22 Management’s Discussion and Analysis of Financial Condition and Results of Operations The following table includes key information about our operating results: revenue enhancements from this process. We expect to realize efficiencies in  operations and economies of scale in purchasing, as well as more effectively market to a broader base of customers. Our operating cash flow will increase substantially, as will our interest and tax charges. The following table summarizes our results of operations: Operating Results Summary Financial Results • The current economic recovery in the United States, which began to impact our operations in the latter half of 2003 and continued to positively affect our results in 2004. • The new labor contract covering our Las Vegas Strip employees since mid-2002, which calls for significant annual wage and benefits increases through 2007; • The war with Iraq and the outbreak of SARS in Asia, both of which negatively impacted leisure travel and our high-end gaming business in late 2002 and  early 2003; On a consolidated basis, the most important factors and trends contributing to our operating performance over the last three years have been: Income from continuing operations increased in 2004 due to our strong top-line growth and the fact that revenue growth was driven largely by increased prices of our rooms and strong casino revenue. Operating margins correspondingly increased to 22% in 2004 from 18% in 2003 and 20% in 2002. Results on a per share basis were positively impacted by a lower weighted average number of shares outstanding as the result of share repurchases throughout 2003 and 2004. (In thousands) Y ear Ended December 31 2004 Change 2003 Change 2002 Net revenues . . . . . . . . . . . $ 4,238,104 10% $ 3,862,743 3% $ 3,756,928 Operating expenses: Casino and hotel operations 2,289,266 6% 2,153,798 5% 2,044,369 General and administrative 612,615 5% 583,599 4% 560,909 Corporate expense . . . . . 77,910 27% 61,541 40% 43,856 Preopening, restructuring and  property transactions, net 24,566 45% 16,922 43% 11,832 Depreciation and  amortization . . . . . . . . . 402,545 1% 400,766 5% 381,785 3,406,902 6% 3,216,626 6% 3,042,751 Income from  unconsolidated affiliates . . 119,658 123% 53,612 66% 32,361 Operating income . . . . . . . . $ 950,860 36% $ 699,729 (6%) $ 746,538 (In thousands, except per share data) Y ear Ended December 31 2004 % Change 2003 %Change 2002 Net revenues . . . . . . . . . . . $ 4,238,104 10% $ 3,862,743 3% $ 3,756,928 Operating income . . . . . . . 950,860 36% 699,729 (6%) 746,538 Income from  continuing operations . . . 349,856 52% 230,273 (20%) 289,476 Diluted income from continuing  operations per share . . . $ 2.42 59% $ 1.52 (16%) $ 1.81