Notes to Consolidated Financial Statements 50 Income per share of common stock. The weighted-average number of common and common equivalent shares used in the calculation of basic and diluted earnings per share consisted of the following: Existing industry practice related to non-gaming revenues already complied with EITF 01-9. The retail value of accommodations, food and beverage, and other  services furnished to guests without charge is included in gross revenue and then deducted as promotional allowances. The estimated cost of providing such  promotional allowances is primarily included in casino expenses as follows: Advertising. The Company expenses advertising costs the first time the advertising takes place. Advertising expense, which is generally included in general and  administrative expenses, was $57 million, $54 million and $52 million for 2004, 2003 and 2002, respectively. Corporate expense. Corporate expense represents unallocated payroll and aircraft costs, professional fees and various other expenses not directly related to the Company’s casino resort operations. In addition, corporate expense includes the costs associated with the Company’s evaluation and pursuit of new business  opportunities, which are expensed as incurred until development of a specific  project has become probable. Preopening and start-up expenses. The Company accounts for costs incurred dur- ing the preopening and start-up phases of operations in accordance with Statement of Position 98-5, “Reporting on the Costs of Start-up Activities”. Preopening and start-up costs, including organizational costs, are expensed as incurred. Costs classi- fied as preopening and start-up expenses include payroll, outside services, advertising, and other expenses related to new or start-up operations and new customer initiatives. In December 2004, the FASB issued FASB Statement No. 123 (revised 2004), “Share-Based Payment” (“SFAS 123(R)”). Under the original standard, SFAS No. 123, companies had the option of recording stock options issued to employees at Stock-based compensation. The Company accounts for stock-based compensation, including employee stock option plans, in accordance with Accounting Principles Board Opinion No. 25, “Accounting for Stock Issued to Employees” and the Financial Accounting Standards Board’s Interpretation No. 44, “Accounting for Certain Transactions involving Stock Compensation, an interpretation of APB Opinion No. 25”, and discloses supplemental information in accordance with Statement of Financial Accounting Standards No. 123, “Accounting for Stock-Based Compensation” (“SFAS 123”), as amended by Statement of Financial Accounting Standards No. 148, “Accounting for Stock-Based Compensation – Transition and Disclosure” (“SFAS 148”). The Company does not incur compensation expense for employee stock options when the exercise price is at least 100% of the market value of the Company’s common stock on the date of grant. For disclosure purposes, employee stock options are measured at fair value and compensation is assumed  to be amortized over the vesting periods of the options.  Y ear Ended December 31 (In thousands) 2004 2003 2002 Weighted-average common shares outstanding used  in the calculation of basic earnings per share . . . . 139,663 148,930 157,809 Potential dilution from stock options and restricted stock . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,003 2,662 2,131 Weighted-average common and common equivalent shares used in the calculation of diluted earnings  per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144,666 151,592 159,940 Y ear Ended December 31 (In thousands) 2004 2003 2002 Rooms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 63,652 $ 64,103 $ 60,544 Food and beverage . . . . . . . . . . . . . . . . . . . . . . . . .  191,695 178,399 169,676 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,213 21,560 19,920 $ 280,560 $ 264,062 $ 250,140