vegas, The Venetian Macao includes a 39-floor luxury hotel with over 2,900 suites; approximately 550,000 square feet of gaming space; a 15,000-seat arena; an 1,800-seat theater; retail and dining space of approximately 1.0 million square feet; and a convention center and meeting room complex of approximately 1.2 million square feet.

The Company owns the Four Seasons Hotel Macao, Cotai Strip tm (the “Four Seasons Hotel Macao”), which features 360 rooms and suites managed and operated by Four Seasons Hotels Inc. and is located adjacent and connected to The Venetian Macao. Connected to the Four Seasons Hotel Macao, the Company owns and operates the Plaza Casino (together with the Four Seasons Hotel Macao, the “Four Seasons Macao”), which features approximately 70,000 square feet of gaming space; 19 Paiza mansions; retail space of approximately 211,000 square feet, which is connected to the mall at The Venetian Macao; several food and beverage offerings; and conference, banquet and other facilities. This integrated resort will also feature the Four Seasons Apartment Hotel Macao, Cotai Striptm (the “Four Seasons Apartments”), an apart-hotel tower that consists of approximately 1.0 million square feet of Four Seasons-serviced and -branded luxury apart-hotel units and common areas. The Company has completed the structural work of the tower and expects to subsequently monetize units within the Four Seasons Apartments subject to market conditions and obtaining the necessary government approvals. As of December 31, 2010, the Company has capitalized construction costs of $1.07 billion for the property (including $16.2 million in outstanding construction payables). The Company expects to spend approximately $115 million primarily on additional costs to complete the Four Seasons Apartments, including FF&E and pre-opening costs, and to pay outstanding construction payables, as noted above.

Singapore

The Company owns and operates the Marina Bay Sands in Singapore, which partially opened on April 27, 2010, with additional portions opened progressively throughout 2010. The Marina Bay Sands features three 55-story hotel towers (totaling approximately 2,600 rooms and suites), the Sands SkyParktm (which sits atop the hotel towers and features an infinity swimming pool and several dining options), approximately 161,000 square feet of gaming space, an enclosed retail, dining and entertainment complex of approximately 800,000 net leasable square feet, a convention center and meeting room complex of approximately 1.3 million square feet and theaters. Subsequent to year-end, the Marina Bay Sands opened a landmark iconic structure at the bay-front promenade that contains an art/science museum. As of December 31, 2010, the Company has capitalized 7.40 billion Singapore dollars (“SGD,” approximately $5.74 billion at exchange rates in effect on December 31, 2010) in costs for this project, including the land premium and SGD 428.6 million (approximately $332.2 million at exchange rates in effect on December 31, 2010) in outstanding construction payables. The Company expects to spend approximately SGD 955 million (approximately $740 million at exchange rates in effect on December 31, 2010) on additional costs to complete the construction of the integrated resort, FF&E and other costs, and to pay outstanding construction payables, as noted above. As the Company has obtained Singapore-denominated financing and primarily pays its costs in Singapore dollars, its exposure to foreign exchange gains and losses is expected to be minimal.

Development Projects

The Company has suspended portions of its development projects to focus its efforts on those projects with the highest expected rates of return on invested capital. Should general economic conditions fail to improve, if the Company is unable to obtain sufficient funding or applicable government approvals such that completion of its suspended projects is not probable, or should management decide to abandon certain projects, all or a portion of the Company’s investment to date on its suspended projects could be lost and would result in an impairment charge. In addition, the Company may be subject to penalties under the termination clauses in its construction contracts or termination rights under its management contracts with certain hotel management companies.

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LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

United States

The Company was constructing a high-rise residential condominium tower (the “Las Vegas Condo Tower”), located on the Las Vegas Strip between The Palazzo and The Venetian Las Vegas. The Company suspended construction activities for the project due to reduced demand for Las Vegas Strip condominiums and the overall decline in general economic conditions. The Company intends to recommence construction when demand and conditions improve and expects that it will take approximately 18 months thereafter to complete construction of the project. As of December 31, 2010, the Company has capitalized construction costs of $176.4 million for this project. The impact of the suspension on the estimated overall cost of the project is currently not determinable with certainty.

Macau

The Company submitted plans to the Macau government for its other Cotai Strip developments, which represent three integrated resort developments, in addition to The Venetian Macao and Four Seasons Macao, on an area of approximately 200 acres (which are referred to as parcels 3, 5 and 6, and 7 and 8). Subject to the approval from the Macau government, as discussed further below, the developments are expected to include hotels, exhibition and conference facilities, gaming areas, showrooms, shopping malls, spas, restaurants, entertainment facilities and other amenities. The Company had commenced construction or pre-construction activities on these developments and plans to operate the related gaming areas under the Company’s Macau gaming subconcession.

The Company is staging the construction of its integrated resort development on parcels 5 and 6. Upon completion of phases I and II of the project, the integrated resort is expected to feature approximately 6,000 hotel rooms, approximately 300,000 square feet of gaming space, approximately 1.2 million square feet of retail, entertainment and dining facilities, exhibition and conference facilities and a multipurpose theater. Phase I of the project is expected to include two hotel towers to be managed by Shangri-La International Hotel Management Limited (“Shangri-La”) under its Shangri-La and Traders brands and Sheraton International Inc. and Sheraton Overseas Management Co. (collectively “Starwood”) under its Sheraton brand, as well as completion of the structural work of an adjacent hotel tower to be managed by Starwood under its Sheraton brand. Phase I will also include the gaming space and a partial opening of the retail and exhibition and conference facilities. The total cost to complete phase I is expected to be approximately $2.0 billion. Phase II of the project includes completion of the additional Sheraton hotel tower, the theater and the remaining retail facilities. The total cost to complete phase II is expected to be approximately $300 million. Phase III of the project is expected to include a fourth hotel and mixed-use tower to be managed by Starwood under its St. Regis brand and the total cost is expected to be approximately $450 million. In connection with entering into the $1.75 billion Venetian Orient Limited (“VOL”) credit facility (see “— Note 9 — Long-term Debt — VOL Credit Facility”) to be used together with $500.0 million of proceeds from the SCL Offering, the Company has recommenced construction activities. The Company is currently working with the Macau government to obtain sufficient construction labor for the project. Until adequate labor quotas are received, the timing of the completion of phases I and II is currently not determinable; however, the Company is progressing on alternative scenarios for completion of selected portions of phases I and II with the construction labor currently onsite. The Company intends to commence construction of phase III of the project as demand and market conditions warrant it. As of December 31, 2010, the Company has capitalized construction costs of $2.01 billion for the entire project (including $135.1 million in outstanding construction payables). The Company’s management agreements with Starwood and Shangri-La impose certain construction deadlines and opening obligations on the Company and certain past and/or anticipated delays, as described above, would allow Starwood and Shangri-La to terminate their respective agreements. See “— Note 14 — Commitments and Contingencies — Other Ventures and Commitments.” The Company is currently negotiating (or undertaking to negotiate) amendments to the management agreements with Starwood and Shangri-La to provide for new opening timelines.

The Company had commenced pre-construction activities on parcels 7 and 8 and 3, and has capitalized construction costs of $102.1 million for parcels 7 and 8 and $34.3 million for parcel 3 as of December 31, 2010. The Company intends to commence construction after the integrated resort on parcels 5 and 6 is complete, necessary government approvals are obtained (including the land concession, see below), regional and global economic conditions improve, future demand warrants it and additional financing is obtained.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The impact of the delayed construction on the Company’s previously estimated cost to complete its Cotai Strip developments is currently not determinable. As of December 31, 2010, the Company has capitalized an aggregate of $6.1 billion in costs for its Cotai Strip developments, including The Venetian Macao and Four Seasons Macao, as well as the Company’s investments in transportation infrastructure, including its passenger ferry service operations. In addition to funding phases I and II of parcels 5 and 6 with the $1.75 billion VOL credit facility, the Company will need to arrange additional financing to fund the balance of its Cotai Strip developments and there is no assurance that the Company will be able to obtain any of the additional financing required.

Land concessions in Macau generally have an initial term of 25 years with automatic extensions of 10 years thereafter in accordance with Macau law. The Company has received land concessions from the Macau government to build on parcels 1, 2, 3 and 5 and 6, including the sites on which The Venetian Macao (parcel 1) and Four Seasons Macao (parcel 2) are located. The Company does not own these land sites in Macau; however, the land concessions grant the Company exclusive use of the land. As specified in the land concessions, the Company is required to pay premiums for each parcel, which are either payable in a single lump sum upon acceptance of the land concessions by the Macau government or in seven semi-annual installments (provided that the outstanding balance is due upon the completion of the corresponding integrated resort), as well as annual rent for the term of the land concessions. During December 2010, the Company received notice from the Macau government that its application for a land concession for parcels 7 and 8 was not approved and the Company applied to the Chief Executive of Macau for a review of the decision. Subsequent to December 31, 2010, the Company filed an appeal with the Court of Second Instance in Macau, which has yet to issue a decision. Should the Company win its appeal, it is still possible for the Chief Executive of Macau to again deny the land concession based upon public policy considerations. If the Company does not obtain the land concession or does not receive full reimbursement of its capitalized investment in this project, the Company would record a charge for all or some portion of the $102.1 million in capitalized construction costs, as of December 31, 2010, related to its development on parcels 7 and 8.

Under the Company’s land concession for parcel 3, the Company was initially required to complete the corresponding development by August 2011. The Macau government has granted the Company a two-year extension to complete the development of parcel 3, which now must be completed by April 2013. The land concession for parcels 5 and 6 contains a similar requirement that the corresponding development be completed by May 2014 (48 months from the date the land concession became effective). The Company believes that if it is not able to complete the developments by the respective deadlines, it will likely be able to obtain extensions from the Macau government; however, no assurances can be given that additional extensions will be granted. If the Company is unable to meet the applicable deadlines and those deadlines are not extended, it could lose its land concessions for parcels 3 or 5 and 6, which would prohibit the Company from operating any facilities developed under the respective land concessions. As a result, the Company could record a charge for all or some portion of its $34.3 million and $2.01 billion in capitalized construction costs, as of December 31, 2010, related to its developments on parcels 3 or 5 and 6, respectively.

Other

When the current economic environment and access to capital improve, the Company may continue exploring the possibility of developing and operating additional properties, including integrated resorts, in additional Asian and U.S. jurisdictions, and in Europe.

Development Financing Strategy

Through December 31, 2010, the Company has funded its development projects primarily through borrowings under its U.S., Macau and Singapore credit facilities, operating cash flows, proceeds from its recent equity offerings and proceeds from the disposition of non-core assets.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The U.S. credit facility, as amended in August 2010, requires the Company’s Las Vegas operations to comply with certain financial covenants at the end of each quarter, including maintaining a maximum leverage ratio of net debt, as defined, to trailing twelve-month adjusted earnings before interest, income taxes, depreciation and amortization, as defined (“Adjusted EBITDA”). The maximum leverage ratio is 6.5x for the quarterly periods ended December 31, 2010 through June 30, 2011, decreases to 6.0x for the quarterly periods ended September 30 and December 31, 2011, decreases to 5.5x for the quarterly periods ended March 31 and June 30, 2012, and then decreases to 5.0x for all quarterly periods thereafter through maturity. One of the Company’s Macau credit facilities, the VML credit facility, as amended in August 2009, requires certain of the Company’s Macau operations to comply with similar financial covenants, including maintaining a maximum leverage ratio of debt to Adjusted EBITDA. The maximum leverage ratio is 3.5x for the quarterly period ended December 31, 2010, and then decreases to 3.0x for all quarterly periods thereafter through maturity. The Company can elect to contribute up to $50 million and $20 million of cash on hand to its Las Vegas and relevant Macau operations, respectively, on a bi-quarterly basis; such contributions having the effect of increasing Adjusted EBITDA by the corresponding amount during the applicable quarter for purposes of calculating compliance with the maximum leverage ratio (the “EBITDA true-up”). The Singapore credit facility requires operations of Marina Bay Sands to comply with similar financial covenants commencing with the quarterly period ending September 30, 2011, including maintaining a maximum leverage ratio of debt to Adjusted EBITDA. The maximum leverage ratio is 5.5x for the quarterly period ending September 30, 2011, and then decreases by 0.25x every other quarter until it decreases to, and remains at, 3.75x for all quarterly periods thereafter through maturity (commencing with the quarterly period ending September 30, 2014). If the Company is unable to maintain compliance with the financial covenants under these credit facilities, it would be in default under the respective credit facilities. A default under the U.S. credit facility would trigger a cross-default under the Company’s airplane financings, which, if the respective lenders chose to accelerate the indebtedness outstanding under these agreements, would result in a default under the Company’s senior notes. A default under the VML credit facility would trigger a cross-default under the Company’s ferry financing. Any defaults or cross-defaults under these 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 that the Company would be able to repay or refinance any amounts that may become due and payable under such agreements, which could force the Company to restructure or alter its operations or debt obligations.

In 2008, the Company completed a $475.0 million convertible senior notes offering and a $2.1 billion common and preferred stock and warrants offering. In 2009, the Company completed a $600.0 million exchangeable bond offering and its $2.5 billion SCL Offering. A portion of the proceeds from these offerings was used in the U.S. to pay down $775.9 million under the revolving portion of the U.S. credit facility in March 2010 and $1.0 billion under the term loan portions of the U.S. credit facility in August 2010, and to exercise the EBITDA true-up provision during the quarterly periods ended March 31 and September 30, 2010, and was contributed to Las Vegas Sands, LLC (“LVSLLC”) to reduce its net debt in order to maintain compliance with the maximum leverage ratio for the quarterly periods during the year ended December 31, 2010.

The Company held unrestricted and restricted cash and cash equivalents of approximately $3.04 billion and $809.9 million, respectively, as of December 31, 2010. The Company believes that the cash on hand, cash flow generated from operations and available borrowings under its credit facilities will be sufficient to fund its development plans and maintain compliance with the financial covenants of its U.S., Macau and Singapore credit facilities. In the normal course of its activities, the Company will continue to evaluate its capital structure and opportunities for enhancements thereof. In August 2010, the Company completed an amendment to its U.S. credit facility, which included a $1.0 billion pay down of its term loans and a reduction of its revolving credit facility commitments in exchange for the extension of certain maturities and other modifications to the credit agreement, thereby increasing the Company’s financial flexibility. Additionally, in connection with the $1.75 billion VOL credit facility to be used together with $500.0 million of proceeds from the SCL Offering, the Company has recommenced construction activities on the Company’s Cotai Strip development on parcels 5 and 6.

Note 2 — Summary of Significant Accounting Policies

Principles of Consolidation

The consolidated financial statements include the accounts of the Company, its majority-owned subsidiaries and variable interest entities (“VIEs”) in which the Company is the primary beneficiary. Effective January 1, 2009, the Company adopted the accounting standards for noncontrolling interests and reclassified the equity attributable to its noncontrolling interests as a component of equity in the accompanying consolidated balance sheets. All significant intercompany balances and transactions have been eliminated in consolidation.

Management’s determination of the appropriate accounting method with respect to the Company’s variable interests is based on accounting standards for VIEs issued by the Financial Accounting Standards Board (“FASB”). The Company consolidates any VIEs in which it is the primary beneficiary and discloses significant variable interests in VIEs of which it is not the primary beneficiary, if any.

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LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The Company has entered into various joint venture agreements with independent third parties. The operations of these joint ventures have been consolidated by the Company due to the Company’s significant investment in these joint ventures, its power to direct the activities of the joint ventures that would significantly impact their economic performance and the obligation to absorb potentially significant losses or the rights to receive potentially significant benefits from these joint ventures. The Company evaluates its primary beneficiary designation on an ongoing basis and will assess the appropriateness of the VIE’s status when events have occurred that would trigger such an analysis.

As of December 31, 2010 and 2009, the Company’s joint ventures had total assets of $95.3 million and $105.6 million, respectively, and total liabilities of $78.4 million and $75.3 million, respectively.

Use of Estimates

The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company 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 that is currently available to the Company and on various other assumptions that the Company believes to be reasonable under the circumstances. Actual results could vary from those estimates.

Cash and Cash Equivalents

Cash and cash equivalents consist of cash and short-term investments with original maturities of less than 90 days. Such investments are carried at cost, which is a reasonable estimate of their fair value. Cash equivalents are placed with high credit quality financial institutions and are primarily in money market funds.

Accounts Receivable and Credit Risk

Accounts receivable are comprised of casino, hotel and other receivables, which do not bear interest and are recorded at cost. The Company extends credit to approved casino customers following background checks and investigations of creditworthiness. The Company also extends credit to its junkets in Macau, which receivable can be offset against commissions payable to the respective junkets. Business or economic conditions, the legal enforceability of gaming debts, or other significant events in foreign countries could affect the collectability of receivables from customers and junkets residing in these countries.

The allowance for doubtful accounts represents the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company determines the allowance based on specific customer information, historical write-off experience and current industry and economic data. Account balances are charged off against the allowance when the Company believes it is probable the receivable will not be recovered. Management believes that there are no concentrations of credit risk for which an allowance has not been established. Although management believes that the allowance is adequate, it is possible that the estimated amount of cash collections with respect to accounts receivable could change.

Inventories

Inventories consist primarily of food, beverage and retail products, and operating supplies, which are stated at the lower of cost or market. Cost is determined by the first-in, first-out and specific identification methods.

Property and Equipment

Property and equipment are stated at the lower of cost or fair value. Depreciation and amortization are provided on a straight-line basis over the estimated useful lives of the assets, which do not exceed the lease term for leasehold improvements, as follows:

Land improvements, building and building improvements		15 to 40	years
Furniture, fixtures and equipment		3 to 15	years
Leasehold improvements		5 to 10	years
Transportation		5 to 20	years

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

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 the Company uses certain assets requiring a change in the estimated useful lives of such assets.

Maintenance and repairs that neither materially add to the value of the asset nor appreciably prolong its life are charged to expense as incurred. Gains or losses on disposition of property and equipment are included in the consolidated statements of operations.

The Company evaluates its property and equipment and other long-lived assets for impairment in accordance with related accounting standards. For assets to be disposed of, the Company recognizes the asset to be sold at the lower of carrying value or fair value less costs of disposal. Fair value for assets to be disposed of is estimated based on comparable asset sales, solicited offers or a discounted cash flow model.

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, the Company first groups its 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, the Company estimates the undiscounted future cash flows that are directly associated with and expected to arise from the completion, use and eventual disposition of such asset group. The Company estimates 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.

To estimate the undiscounted cash flows of the Company’s asset groups, the Company considers all potential cash flows scenarios, which are probability weighted based on management’s estimates given current conditions. Determining the recoverability of the Company’s 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 the Company’s 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 these 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 cost to sell. Losses are recognized for any initial or subsequent write-down to fair value less cost to sell, while gains are recognized for any subsequent increase in fair value less cost to sell, but not in excess of the cumulative loss previously recognized. Any gains or losses not previously recognized that results 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.

With the Company’s continued suspension of certain of its development projects and due to the difficult global economic and credit market environment, the Company tested certain of its assets for impairment as of December 31, 2010. During the year ended December 31, 2010, the Company recognized an impairment loss of $16.1 million related to equipment in Macau that is expected to be disposed of. During the year ended December 31, 2009, the Company recognized an impairment loss of $169.5 million, of which $94.0 million related to The Shoppes at The Palazzo, $57.2 million related to the indefinite suspension of a planned expansion of the Sands Expo Center and $15.0 million related to real estate previously utilized in connection with marketing activities in Asia.

Capitalized Interest

Interest costs associated with major construction projects are capitalized and included in the cost of the projects. When no debt is incurred specifically for construction projects, interest is capitalized on amounts expended using the weighted-average cost of the Company’s outstanding borrowings. Capitalization of interest ceases when the project is substantially complete or construction activity is suspended for more than a brief period. During the years ended December 31, 2010, 2009 and 2008, the Company capitalized interest expense of $106.1 million, $65.4 million and $131.2 million, respectively.

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LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Deferred Financing Costs and Original Issue Discounts

Deferred financing costs and original issue discounts are amortized to interest expense based on the terms of the related debt instruments using the effective interest method.

Leasehold Interests in Land

Leasehold interests in land represent payments made for the use of land over an extended period of time. The leasehold interests in land are amortized on a straight-line basis over the expected term of the related lease agreements.

Indefinite Useful Life Assets

Assets with indefinite useful lives are not subject to amortization and are tested for impairment and recoverability annually or more frequently if events or circumstances indicate that the assets might be impaired. The impairment test consists of a comparison of the fair value of the asset with its carrying amount. If the carrying amount of the asset is not recoverable and exceeds its fair value, an impairment will be recognized in an amount equal to that excess. If the carrying amount of the asset does not exceed the fair value, no impairment is recognized.

As of December 31, 2010, the Company had a $50.0 million asset related to its Sands Bethlehem gaming license and a $16.5 million asset related to its Sands Bethlehem table games certificate, both of which were determined to have an indefinite useful life and have been recorded within intangible assets in the accompanying consolidated balance sheets. The fair value of the Company’s gaming license and table games certificate was estimated using the Company’s expected adjusted property EBITDA (as defined in “— Note 18 — Segment Information”), combined with estimated future tax-affected cash flows and a terminal value using the Gordon Growth Model, which were discounted to present value at rates commensurate with the Company’s capital structure and the prevailing borrowing rates within the casino industry in general. No impairment charge related to these assets was recorded as of December 31, 2010. Adjusted property EBITDA and discounted cash flows are common measures used to value cash-incentive businesses such as casinos. Determining the fair value of the gaming license and table games certificate is judgmental in nature and requires the use of significant estimates and assumptions, including adjusted property EBITDA, growth rates, discount rates and future market conditions, among others. Future changes to the Company’s estimates and assumptions based upon changes in macro-economic factors, operating results, or management’s intentions may result in future changes to the fair value of the gaming license.

Revenue Recognition and Promotional Allowances

Casino revenue is the aggregate of gaming wins and losses. The commissions rebated directly or indirectly through junkets to customers, cash discounts and other cash incentives to customers related to gaming play are recorded as a reduction to gross casino revenue. Hotel revenue recognition criteria are met at the time of occupancy. Food and beverage revenue recognition criteria are met at the time of service. Deposits for future hotel occupancy or food and beverage services contracts are recorded as deferred income until revenue recognition criteria are met. Cancellation fees for hotel and food and beverage services are recognized upon cancellation by the customer. Convention revenues are recognized when the related service is rendered or the event is held. Minimum rental revenues, adjusted for contractual base rent escalations, are included in convention, retail and other revenue and are recognized on a straight-line basis over the terms of the related lease.

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LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

In accordance with industry practice, the retail value of rooms, food and beverage, and other services furnished to the Company’s guests without charge is included in gross revenue and then deducted as promotional allowances. The estimated retail value of such promotional allowances is included in operating revenues as follows (in thousands):

		Year Ended December 31,
		2010				2009				2008
Rooms		$	230,594			$	208,389			$	186,704
Food and beverage			141,925				96,424				101,084
Convention, retail and other			92,236				61,526				57,392
		$	464,755			$	366,339			$	345,180

The estimated departmental cost of providing such promotional allowances, which is included primarily in casino operating expenses, is as follows (in thousands):

		Year Ended December 31,
		2010				2009				2008
Rooms		$	55,433			$	54,512			$	44,158
Food and beverage			91,215				66,344				70,988
Convention, retail and other			74,160				50,264				42,573
		$	220,808			$	171,120			$	157,719

Gaming Taxes

The Company is subject to taxes based on gross gaming revenue in the jurisdictions in which it operates, subject to applicable jurisdictional adjustments. These gaming taxes, including the goods and services tax in Singapore, are an assessment on the Company’s gaming revenue and are recorded as a casino expense in the accompanying consolidated statements of operations. These taxes were $2.19 billion, $1.51 billion and $1.34 billion for the years ended December 31, 2010, 2009 and 2008, respectively.

Frequent Players Program

The Company has established promotional clubs to encourage repeat business from frequent and active slot machine customers and table games patrons. Members earn points primarily based on gaming activity and such points can be redeemed for cash, free play and other free goods and services. The Company accrues for club points expected to be redeemed for cash and free play as a reduction to gaming revenue and accrues for club points expected to be redeemed for free goods and services as casino expense. The accruals are based on estimates and assumptions regarding the mix of cash, free play and other free goods and services that will be redeemed and the costs of providing those benefits. Historical data is used to assist in the determination of the estimated accruals.

Pre-Opening and Development Expenses

The Company accounts for costs incurred in the development and pre-opening phases of new ventures in accordance with accounting standards regarding start-up activities. Pre-opening expenses represent personnel and other costs incurred prior to the opening of new ventures and are expensed as incurred. Development expenses include the costs associated with the Company’s evaluation and pursuit of new business opportunities, which are also expensed as incurred.

Advertising Costs

Costs for advertising are expensed the first time the advertising takes place or as incurred. Advertising costs included in the accompanying consolidated statements of operations were $54.3 million, $56.7 million and $48.2 million for the years ended December 31, 2010, 2009 and 2008, respectively.

Corporate Expenses

Corporate expense represents payroll, travel, professional fees and various other expenses not allocated or directly related to the Company’s integrated resort operations and related ancillary operations.

Foreign Currency

The Company accounts for currency translation in accordance with accounting standards regarding foreign currency translation. Gains or losses from foreign currency remeasurements are included in other income (expense). Balance sheet accounts are translated at the exchange rate in effect at each balance sheet date and income statement accounts are translated at the average exchange rates during the year. Translation adjustments resulting from this process are charged or credited to other comprehensive income.

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LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Comprehensive Income (Loss)

Comprehensive income (loss) includes net income (loss) and all other non-stockholder changes in equity, or other comprehensive income. Elements of the Company’s comprehensive income (loss) are reported in the accompanying consolidated statements of equity and comprehensive income (loss), and the balance of accumulated other comprehensive income (loss) consisted solely of foreign currency translation adjustments.

Earnings (Loss) Per Share

The weighted average number of common and common equivalent shares used in the calculation of basic and diluted earnings (loss) per share consisted of the following:

		Year Ended December 31,
		2010				2009				2008
Weighted-average common shares outstanding (used in the calculation of basic earnings (loss) per share)			667,463,535				656,836,950				392,131,375
Potential dilution from stock options, restricted stock and warrants			124,297,089				—				—
Weighted-average common and common equivalent shares (used in the calculation of diluted earnings (loss) per share)			791,760,624				656,836,950				392,131,375
Antidilutive stock options, restricted stock and warrants excluded from the calculation of diluted earnings (loss) per share			9,848,266				170,731,981				184,840,819

Stock-Based Employee Compensation

The Company accounts for its stock-based employee compensation in accordance with accounting standards regarding share-based payment, which establishes accounting for equity instruments exchanged for employee services. Stock-based compensation cost is measured at the grant date, based on the calculated fair value of the award, and is recognized over the employee’s requisite service period (generally the vesting period of the equity grant). The Company’s stock-based employee compensation plans are more fully discussed in “— Note 15 — Stock-Based Employee Compensation.”

Income Taxes

The Company is subject to income taxes in the U.S. (including federal and state) and numerous foreign jurisdictions in which it operates. The Company records 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. Accounting standards regarding income taxes requires 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 that 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, the Company’s experience with operating loss and tax credit carryforwards not expiring unused, and tax planning alternatives.

The Company recorded valuation allowances on the net deferred tax assets of its U.S. operations and certain foreign jurisdictions. Management will reassess the realization of deferred tax assets based on the accounting standards for income taxes each reporting period. To the extent that the financial results of these operations improve and it becomes more likely than not that the deferred tax assets are realizable, the Company will be able to reduce the valuation allowance.

Significant judgment is required in evaluating the Company’s tax positions and determining its provision for income taxes. During the ordinary course of business, there are many transactions and calculations 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 that 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 which is more than 50% likely, based solely on the technical merits, of being sustained on examinations. The Company considers many factors when evaluating and estimating its tax positions and tax benefits, which may require periodic adjustments and which may not accurately anticipate actual outcomes.

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LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Accounting for Derivative Instruments and Hedging Activities

Generally accepted accounting principles require that an entity recognize all derivatives as either assets or liabilities in the statement of financial position and measure those instruments at fair value. If specific conditions are met, a derivative may be specifically designated as a hedge of specific financial exposures. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and, if used in hedging activities, it depends on its effectiveness as a hedge.

The Company has a policy aimed at managing interest rate risk associated with its current and anticipated future borrowings. This policy enables the Company to use any combination of interest rate swaps, futures, options, caps and similar instruments. To the extent the Company employs such financial instruments pursuant to this policy, and the instruments qualify for hedge accounting, they are accounted for as hedging instruments. In order to qualify for hedge accounting, the underlying hedged item must expose the Company to risks associated with market fluctuations and the financial instrument used must be designated as a hedge and must reduce the Company’s exposure to market fluctuation throughout the hedge period. If these criteria are not met, a change in the market value of the financial instrument is recognized as a gain or loss in results of operations in the period of change. Otherwise, gains and losses are recognized in comprehensive income or loss except to the extent that the financial instrument is disposed of prior to maturity. Net interest paid or received pursuant to the financial instrument is included as interest expense in the period.

Recent Accounting Pronouncements

In June 2009, the FASB issued authoritative guidance for VIEs, which changes the approach to determining the primary beneficiary of a VIE and requires companies to more frequently assess whether they must consolidate VIEs. In December 2009, the FASB supplemented its authoritative guidance for VIE’s, which established new criteria for consolidation based on power to direct the activities of a VIE that would significantly impact the VIE’s economic performance and the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The new guidance does not allow grandfathering of existing structures and was effective January 1, 2010. The application of this guidance did not have a material effect on the Company’s financial condition, results of operations or cash flows.

In January 2010, the FASB issued authoritative guidance for fair value measurements, which requires new disclosures regarding significant transfers in and out of Level 1 and 2 fair value measurements and gross presentation of activity within the reconciliation for Level 3 fair value measurements. The guidance also clarifies existing requirements on the level of disaggregation and required disclosures regarding inputs and valuation techniques for both recurring and nonrecurring Level 2 and 3 fair value measurements. The guidance is effective for interim and annual reporting periods beginning after December 15, 2009, with the exception of gross presentation of Level 3 activity, which is effective for interim and annual reporting periods beginning after December 15, 2010. The adoption of this guidance did not have a material effect on the Company’s financial condition, results of operations or cash flows. See “— Note 12 — Fair Value Measurements” for the required disclosure.

In April 2010, the FASB issued authoritative guidance for companies that generate revenue from gaming activities that involve base jackpots, which requires companies to accrue for a liability and charge a jackpot (or portion thereof) to revenue at the time the company has the obligation to pay the jackpot. The guidance is effective for interim and annual reporting periods beginning on or after December 15, 2010. Base jackpots are currently not accrued for by the Company until it has the obligation to pay such jackpots. As such, the application of this guidance will not have a material effect on the Company’s financial condition, results of operations or cash flows.

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LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Revision

In connection with the preparation of the Quarterly Report on Form 10-Q for the quarter ended March 31, 2010, the Company revised its December 31, 2009, consolidated balance sheet and consolidated statements of equity and comprehensive income (loss) to appropriately reflect the impact of the issuance of SCL shares upon its initial public offering. This revision resulted in a $655.7 million increase in the noncontrolling interests balance with a corresponding reduction to capital in excess of par value. The revision, which the Company determined is not material, had no impact on total equity, results of operations or cash flows.

Reclassification

The Company reclassified its intangible assets, net of amortization, as of December 31, 2009, which was previously included in other assets, net, to conform to the current presentation (see “— Note 7 — Intangible Assets, Net”). The reclassification had no effect on the Company’s financial condition, results of operations or cash flows.

Note 3 — Restricted Cash and Cash Equivalents

As required by the Company’s VOL credit facility entered into in May 2010 (see “— Note 9 — Long-Term Debt — Macau Related Debt — VOL Credit Facility”), certain loan proceeds made available under this facility and certain future cash flows generated by certain of the Company’s Macau operations are deposited into restricted accounts, invested in cash or cash equivalents, and pledged to the collateral agent as security in favor of the lenders under the VOL credit facility. This restricted cash amount is being used to fund ongoing construction of the Company’s Cotai Strip integrated resort development on parcels 5 and 6 in accordance with terms specified in the VOL credit facility, as well as to fund interest and principal payments due under the VOL credit facility. As of December 31, 2010, the restricted cash balance was $775.7 million.

As required by the Company’s Singapore credit facility entered into in December 2007 (see “— Note 9 — Long-Term Debt — Singapore Related Debt — Singapore Credit Facility”), proceeds available under this credit facility have been deposited into accounts, invested in cash or cash equivalents, and pledged to a security trustee for the benefit of the Singapore credit facility lenders. This restricted cash amount is being used to fund construction and other operating and development costs of the Marina Bay Sands in accordance with terms specified in the Singapore credit facility. These accounts are subject to a security interest in favor of the lenders under the Singapore credit facility. As of December 31, 2010 and 2009, the restricted cash balance was $14.4 million and $88.3 million, respectively.

Restricted cash also includes $19.8 million and $30.3 million as of December 31, 2010 and 2009, respectively, related to other items. Restricted cash balances classified as current are primarily equivalent to the related construction payables that are also classified as current.

Note 4 — Accounts Receivable, Net

Accounts receivable consists of the following (in thousands):

		December 31,
		2010				2009
Casino		$	715,212			$	438,499
Rooms			85,610				49,017
Other			97,953				93,316
			898,775				580,832
Less — allowance for doubtful accounts			(181,856	)			(120,066	)
		$	716,919			$	460,766

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LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Note 5 — Property and Equipment, Net

Property and equipment consists of the following (in thousands):

		December 31,
		2010				2009
Land and improvements		$	410,758			$	353,791
Building and improvements			10,881,936				6,898,071
Furniture, fixtures, equipment and leasehold improvements			1,990,721				1,703,792
Transportation			402,904				403,256
Construction in progress			3,147,750				5,647,986
			16,834,069				15,006,896
Less — accumulated depreciation and amortization			(2,331,872	)			(1,655,625	)
		$	14,502,197			$	13,351,271

Construction in progress consists of the following (in thousands):

		December 31,
		2010				2009
Cotai Strip parcels 5 and 6		$	2,005,386			$	1,847,959
Four Seasons Macao (principally the Four Season Apartments)			379,161				328,300
Marina Bay Sands			337,835				3,119,935
Sands Bethlehem			101,960				85,159
Other			323,408				266,633
		$	3,147,750			$	5,647,986

The $323.4 million in other construction in progress consists primarily of construction of the Las Vegas Condo Tower and costs incurred at the Cotai Strip parcels 3 and 7 and 8.

As of December 31, 2010, the Company has received proceeds of $295.4 million from the sale of The Shoppes at The Palazzo (see “— Note 13 — Mall Sales — The Shoppes at The Palazzo”); however, the final purchase price will be determined in accordance with the April 2004 purchase and sale agreement, as amended, between Venetian Casino Resort, LLC (“VCR”) and GGP (the “Amended Agreement”) based on net operating income (“NOI”) of The Shoppes at The Palazzo calculated 30 months after the closing date of the sale, as defined under the Amended Agreement (the “Final Purchase Price”) and subject to certain later audit adjustments. Given the economic and market conditions facing retailers on a national and local level, tenants are facing economic challenges that have had an effect on the calculation of NOI. Approximately $282.1 million of property and equipment (net of $29.3 million of accumulated depreciation), which was sold to GGP, is included in the consolidated balance sheet as of December 31, 2010. In April 2009, GGP and its subsidiary that owns The Shoppes at The Palazzo filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code (the “Chapter 11 Cases”). The United States Bankruptcy Court for the Southern District of New York entered orders approving the plans of reorganization of GGP and the subsidiary that owns The Shoppes at The Palazzo on October 21 and April 29, 2010, respectively, and the effective date of such plans of reorganization occurred on November 9 and May 28, 2010, respectively. Under the confirmed plans of reorganization, the only impaired creditors were mortgage holders. The Company will continue to review the Chapter 11 Cases and will adjust the estimates of NOI and capitalization rates as additional information is received. The Company and GGP have entered into several amendments to the Amended Agreement to defer the time to reach agreement on the Final Purchase Price as both parties are continuing to work on various matters related to the calculation of NOI. The Company may be required to record a loss on the sale in the future depending on the resolution of such matters and the resulting agreed upon Final Purchase Price.

The cost and accumulated depreciation of property and equipment that the Company is leasing to tenants as part of its mall operations was $678.4 million and $76.6 million, respectively as of December 31, 2010. The cost and accumulated depreciation of property and equipment that the Company is leasing to tenants as part of its mall operations was $385.7 million and $47.9 million, respectively, as of December 31, 2009.

The cost and accumulated depreciation of property and equipment that the Company is leasing under capital lease arrangements is $29.8 million and $3.5 million, respectively, as of December 31, 2010. The cost and accumulated depreciation of property and equipment that the Company is leasing under capital lease arrangements was $25.6 million and $0.9 million, respectively, as of December 31, 2009.

As described in “— Note 1 — Organization and Business of Company — Development Projects,” the Company suspended portions of its development projects given the conditions in the capital markets and the global economy and their impact on the Company’s ongoing operations. If circumstances change, the Company may be required to record an impairment charge related to these developments in the future.

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LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The Company had commenced pre-construction activities on parcels 7 and 8, and has capitalized construction costs of $102.1 million as of December 31, 2010. During December 2010, the Company received notice from the Macau government that its application for a land concession for parcels 7 and 8 was not approved and the Company applied to the Chief Executive of Macau for a review of the decision. Subsequent to December 31, 2010, the Company filed an appeal with the Court of Second Instance in Macau, which has yet to issue a decision. Should the Company win its appeal, it is still possible for the Chief Executive of Macau to again deny the land concession based upon public policy considerations. Based upon these recent developments, the Company performed an impairment analysis to determine the recoverability of its investment on parcels 7 and 8, on an undiscounted cash flow basis. The Company’s analysis considered the various potential outcomes of the appeal process, which included ultimate denial of the land concession with varying levels of compensation, as well as the ultimate granting of the concession and related construction of the resort, through a probability weighted approach. In order to obtain the land concession and construct the resort, the Company would need to win its appeal and avoid any future denial of the land concession based upon public policy considerations. If the Company does not obtain the land concession or does not receive full reimbursement of its capitalized investment in this project, the Company would record a charge for all or some portion of the $102.1 million in capitalized construction costs, as of December 31, 2010, related to its development on parcels 7 and 8.

Note 6 — Leasehold Interests in Land, Net

Leasehold interests in land consist of the following (in thousands):

		December 31,
		2010				2009
Marina Bay Sands		$	1,066,241			$	880,175
The Venetian Macao			170,702				169,568
Parcels 5 and 6			107,402				87,639
Four Seasons Macao			85,334				71,745
Parcel 3			73,162				58,308
Sands Macao			27,221				27,318
			1,530,062				1,294,753
Less — accumulated amortization			(131,222	)			(84,933	)
		$	1,398,840			$	1,209,820

The Company amortizes the leasehold interests in land on a straight-line basis over the expected term of the lease. Amortization expense of $41.3 million, $27.0 million and $26.2 million was included in rental expense for the years ended December 31, 2010, 2009 and 2008, respectively. The estimated future rental expense is approximately $37.5 million for each of the next five years and $1.51 billion thereafter at exchange rates in effect on December 31, 2010.

As part of the development agreement entered into by the Company’s wholly owned subsidiary, Marina Bay Sands Pte. Ltd. (“MBS”), with the Singapore Tourism Board (the “STB”) for the Marina Bay Sands, the Company was required to build a structure to house a water cooling facility that will be operated by a third party and will provide water to Marina Bay Sands and other buildings around the resort. During the year ended December 31, 2010, this structure was turned over to the third party operator in order to commence operations. As the Company does not operate the facility and does not receive substantially all of the output, the Company has reclassified the $107.9 million cost of the asset from property and equipment to leasehold interests in land as an additional cost of the use of the land.

During the year ended December 31, 2010, the Company made payments of 155.1 million patacas (approximately $19.3 million at exchange rates in effect on December 31, 2010) as partial payments of the land premium for parcels 5 and 6 and 105.9 million patacas and 118.9 million patacas (approximately $13.2 million and $14.8 million, respectively, at exchange rates in effect on December 31, 2010) as final payments for parcels 2 and 3, respectively. The remaining land premium payments for parcels 5 and 6 will either be payable through the remaining six semi-annual installments in the amount of 184.3 million patacas each (approximately $23.0 million at exchange rates in effect on December 31, 2010), bearing interest at 5% per annum, or due upon completion of the integrated resort on these parcels.

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LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

In addition to the land premium payments for the Macau leasehold interests in land, the Company is required to make annual rent payments in the amounts and at the times specified in the land concessions. The rent amounts may be revised every five years by the Macau government. As of December 31, 2010, the Company was obligated under its land concessions to make future premium and rental payments as follows (in thousands):

2011		$	49,432
2012			49,432
2013			49,714
2014			4,751
2015			5,265
Thereafter			91,497
		$	250,091

Note 7 — Intangible Assets, Net

Intangible assets consist of the following (in thousands):

		December 31,
		2010				2009
Gaming licenses and certificate		$	95,568			$	50,000
Less — accumulated amortization			(6,594	)			—
			88,974				50,000
Trademarks and other			1,022				263
Less — accumulated amortization			(191	)			(134	)
			831				129
Total intangible assets, net		$	89,805			$	50,129

In August 2007 and July 2010, the Company was issued a gaming license and certificate from the Pennsylvania Gaming Control Board for its slots and table games operations at Sands Bethlehem, respectively, which were acquired for $50.0 million and $16.5 million, respectively. The license and certificate were determined to have indefinite lives and therefore, are not subject to amortization. In April 2010, the Company was issued a gaming license from the Singapore Casino Regulatory Authority (the “CRA”) for its gaming operations at Marina Bay Sands, which was acquired for SGD 37.5 million (approximately $29.1 million at exchange rates in effect on December 31, 2010). This license is being amortized over its three-year term and is renewable upon submitting a renewal application, paying the applicable license fee and meeting the renewal requirements as determined by the CRA.

Amortization expense was $6.3 million, $46,000 and $35,000 for the years ended December 31, 2010, 2009 and 2008, respectively. The estimated future amortization expense is approximately $9.7 million, $9.7 million and $3.1 million for each of the next three years and $27,000 thereafter.

Note 8 — Other Accrued Liabilities

Other accrued liabilities consist of the following (in thousands):

		December 31,
		2010				2009
Outstanding gaming chips and tokens		$	387,776			$	237,557
Taxes and licenses			270,838				162,816
Customer deposits			184,924				115,232
Other accruals			161,735				156,887
Payroll and related			154,961				113,700
		$	1,160,234			$	786,192

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LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Note 9 — Long-Term Debt

Long-term debt consists of the following (in thousands):

		December 31,
		2010				2009
Corporate and U.S. Related:
Senior Secured Credit Facility — Term B		$	2,157,199			$	2,925,000
Senior Secured Credit Facility — Delayed Draws I and II			720,332				987,000
Senior Secured Credit Facility — Revolving			—				775,860
6.375% Senior Notes (net of original issue discount of $720 and $1,164, respectively)			188,992				248,836
FF&E Facility			—				108,550
Airplane Financings			78,422				82,110
HVAC Equipment Lease			23,006				24,717
Other			3,868				4,778
Macau Related:
VML Credit Facility — Term B			1,483,789				1,501,789
VML Credit Facility — Term B Delayed			577,029				584,029
VML Credit Facility — Revolving			—				479,640
VML Credit Facility — Local Term			—				67,697
VOL Credit Facility — Term			749,930				—
Ferry Financing			175,011				210,762
Other			640				11,016
Singapore Related:
Singapore Credit Facility			3,980,435				3,013,678
Other			2,170				—
			10,140,823				11,025,462
Less — current maturities			(767,068	)			(173,315	)
Total long-term debt		$	9,373,755			$	10,852,147

Corporate and U.S. Related Debt

Senior Secured Credit Facility

In May 2007, the Company entered into a $5.0 billion senior secured credit facility (the “Senior Secured Credit Facility”), which consists of a $3.0 billion funded term B loan (the “Term B Facility”), a $600.0 million delayed draw term B loan available for 12 months after closing (the “Delayed Draw I Facility”), a $400.0 million delayed draw term B loan available for 18 months after closing (the “Delayed Draw II Facility”) and a $1.0 billion revolving credit facility, of which up to $100.0 million may be drawn on a swingline basis (the “Revolving Facility”). In August 2010, the Senior Secured Credit Facility was amended to, among other things, modify certain financial covenants, including increasing the maximum leverage ratio for the quarterly periods through June 30, 2012 (see “— Note 1 — Organization and Business of Company — Development Financing Strategy”). As of December 31, 2010, the Company had fully drawn the Delayed Draw I and II Facilities and had $714.6 million of available borrowing capacity under the Revolving Facility, net of outstanding letters of credit and undrawn amounts committed to be funded by Lehman Brothers Commercial Paper Inc.

In addition to the amendment, certain lenders elected to extend the maturity of $1.42 billion in aggregate principal amount of the Term B Facility to November 2016 (the “Extended Term B Facility”), $284.5 million in aggregate principal amount of the Delayed Draw I Facility to November 2016 (the “Extended Delayed Draw I Facility”), $207.9 million in aggregate principal amount of the Delayed Draw II Facility to November 2015 (the “Extended Delayed Draw II Facility,” collectively the “Extended Term Loans”) and to extend the availability of $532.5 million (after giving effect to the reductions described below) of the Revolving Facility to May 2014 (the “Extended Revolving Facility”). As part of the extension, the Company was required to pay down $1.0 billion in aggregate principal amount of the Extended Term Loans and the commitments under the Revolving Facility were reduced from $1.0 billion to $750.0 million. As a result of the repayment and amendment, the Company recorded a $21.2 million loss on modification or early retirement of debt during the year ended December 31, 2010.

The Extended Term B Facility is subject to quarterly amortization payments of $3.5 million, which began on September 30, 2010, followed by a balloon payment of $1.3 billion due on November 23, 2016. The Extended Delayed Draw I Facility is subject to quarterly amortization payments of $0.7 million, which began on September 30, 2010, followed by a balloon payment of $266.9 million due on November 23, 2016. The Extended Delayed Draw II Facility is subject to quarterly amortization payments of $0.5 million, which began on September 30, 2010, followed by a balloon payment of $197.1 million due on November 23, 2015. The Extended Revolving Facility has no interim amortization payments.

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LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The non-extended portions of the Term B and Delayed Draw I Facilities mature on May 23, 2014. The Term B Facility is subject to quarterly amortization payments of $1.9 million, which began on September 30, 2010, followed by a balloon payment of $723.1 million due on May 23, 2014. The Delayed Draw I Facility is subject to quarterly amortization payments of $0.4 million, which began on September 30, 2010, followed by a balloon payment of $148.3 million due on May 23, 2014. The Delayed Draw II Facility matures on May 23, 2013, and is subject to quarterly amortization payments of $0.2 million, which began on September 30, 2010, followed by a balloon payment of $75.0 million due on May 23, 2013. The Revolving Facility matures on May 23, 2012, and has no interim amortization payments.

Prior to the extension, the Term B, Delayed Draw I and Delayed Draw II Facilities were subject to quarterly amortization payments of $7.5 million, which began September 30, 2007, $1.5 million, which began September 30, 2008 and $1.0 million, which began March 31, 2009, respectively. During the year ended December 31, 2010, the Company paid down $775.9 million under the Revolving Facility, in addition to the pay down of $1.0 billion of the Extended Term Loans as described above.

The Senior Secured Credit Facility is guaranteed by certain of the Company’s domestic subsidiaries (the “Guarantors”). The obligations under the Senior Secured Credit Facility and the guarantees of the Guarantors are collateralized by a first-priority security interest in substantially all of LVSLLC’s and the Guarantors’ assets, other than capital stock and similar ownership interests, certain furniture, fixtures and equipment, and certain other excluded assets.

Borrowings under the Senior Secured Credit Facility, as amended, bear interest, at the Company’s option, at either an adjusted Eurodollar rate or at an alternative base rate plus a credit spread. For base rate borrowings, the initial credit spread is 0.5% per annum and 0.75% per annum for the Revolving Facility and the term loans, respectively, and 1.25% per annum and 1.75% per annum for the Extended Revolving Facility and the Extended Term Loans, respectively. For Eurodollar rate borrowings, the initial credit spread is 1.5% per annum and 1.75% per annum for the Revolving Facility and the term loans, respectively (the term loans were set at 2.0% as of December 31, 2010), and 2.25% per annum and 2.75% per annum for the Extended Revolving Facility and Extended Term Loans, respectively (the Extended Term loans were set at 3.0% as of December 31, 2010). These spreads will be reduced if the Company’s “corporate rating” (as defined in the Senior Secured Credit Facility) is increased to at least Ba2 by Moody’s and at least BB by Standard & Poor’s Ratings Group (“S&P”), subject to certain additional conditions. The spread for the Revolving Facility will be further reduced if the Company’s “corporate rating” is increased to at least Ba1 or higher by Moody’s and at least BB+ or higher by S&P, subject to certain additional conditions. The weighted average interest rate for the Senior Secured Credit Facility was 2.3% and 2.1% during the years ended December 31, 2010 and 2009, respectively.

The Company pays a commitment fee of 0.375% per annum and 0.5% per annum on the undrawn amounts under the Revolving Facility and the Extended Revolving Facility, respectively, which will be reduced if certain corporate ratings are achieved, subject to certain additional conditions. The Company also paid a commitment fee equal to 0.75% per annum and 0.5% per annum on the undrawn amounts under the Delayed Draw I and II Facilities, respectively.

The Senior Secured Credit Facility, as amended, contains affirmative and negative covenants customary for such financings, including, but not limited to, limitations on incurring additional liens, incurring additional indebtedness, making certain investments, paying dividends and making other restricted payments, and acquiring and selling assets. The Senior Secured Credit Facility also requires the Guarantors to comply with financial covenants, including, but not limited to, minimum ratios of Adjusted EBITDA to interest expense and maximum ratios of net debt outstanding to Adjusted EBITDA. The Senior Secured Credit Facility also contains conditions and events of default customary for such financings. See “— Note 1 — Organization and Business of Company — Development Financing Strategy” for further discussion. As of December 31, 2010, approximately $5.90 billion of net assets of LVSLLC were restricted from being distributed under the terms of the Senior Secured Credit Facility.

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LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Senior Notes

On February 10, 2005, LVSC sold in a private placement transaction $250.0 million in aggregate principal amount of its 6.375% senior notes due 2015 with an original issue discount of $2.3 million. Net proceeds after offering costs and original issue discount were $244.8 million. In June 2005, the senior notes were exchanged for substantially similar senior notes (the “Senior Notes”), which have been registered under the federal securities laws. The Senior Notes will mature on February 15, 2015. LVSC had the option to redeem all or a portion of the Senior Notes at any time prior to February 15, 2010, at a “make-whole” redemption price. Thereafter, LVSC has the option to redeem all or a portion of the Senior Notes at any time at fixed prices that decline ratably over time. The Senior Notes are senior obligations of LVSC. In connection with entering into the Senior Secured Credit Facility, the Senior Notes, which are jointly and severally guaranteed by certain of LVSC’s domestic subsidiaries, including LVSLLC and VCR, were collateralized on an equal and ratable basis with obligations under the Senior Secured Credit Facility by the assets of LVSLLC and the Guarantors. The indenture governing the Senior Notes contains covenants that, subject to certain exceptions and conditions, limit the ability of LVSC and the subsidiary guarantors to enter into sale and leaseback transactions in respect of their principal properties, create liens on their principal properties and consolidate, merge or sell all or substantially all their assets.

During the year ended December 31, 2010, the Company repurchased $60.3 million of the outstanding principal of the Senior Notes and recorded a $3.4 million gain on early retirement of debt in connection with the repurchase.

FF&E Facility

In December 2006, certain of the Company’s subsidiaries, including LVSLLC and VCR, entered into an FF&E credit facility agreement with a group of lenders and General Electric Capital Corporation as administrative agent to provide up to $142.9 million to finance or refinance the acquisition of certain FF&E located in The Venetian Las Vegas and The Palazzo. The facility consisted of a $7.9 million funded term loan which proceeds refinanced a prior FF&E loan and a $135.0 million delayed draw term loan. In August 2007, the parties to this facility entered into an amended and restated FF&E credit and guarantee agreement (the “FF&E Facility”) which, among other things, increased the overall size of the delayed draw term loan facility to $167.0 million, repaid the funded term loan under the previous facility and conformed the affirmative and negative covenants and events of default to those set forth in the Senior Secured Credit Facility.

The FF&E Facility was collateralized by the FF&E financed and/or refinanced with the proceeds of the FF&E Facility, and was guaranteed by the Guarantors under the Senior Secured Credit Facility.

On July 1, 2008, the Company was required to begin making quarterly installment principal payments of $8.4 million, which was the amount equal to 5.0% of the aggregate principal amount of the delayed draw term loan outstanding on July 1, 2008, with the remainder due in four equal quarterly installments ending on the maturity date. Borrowings under the FF&E Facility bear interest, at the Company’s option, at either an adjusted Eurodollar rate or at a base rate, plus an applicable margin. The initial applicable margin was 1.0% per annum for loans accruing interest at the base rate, and 2.0% per annum for loans accruing interest at the adjusted Eurodollar rate. The applicable margins were to be reduced by 0.25% per annum under certain circumstances similar to those set forth in the Senior Secured Credit Facility. The Company also paid a commitment fee of 0.50% per annum on the undrawn amount of the term delayed draw loan. The weighted average interest rate on the FF&E Facility was 2.1% and 2.4% during the years ended December 31, 2010 and 2009, respectively.

In August 2010, the Company repaid the $91.8 million outstanding balance under the FF&E Credit Facility and incurred a $0.5 million loss on early retirement of debt during the year ended December 31, 2010.

Airplane Financings

In February 2007, the Company entered into promissory notes totaling $72.0 million to finance the purchase of one airplane and to finance two others that the Company already owned. The notes consist of balloon payment promissory notes and amortizing promissory notes, all of which have ten year maturities and are collateralized by the related aircraft. The notes bear interest at three-month London Inter-Bank Offered Rate (“LIBOR”) plus 1.5% per annum (set at 1.8% as of December 31, 2010). The amortizing notes, totaling $28.8 million, are subject to quarterly amortization payments of $0.7 million, which began June 1, 2007. The balloon notes, totaling $43.2 million, mature on March 1, 2017, and have no interim amortization payments. The weighted average interest rate on the notes was 1.9% and 2.5% during the years ended December 31, 2010 and 2009, respectively.

In April 2007, the Company entered into promissory notes totaling $20.3 million to finance the purchase of an additional airplane. The notes have ten year maturities and consist of a balloon payment promissory note and an amortizing promissory note. The notes bear interest at three-month LIBOR plus 1.25% per annum (set at 1.6% as of December 31, 2010). The $8.1 million amortizing note is subject to quarterly amortization payments of $0.2 million, which began June 30, 2007. The $12.2 million balloon note matures on March 31, 2017, and has no interim amortization payments. The weighted average interest rate on the notes was 1.6% and 2.2% during the years ended December 31, 2010 and 2009, respectively.

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LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

HVAC Equipment Lease

In July 2009, the Company entered into a capital lease agreement with its current heating, ventilation and air conditioning (“HVAC”) provider (the “HVAC Equipment Lease”) to provide the operation and maintenance services for the HVAC equipment in Las Vegas. The lease has a 10-year term with a purchase option at the third, fifth, seventh and tenth anniversary dates. The Company is obligated under the agreement to make monthly payments of approximately $300,000 for the first year with automatic decreases of approximately $14,000 per month on every anniversary date. The HVAC Equipment Lease was capitalized at the present value of the future minimum lease payments at lease inception.

Convertible Senior Notes

In September 2008, the Company sold to the Principal Stockholder’s family, in a private placement transaction, $475.0 million of its 6.5% convertible senior notes due 2013 (the “Convertible Senior Notes”). The Convertible Senior Notes were subject to quarterly interest payments, commencing January 1, 2009, and would mature on October 1, 2013, unless earlier converted or repurchased by the Company. The initial conversion rate was 20.141 shares of common stock per $1,000 principal amount (equivalent to a conversion price of approximately $49.65 per share of common stock), subject to adjustment under certain circumstances. Following any fundamental change, as defined in the agreement, that occurs prior to the maturity date, the Company would be required to make an offer to purchase the Convertible Senior Notes. The Principal Stockholder’s family was granted pre-emptive rights with respect to any future proposed issuance or sale by the Company of equity interests (including convertible or exchangeable securities), pursuant to which they would be able to purchase a portion of the offered equity interests based on their fully diluted common stock ownership in the Company.

In November 2008, concurrent with the Company’s issuance of common and preferred stock and warrants (see “— Note 10 — Equity”), the Convertible Senior Notes were retired and the conversion feature was utilized to acquire 86,363,636 shares of the Company’s common stock at a conversion price of $5.50 per share (a conversion rate of approximately 181.818 shares per $1,000 principal amount). As a result, the Company incurred a charge of approximately $5.1 million for loss on early retirement of the notes and paid interest to the Principal Stockholder’s family of $3.7 million for the period the Convertible Senior Notes were outstanding during the year ended December 31, 2008.

Macau Related Debt

VML Credit Facility

On May 25, 2006, two subsidiaries of the Company, VML US Finance, LLC (the “Borrower”) and Venetian Macau Limited (“VML”), as guarantor, entered into a credit agreement (the “VML Credit Facility”). The VML Credit Facility originally consisted of a $1.2 billion funded term B loan (the “VML Term B Facility”), a $700.0 million delayed draw term B loan (the “VML Term B Delayed Draw Facility”), a $100.0 million funded local currency term loan (the “VML Local Term Facility”) and a $500.0 million revolving credit facility (the “VML Revolving Facility”). In March 2007, the VML Credit Facility was amended to expand the use of proceeds and remove certain restrictive covenants. In April 2007, the lenders of the VML Credit Facility approved a reduction of the interest rate margin for all classes of loans by 50 basis points and the Borrower exercised its rights under the VML Credit Facility to access the $800.0 million of incremental facilities under the accordion feature set forth therein, which increased the funded VML Term B Facility by $600.0 million, the VML Revolving Facility by $200.0 million, and the total VML Credit Facility to $3.3 billion.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

On August 12, 2009, the VML Credit Facility was amended to, among other things, allow for the SCL Offering and modify certain financial covenants and definitions, including increasing the maximum leverage ratio for the quarterly periods through the end of 2010 (see “— Note 1 — Organization and Business of Company — Development Financing Strategy”). As part of the amendment, the credit spread increased by 325 basis points with borrowings bearing interest, at the Company’s option, at either an adjusted Eurodollar rate (or, in the case of the local term loan, adjusted Hong Kong Inter-Bank Offered Rate (“HIBOR”)) or at an alternate base rate, plus a spread of 5.5% per annum or 4.5% per annum, respectively. In November 2009, in connection with the SCL Offering, the Company was required to repay and permanently reduce $500.0 million of term loan and revolving borrowings, on a pro rata basis, under the VML Credit Facility. In conjunction with the $500.0 million repayment, the credit spread was reduced by 100 basis points (set at 4.8% for the VML Credit Facility as of December 31, 2010). As a result of this repayment and the August amendment, the Company recorded a charge of $6.1 million during the year ended December 31, 2009, for loss on modification or early retirement of debt. Credit spreads under the VML Local Term Facility and the VML Revolving Facility are subject to downward adjustments if certain consolidated leverage ratios are achieved. As of December 31, 2010, the Company had $595.3 million of available borrowing capacity under the VML Revolving Facility, net of outstanding letters of credit and undrawn amounts committed to be funded by Lehman Brothers Commercial Paper Inc.

The indebtedness under the VML Credit Facility is guaranteed by VML, Venetian Cotai Limited and certain of the Company’s other foreign subsidiaries (the “VML Guarantors”). The obligations under the VML Credit Facility and the guarantees of the VML Guarantors are collateralized by a first-priority security interest in substantially all of the Borrower’s and the VML Guarantors’ assets, other than (1) capital stock of the Borrower and the VML Guarantors, (2) assets that secure permitted furniture, fixtures and equipment financings, (3) VML’s gaming subconcession contract and (4) certain other excluded assets.

The VML Revolving Facility and the VML Local Term Facility mature on May 25, 2011. The VML Term B Delayed Draw Facility and the VML Term B Facility mature on May 25, 2012 and 2013, respectively. The VML Term B Delayed Draw and the VML Term B Facility are subject to nominal quarterly amortization payments of $1.8 million and $4.5 million, respectively, for the first five and six years, respectively, which commenced in June 2009, with the remainder of the loans payable in four equal quarterly installments in the last year immediately preceding their maturity dates. The VML Local Term Facility was subject to quarterly amortization payments of $6.3 million, which commenced in June 2009 and was paid down during the year ended December 31, 2010. The VML Revolving Facility has no interim amortization payments; however, during the year ended December 31, 2010, the Company paid down $479.6 million under this facility.

The Borrower also pays a standby commitment fee of 0.5% per annum on the undrawn amounts under the VML Revolving Facility. For the years ended December 31, 2010 and 2009, the weighted average interest rates for the VML Local Term Facility were 4.8% and 3.6%, respectively, and the weighted average interest rates for the remainder of the VML Credit Facility were 4.9% and 3.9%, respectively.

To meet the requirements of the VML Credit Facility, the Company entered into four interest rate cap agreements in September 2006, May 2007, October 2007 and September 2008 with notional amounts of $1.0 billion, $325.0 million, $165.0 million and $160.0 million, respectively, all of which expired on September 21, 2009. The provisions of the interest rate cap agreements entitled the Company to receive from the counterparties the amounts, if any, by which the selected market interest rates exceed the strike rate of 6.75%. The Company entered into an additional interest rate cap agreement in September 2009 with a notional amount of $1.59 billion, which expires in September 2012. The provisions of the interest rate cap agreement entitle the Company to receive from the counterparty the amounts, if any, by which the selected market interest rate exceeds the strike rate of 9.5%. There was no net effect on interest expense as a result of the interest rate cap agreements for the years ended December 31, 2010, 2009 and 2008.

The VML Credit Facility contains affirmative and negative covenants customary for such financings, including, but not limited to, limitations on incurring additional liens, incurring additional indebtedness, making certain investments, paying dividends and making other restricted payments, and acquiring and selling assets. The VML Credit Facility also requires the Borrower and the VML Guarantors to comply with financial covenants, including, but not limited to, generating a minimum Adjusted EBITDA for a period of time and, thereafter, ratios of Adjusted EBITDA to interest expense and total indebtedness to Adjusted EBITDA, as well as maximum annual capital expenditures. The VML Credit Facility also contains events of default customary for such financings.

VOL Credit Facility

On May 17, 2010, a subsidiary of the Company, VOL (owner and developer of the integrated resort on Cotai Strip parcels 5 and 6), entered into a credit agreement (the “VOL Credit Facility”) providing for up to $1.75 billion (or equivalent in Hong Kong dollars or Macau patacas), which consists of a $750.0 million term loan (the “VOL Term Facility”) that was fully drawn on July 16, 2010, a $750.0 million delayed draw term loan available for 18 months after closing (the “VOL Delayed Draw Facility”) and a $250.0 million revolving facility (the “VOL Revolving Facility”). As of December 31, 2010, the Company had not drawn any amounts under the VOL Delayed Draw Facility or VOL Revolving Facility.

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LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The indebtedness under the VOL Credit Facility is guaranteed by any future restricted subsidiaries of VOL. The obligations under the VOL Credit Facility are collateralized by a first-priority security interest in substantially all of VOL’s assets, other than (1) capital stock and similar ownership interests, (2) certain furniture, fixtures, fittings and equipment and (3) certain other excluded assets.

The VOL Credit Facility matures on June 16, 2015, with VOL required to repay or prepay the VOL Credit Facility under certain circumstances. Commencing on March 31, 2013, and at the end of each subsequent quarter in 2013, VOL is required to repay the outstanding VOL Term and Delayed Draw Facilities on a pro rata basis in an amount equal to 5% of the aggregate principal amount of term loans outstanding as of November 17, 2011. Commencing on March 31, 2014, and at the end of each subsequent quarter in 2014, VOL is required to repay the outstanding VOL Term and Delayed Draw Facilities on a pro rata basis in an amount equal to 7.5% of the aggregate principal amount of term loans outstanding as of November 17, 2011. In addition, commencing with December 31, 2013, and the end of each fiscal year thereafter, VOL is required to further repay the outstanding VOL Term and Delayed Draw Facilities on a pro rata basis with 50%, subject to downward adjustments if certain conditions are met, of its excess free cash flow (as defined by the VOL Credit Facility).

Borrowings under the VOL Credit Facility bear interest at either the adjusted Eurodollar rate or an alternative base rate (in the case of U.S. dollar denominated loans) or HIBOR (in the case of Hong Kong dollar and Macau pataca denominated loans), as applicable, plus a spread of 4.5% per annum (set at 4.8% as of December 31, 2010). VOL will pay standby fees of 2.0% per annum on the undrawn amounts under the VOL Term and Delayed Draw Facilities and 1.5% per annum on the undrawn amounts under the VOL Revolving Facility. The weighted average interest rate on the VOL Credit Facility was 4.8% during the period ended December 31, 2010.

To meet the requirements of the VOL Credit Facility, the Company entered into three interest rate cap agreements in September 2010 with a combined notional amount of $375.0 million, which expire in September 2013. The provisions of the interest rate cap agreement entitle the Company to receive from the counterparty the amounts, if any, by which the selected market interest rate exceeds the strike rate of 3.5%. There was no net effect on interest expense as a result of the interest rate cap agreements for the year ended December 31, 2010.

The VOL Credit Facility contains affirmative and negative covenants customary for such financings, including, but not limited to, limitations on liens, annual capital expenditures other than project costs, incurrence of indebtedness, loans and guarantees, investments, acquisitions and asset sales, restricted payments and other distributions, affiliate transactions and use of proceeds from the facility. The VOL Credit Facility includes deadlines by which completion and substantial operations (as defined in the VOL Credit Facility) of certain phases of the integrated resort on parcels 5 and 6 are required to be achieved. Subsequent to December 31, 2010, the Company exercised its right under the VOL Credit Facility to extend these deadlines. The VOL Credit Facility also requires VOL to comply with financial covenants as of the first full quarter beginning six months after the commencement of substantial operations of phases I and II of the integrated resort on Cotai Strip parcels 5 and 6, including maximum ratios of total indebtedness to Adjusted EBITDA and minimum ratios of Adjusted EBITDA to total interest expense. The VOL Credit Facility also contains events of default customary for such financings.

Ferry Financing

In January 2008, in order to finance the purchase of ten ferries, the Company entered into a 1.21 billion Hong Kong dollar (“HKD,” approximately $155.4 million at exchange rates in effect on December 31, 2010) secured credit facility, which was available for borrowing for up to 18 months after closing. The proceeds from the secured credit facility were used to reimburse the Company for cash spent to date on the progress payments made on the ferries and to finance the completion of the remaining ferries. The facility is collateralized by the ferries and is guaranteed by VML.

In July 2008, the Company exercised the accordion option on the secured credit facility agreement that financed the Company’s original ten ferries and executed a supplement to the secured credit facility agreement. The supplement increased the secured credit facility by an additional HKD 561.6 million (approximately $72.2 million at exchange rates in effect on December 31, 2010), which the Company has fully drawn as of December 31, 2010. The proceeds from this supplemental facility were used to reimburse the Company for cash spent to date on the progress payments made on four additional ferries and to finance the remaining progress payments on those ferries. The supplemental facility is collateralized by the additional ferries and is guaranteed by VML.

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LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

On August 20, 2009, the ferry financing facility was amended to, among other things, allow for the SCL Offering and remove the requirement to comply with all financial covenants. The facility, as amended, now matures in December 2015 and is subject to 26 quarterly payments of HKD 68.1 million (approximately $8.8 million at exchange rates in effect on December 31, 2010), which commenced in October 2009.

As part of the amendment, the credit spread increased by 50 basis points to 2.5% per annum for borrowings made in Hong Kong Dollars and accruing interest at HIBOR (set at 2.8% as of December 31, 2010) or 2.5% per annum for borrowings made in U.S. Dollars and accruing interest at LIBOR. All borrowings under the facility, which was fully drawn as of December 31, 2010, were made in Hong Kong dollars. The weighted average interest rate for the facility was 2.8% and 2.4% for the years ended December 31, 2010 and 2009, respectively.

Exchangeable Bonds

In September 2009, the Company completed a $600.0 million exchangeable bond offering due 2014 (the “Exchangeable Bonds”). The Exchangeable Bonds were subject to semi-annual interest payments, commencing on March 2010 and would mature on September 2014, unless earlier redeemed, exchanged, or purchased and cancelled.

The Exchangeable Bonds were redeemable at the option of the Company together with accrued and unpaid interest to the date of redemption, at any time beginning 30 days after the closing date and ending the day prior to the maturity date. Had the Exchangeable Bonds been redeemed at the option of the Company, it would have been required to issue warrants (the “Bond Warrants”) to the bondholders to purchase such number of common shares of SCL the bondholders would have been otherwise entitled to receive upon mandatory and automatic exchange of the Exchangeable Bonds upon any offering. In addition, any bondholder could have, during the period not less than 30 days nor more than 60 days prior to September 4, 2012, required the Company to redeem all or a portion of the Exchangeable Bonds held by such bondholder at 100% of the principal amount of the Exchangeable Bonds, together with all accrued and unpaid interest to the date of redemption; provided that any bondholders who exercised this redemption right would not be entitled to any Bond Warrants in connection with such redemption.

In November 2009, concurrent with the SCL Offering (see “— Note 10 — Equity — Noncontrolling Interests”), the Exchangeable Bonds were mandatorily and automatically exchanged into 497,865,084 ordinary shares of SCL. The Company incurred a charge of approximately $17.1 million for loss on early retirement of debt during the year ended December 31, 2009, as a result of exchanging the bonds.

Singapore Related Debt

MBS entered into the Singapore bridge facility in August 2006 to pay the land premium to the STB under the Development Agreement and to commence construction of Marina Bay Sands. As the facility would mature in August 2008, the Company entered into the Singapore credit facility in December 2007. Upon closing in January 2008, a portion of the borrowings under the Singapore credit facility, as well as contributions made by the Company to MBS, were used to repay the outstanding balances on the Singapore bridge facility, and to pay fees, costs and expenses related to entering into the Singapore credit facility agreement. The Company incurred a charge of approximately $4.0 million for loss on early retirement of debt during the year ended December 31, 2008, as a result of refinancing the Singapore bridge facility.

Singapore Credit Facility

In December 2007, MBS signed a credit facility agreement (the “Singapore Credit Facility”) providing for a SGD 2.0 billion (approximately $1.55 billion at exchange rates in effect on December 31, 2010) term loan (“Singapore Credit Facility A”) that was funded in January 2008, a SGD 2.75 billion (approximately $2.13 billion at exchange rates in effect on December 31, 2010) term loan (“Singapore Credit Facility B”) that is available on a delayed draw basis until December 31, 2010, a SGD 192.6 million (approximately $149.3 million at exchange rates in effect on December 31, 2010) banker’s guarantee facility (“Singapore Credit Facility C”) to provide the bankers guarantees in favor of the STB required under the Development Agreement that was fully drawn in January 2008, and a SGD 500.0 million (approximately $387.6 million at exchange rates in effect on December 31, 2010) revolving credit facility (“Singapore Credit Facility D”) that is available until February 28, 2015. As of December 31, 2010, the Company has SGD 48.4 million (approximately $37.5 million at exchange rates in effect on December 31, 2010) available for borrowing, net of outstanding banker’s guarantees.

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LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The indebtedness under the Singapore Credit Facility is collateralized by a first-priority security interest in substantially all of MBS’s assets, other than capital stock and similar ownership interests, certain furniture, fixtures, fittings and equipment and certain other excluded assets.

The Singapore Credit Facility matures on March 31, 2015, with MBS required to repay or prepay the Singapore Credit Facility under certain circumstances. Commencing March 31, 2011, and at the end of each quarter thereafter, MBS is required to repay the outstanding Singapore Credit Facility A and Facility B loans on a pro rata basis in an aggregate amount equal to SGD 125.0 million (approximately $96.9 million at exchange rates in effect on December 31, 2010) per quarter. In addition, commencing with the quarter ending September 30, 2011, MBS is required to further prepay the outstanding Singapore Credit Facility A and Facility B loans on a pro rata basis with a percentage of excess free cash flow (as defined by the Singapore Credit Facility). The initial excess free cash flow calculation will be performed on September 30, 2011, with the payment made during the fourth quarter of 2011.

Borrowings under the Singapore Credit Facility bear interest at the Singapore Swap Offered Rate (“SOR”) plus a spread of 2.25% per annum (set at approximately 2.5% as of December 31, 2010). MBS pays a standby interest fee of 1.125% per annum and 0.90% per annum on the undrawn amounts under Singapore Credit Facility B and Facility D, respectively. MBS pays a commission of 2.25% per annum on the bankers’ guarantees outstanding under the Singapore Credit Facility for the period during which any banker’s guarantees are outstanding. The weighted average interest rate for the Singapore Credit Facility was 2.6% and 2.8% during the years ended December 31, 2010 and 2009, respectively.

To meet the requirements of the Singapore Credit Facility, the Company entered into nine interest rate cap agreements in 2008, with a combined notional amount of $1.41 billion, all of which have three-year terms and expire between June and December 2011. During 2009, the Company entered into fourteen additional interest rate cap agreements, with a combined notional amount of $850.0 million, all of which have three-year terms and expire between March and December 2012. During 2010, the Company entered into seven additional interest rate cap agreements, with a combined notional amount of $365.0 million, all of which have three-year terms and expire between January and June 2013. The provisions of the interest rate cap agreements entitle the Company to receive from the counterparties the amounts, if any, by which the selected market interest rates exceed the strike rate (which range from 4.0% to 5.0%) as stated in such agreements. There was no net effect on interest expense as a result of the interest rate cap agreements for the years ended December 31, 2010, 2009 and 2008.

The Singapore Credit Facility contains affirmative and negative covenants customary for such financings, including, but not limited to, limitations on liens, annual capital expenditures other than project costs, indebtedness, loans and guarantees, investments, acquisitions and asset sales, restricted payments, affiliate transactions and use of proceeds from the facilities. The Singapore Credit Facility also requires MBS to comply with financial covenants commencing with the quarter ending September 30, 2011, including maximum ratios of total indebtedness to Adjusted EBITDA, minimum ratios of Adjusted EBITDA to interest expense, minimum Adjusted EBITDA requirements and positive net worth requirement. The Singapore Credit Facility also contains events of default customary for such financings.

Cash Flows from Financing Activities

Cash flows from financing activities related to long-term debt and capital lease obligations are as follows (in thousands):

		Year Ended December 31,
		2010				2009				2008
Proceeds from VOL Credit Facility		$	749,305			$	—			$	—
Proceeds from Singapore Credit Facility			647,988				1,221,644				1,730,515
Proceeds from Senior Secured Credit Facility			—				—				2,075,860
Proceeds from VML Credit Facility			—				—				444,299
Proceeds from Exchangeable Bonds			—				600,000				—
Proceeds from Ferry Financing			—				9,884				218,564
Proceeds from FF&E Facility and Other Long-Term Debt			—				—				146,963
		$	1,397,293			$	1,831,528			$	4,616,201
Repayments on Senior Secured Credit Facility		$	(1,810,329	)		$	(40,000	)		$	(333,000	)
Repayments on VML Credit Facility			(572,337	)			(662,552	)			—
Repayments on Singapore Credit Facility			—				(17,762	)			—
Repurchase and cancellation of Senior Notes			(56,675	)			—				—
Repayments on Ferry Financing			(35,055	)			(17,695	)			—
Repayments on Airplane Financings			(3,687	)			(3,687	)			(3,687	)
Repayments on HVAC Equipment Lease			(1,711	)			(849	)			—
Repayments on FF&E Facility and Other Long-Term Debt			(121,081	)			(34,427	)			(62,754	)
Repayments on Singapore Bridge Facility			—				—				(1,326,467	)
		$	(2,600,875	)		$	(776,972	)		$	(1,725,908	)

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LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Scheduled Maturities of Capital Lease Obligations and Long-Term Debt

Maturities of capital lease obligations and long-term debt (excluding discounts) outstanding as of December 31, 2010, are summarized as follows (in thousands):

		Capital				Long-term
		Lease Obligations				Debt
2011		$	4,450			$	764,380
2012			4,207				1,480,275
2013			3,831				1,408,764
2014			2,828				1,544,792
2015			2,659				3,249,666
Thereafter			18,523				1,667,850
			36,498				10,115,727
Less — amount representing interest			(10,682	)			—
Total		$	25,816			$	10,115,727

Fair Value of Long-Term Debt

The estimated fair value of the Company’s long-term debt as of December 31, 2010, was approximately $9.72 billion, compared to its carrying value of $10.1 billion. As of December 31, 2009, the estimated fair value of the Company’s long-term debt was approximately $9.66 billion, compared to its carrying value of $11.0 billion. The estimated fair value of the Company’s long-term debt is based on quoted market prices, if available, or by pricing models based on the value of related cash flows discounted at current market interest rates.

Note 10 — Equity

Common Stock

In November 2008, the Company issued, in a public offering, 200,000,000 shares of its common stock at $5.50 per share and received gross proceeds of $1.10 billion ($1.05 billion, net of transaction costs). Concurrent with this issuance, the Principal Stockholder’s family converted $475.0 million of Convertible Senior Notes into 86,363,636 shares of the Company’s common stock.

Preferred Stock and Warrants

In November 2008, the Company issued 10,446,300 shares of its 10% Series A Cumulative Perpetual Preferred Stock (the “Preferred Stock”) and warrants to purchase up to an aggregate of approximately 174,105,348 shares of common stock at an exercise price of $6.00 per share and an expiration date of November 16, 2013 (the “Warrants”). Units consisting of one share of Preferred Stock and one Warrant to purchase 16.6667 shares of common stock were sold for $100 per unit. The Preferred Stock is redeemable on or after November 15, 2011, at the Company’s option, in whole or in part, at a redemption price equal to the sum of $110 per share and any accrued and unpaid dividends. The minimum number of shares of Preferred Stock that may be redeemed at any time is the lesser of (i) 1,000,000 shares of Preferred Stock and (ii) the number of shares of Preferred Stock outstanding. Holders of the Preferred Stock have no rights to exchange or convert such shares into any other securities.

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LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The holders of the Preferred Stock have no preemptive rights and no voting rights except as required by applicable Nevada laws and under certain circumstances. The holders of the Preferred Stock do not have the right to require the Company to redeem any shares of Preferred Stock, except as described below. The Preferred Stock ranks as to payment of dividends and distributions of assets upon dissolution, liquidation or winding up:

	•		junior to all of the Company’s existing and future debt obligations;

	•		junior to any class or series of the Company’s capital stock, the terms of which provide that such class or series will rank senior to the Preferred Stock;

	•		senior to the Company’s common stock and any other class or series of its capital stock, the terms of which provide that such class or series will ranks junior to the Preferred Stock either or both as to payment of dividends and/or as to the distribution of assets on any liquidation, dissolution or winding up of the Company; and

	•		on a parity with any other class or series of the Company’s capital stock, the terms of which provide that such class or series will rank equally with the Preferred Stock both in the payment of dividends and in the distribution of assets on any liquidation, dissolution or winding up of the Company.

Under Nevada law, the Company may declare or pay dividends on the Preferred Stock only to the extent by which the total assets exceed the total liabilities and so long as the Company is able to pay its debts as they become due in the usual course of its business. When and if declared by the Company’s Board of Directors, holders of the Preferred Stock are entitled to receive cumulative cash dividends quarterly on each February 15, May 15, August 15 and November 15, which began on February 15, 2009.

Preferred Stock Issued to Public

Of the 10,446,300 shares of Preferred Stock issued, the Company issued 5,196,300 shares to the public together with Warrants to purchase up to an aggregate of approximately 86,605,173 shares of its common stock and received gross proceeds of $519.6 million ($503.6 million, net of transaction costs). The allocated carrying values of the Preferred Stock and Warrants on the date of issuance (based on their relative fair values) were $298.1 million and $221.5 million, respectively.

During the year ended December 31, 2010, holders of preferred stock exercised 2,255,209 warrants to purchase an aggregate of 37,586,880 shares of the Company’s common stock at $6.00 per share and tendered 76 shares of preferred stock and $225.5 million in cash as settlement of the warrant exercise price. In order to induce additional warrant exercises during the year ended December 31, 2010, the Company paid holders of preferred stock $6.6 million to exercise 475,000 warrants to purchase an aggregate of 7,916,682 shares of the Company’s common stock at $6.00 per share by tendering 475,000 shares of preferred stock. During the year ended December 31, 2009, holders of the preferred stock exercised 1,106,301 warrants to purchase an aggregate of 18,438,384 shares of the Company’s common stock at $6.00 per share and tendered 1,106,301 shares of preferred stock as settlement of the warrant exercise price.

Subsequent to December 31, 2010, holders of preferred stock exercised 1,083,300 warrants to purchase an aggregate of 18,055,033 shares of the Company’s common stock at $6.00 per share and tendered 1,025,700 shares of preferred stock and for $5.8 million in cash as settlement of the warrant exercise price. In conjunction with certain of these transactions, the Company paid $14.7 million in premiums to induce the exercise of warrants with settlement through tendering preferred stock.

Preferred Stock Issued to Principal Stockholder’s Family

Of the 10,446,300 shares of Preferred Stock issued, the Company issued 5,250,000 shares to the Principal Stockholder’s family together with Warrants to purchase up to an aggregate of approximately 87,500,175 shares of its common stock and received gross proceeds of $525.0 million ($523.7 million, net of transaction costs). The allocated carrying values of the Preferred Stock and Warrants on the date of issuance (based on their relative fair values) were $301.1 million and $223.9 million, respectively. The Preferred Stock amount has been recorded as mezzanine equity on the accompanying consolidated balance sheet as the Principal Stockholder and his family have a greater than 50% ownership of the Company (when considering the impact of unexercised warrants and stock options) and therefore have the potential ability to require the Company to redeem their Preferred Stock beginning November 15, 2011.

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LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

As the Preferred Stock issued to the Principal Stockholder’s family is being accounted for as redeemable at the option of the holder, the balance is being accreted to the redemption value of $577.5 million over three years. As of December 31, 2010 and 2009, $6.9 million of accumulated but undeclared dividends was recorded.

A summary of the Company’s Preferred Stock issued its Principal Stockholder’s family for the years ended December 31, 2010, 2009 and 2008, is presented below (in thousands, except number of shares):

		Number
		of Shares				Amount
Balance as of January 1, 2008			—			$	—
Issuance of preferred stock and warrants to purchase common stock, net of transaction costs			5,250,000				299,867
Accretion to redemption value			—				11,568
Accumulated but undeclared dividend requirement			—				6,854
Balance as of December 31, 2008			5,250,000				318,289
Accretion to redemption value			—				92,545
Dividends declared, net of amounts previously accrued			—				45,646
Dividends paid			—				(52,500	)
Accumulated but undeclared dividend requirement			—				6,854
Balance as of December 31, 2009			5,250,000				410,834
Accretion to redemption value			—				92,545
Dividends declared, net of amounts previously accrued			—				45,646
Dividends paid			—				(52,500	)
Accumulated but undeclared dividend requirement			—				6,854
Balance as of December 31, 2010			5,250,000			$	503,379

Preferred Stock Dividends

Preferred stock dividend activity is as follows (in thousands):

				Preferred Stock
				Dividends Paid to				Preferred Stock				Total Preferred
Board of Directors’				Principal				Dividends Paid to				Stock
Declaration Date		Payment Date		Stockholder’s Family				Public Holders				Dividends Paid
February 5, 2009		February 17, 2009		$	13,125			$	11,347			$	24,472
April 30, 2009		May 15, 2009			13,125				10,400				23,525
July 31, 2009		August 17, 2009			13,125				10,225				23,350
October 30, 2009		November 16, 2009			13,125				10,225				23,350
												$	94,697
February 5, 2010		February 16, 2010		$	13,125			$	10,225			$	23,350
May 4, 2010		March 17, 2010			13,125				10,225				23,350
July 29, 2010		August 16, 2010			13,125				10,225				23,350
November 2, 2010		November 15, 2010			13,125				10,225				23,350
												$	93,400
February 1, 2011		February 15, 2011		$	13,125			$	6,473			$	19,598

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LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Rollfoward of Shares of Common Stock and Preferred Stock Issued to Public

A summary of the outstanding shares of common stock and preferred stock issued to the public is as follows:

		Preferred				Common
		Stock				Stock
Balance as of January 1, 2008			—				355,271,070
Exercise of stock options			—				181,862
Issuance of restricted stock			—				26,657
Forfeiture of unvested restricted stock			—				(4,207	)
Issuance of preferred and common stock and warrants			5,196,300				200,000,000
Extinguishment of convertible senior notes			—				86,363,636
Balance as of December 31, 2008			5,196,300				641,839,018
Exercise of stock options			—				10,497
Issuance of restricted stock			—				65,513
Forfeiture of unvested restricted stock			—				(30,663	)
Exercise of warrants			(1,106,301	)			18,438,384
Balance as of December 31, 2009			4,089,999				660,322,749
Exercise of stock options			—				1,667,636
Issuance of restricted stock			—				15,765
Forfeiture of unvested restricted stock			—				(1,730	)
Exercise of warrants			(475,076	)			45,503,562
Balance as of December 31, 2010			3,614,923				707,507,982

Noncontrolling Interests

In November 2009, the Company completed the SCL Offering, wherein the Company’s subsidiary, SCL (the direct or indirect owner and operator of the majority of the Company’s Macau operations including Sands Macao, The Venetian Macao, Four Seasons Macao and the ferry operations, and developer of the remaining Cotai Strip integrated resorts), listed its ordinary shares on The Main Board of the SEHK. SCL, through the offering, sold 1,270,000,000 of its ordinary shares to the public and received gross proceeds of $1.70 billion ($1.63 billion, net of transaction costs). Concurrent with the SCL Offering, the Company’s subsidiary and SCL’s direct parent, Venetian Venture Development Intermediate (II) (“VVDI (II)”), sold 600,000,000 of its ordinary shares of SCL to the public and received gross proceeds of $803.6 million ($760.4 million, net of transaction costs). In connection with the SCL Offering, the Company mandatorily and automatically exchanged the $600.0 million in Exchangeable Bonds for 497,865,084 ordinary shares of SCL and issued 22,185,115 ordinary shares of SCL to settle an obligation of the Company. Immediately following the completion of these transactions, the Company owned 70.3% of issued and outstanding ordinary shares of SCL. The ordinary shares of SCL were not, and will not, be registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent a registration under the Securities Act of 1933, as amended, or an applicable exception from such registration requirements.

Note 11 — Income Taxes

Consolidated income (loss) before taxes and noncontrolling interests for domestic and foreign operations is as follows (in thousands):

		Year Ended December 31,
		2010				2009				2008
Domestic		$	(105,036	)		$	(427,664	)		$	(249,128	)
Foreign			960,941				55,037				21,103
Total income (loss) before income taxes		$	855,905			$	(372,627	)		$	(228,025	)

The components of the income tax (benefit) expense are as follows (in thousands):

		Year Ended December 31,
		2010				2009				2008
Federal:
Current		$	(30,515	)		$	(5,742	)		$	(23,985	)
Deferred			31,080				(476	)			(34,335	)
Foreign:
Current			5,280				519				527
Deferred			68,456				(40	)			(52	)
State:
Current			1				—				—
Deferred			—				1,855				(1,855	)
Total income tax (benefit) expense		$	74,302			$	(3,884	)		$	(59,700	)

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LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The reconciliation of the statutory federal income tax rate and the Company’s effective tax rate is as follows:

		Year Ended December 31,
		2010				2009				2008
Statutory federal income tax rate			35.0	%			(35.0	)%			(35.0	)%
Increase (decrease) in tax rate resulting from:
Foreign and U.S. tax rate differential			(24.4	)%			1.1	%			(2.3	)%
Tax exempt income of foreign subsidiary (Macau)			(14.4	)%			(21.8	)%			(23.8	)%
Non-deductible pre-opening expenses of foreign subsidiaries			—				5.5	%			9.1	%
Change in valuation allowance			10.5	%			44.0	%			22.4	%
Change in tax reserves			0.3	%			3.8	%			2.0	%
Other, net			1.7	%			1.4	%			1.4	%
Effective tax rate			8.7	%			(1.0	)%			(26.2	)%

The Company received a 5-year income tax exemption in Macau that exempts the Company from paying corporate income tax on profits generated by gaming operations. The Company will continue to benefit from this tax exemption through the end of 2013. Had the Company been required to pay income taxes in Macau, consolidated net income (loss) attributable to Las Vegas Sands Corp. would have been reduced by $83.5 million, $80.0 million and $46.4 million, and diluted earnings per share would have been reduced by $0.11, $0.12 and $0.12 per share for the years ended December 31, 2010, 2009 and 2008, respectively.

The primary tax affected components of the Company’s net deferred tax assets (liabilities) are as follows (in thousands):

		December 31,
		2010				2009
Deferred tax assets:
Net operating loss carryforwards		$	403,229			$	270,745
Deferred gain on the sale of The Grand Canal Shoppes and The Shoppes at The Palazzo			51,637				93,433
Allowance for doubtful accounts			34,533				25,854
Stock-based compensation			37,357				25,199
Pre-opening expenses			40,110				17,918
Accrued expenses			8,826				13,745
State deferred items			9,274				4,812
Tax credit carryforward			2,340				2,520
Other			4,905				14,091
			592,211				468,317
Less — valuation allowances			(331,275	)			(280,007	)
Total deferred tax assets			260,936				188,310
Deferred tax liabilities:
Property and equipment			(293,345	)			(133,970	)
Prepaid expenses			(4,022	)			(2,487	)
Other			(6,759	)			(3,192	)
Total deferred tax liabilities			(304,126	)			(139,649	)
Deferred tax assets (liabilities), net		$	(43,190	)		$	48,661

The Company recognizes tax benefits associated with stock-based compensation directly to stockholders’ equity only when realized. Accordingly, deferred tax assets are not recognized for net operating loss carryforwards resulting from windfall tax benefits. A windfall tax benefit occurs when the actual tax benefit realized upon an employee’s disposition of a share-based award exceeds the cumulative book compensation charge associated with the award. As of December 31, 2010 and 2009, the Company has windfall tax benefits of $39.7 million and $4.9 million, respectively, included in its U.S. net operating loss carryforward, but not reflected in deferred tax assets.

The net operating loss carryforward for the Company’s U.S. operations was $509.1 million and $355.5 million as of December 31, 2010 and 2009, respectively, which will begin to expire in 2028. There was a valuation allowance of $114.9 million and $96.9 million as of December 31, 2010 and 2009, respectively, provided on U.S. net operating loss carryforwards and other U.S. deferred tax assets, as the Company believes these assets do not meet the “more likely than not” criteria for recognition. The Company’s general business credits were $2.3 million and $2.5 million as of December 31, 2010 and 2009, respectively, which will begin to expire in 2024. Net operating loss carryforwards for the Company’s foreign subsidiaries were $1.87 billion and $1.30 billion as of December 31, 2010 and 2009, respectively, which begin to expire in 2011. There are valuation allowances of $216.3 million and $183.1 million, as of December 31, 2010 and 2009, respectively, provided on foreign net operating loss carryforwards and other foreign deferred tax assets, as the Company believes these assets do not meet the “more likely than not” criteria for recognition.

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LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Undistributed earnings of subsidiaries are accounted for as a temporary difference, except that deferred tax liabilities are not recorded for undistributed earnings of foreign subsidiaries that are deemed to be indefinitely reinvested in foreign jurisdictions. The Company has a plan for reinvestment of undistributed earnings of its foreign subsidiaries, which demonstrates that such earnings will be indefinitely reinvested in the applicable jurisdictions. Should the Company change its plans, it may be required to record a significant amount of deferred tax liabilities. As of December 31, 2010 and 2009, the amount of undistributed earnings of foreign subsidiaries that the Company does not intend to repatriate was $1.02 billion and $858.8 million, respectively. Should these earnings be distributed in the form of dividends or otherwise, the distributions would be subject to U.S. federal income tax at the statutory rate of 35%, less foreign tax credits applicable to distributions, if any. In addition, such distributions would be subject to withholding taxes in the various tax jurisdictions.

A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands):

		December 31,
		2010				2009				2008
Balance at the beginning of the year		$	66,067			$	32,271			$	14,966
Additions to tax positions related to prior years			324				24,184				9,239
Reductions to tax positions related to prior years			(6,287)				—				—
Additions to tax positions related to current year			2,311				9,612				8,066
Settlements			(26,646	)			—				—
Balance at the end of the year		$	35,769			$	66,067			$	32,271

As of December 31, 2010 and 2009, unrecognized tax benefits of $7.9 million and $17.2 million, respectively, were recorded as reductions to the U.S. net operating loss deferred tax asset. As of December 31, 2010, 2009 and 2008, unrecognized tax benefits of $27.9 million, $48.9 million and $32.3 million, respectively, were recorded in other long-term liabilities.

Included in the balance as of December 31, 2010, 2009 and 2008, are $31.3 million, $29.0 million and $14.1 million respectively, of uncertain tax benefits that would affect the effective income tax rate if recognized.

The Company’s major tax jurisdictions are the U.S., Macau, and Singapore. In the U.S., during the year ended December 31, 2010, the Internal Revenue Service (“IRS”) issued a Revenue Agent’s Report for years 2005 through 2008 proposing certain adjustments. The Company disagrees with several of the proposed adjustments and has submitted a protest and a request for an appeals conference to the IRS. The Company anticipates that the appeals process will take an extended period of time to resolve and management does not believe that it is reasonably possible that these issues will be settled in the next twelve months. In the U.S., the Company is currently under examination for the 2009 year. In Macau and Singapore, the Company is subject to examination for years after 2005. The Company believes it has adequately reserved for its uncertain tax positions; however, there is no assurance that the taxing authorities will not propose adjustments that are different than the Company’s expected outcome and impact the provision for income taxes.

During the year ended December 31, 2010, the Company reduced its unrecognized tax benefits by $30.3 million, primarily related to settlements with taxing authorities, partially offset by current year additions.

The Company recognizes interest and penalties, if any, related to unrecognized tax positions in the provision for income taxes in the accompanying consolidated statement of operations. No interest or penalties were accrued as of December 31, 2010 or 2009. The Company does not expect a significant increase or decrease in unrecognized tax benefits over the next twelve months.

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LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Note 12 — Fair Value Measurements

Under applicable accounting guidance, fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. Applicable accounting guidance also establishes a valuation hierarchy for inputs in measuring fair value that maximizes the use of observable inputs (inputs market participants would use based on market data obtained from sources independent of the Company) and minimizes the use of unobservable inputs (inputs that reflect the Company’s assumptions based upon the best information available in the circumstances) by requiring that the most observable inputs be used when available. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) that are observable for the assets or liabilities, either directly or indirectly. Level 3 inputs are unobservable inputs for the assets or liabilities. Categorization within the hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

The following table provides the assets carried at fair value (in thousands):

						Fair Value Measurements Using:
						Quoted Market				Significant Other				Significant
		Total Carrying				Prices in Active				Observable Inputs				Unobservable Inputs
		Value				Markets (Level 1)				(Level 2)				(Level 3)
As of December 31, 2010
Cash equivalents(1)		$	2,490,809			$	2,490,809			$	—			$	—
Interest rate caps(2)		$	1,617			$	—			$	1,617			$	—
As of December 31, 2009
Cash equivalents(1)		$	3,499,874			$	3,499,874			$	—			$	—
Interest rate caps(2)		$	2,466			$	—			$	2,466			$	—

(1)		The Company has short-term investments classified as cash equivalents as the original maturities are less than 90 days.
(2)		As of December 31, 2010, the Company has 34 interest rate cap agreements with an aggregate fair value of approximately $1.6 million, based on quoted market values from the institutions holding the agreements. As of December 31, 2009, the Company has 24 interest rate cap agreements with an aggregate fair value of approximately $2.5 million, based on quoted market values from the institutions holding the agreements.

Note 13 — Mall Sales

The Grand Canal Shoppes at The Venetian Las Vegas

In April 2004, the Company entered into an agreement to sell The Grand Canal Shoppes and lease certain restaurant and other retail space at the casino level of The Venetian Las Vegas (the “Master Lease”) to GGP for approximately $766.0 million (the “Mall Sale”). The Mall Sale closed in May 2004, and the Company realized a gain of $417.6 million in connection with the Mall Sale. Under the Master Lease agreement, The Venetian Las Vegas leased nineteen spaces on its casino level currently occupied by various tenants to GGP for 89 years with annual rent of one dollar and GGP assumed the various leases. Under generally accepted accounting principles, the Master Lease agreement does not qualify as a sale of the real property assets, which real property was not separately legally demised. Accordingly, $109.2 million of the transaction has been deferred as prepaid operating lease payments to The Venetian Las Vegas, which will amortize into income on a straight-line basis over the 89-year lease term. During each of the years ended December 31, 2010, 2009 and 2008, $1.2 million of this deferred item was amortized and is included in convention, retail and other revenue. In addition, the Company agreed with GGP to: (i) continue to be obligated to fulfill certain lease termination and asset purchase agreements as further described in “— Note 14 — Commitments and Contingencies — Other Ventures and Commitments”; (ii) lease the Blue Man Group theater space located within The Grand Canal Shoppes from GGP for a period of 25 years with fixed minimum rent of $3.3 million per year with cost of living adjustments; (iii) operate the Gondola ride under an operating agreement for a period of 25 years for an annual fee of $3.5 million; and (iv) lease certain office space from GGP for a period of 10 years, subject to extension options for a period of up to 65 years, with annual rent of approximately $0.9 million. The lease payments under clauses (ii) through (iv) above are subject to automatic increases beginning on the sixth lease year. The net present value of the lease payments under clauses (ii) through (iv) on the closing date of the sale was $77.2 million. Under generally accepted accounting principles, a portion of the transaction must be deferred in an amount equal to the present value of the minimum lease payments set forth in the lease back agreements. This deferred gain will be amortized to reduce lease expense on a straight-line basis over the life of the leases. During each of the years ended December 31, 2010, 2009 and 2008,$3.5 million of this deferred item was amortized as an offset to convention, retail and other expense.

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LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

As of December 31, 2010, the Company was obligated under (ii), (iii), and (iv) above to make future payments as follows (in thousands):

2011		$	8,043
2012			8,043
2013			8,043
2014			7,725
2015			7,497
Thereafter			106,302
		$	145,653

The Shoppes at The Palazzo

The Shoppes at The Palazzo opened on January 18, 2008, with some tenants not yet open and with construction of certain portions of the mall not yet completed. Pursuant to the Amended Agreement, the Company contracted to sell The Shoppes at The Palazzo to GGP. The Final Purchase Price for The Shoppes at The Palazzo is determined by taking The Shoppes at The Palazzo’s NOI, as defined in the Amended Agreement, for months 19 through 30 of its operations (assuming that the fixed rent and other fixed periodic payments due from all tenants in month 30 was actually due in each of months 19 through 30, provided that this 12-month period can be delayed if certain conditions are satisfied) divided by a capitalization rate. The capitalization rate is 0.06 for every dollar of NOI up to $38.0 million and 0.08 for every dollar of NOI above $38.0 million. On the closing date of the sale, February 29, 2008, GGP made its initial purchase price payment of $290.8 million based on projected net operating income for the first 12 months of operations (only taking into account tenants open for business or paying rent as of February 29, 2008). Pursuant to the Amended Agreement, periodic adjustments to the purchase price (up or down, but never to less than $250.0 million) were to be made based on projected NOI for the then upcoming 12 months. Pursuant to the Amended Agreement, the Company received an additional $4.6 million in June 2008, representing the adjustment payment at the fourth month after closing. During the years ended December 31, 2010 and 2009, the Company and GGP agreed to suspend the scheduled purchase price adjustments, subsequent to the June 2008 payment, except for the Final Purchase Price payment. Subject to adjustments for certain audit and other issues, the final adjustment to the purchase price was to be made on the 30-month anniversary of the closing date (or later if certain conditions are satisfied) based on the previously described formula. For all purchase price and purchase price adjustment calculations, NOI will be calculated by using the “accrual” method of accounting. Additionally, given the economic and market conditions facing retailers on a national and local level, tenants are facing economic challenges that have had an effect on the calculation of NOI. During the year ended December 31, 2010, the Company and GGP deferred the time to reach agreement on the Final Purchase Price as both parties were continuing to work on various matters related to the calculation of NOI.

In April 2009, GGP and its subsidiary that owns The Shoppes at The Palazzo filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code (the “Chapter 11 Cases”). The United States Bankruptcy Court for the Southern District of New York entered orders approving the plans of reorganization of GGP and the subsidiary that owns The Shoppes at The Palazzo on October 21 and April 29, 2010, respectively, and the effective date of such plans of reorganization occurred on November 9 and May 28, 2010, respectively. Under the confirmed plans of reorganization, the only impaired creditors were mortgage holders. The Company will continue to review the Chapter 11 Cases and will adjust the estimates of NOI and capitalization rates as additional information is received.

In the Amended Agreement, the Company agreed to lease certain restaurant and retail space on the casino level of The Palazzo to GGP pursuant to a master lease agreement (“The Palazzo Master Lease”). Under The Palazzo Master Lease, which was executed concurrently with, and as a part of, the closing on the sale of The Shoppes at The Palazzo to GGP on February 29, 2008, The Palazzo leased nine restaurant and retail spaces on the casino level of The Palazzo, currently occupied by various tenants, to GGP for 89 years with annual rent of one dollar and GGP assumed the various tenant operating leases for those spaces. Under generally accepted accounting principles, The Palazzo Master Lease does not qualify as a sale of the real property, which real property was not separately legally demised. Accordingly, $41.8 million of the mall sale transaction has been deferred as prepaid operating lease payments to The Palazzo, which is amortized into income on a straight-line basis over the 89-year lease term. An additional $7.0 million of the total proceeds from the mall sale transaction has been deferred as unearned revenues as of December 31, 2010. This balance will be adjusted upon resolution of the Final Purchase Price.

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LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

In addition, the Company agreed with GGP to lease certain spaces located within The Shoppes at The Palazzo for a period of 10 years with total fixed minimum rents of $0.7 million per year, subject to extension options for a period of up to 10 years and automatic increases beginning on the second lease year. As of December 31, 2009, the Company was obligated to make future payments of approximately $0.8 million annually for the five years ended December 31, 2014, and $3.2 million thereafter. Under generally accepted accounting principles, a gain on the sale has not been recorded as the Company has continuing involvement in the transaction related to the certain activities to be performed on behalf of GGP and the uncertainty of the final sales price, which will be determined as previously described. Therefore, $243.9 million of the mall sale transaction has been recorded as deferred proceeds from the sale as of December 31, 2010, which accrued interest at an imputed interest rate offset by (i) imputed rental income and (ii) rent payments made to GGP related to those spaces leased back from GGP. The property sold to GGP will continue to be recorded in the Company’s consolidated financial statements until the Final Purchase Price has been determined.

Note 14 — Commitments and Contingencies

Litigation

The Company is involved in other litigation in addition to those noted below, arising in the normal course of business. Management has made certain estimates for potential litigation costs based upon consultation with legal counsel. Actual results could differ from these estimates; however, in the opinion of management, such litigation and claims will not have a material effect on the Company’s financial condition, results of operations or cash flows.

On October 15, 2004, Richard Suen and Round Square Company Limited filed an action against LVSC, Las Vegas Sands, Inc. (“LVSI”), Sheldon G. Adelson and William P. Weidner in the District Court of Clark County, Nevada, asserting a breach of an alleged agreement to pay a success fee of $5.0 million and 2.0% of the net profit from the Company’s Macau resort operations to the plaintiffs as well as other related claims. In March 2005, LVSC was dismissed as a party without prejudice based on a stipulation to do so between the parties. Pursuant to an order filed March 16, 2006, plaintiffs’ fraud claims set forth in the first amended complaint were dismissed with prejudice against all defendants. The order also dismissed with prejudice the first amended complaint against defendants Sheldon G. Adelson and William P. Weidner. On May 24, 2008, the jury returned a verdict for the plaintiffs in the amount of $43.8 million. On June 30, 2008, a judgment was entered in this matter in the amount of $58.6 million (including pre-judgment interest). The Company appealed the verdict to the Nevada Supreme Court. On November 17, 2010, the Nevada Supreme Court reversed the judgment and remanded the case to the District Court of Clark County for a new trial. The Company intends to vigorously defend this matter.

On February 5, 2007, Asian American Entertainment Corporation, Limited (“AAEC”) filed an action against LVSI, VCR, Venetian Venture Development, LLC (“Venetian Venture Development”), William P. Weidner and David Friedman in the United States District Court for the District of Nevada (the “District Court”). The plaintiffs assert (i) breach of contract by LVSI, VCR and Venetian Venture Development of an agreement under which AAEC would work to obtain a gaming license in Macau and, if successful, AAEC would jointly operate a casino, hotel and related facilities in Macau with Venetian Venture Development and Venetian Venture Development would receive fees and a minority equity interest in the venture and (ii) breach of fiduciary duties by all of the defendants. The plaintiffs have requested an unspecified amount of actual, compensatory and punitive damages, and disgorgement of profits related to the Company’s Macau gaming license. The Company filed a motion to dismiss on July 11, 2007. On August 1, 2007, the District Court granted the defendants’ motion to dismiss the complaint against all defendants without prejudice. The plaintiffs appealed this decision and subsequently, the Ninth Circuit Court of Appeals (the “Circuit Court”) decided that AAEC was not barred from asserting claims that the written agreement was breached prior to its expiration on January 15, 2002. The Circuit Court remanded the case back to the District Court for further proceedings on this issue and discovery has recently begun. The plaintiffs’ counsel filed a motion to withdraw from representing the plaintiffs on December 15, 2009, and it was granted by the Magistrate on January 12, 2010. On February 11, 2010, the Magistrate filed a recommendation that the case be dismissed in the court docket. The plaintiffs had until February 28, 2010, to file any objections thereto. None were filed and the District Court entered an order on April 16, 2010, dismissing the case. The plaintiff’s did not timely file an appeal of the District Court’s order dismissing the case and this matter has been closed.

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LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

On October 16, 2009, the Company received a letter from counsel to Far East Consortium International Ltd. (“FEC”) notifying the Company that it may pursue various claims seeking, among other things, monetary damages and an entitlement to an ownership interest in any development projects on parcel 3 in Macau, which the Company will own and operate. The Company believes such claims are based on a non-legally binding memorandum of agreement that expired by its terms in 2005. The Company intends to vigorously contest any claims or lawsuits that may be brought by FEC.

On October 20, 2010, Steven C. Jacobs, the former Chief Executive Officer of SCL, filed an action against LVSC and SCL in the District Court of Clark County, Nevada, alleging breach of contract against LVSC and SCL and breach of the implied covenant of good faith and fair dealing and tortious discharge in violation of public policy against LVSC. Mr. Jacobs is seeking unspecified damages. This action is in a preliminary stage. The Company intends to vigorously defend this matter.

On February 9, 2011, LVSC received a subpoena from the Securities and Exchange Commission requesting that the Company produce documents relating to its compliance with the Foreign Corrupt Practices Act (the “FCPA”). The Company has also been advised by the Department of Justice that it is conducting a similar investigation. It is the Company’s belief that the subpoena may have emanated from allegations contained in the lawsuit filed by Steven C. Jacobs described above. The Company intends to cooperate with the investigations.

The State Administration of Foreign Exchange in China (“SAFE”) regulates foreign currency exchange transactions and other business dealings in China. SAFE has made inquiries and requested and obtained documents relating to certain payments made by the Company’s wholly foreign-owned enterprises (“WFOEs”) to counterparties and other vendors in China. These WFOEs were established to conduct non-gaming marketing activities in China and to create goodwill in China and Macau for the Company’s operations in Macau. SAFE has concluded its investigation of these matters and imposed a penalty of approximately 10.8 million renminbi (approximately $1.6 million at exchange rates in effect on December 31, 2010) against one of the Company’s WFOEs. The penalty has been paid and this matter has been closed.

On May 24, 2010, Frank J. Fosbre, Jr. filed a purported class action complaint in the District Court, against LVSC, Sheldon G. Adelson, and William P. Weidner. The complaint alleges that LVSC, through the individual defendants, disseminated or approved materially false information, or failed to disclose material facts, through press releases, investor conference calls and other means from August 1, 2007 through November 6, 2008. The complaint seeks, among other relief, class certification, compensatory damages and attorneys’ fees and costs.

On July 21, 2010, Wendell and Shirley Combs filed a purported class action complaint in the District Court, against LVSC, Sheldon G. Adelson, and William P. Weidner. The complaint alleges that LVSC, through the individual defendants, disseminated or approved materially false information, or failed to disclose material facts, through press releases, investor conference calls and other means from June 13, 2007 through November 11, 2008. The complaint, which is substantially similar to the Fosbre litigation, discussed above, seeks, among other relief, class certification, compensatory damages and attorneys’ fees and costs.

On August 31, 2010, the District Court entered an order consolidating the Fosbre and Combs cases, and appointed lead plaintiffs and lead counsel. On November 1, 2010, a purported class action amended complaint was filed in the consolidated action against LVSC, Sheldon G. Adelson and William P. Weidner. The amended complaint alleges that LVSC, through the individual defendants, disseminated or approved materially false and misleading information, or failed to disclose material facts, through press releases, investor conference calls and other means from August 2, 2007 through November 6, 2008. The amended complaint seeks, among other relief, class certification, compensatory damages and attorneys’ fees and costs. This action is in a preliminary stage and management has determined that based on proceedings to date, it is currently unable to determine the probability of the outcome of this matter. The Company intends to defend this matter vigorously.

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LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Macau Concession and Subconcession

On June 26, 2002, the Macau government granted a concession to operate casinos in Macau through June 26, 2022, subject to certain qualifications, to Galaxy Casino Company Limited (“Galaxy”), a consortium of Macau and Hong Kong-based investors. During December 2002, VML and Galaxy entered into a subconcession agreement which was recognized and approved by the Macau government and allows VML to develop and operate casino projects, including the Sands Macao, The Venetian Macao and the Plaza Casino at the Four Seasons Macao, separately from Galaxy. Beginning on December 26, 2017, the Macau government may redeem the subconcession agreement by providing the Company at least one year prior notice.

Under the subconcession, the Company is obligated to pay to the Macau government an annual premium with a fixed portion and a variable portion based on the number and type of gaming tables it employs and gaming machines it operates. The fixed portion of the premium is equal to 30.0 million patacas (approximately $3.7 million at exchange rates in effect on December 31, 2010). The variable portion is equal to 300,000 patacas per gaming table reserved exclusively for certain kinds of games or players, 150,000 patacas per gaming table not so reserved and 1,000 patacas per electrical or mechanical gaming machine, including slot machines (approximately $37,426, $18,713 and $125, respectively, at exchange rates in effect on December 31, 2010), subject to a minimum of 45.0 million patacas (approximately $5.6 million at exchange rates in effect on December 31, 2010). The Company is also obligated to pay a special gaming tax of 35% of gross gaming revenues and applicable withholding taxes. The Company must also contribute 4% of its gross gaming revenue to utilities designated by the Macau government, a portion of which must be used for promotion of tourism in Macau. Based on the number and types of gaming tables employed and gaming machines in operation as of December 31, 2010, the Company was obligated under its subconcession to make minimum future payments of approximately $32.5 million in each of the next five years and approximately $211.4 million thereafter. These amounts are expected to increase substantially as the Company completes its other Cotai Strip properties.

Currently, the gaming tax in Macau is calculated as a percentage of gross gaming revenue; however, unlike Nevada, gross gaming revenue does not include deductions for credit losses. As a result, if the Company extends credit to its customers in Macau and is unable to collect on the related receivables, the Company must pay taxes on its winnings from these customers even though it was unable to collect on the related receivables. If the laws are not changed, the Company’s business in Macau may not be able to realize the full benefits of extending credit to its customers. Although there are proposals to revise the gaming tax laws in Macau, there can be no assurance that the laws will be changed.

Singapore Development Project

In August 2006, the Company entered into the Development Agreement, as amended by a supplementary agreement on December 11, 2009, with the STB, which requires the Company to construct and operate the Marina Bay Sands in accordance with the Company’s proposal for the integrated resort and in accordance with the agreement. As discussed in “— Note 9 — Long-Term Debt — Singapore Related Debt — Singapore Credit Facility,” the Company entered into the SGD 5.44 billion (approximately $4.22 billion at exchange rates in effect on December 31, 2010) Singapore Credit Facility to fund a significant portion of the construction, operating and other development costs of the Marina Bay Sands.

The Development Agreement permits the Marina Bay Sands to open in stages and in accordance with an agreed upon schedule that runs through March 31, 2011. There are no financial consequences to MBS if it fails to meet the agreed upon schedule, provided that the entire integrated resort is opened by December 31, 2011. The Company believes it will meet this deadline; however, if it doesn’t, the STB will be entitled to draw on the SGD 192.6 million (approximately $149.3 million at exchange rates in effect on December 31, 2010) security deposit under the Singapore Credit Facility.

Operating Leases

The Company leases real estate and various equipment under operating lease arrangements and is also party to several service agreements with terms in excess of one year. As of December 31, 2010, the Company was obligated under non-cancelable operating leases to make future minimum lease payments as follows (in thousands):

2011		$	10,514
2012			8,703
2013			6,701
2014			5,132
2015			4,098
Thereafter			113,831
Total minimum payments		$	148,979

Expenses incurred under operating lease agreements, including those which are short-term and variable-rate in nature, totaled $38.1 million, $23.6 million and $23.2 million for the years ended December 31, 2010, 2009 and 2008, respectively.

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LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Other Ventures and Commitments

The Company has entered into employment agreements with five of its corporate senior executives, with remaining terms of one to two years. As of December 31, 2010, the Company was obligated to make future payments of $7.0 million and $4.4 million during the years ended December 31, 2011 and 2012, respectively.

During 2003, the Company entered into three lease termination and asset purchase agreements with The Grand Canal Shoppes tenants. In each case, the Company has obtained title to leasehold improvements and other fixed assets, which were originally purchased by The Grand Canal Shoppes tenants, and which have been recorded at estimated fair market value, which approximated the discounted present value of the Company’s obligation to the former tenants. As of December 31, 2010, the Company was obligated under these agreements to make future payments of approximately $0.6 million during each of the years ended December 31, 2011, 2012 and 2013, $0.4 million during each of the years ended December 31, 2014 and 2015, and $6.0 million thereafter.

The Company has entered into agreements with Starwood and Shangri-La to manage hotels on the Company’s Cotai Strip parcels 5 and 6, and for Starwood to brand the serviced luxury apart-hotel units located thereon. The management agreements with Starwood and Shangri-La impose certain construction and opening obligations and deadlines on the Company, and certain past and/or anticipated delays would allow Starwood and Shangri-La to terminate their respective agreements. The Company has recommenced construction activities on parcels 5 and 6 and is negotiating (or undertaking to negotiate) amendments to its management agreements with Starwood and Shangri-La to provide for new opening timelines. If negotiations are unsuccessful and Starwood and Shangri-La exercise their rights to terminate their agreements, the Company would have to find new managers and brands for these projects. The Company’s agreement with Starwood related to the Las Vegas Condo Tower has been terminated in connection with the suspension of the project and management is currently evaluating alternatives for branding the project. If the Company has to find new managers and brands in Macau or is unsuccessful in rebranding its Las Vegas Condo Tower, such measures could have a material adverse effect on the Company’s financial condition, results of operations and cash flows.

Malls in Macau and Singapore

The Company leases mall space in Macau and Singapore to various retailers. These leases are non-cancellable operating leases with lease periods that vary from 6 months to 10 years. The leases include minimum base rents with escalated contingent rent clauses. At December 31, 2010, the future minimum rentals on these non-cancelable leases are as follows (in thousands, at exchange rates in effect on December 31, 2010):

2011		$	124,545
2012			187,165
2013			193,783
2014			164,103
2015			121,512
Thereafter			238,669
Total minimum future rentals		$	1,029,777

The total minimum future rentals do not include the escalated contingent rent clauses. Contingent rentals amounted to $37.8 million, $15.0 million and $2.1 million for the years ended December 31, 2010, 2009 and 2008, respectively.

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LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Note 15 — Stock-Based Employee Compensation

The Company has three nonqualified stock option plans, the 1997 Plan, the 2004 Plan and the SCL Equity Plan, which are described below. The plans provide for the granting of stock options pursuant to the applicable provisions of the Internal Revenue Code and regulations.

LVSLLC 1997 Fixed Stock Option Plan

The 1997 Plan provides for 19,952,457 shares (on a post-split basis) of common stock of LVSLLC to be reserved for issuance to officers and other key employees or consultants of LVSLLC or any LVSLLC affiliates or subsidiaries (each as defined in the 1997 Plan) pursuant to options granted under the 1997 Plan.

The 1997 Plan provides that the Principal Stockholder may, at any time, assume the 1997 Plan or certain obligations under the 1997 Plan, in which case the Principal Stockholder will have all the rights, powers and responsibilities granted LVSLLC or its Board of Directors under the 1997 Plan with respect to such assumed obligations. The Principal Stockholder assumed LVSLLC’s obligations under the 1997 Plan to sell shares to optionees upon the exercise of their options with respect to options granted prior to July 15, 2004. LVSLLC is responsible for all other obligations under the 1997 Plan. LVSC assumed all of the obligations of LVSLLC and the Principal Stockholder under the 1997 Plan (other than the obligation of the Principal Stockholder to issue 984,321 shares under options granted prior to July 15, 2004), in connection with its initial public offering.

The Board of Directors agreed not to grant any additional stock options under the 1997 Plan following the initial public offering and there were no options outstanding under it during the years ended December 31, 2010 and 2009.

Las Vegas Sands Corp. 2004 Equity Award Plan

The Company adopted the 2004 Plan for grants of options to purchase its common stock. The purpose of the 2004 Plan is to give the Company a competitive edge in attracting, retaining and motivating employees, directors and consultants and to provide the Company with a stock plan providing incentives directly related to increases in its stockholder value. Any of the Company’s subsidiaries’ or affiliates’ employees, directors or officers and many of its consultants are eligible for awards under the 2004 Plan. The 2004 Plan provides for an aggregate of 26,344,000 shares of the Company’s common stock to be available for awards. The 2004 Plan has a term of ten years and no further awards may be granted after the expiration of the term. The compensation committee may grant awards of nonqualified stock options, incentive (qualified) stock options, stock appreciation rights, restricted stock awards, restricted stock units, stock bonus awards, performance compensation awards or any combination of the foregoing. As of December 31, 2010, there were 7,676,411 shares available for grant under the 2004 Plan.

Stock option awards are granted with an exercise price equal to the fair market value (as defined in the 2004 Plan) of the Company’s stock on the date of grant. The outstanding stock options generally vest over four years and have ten-year contractual terms. Compensation cost for all stock option grants, which all have graded vesting, is net of estimated forfeitures and is recognized on a straight-line basis over the awards’ respective requisite service periods. The Company estimates the fair value of stock options using the Black-Scholes option-pricing model. Expected volatilities are based on a combination of the Company’s historical volatility and the historical volatilities from a selection of companies from the Company’s peer group due to the Company’s lack of historical information. The Company used the simplified method for estimating expected option life, as the options qualify as “plain-vanilla” options. The risk-free interest rate for periods equal to the expected term of the stock option is based on the U.S. Treasury yield curve in effect at the time of grant.

Sands China Ltd. Equity Award Plan

The Company’s subsidiary, SCL, adopted an equity award plan (the “SCL Equity Plan”) for grants of options to purchase ordinary shares of SCL. The purpose of the SCL Equity Plan is to give SCL a competitive edge in attracting, retaining and motivating employees, directors and consultants and to provide SCL with a stock plan providing incentives directly related to increases in its stockholder value. Subject to certain criteria as defined in the SCL Equity Plan, SCL’s subsidiaries’ or affiliates’ employees, directors or officers and many of its consultants are eligible for awards under the SCL Equity Plan. The SCL Equity Plan provides for an aggregate of 804,786,508 shares of SCL’s common stock to be available for awards. The SCL Equity Plan has a term of ten years and no further awards may be granted after the expiration of the term. SCL’s compensation committee may grant awards of stock options, stock appreciation rights, restricted stock awards, restricted stock units, stock bonus awards, performance compensation awards or any combination of the foregoing. As of December 31, 2010, there were 785,847,008 shares available for grant under the SCL Equity Plan.

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LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Stock option awards are granted with an exercise price not less than (i) the closing price of SCL’s stock on the date of grant or (ii) the average closing price of SCL’s stock for the five business days immediately preceding the date of grant. The outstanding stock options generally vest over four years and have ten-year contractual terms. Compensation cost for all stock option grants, which all have graded vesting, is net of estimated forfeitures and is recognized on a straight-line basis over the awards’ respective requisite service periods. The Company estimates the fair value of stock options using the Black-Scholes option-pricing model. Expected volatilities are based on the historical volatilities from a selection of companies from SCL’s peer group due to SCL’s lack of historical information. The Company used the simplified method for estimating expected option life, as the options qualify as “plain-vanilla” options. The risk-free interest rate for periods equal to the expected term of the stock option is based on the Hong Kong Exchange Fund Note rate in effect at the time of grant.

The fair value of each option grant was estimated on the grant date using the Black-Scholes option-pricing model with the following weighted average assumptions:

		2010				2009				2008
LVSC 2004 Plan:
Weighted average volatility			89.2	%			75.8	%			36.7	%
Expected term (in years)			5.4				5.2				6.4
Risk-free rate			2.9	%			2.8	%			3.0	%
Expected dividends			—				—				—
SCL Equity Plan:
Weighted average volatility			73.5	%			—	%			—	%
Expected term (in years)			6.2				—				—
Risk-free rate			1.9	%			—	%			—	%
Expected dividends			—				—				—

A summary of the stock option activity for the Company’s equity award plans for the year ended December 31, 2010, is presented below:

										Weighted
						Weighted				Average
						Average				Remaining				Aggregate
						Exercise				Contractual				Intrinsic
		Shares				Price				Life (Years)				Value
LVSC 2004 Plan:
Outstanding as of January 1, 2010			15,000,608			$	35.39
Granted			4,496,527				21.82
Exercised			(1,667,636	)			9.87
Forfeited			(2,205,871	)			39.22
Outstanding as of December 31, 2010			15,623,628			$	33.67				6.69			$	338,715,503
Exercisable as of December 31, 2010			4,741,254			$	53.61				6.21			$	46,275,097
SCL Equity Plan:
Outstanding as of January 1, 2010			—			$	—
Granted			26,188,600				1.63
Exercised			—				—
Forfeited			(7,249,100	)			1.57
Outstanding as of December 31, 2010			18,939,500			$	1.65				9.38			$	10,543,357
Exercisable as of December 31, 2010			—			$	—				—			$	—

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LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Restricted Stock Awards

A summary of the unvested restricted shares under the Company’s 2004 Plan for the year ended December 31, 2010, is presented below:

						Weighted Average
						Grant Date
		Shares				Fair Value
Unvested as of January 1, 2010			64,411			$	18.22
Granted			15,765				25.37
Vested			(55,507	)			17.65
Forfeited			(1,730	)			28.90
Unvested as of December 31, 2010			22,939			$	23.70

Excluded from the table above are 350,000 shares of restricted stock that were legally issued on January 1, 2011; however, for accounting purposes were deemed to have a grant date of November 13, 2010. These shares have a value of $16.9 million and will be expensed on a straight-line basis over 2 years.

As of December 31, 2010, under the 2004 Plan there was $79.1 million of unrecognized compensation cost, net of estimated forfeitures of 10.0% per year, related to unvested stock options and there was $16.1 million of unrecognized compensation cost related to unvested restricted stock, including the 350,000 shares not legally issued noted above. The stock option and restricted stock costs are expected to be recognized over a weighted average period of 2.7 years and 1.9 years, respectively.

As of December 31, 2010, under the SCL Equity Plan there was $15.1 million of unrecognized compensation cost, net of estimated forfeitures of 8.8% per year, related to unvested stock options that are expected to be recognized over a weighted average period of 3.4 years.

The stock-based compensation activity for the 2004 Plan and SCL Equity Plan is as follows for the three years ended December 31, 2010 (in thousands, except weighted average grant date fair values):

		Year Ended December 31,
		2010				2009				2008
Compensation expense:
Stock options		$	56,462			$	44,544			$	50,858
Restricted stock			1,559				1,001				2,996
		$	58,021			$	45,545			$	53,854
Income tax benefit recognized in the consolidated statements of operations		$	—			$	—			$	12,860
Compensation cost capitalized as part of property and equipment		$	2,797			$	3,509			$	5,789
LVSC 2004 Plan:
Stock options granted			4,497				8,822				4,973
Weighted average grant date fair value		$	15.95			$	3.52			$	26.85
Restricted shares granted			16				—				—
Weighted average grant date fair value		$	25.37			$	3.52			$	26.85
Stock options exercised:
Intrinsic value		$	1,668			$	139			$	8,088
Cash received		$	16,455			$	64			$	6,834
Tax benefit realized for tax deductions from stock-based compensation		$	—			$	—			$	1,117
SCL Equity Plan:
Stock options granted			26,189				—				—
Weighted average grant date fair value		$	1.06			$	—			$	—
Stock options exercised:
Intrinsic value		$	—			$	—			$	—
Cash received		$	—			$	—			$	—
Tax benefit realized for tax deductions from stock-based compensation		$	—			$	—			$	—

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LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Note 16 — Employee Benefit Plans

The Company is self-insured for health care and workers compensation benefits for its U.S. employees. The liability for claims filed and estimates of claims incurred but not filed is included in other accrued liabilities in the consolidated balance sheets.

Participation in the VCR 401(k) employee savings plan is available for all full-time employees after a three-month probation period. The savings plan allows participants to defer, on a pre-tax basis, a portion of their salary and accumulate tax-deferred earnings as a retirement fund. The Company matches 150% of the first $390 of employee contributions and 50% of employee contributions in excess of $390 up to a maximum of 5% of participating employee’s eligible gross wages. Given the challenging conditions and their impact on the Company’s U.S. operations, the Company ceased matching contributions for its salaried employees effective April 1, 2009. For the years ended December 31, 2010, 2009 and 2008, the Company’s matching contributions under the savings plan were $3.2 million, $4.3 million and $6.2 million, respectively.

Participation in VML’s provident retirement fund is available for all permanent employees after a three-month probation period. VML contributes 5% of each employee’s basic salary to the fund and the employee is eligible to receive 30% of these contributions after working for three consecutive years, gradually increasing to 100% after working for ten years. Given the challenging conditions and their impact on the Company’s Macau operations, the provident fund was suspended during the years ended December 31, 2010 and 2009, and only employees who accepted a reduced work schedule were eligible for the benefit. For the years ended December 31, 2010, 2009 and 2008, VML’s contributions into the provident fund were $7.3 million, $4.6 million and $18.4 million, respectively.

Participation in MBS’s provident retirement fund is available for all permanent employees that are Singapore residents upon joining the Company. MBS contributes 14.5% of each employee’s basic salary to the fund, subject to certain caps as mandated by local regulations. The employee is eligible to receive funds upon reaching the retirement age or upon meeting requirements set up by local regulations. For the years ended December 31, 2010, 2009 and 2008, MBS’s contributions into the provident fund were $16.9 million, $1.9 million and $1.3 million, respectively.

Note 17 — Related Party Transactions

During the years ended December 31, 2010, 2009 and 2008, the Principal Stockholder and his family purchased certain banquet room and catering goods and services from the Company for approximately $0.8 million, $0.6 million and $1.0 million, respectively.

During the years ended December 31, 2010, 2009 and 2008, the Company incurred and paid certain expenses totaling $16.1 million, $8.1 million and $6.4 million, respectively, to its Principal Stockholder related to the Company’s use of his personal aircraft for business purposes. In addition, during the years ended December 31, 2010, 2009 and 2008, the Company charged and received from the Principal Stockholder $9.4 million, $7.7 million and $8.9 million, respectively, related to aviation costs incurred by the Company for the Principal Stockholder’s use of Company aviation personnel and assets for personal purposes.

During the year ended December 31, 2008, the Company sold to the Principal Stockholder’s family, in a private placement transaction, $475.0 million of its Convertible Senior Notes. In November 2008, concurrent with the Company’s issuance of common stock, Preferred Stock and Warrants, the Principal Stockholder’s family exercised the conversion feature of the Convertible Senior Notes for 86,363,636 shares of the Company’s common stock at a conversion price of $5.50 per share. See “— Note 9 — Long-Term Debt — Corporate and U.S. Related Debt — Convertible Senior Notes” and “— Note 10 — Equity.”

During the year ended December 31, 2008, a subsidiary of the Company performed work at a home owned by Robert G. Goldstein, the Company’s Executive Vice President. Mr. Goldstein believed, and the Company acknowledged, that the work was not performed in an appropriate manner. The matter was referred to an independent expert, who concurred about the quality of the work and concluded that Mr. Goldstein should not be obligated to pay the $0.4 million incurred by the Company for costs and overhead on the job. These findings have been accepted by the Company and Mr. Goldstein.

During the year ended December 31, 2003, the Company purchased the lease interest and assets of Carnevale Coffee Bar, LLC, in which the Principal Stockholder is a partner, for $3.1 million, payable in installments of $0.6 million during 2003, and approximately $0.3 million annually over 10 years, beginning in 2004 through September 1, 2013.

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LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Note 18 — Segment Information

The Company’s principal operating and developmental activities occur in three geographic areas: United States, Macau and Singapore. The Company reviews the results of operations for each of its key operating segments: The Venetian Las Vegas, which includes the Sands Expo Center; The Palazzo; Sands Bethlehem; Sands Macao; The Venetian Macao; Four Seasons Macao; Other Asia (comprised primarily of the Company’s ferry operations and various other operations that are ancillary to the Company’s properties in Macau); and Marina Bay Sands. The Company also reviews construction and development activities for each of its primary projects: The Venetian Las Vegas; The Palazzo; Sands Bethlehem; Sands Macao; The Venetian Macao; Four Seasons Macao; Other Asia; Marina Bay Sands; Other Development Projects (on Cotai Strip parcels 3, 5 and 6, and 7 and 8); and Corporate and Other (comprised primarily of airplanes and the Las Vegas Condo Tower). The Venetian Las Vegas and The Palazzo operating segments are managed as a single integrated resort and have been aggregated as one reportable segment (the “Las Vegas Operating Properties”), considering their similar economic characteristics, types of customers, types of services and products, the regulatory business environment of the operations within each segment and the Company’s organizational and management reporting structure. The information as of and for the years ended December 31, 2009 and 2008, have been reclassified to conform to the current presentation. The Company’s segment information is as follows as of and for the three years ended December 31, 2010, 2009 and 2008 (in thousands):

		Year Ended December 31,
		2010				2009				2008
Net Revenues
Macau:
The Venetian Macao		$	2,412,990			$	1,993,531			$	1,945,561
Sands Macao			1,193,589				1,024,268				1,032,100
Four Seasons Macao			498,649				260,567				62,536
Other Asia			110,586				87,987				71,244
			4,215,814				3,366,353				3,111,441
United States:
Las Vegas Operating Properties			1,213,046				1,106,263				1,339,740
Sands Bethlehem			302,101				153,198				—
			1,515,147				1,259,461				1,339,740
Marina Bay Sands			1,262,690				—				—
Intersegment eliminations			(140,469	)			(62,709	)			(61,235	)
Total net revenues		$	6,853,182			$	4,563,105			$	4,389,946
Adjusted Property EBITDA(1)
Macau:
The Venetian Macao		$	809,798			$	556,547			$	499,025
Sands Macao			318,519				244,925				214,573
Four Seasons Macao			113,692				40,527				7,567
Other Asia			(24,429	)			(32,610	)			(49,465	)
			1,217,580				809,389				671,700
United States:
Las Vegas Operating Properties			310,113				259,206				392,139
Sands Bethlehem			58,982				17,566				—
			369,095				276,772				392,139
Marina Bay Sands			641,898				—				—
Total adjusted property EBITDA			2,228,573				1,086,161				1,063,839
Other Operating Costs and Expenses
Stock-based compensation expense			(31,638	)			(29,930	)			(35,039	)
Corporate expense			(108,848	)			(132,098	)			(104,355	)
Rental expense			(41,302	)			(29,899	)			(33,540	)
Pre-opening expense			(114,833	)			(157,731	)			(162,322	)
Development expense			(1,783	)			(533	)			(12,789	)
Depreciation and amortization			(694,971	)			(586,041	)			(506,986	)
Impairment loss			(16,057	)			(169,468	)			(37,568	)
Loss on disposal of assets			(38,555	)			(9,201	)			(7,577	)
Operating income (loss)			1,180,586				(28,740	)			163,663

Table of Contents

LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

		Year Ended December 31,
		2010				2009				2008
Other Non-Operating Costs and Expenses
Interest income			8,947				11,122				19,786
Interest expense, net of amounts capitalized			(306,813	)			(321,870	)			(421,825	)
Other income (expense)			(8,260	)			(9,891	)			19,492
Loss on modification or early retirement of debt			(18,555	)			(23,248	)			(9,141	)
Income tax benefit (expense)			(74,302	)			3,884				59,700
Net (income) loss attributable to noncontrolling interests			(182,209	)			14,264				4,767
Net income (loss) attributable to Las Vegas Sands Corp.		$	599,394			$	(354,479	)		$	(163,558	)

(1)		Adjusted property EBITDA is net income (loss) attributable to Las Vegas Sands Corp. before stock-based compensation expense, corporate expense, rental expense, pre-opening expense, development expense, depreciation and amortization, impairment loss, loss on disposal of assets, interest, other income (expense), loss on modification or early retirement of debt, income taxes and net (income) loss attributable to noncontrolling interests. Adjusted property EBITDA is used by management as the primary measure of operating performance of the Company’s properties and to compare the operating performance of the Company’s properties with that of its competitors.

		Year Ended December 31,
		2010				2009				2008
Intersegment Revenues
Macau:
The Venetian Macao		$	8,345			$	2,957			$	2,365
Other Asia			61,664				53,808				54,156
			70,009				56,765				56,521
Las Vegas Operating Properties			69,892				5,944				4,714
Marina Bay Sands			568				—				—
Total intersegment revenues		$	140,469			$	62,709			$	61,235

		Year Ended December 31,
		2010				2009				2008
Capital Expenditures
Corporate and Other		$	12,215			$	36,846			$	139,650
Macau:
The Venetian Macao			40,895				17,627				173,744
Sands Macao			4,708				5,887				41,455
Four Seasons Macao			35,708				262,662				570,481
Other Asia			4,025				28,727				103,464
Other Development Projects			328,824				89,377				1,111,326
United States:
Las Vegas Operating Properties			21,651				65,899				577,862
Sands Bethlehem			45,672				247,665				307,451
Marina Bay Sands			1,530,283				1,338,206				763,575
Total capital expenditures		$	2,023,981			$	2,092,896			$	3,789,008

		December 31,
		2010				2009				2008
Total Assets
Corporate and Other		$	1,574,180			$	1,849,596			$	707,276
Macau:
The Venetian Macao			3,194,598				2,886,762				3,215,472
Sands Macao			483,678				527,737				592,998
Four Seasons Macao			1,155,243				1,151,028				973,892
Other Asia			370,525				333,122				347,369
Other Development Projects			3,140,905				2,031,327				1,860,183
United States:
Las Vegas Operating Properties			3,966,754				6,893,106				6,562,124
Sands Bethlehem			757,993				737,062				475,256
Marina Bay Sands			6,400,432				4,162,366				2,409,543
Total assets		$	21,044,308			$	20,572,106			$	17,144,113

Table of Contents

LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

		December 31,
		2010				2009				2008
Total Long-Lived Assets
Corporate and Other		$	308,438			$	324,268			$	321,039
Macau:
The Venetian Macao			2,138,419				2,324,882				2,525,984
Sands Macao			315,380				355,170				402,613
Four Seasons Macao			1,024,302				1,047,201				909,297
Other Asia			230,640				276,559				284,559
Other Development Projects			2,303,959				2,022,861				1,849,370
United States:
Las Vegas Operating Properties			3,429,997				3,642,405				4,006,564
Sands Bethlehem			608,021				610,846				417,588
Marina Bay Sands			5,541,881				3,956,899				2,251,152
Total long-lived assets		$	15,901,037			$	14,561,091			$	12,968,166

Note 19 — Condensed Consolidating Financial Information

LVSC is the obligor of the Senior Notes due 2015. LVSLLC, VCR, Mall Intermediate Holding Company, LLC, Venetian Venture Development, Venetian Transport, LLC, Venetian Marketing, Inc., Lido Intermediate Holding Company, LLC and Lido Casino Resort Holding Company, LLC, Interface Group-Nevada, Inc., Palazzo Condo Tower, LLC, Sands Pennsylvania, Inc., Phase II Mall Holding, LLC and Phase II Mall Subsidiary, LLC (collectively, the “Guarantor Subsidiaries”), have jointly and severally guaranteed the Senior Notes on a full and unconditional basis. LVS (Nevada) International Holdings, Inc. and LVS Management Services, LLC, newly formed subsidiaries, were added in September 2009 as full and unconditional guarantors to the Senior Notes on a joint and several basis, and have been included in the group of subsidiaries that is the Guarantor Subsidiaries as of and for the year ended December 31, 2010 and the period ended December 31, 2009. In November 2009, Venetian Venture Development was merged into LVS (Nevada) International Holdings, Inc. The voting stock of all entities included as Guarantor Subsidiaries is 100% owned directly or indirectly by Las Vegas Sands Corp. The noncontrolling interest amount included in the Guarantor Subsidiaries’ condensed consolidating balance sheets is related to non-voting preferred stock of one of the subsidiaries held by a third party.

On February 29, 2008, all of the capital stock of Phase II Mall Subsidiary, LLC was sold to GGP and in connection therewith, it was released as a guarantor under the Senior Notes. The sale is not complete from an accounting perspective due to the Company’s continuing involvement in the transaction related to the completion of construction on the remainder of The Shoppes at The Palazzo, certain activities to be performed on behalf of GGP and the uncertainty of the final sales price. Certain of the assets, liabilities, operating results and cash flows related to the ownership and operation of the mall by Phase II Mall Subsidiary, LLC subsequent to the sale will continue to be accounted for by the Guarantor Subsidiaries until the final sales price has been determined, and therefore are included in the “Guarantor Subsidiaries” columns in the following condensed consolidating financial information. As a result, net assets of $38.0 million (consisting of $282.1 million of property and equipment, offset by $244.1 million of liabilities consisting primarily of deferred proceeds from the sale) and $47.0 million (consisting of $291.1 million of property and equipment, offset by $244.1 million of liabilities consisting primarily of deferred proceeds from the sale) as of December 31, 2010 and 2009, respectively, and a net loss (consisting primarily of depreciation expense) of $9.9 million, $12.5 million and $7.8 million for the years ended December 31, 2010, 2009 and 2008, respectively, related to the mall and are being accounted for by the Guarantor Subsidiaries. These balances and amounts are not collateral for the Senior Notes and should not be considered as credit support for the guarantees of the Senior Notes.

Table of Contents

LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The condensed consolidating financial information of the Company, the Guarantor Subsidiaries and the non-guarantor subsidiaries on a combined basis as of December 31, 2010 and 2009, and for each of the three years in the period ended December 31, 2010, is as follows (in thousands):

Condensed Consolidating Balance Sheets December 31, 2010

														Consolidating/
		Las Vegas				Guarantor				Non-Guarantor				Eliminating
		Sands Corp.				Subsidiaries				Subsidiaries				Entries				Total
Cash and cash equivalents		$	1,031,844			$	412,226			$	1,593,011			$	—			$	3,037,081
Restricted cash and cash equivalents			—				2,179				162,136				—				164,315
Intercompany receivables			11,843				65,834				22,927				(100,604	)			—
Accounts receivable, net			298				156,012				561,217				(608	)			716,919
Inventories			2,174				11,755				18,331				—				32,260
Deferred income taxes, net			—				24,496				47,389				(10,279	)			61,606
Prepaid expenses and other			15,272				4,782				30,432				(3,760	)			46,726
Total current assets			1,061,431				677,284				2,435,443				(115,251	)			4,058,907
Property and equipment, net			133,901				3,570,465				10,797,831				—				14,502,197
Investments in subsidiaries			6,273,755				4,996,023				—				(11,269,778	)			—
Deferred financing costs, net			767				29,198				125,413				—				155,378
Restricted cash and cash equivalents			—				4,616				640,989				—				645,605
Intercompany receivables			31,996				97,813				—				(129,809	)			—
Intercompany notes receivable			—				638,986				—				(638,986	)			—
Deferred income taxes, net			62,638				—				—				(52,215	)			10,423
Leasehold interests in land, net			—				—				1,398,840				—				1,398,840
Intangible assets, net			590				—				89,215				—				89,805
Other assets, net			78				27,104				155,971				—				183,153
Total assets		$	7,565,156			$	10,041,489			$	15,643,702			$	(12,206,039	)		$	21,044,308
Accounts payable		$	5,750			$	26,975			$	81,388			$	(608	)		$	113,505
Construction payables			—				2,179				514,802				—				516,981
Intercompany payables			22,926				11,843				65,835				(100,604	)			—
Accrued interest payable			4,629				7,689				30,307				—				42,625
Other accrued liabilities			15,692				175,011				969,531				—				1,160,234
Income taxes payable			—				—				3,760				(3,760	)			—
Deferred income taxes			10,279				—				—				(10,279	)			—
Current maturities of long-term debt			3,687				30,606				732,775				—				767,068
Total current liabilities			62,963				254,303				2,398,398				(115,251	)			2,600,413
Other long-term liabilities			26,761				10,911				40,568				—				78,240
Intercompany payables			45,336				—				84,473				(129,809	)			—
Intercompany notes payable			—				—				638,986				(638,986	)			—
Deferred income taxes			—				53,034				114,400				(52,215	)			115,219
Deferred amounts related to mall transactions			—				442,114				—				—				442,114
Long-term debt			263,726				2,869,931				6,240,098				—				9,373,755
Total liabilities			398,786				3,630,293				9,516,923				(936,261	)			12,609,741
Preferred stock issued to Principal Stockholder’s family			503,379				—				—				—				503,379
Total Las Vegas Sands Corp. stockholders’ equity			6,662,991				6,410,791				4,858,987				(11,269,778	)			6,662,991
Noncontrolling interests			—				405				1,267,792				—				1,268,197
Total equity			6,662,991				6,411,196				6,126,779				(11,269,778	)			7,931,188
Total liabilities and equity		$	7,565,156			$	10,041,489			$	15,643,702			$	(12,206,039	)		$	21,044,308

Table of Contents

LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Condensed Consolidating Balance Sheets December 31, 2009

														Consolidating/
		Las Vegas				Guarantor				Non-Guarantor				Eliminating
		Sands Corp.				Subsidiaries				Subsidiaries				Entries				Total
Cash and cash equivalents		$	254,256			$	3,033,625			$	1,667,535			$	—			$	4,955,416
Restricted cash and cash equivalents			—				6,954				111,687				—				118,641
Intercompany receivables			—				101,485				27,646				(129,131	)			—
Accounts receivable, net			727				152,151				309,547				(1,659	)			460,766
Inventories			1,906				12,332				12,835				—				27,073
Deferred income taxes, net			—				29,117				1,992				(4,667	)			26,442
Prepaid expenses and other			11,410				5,251				18,675				—				35,336
Total current assets			268,299				3,340,915				2,149,917				(135,457	)			5,623,674
Property and equipment, net			140,684				3,786,061				9,424,526				—				13,351,271
Investment in subsidiaries			6,242,214				4,117,915				—				(10,360,129	)			—
Deferred financing costs, net			1,095				37,850				99,509				—				138,454
Intercompany receivables			34,029				85,725				—				(119,754	)			—
Intercompany notes receivable			—				500,518				—				(500,518	)			—
Deferred income taxes, net			48,362				—				243				(26,386	)			22,219
Leasehold interests in land, net			—				—				1,209,820				—				1,209,820
Intangible assets, net			—				—				50,129				—				50,129
Other assets, net			2,338				27,555				146,646				—				176,539
Total assets		$	6,737,021			$	11,896,539			$	13,080,790			$	(11,142,244	)		$	20,572,106
Accounts payable		$	4,229			$	21,353			$	58,772			$	(1,659	)		$	82,695
Construction payables			—				9,172				769,599				—				778,771
Intercompany payables			59,029				—				70,102				(129,131	)			—
Accrued interest payable			6,074				351				11,907				—				18,332
Other accrued liabilities			6,470				170,706				609,016				—				786,192
Deferred income taxes			4,667				—				—				(4,667	)			—
Current maturities of long-term debt			3,688				81,374				88,253				—				173,315
Total current liabilities			84,157				282,956				1,607,649				(135,457	)			1,839,305
Other long-term liabilities			48,907				10,621				22,431				—				81,959
Intercompany payables			15,166				—				104,588				(119,754	)			—
Intercompany notes payable			—				—				500,518				(500,518	)			—
Deferred income taxes			—				26,386				—				(26,386	)			—
Deferred amounts related to mall transactions			—				447,274				—				—				447,274
Long-term debt			327,258				4,739,753				5,785,136				—				10,852,147
Total liabilities			475,488				5,506,990				8,020,322				(782,115	)			13,220,685
Preferred stock issued to Principal Stockholder’s family			410,834				—				—				—				410,834
Total Las Vegas Sands Corp. stockholders’ equity			5,850,699				6,389,144				3,970,985				(10,360,129	)			5,850,699
Noncontrolling interests			—				405				1,089,483				—				1,089,888
Total equity			5,850,699				6,389,549				5,060,468				(10,360,129	)			6,940,587
Total liabilities and equity		$	6,737,021			$	11,896,539			$	13,080,790			$	(11,142,244	)		$	20,572,106

Table of Contents

LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Condensed Consolidating Statements of Operations For the year ended December 31, 2010

														Consolidating/
		Las Vegas				Guarantor				Non-Guarantor				Eliminating
		Sands Corp.				Subsidiaries				Subsidiaries				Entries				Total
Revenues:
Casino		$	—			$	496,637			$	5,036,451			$	—			$	5,533,088
Rooms			—				445,458				352,041				—				797,499
Food and beverage			—				159,285				287,273				—				446,558
Convention, retail and other			—				218,586				404,914				(82,708	)			540,792
			—				1,319,966				6,080,679				(82,708	)			7,317,937
Less-promotional allowances			(597	)			(155,394	)			(305,744	)			(3,020	)			(464,755	)
Net revenues			(597	)			1,164,572				5,774,935				(85,728	)			6,853,182
Operating expenses:
Casino			—				300,083				2,951,842				(2,698	)			3,249,227
Rooms			—				99,066				44,261				(1	)			143,326
Food and beverage			—				69,644				144,397				(6,085	)			207,956
Convention, retail and other			—				75,041				216,492				(16,855	)			274,678
Provision for doubtful accounts			—				30,277				67,485				—				97,762
General and administrative			—				239,561				444,882				(1,145	)			683,298
Corporate expense			93,262				270				74,200				(58,884	)			108,848
Rental expense			—				—				41,302				—				41,302
Pre-opening expense			654				7				114,232				(60	)			114,833
Development expense			1,783				—				—				—				1,783
Depreciation and amortization			12,578				224,372				458,021				—				694,971
Impairment loss			—				—				16,057				—				16,057
Loss on disposal of assets			1,605				9,423				27,527				—				38,555
			109,882				1,047,744				4,600,698				(85,728	)			5,672,596
Operating income (loss)			(110,479	)			116,828				1,174,237				—				1,180,586
Other income (expense):
Interest income			3,614				89,522				3,735				(87,924	)			8,947
Interest expense, net of amounts capitalized			(15,380	)			(106,463	)			(272,894	)			87,924				(306,813	)
Other income (expense)			(1,500	)			3,325				(10,085	)			—				(8,260	)
Gain (loss) on modification or early retirement of debt			3,358				(21,692	)			(221	)			—				(18,555	)
Income from equity investments in subsidiaries			709,794				589,784				—				(1,299,578	)			—
Income before income taxes			589,407				671,304				894,772				(1,299,578	)			855,905
Income tax benefit (expense)			9,987				(10,055	)			(74,234	)			—				(74,302	)
Net income			599,394				661,249				820,538				(1,299,578	)			781,603
Net income attributable to noncontrolling interests			—				—				(182,209	)			—				(182,209	)
Net income attributable to Las Vegas Sands Corp.		$	599,394			$	661,249			$	638,329			$	(1,299,578	)		$	599,394

Table of Contents

LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Condensed Consolidating Statements of Operations For the year ended December 31, 2009

														Consolidating/
		Las Vegas				Guarantor				Non-Guarantor				Eliminating
		Sands Corp.				Subsidiaries				Subsidiaries				Entries				Total
Revenues:
Casino		$	—			$	473,176			$	3,051,622			$	—			$	3,524,798
Rooms			—				437,630				220,153				—				657,783
Food and beverage			—				150,588				177,111				—				327,699
Convention, retail and other			—				156,249				278,738				(15,823	)			419,164
Total revenues			—				1,217,643				3,727,624				(15,823	)			4,929,444
Less — promotional allowances			(722	)			(164,495	)			(198,308	)			(2,814	)			(366,339	)
Net revenues			(722	)			1,053,148				3,529,316				(18,637	)			4,563,105
Operating expenses:
Casino			—				286,884				2,064,913				(2,375	)			2,349,422
Rooms			—				94,562				26,535				—				121,097
Food and beverage			—				65,793				106,566				(6,382	)			165,977
Convention, retail and other			—				73,261				174,120				(7,004	)			240,377
Provision for doubtful accounts			—				52,832				50,970				—				103,802
General and administrative			—				241,011				286,303				(1,115	)			526,199
Corporate expense			118,940				269				14,642				(1,753	)			132,098
Rental expense			—				2,937				26,962				—				29,899
Pre-opening expense			1,067				99				156,573				(8	)			157,731
Development expense			432				—				101				—				533
Depreciation and amortization			11,369				230,864				343,808				—				586,041
Impairment loss			—				151,175				18,293				—				169,468
Loss on disposal of assets			—				3,158				6,043				—				9,201
			131,808				1,202,845				3,275,829				(18,637	)			4,591,845
Operating income (loss)			(132,530	)			(149,697	)			253,487				—				(28,740	)
Other income (expense):
Interest income			10,331				47,508				657				(47,374	)			11,122
Interest expense, net of amounts capitalized			(18,456	)			(120,682	)			(230,106	)			47,374				(321,870	)
Other income (expense)			(1	)			665				(10,555	)			—				(9,891	)
Loss on modification or early retirement of debt			—				—				(23,248	)			—				(23,248	)
Income (loss) from equity investments in subsidiaries			(121,813	)			13,629				—				108,184				—
Loss before income taxes			(262,469	)			(208,577	)			(9,765	)			108,184				(372,627	)
Income tax benefit (expense)			(92,010	)			95,304				590				—				3,884
Net loss			(354,479	)			(113,273	)			(9,175	)			108,184				(368,743	)
Net loss attributable to noncontrolling interests			—				—				14,264				—				14,264
Net income (loss) attributable to Las Vegas Sands Corp.		$	(354,479	)		$	(113,273	)		$	5,089			$	108,184			$	(354,479	)

Table of Contents

LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Condensed Consolidating Statements of Operations For the year ended December 31, 2008

														Consolidating/
		Las Vegas				Guarantor				Non-Guarantor				Eliminating
		Sands Corp.				Subsidiaries				Subsidiaries				Entries				Total
Revenues:
Casino		$	—			$	522,438			$	2,669,661			$	—			$	3,192,099
Rooms			—				535,797				231,332				—				767,129
Food and beverage			—				195,233				173,829				—				369,062
Convention, retail and other			—				178,866				239,927				(11,957	)			406,836
Total revenues			—				1,432,334				3,314,749				(11,957	)			4,735,126
Less — promotional allowances			(1,929	)			(147,817	)			(192,705	)			(2,729	)			(345,180	)
Net revenues			(1,929	)			1,284,517				3,122,044				(14,686	)			4,389,946
Operating expenses:
Casino			—				316,846				1,899,728				(2,339	)			2,214,235
Rooms			—				123,112				31,503				—				154,615
Food and beverage			—				88,948				103,852				(6,249	)			186,551
Convention, retail and other			—				87,540				131,227				(5,416	)			213,351
Provision for doubtful accounts			—				28,003				13,862				—				41,865
General and administrative			—				266,087				285,124				(682	)			550,529
Corporate expense			86,369				834				17,152				—				104,355
Rental expense			—				6,929				26,611				—				33,540
Pre-opening expense			3,722				9,067				149,533				—				162,322
Development expense			2,693				—				10,096				—				12,789
Depreciation and amortization			9,853				223,724				273,409				—				506,986
Impairment loss			13,292				—				24,276				—				37,568
Loss on disposal of assets			—				6,093				1,484				—				7,577
			115,929				1,157,183				2,967,857				(14,686	)			4,226,283
Operating income (loss)			(117,858	)			127,334				154,187				—				163,663
Other income (expense):
Interest income			8,694				12,047				7,244				(8,199	)			19,786
Interest expense, net of amounts capitalized			(24,036	)			(213,464	)			(192,524	)			8,199				(421,825	)
Other income (expense)			(35	)			(11,795	)			31,322				—				19,492
Loss on early retirement of debt			(5,114	)			—				(4,027	)			—				(9,141	)
Income (loss) from equity investments in subsidiaries			(46,114	)			3,010				—				43,104				—
Loss before income taxes			(184,463	)			(82,868	)			(3,798	)			43,104				(228,025	)
Income tax benefit			20,905				36,754				2,041				—				59,700
Net loss			(163,558	)			(46,114	)			(1,757	)			43,104				(168,325	)
Net loss attributable to noncontrolling interests			—				—				4,767				—				4,767
Net income (loss) attributable to Las Vegas Sands Corp.		$	(163,558	)		$	(46,114	)		$	3,010			$	43,104			$	(163,558	)

Table of Contents

LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Condensed Consolidating Statements of Cash Flows For the year ended December 31, 2010

														Consolidating/
		Las Vegas				Guarantor				Non-Guarantor				Eliminating
		Sands Corp.				Subsidiaries				Subsidiaries				Entries				Total
Net cash generated from (used in) operating activities		$	(112,991	)		$	331,374			$	1,651,768			$	—			$	1,870,151
Cash flows from investing activities:
Changes in restricted cash and cash equivalents			—				159				(688,425	)			—				(688,266	)
Capital expenditures			(7,538	)			(26,021	)			(1,990,422	)			—				(2,023,981	)
Proceeds from disposal of property and equipment			—				828				48,907				—				49,735
Purchases of investments			—				—				(173,774	)			—				(173,774	)
Proceeds from investments			—				—				173,774				—				173,774
Acquisition of intangible assets			(590	)			—				(44,713	)			—				(45,303	)
Notes receivable to non-guarantor subsidiaries			—				(52,729	)			—				52,729				—
Dividends from Guarantor Subsidiaries			4,384,116				—				—				(4,384,116	)			—
Dividends from non-guarantor subsidiaries			—				56,100				—				(56,100	)			—
Capital contributions to subsidiaries			(3,567,037	)			(16,537	)			—				3,583,574				—
Net cash generated from (used in) investing activities			808,951				(38,200	)			(2,674,653	)			(803,913	)			(2,707,815	)
Cash flows from financing activities:
Proceeds from exercise of stock options			16,455				—				—				—				16,455
Proceeds from exercise of warrants			225,514				—				—				—				225,514
Dividends paid to preferred stockholders			(93,400	)			—				—				—				(93,400	)
Dividends paid to Las Vegas Sands Corp.			—				(4,384,116	)			—				4,384,116				—
Dividends paid to Guarantor Subsidiaries			—				—				(56,100	)			56,100				—
Capital contributions received			—				3,400,037				183,537				(3,583,574	)			—
Borrowings from Guarantor Subsidiaries			—				—				52,729				(52,729	)			—
Proceeds from VOL credit facility			—				—				749,305				—				749,305
Proceeds from Singapore credit facility			—				—				647,988				—				647,988
Repayments on senior secured credit facility			—				(1,810,329	)			—				—				(1,810,329	)
Repayments on VML credit facility			—				—				(572,337	)			—				(572,337	)
Repurchase and cancellation of senior notes			(56,675	)			—				—				—				(56,675	)
Repayments on ferry financing			—				—				(35,055	)			—				(35,055	)
Repayments on airplane financings			(3,687	)			—				—				—				(3,687	)
Repayments on HVAC equipment lease			—				(1,711	)			—				—				(1,711	)
Repayments on FF&E facility and other long-term debt			—				(108,549	)			(12,532	)			—				(121,081	)
Payments of preferred stock inducement premium			(6,579	)			—				—				—				(6,579	)
Payments of deferred financing costs			—				(9,905	)			(56,060	)			—				(65,965	)
Net cash generated from (used in) financing activities			81,628				(2,914,573	)			901,475				803,913				(1,127,557	)
Effect of exchange rate on cash			—				—				46,886				—				46,886
Increase (decrease) in cash and cash equivalents			777,588				(2,621,399	)			(74,524	)			—				(1,918,335	)
Cash and cash equivalents at beginning of period			254,256				3,033,625				1,667,535				—				4,955,416
Cash and cash equivalents at end of period		$	1,031,844			$	412,226			$	1,593,011			$	—			$	3,037,081

Table of Contents

LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Condensed Consolidating Statements of Cash Flows For the year ended December 31, 2009

														Consolidating/
		Las Vegas				Guarantor				Non-Guarantor				Eliminating
		Sands Corp.				Subsidiaries				Subsidiaries				Entries				Total
Net cash generated from operating activities		$	22,283			$	445			$	615,885			$	—			$	638,613
Cash flows from investing activities:
Change in restricted cash and cash equivalents			—				(729	)			79,359				—				78,630
Capital expenditures			(3,570	)			(99,232	)			(1,990,094	)			—				(2,092,896	)
Proceeds from disposal of property and equipment			60				2,554				1,589				—				4,203
Notes receivable to non-guarantor subsidiaries			(20,000	)			(171,671	)			—				191,671				—
Intercompany receivable to non-guarantor subsidiaries			(57,000	)			—				—				57,000				—
Repayment of receivable from non-guarantor subsidiaries			499,310				898,574				—				(1,397,884	)			—
Dividends from Guarantor Subsidiaries			6,580,952				—				—				(6,580,952	)			—
Dividends from non-guarantor subsidiaries			—				16,406				—				(16,406	)			—
Capital contributions to subsidiaries			(6,964,009	)			(224	)			—				6,964,233				—
Net cash generated from (used in) investing activities			35,743				645,678				(1,909,146	)			(782,338	)			(2,010,063	)
Cash flows from financing activities:
Proceeds from exercise of stock options			51				—				—				—				51
Proceeds from sale of and contribution from noncontrolling interest, net of transaction costs			—				—				2,386,428				—				2,386,428
Dividends paid to preferred stockholders			(94,697	)			—				—				—				(94,697	)
Dividends paid to Las Vegas Sands Corp.			—				(6,580,952	)			—				6,580,952				—
Dividends paid to Guarantor Subsidiaries			—				—				(16,406	)			16,406				—
Capital contributions received			—				6,758,758				205,475				(6,964,233	)			—
Borrowings from Las Vegas Sands Corp.			—				—				77,000				(77,000	)			—
Borrowings from Guarantor Subsidiaries			—				—				171,671				(171,671	)			—
Repayment on borrowings from Las Vegas Sands Corp.			—				—				(499,310	)			499,310				—
Repayment on borrowings from Guarantor Subsidiaries			—				—				(898,574	)			898,574				—
Proceeds from Singapore credit facility			—				—				1,221,644				—				1,221,644
Proceeds from exchangeable bonds			—				—				600,000				—				600,000
Proceeds from ferry financing			—				—				9,884				—				9,884
Repayments on VML credit facility			—				—				(662,552	)			—				(662,552	)
Repayments on senior secured credit facility			—				(40,000	)			—				—				(40,000	)
Repayments on Singapore credit facility			—				—				(17,762	)			—				(17,762	)
Repayments on ferry financing			—				—				(17,695	)			—				(17,695	)
Repayments on airplane financings			(3,687	)			—				—				—				(3,687	)
Repayments on FF&E facility and other long-term debt			—				(34,249	)			(1,027	)			—				(35,276	)
Payments of deferred financing costs			—				(2,880	)			(37,485	)			—				(40,365	)
Net cash generated from (used in) financing activities			(98,333	)			100,677				2,521,291				782,338				3,305,973
Effect of exchange rate on cash			—				—				(17,270	)			—				(17,270	)
Increase (decrease) in cash and cash equivalents			(40,307	)			746,800				1,210,760				—				1,917,253
Cash and cash equivalents at beginning of year			294,563				2,286,825				456,775				—				3,038,163
Cash and cash equivalents at end of year		$	254,256			$	3,033,625			$	1,667,535			$	—			$	4,955,416

Table of Contents

LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Condensed Consolidating Statements of Cash Flows For the year ended December 31, 2008

														Consolidating/
		Las Vegas				Guarantor				Non-Guarantor				Eliminating
		Sands Corp.				Subsidiaries				Subsidiaries				Entries				Total
Net cash generated from (used in) operating activities		$	(34,547	)		$	116,829			$	42,590			$	—			$	124,872
Cash flows from investing activities:
Change in restricted cash and cash equivalents			—				(1,137	)			219,181				—				218,044
Capital expenditures			(11,163	)			(660,163	)			(3,117,682	)			—				(3,789,008	)
Notes receivable to non-guarantor subsidiaries			(20,000	)			(36,185	)			—				56,185				—
Intercompany receivable to Guarantor Subsidiaries			(35,000	)			—				—				35,000				—
Intercompany receivable to non-guarantor subsidiaries			(353,000	)			(1,201,285	)			—				1,554,285				—
Repayment of receivable from Guarantor Subsidiaries			94,003				—				—				(94,003	)			—
Repayment of receivable from non-guarantor subsidiaries			—				34,018				—				(34,018	)			—
Dividends from Guarantor Subsidiaries			50,596				—				—				(50,596	)			—
Capital contributions to subsidiaries			(2,025,000	)			(77,728	)			—				2,102,728				—
Net cash used in investing activities			(2,299,564	)			(1,942,480	)			(2,898,501	)			3,569,581				(3,570,964	)
Cash flows from financing activities:
Proceeds from exercise of stock options			6,834				—				—				—				6,834
Excess tax benefits from stock-based compensation			1,112				—				—				—				1,112
Dividends paid to Las Vegas Sands Corp.			—				(50,596	)			—				50,596				—
Proceeds from contribution from noncontrolling interests			—				—				2,914				—				2,914
Capital contributions received			—				2,025,000				77,728				(2,102,728	)			—
Borrowings from Las Vegas Sands Corp.			—				35,000				373,000				(408,000	)			—
Borrowings from Guarantor Subsidiaries			—				—				1,237,470				(1,237,470	)			—
Repayment on borrowings from Las Vegas Sands Corp.			—				(94,003	)			—				94,003				—
Repayment on borrowings from Guarantor Subsidiaries			—				—				(34,018	)			34,018				—
Proceeds from common stock issued, net of transaction costs			1,053,695				—				—				—				1,053,695
Proceeds from preferred stock and warrants issued to Principal Stockholder’s family, net of transaction costs			523,720				—				—				—				523,720
Proceeds from preferred stock and warrants issued, net of transaction costs			503,625				—				—				—				503,625
Proceeds from issuance of convertible senior notes			475,000				—				—				—				475,000
Proceeds from senior secured credit facility			—				2,075,860				—				—				2,075,860
Proceeds from Singapore credit facility			—				—				1,730,515				—				1,730,515
Proceeds from VML credit facility			—				—				444,299				—				444,299
Proceeds from ferry financing			—				—				218,564				—				218,564
Proceeds from FF&E facility and other long-term debt			—				105,584				41,379				—				146,963
Repayments on Singapore bridge facility			—				—				(1,326,467	)			—				(1,326,467	)
Repayments on senior secured credit facility			—				(333,000	)			—				—				(333,000	)
Repayments on airplane financings			(3,687	)			—				—				—				(3,687	)
Repayments on FF&E facility and other long-term debt			—				(25,050	)			(37,704	)			—				(62,754	)
Proceeds from sale of The Shoppes at the Palazzo			—				243,928				—				—				243,928
Payments of deferred financing costs			(5,114	)			69				(87,923	)			—				(92,968	)
Net cash generated from financing activities			2,555,185				3,982,792				2,639,757				(3,569,581	)			5,608,153
Effect of exchange rate on cash			—				—				18,952				—				18,952
Increase (decrease) in cash and cash equivalents			221,074				2,157,141				(197,202	)			—				2,181,013
Cash and cash equivalents at beginning of year			73,489				129,684				653,977				—				857,150
Cash and cash equivalents at end of year		$	294,563			$	2,286,825			$	456,775			$	—			$	3,038,163

Table of Contents

LAS VEGAS SANDS CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Note 20 — Selected Quarterly Financial Results (Unaudited)

		Quarter
		First(1)				Second(2)(3)(4)				Third(5)				Fourth(5)(6)				Total
		(In thousands, except per share data)
2010
Net revenues		$	1,334,888			$	1,594,476			$	1,908,772			$	2,015,046			$	6,853,182
Operating income			141,820				166,775				383,305				488,686				1,180,586
Net income			47,814				78,548				268,834				386,407				781,603
Net income attributable to Las Vegas Sands Corp.			17,581				41,807				214,497				325,509				599,394
Net income (loss) attributable to common stockholders			(28,905	)			(4,679	)			168,011				273,036				407,463
Basic income (loss) per share			(0.04	)			(0.01	)			0.25				0.40				0.61
Diluted income (loss) per share			(0.04	)			(0.01	)			0.21				0.34				0.51
2009
Net revenues		$	1,079,062			$	1,058,700			$	1,141,144			$	1,284,199			$	4,563,105
Operating income (loss)			36,279				(171,345	)			62,382				43,944				(28,740	)
Net loss			(35,846	)			(178,263	)			(80,617	)			(74,017	)			(368,743	)
Net loss attributable to Las Vegas Sands Corp.			(34,606	)			(175,940	)			(76,506	)			(67,427	)			(354,479	)
Net loss attributable to common stockholders			(80,896	)			(222,248	)			(122,992	)			(113,914	)			(540,050	)
Basic and diluted loss per share			(0.12	)			(0.34	)			(0.19	)			(0.17	)			(0.82	)

(1)		During the first quarter of 2009, the Company incorrectly included $6.8 million of preferred stock dividends in its computation of net loss attributable to common stockholders, which overstated the Company’s basic and diluted loss per share by $0.02, but had no effect on total assets, liabilities, stockholders’ equity, net loss or cash flows. The amount presented reflects the amended calculation of basic and diluted loss per share.
(2)		The Marina Bay Sands opened on April 27, 2010.
(3)		Sands Bethlehem opened on May 22, 2009.
(4)		During the second quarter of 2009, the Company recorded an impairment loss of $151.2 million and a legal settlement expense of $42.5 million.
(5)		During the third and fourth quarters of 2009, the Company recorded valuation allowances against its U.S. deferred tax assets of $67.8 million and $29.1 million, respectively.
(6)		During the fourth quarter of 2009, the Company recorded an impairment loss of $18.3 million.

Because earnings per share amounts are calculated using the weighted average number of common and dilutive common equivalent shares outstanding during each quarter, the sum of the per share amounts for the four quarters may not equal the total earnings per share amounts for the respective year.

Table of Contents

SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS

LAS VEGAS SANDS CORP. AND SUBSIDIARIES For the Years Ended December 31, 2010, 2009 and 2008

						Provision
		Balance at				for				Write-offs,				Balance
		Beginning				Doubtful				net of				at End
Description		of Year				Accounts				Recoveries				of Year
		(In thousands)
Allowance for doubtful accounts:
2008		$	33,116				41,865				(13,764	)		$	61,217
2009		$	61,217				103,802				(46,319	)		$	118,700
2010		$	118,700				97,762				(34,606	)		$	181,856

		Balance at												Balance
		Beginning												at End
Description		of Year				Additions				Deductions				of Year
Deferred income tax asset valuation allowance:
2008		$	46,343				46,476				—			$	92,819
2009		$	92,819				187,188				—			$	280,007
2010		$	280,007				51,268				—			$	331,275