67 Notes to Consolidated Financial Statements For the Year Ended December 31, 2002 (In thousands) Guarantor Non-Guarantor Parent Subsidiaries Subsidiaries Elimination Consolidated Statement of Operations Net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ — $ 3,353,772 $ 403,156 $ — $ 3,756,928 Equity in subsidiaries earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  671,076 108,361 — (779,437) — Expenses: Casino and hotel operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  — 1,828,744 187,950 — 2,016,694 Provision for doubtful accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  — 27,317 358 — 27,675 General and administrative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  — 515,682 45,227 — 560,909 Corporate expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  3,268 40,588 — — 43,856 Preopening and start-up expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  403 13,738 — — 14,141 Restructuring costs (credit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  — (17,021) — — (17,021) Property transactions, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  — 9,958 4,754 — 14,712 Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  2,683 352,910 23,134 3,058 381,785 6,354 2,771,916 261,423 3,058 3,042,751 Income from unconsolidated affiliates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  — 32,361 — — 32,361 Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  664,722 722,578 141,733 (782,495) 746,538 Interest expense, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  (237,666) (26,347) (15,652) — (279,665) Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  — (10,370) (1,634) 3,058 (8,946) Income from continuing operations before income taxes. . . . . . . . . . . . . . . . . . . . . . 427,056 685,861 124,447 (779,437) 457,927 Provision for income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (133,423) (31,022) (4,006) — (168,451) Income from continuing operations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 293,633 654,839 120,441 (779,437) 289,476 Discontinued operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,198) (2,765) 6,922 — 2,959 Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 292,435 $ 652,074 $ 127,363 $ (779,437) $ 292,435 Statement of Cash Flows Net cash provided by (used in) operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,206,670 $ (512,364) $ 151,443 $ 797 $ 846,546 Net cash provided by (used in) investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . (3,588) (339,380) (27,179) (1,063) (371,210) Net cash provided by (used in) financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . (1,212,536) 896,900 (139,114) 265 (454,485) NOTE 17 — SELECTED QUARTERLY FINANCIAL RESULTS (UNAUDITED) (In thousands, except per shar e amounts) 2004 2003 Quarter First Second Third Fourth Total First Second Third Fourth Total Net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,066,436 $ 1,072,525 $1,036,396 $ 1,062,747 $ 4,238,104 $ 951,874 $ 974,117 $ 976,842 $ 959,910 $ 3,862,743 Operating income. . . . . . . . . . . . . . . . . . . . . . . . . . . .  254,666 260,597 222,357 213,240 950,860 159,485 171,560 158,542 210,142 699,729 Income from continuing operations . . . . . . . . . . . . . .  97,140 101,663 76,167 74,886 349,856 48,776 54,456 41,375 85,666 230,273 Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  105,848 104,717 126,881 74,886 412,332 51,003 53,750 47,209 91,735 243,697 Basic income per share: Income from continuing operations . . . . . . . . . . . .  $ 0.68 $ 0.73 $ 0.55 $ 0.54 $ 2.51 $ 0.32 $ 0.36 $ 0.28 $ 0.60 $ 1.55 Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  0.74 0.75 0.92 0.54 2.95 0.34 0.36 0.32 0.64 1.64 Diluted income per share: Income from continuing operations . . . . . . . . . . . .  $ 0.66 $ 0.70 $ 0.54 $ 0.52 $ 2.42 $ 0.32 $ 0.36 $ 0.27 $ 0.58 $ 1.52 Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  0.72 0.72 0.89 0.52 2.85 0.33 0.35 0.31 0.62 1.61 Results for the fourth quarter of 2004 include a reduction of Borgata’s state tax expense, our share of which is recorded as “non-operating items from unconsolidated affiliates”. Borgata received a notice of refund of certain state tax credits and recorded a benefit for amounts earned in 2003 and 2004. Our share of the adjustment was $12 million, or $0.05 per share, net of tax.  Because income 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 income per share amounts for the year.