Property and Equipment, net

9 Months Ended

Sep. 30, 2012

Note 3—Property and Equipment, net

Property and equipment, net consists of the following:


(In millions)	September 30, 2012			December 31, 2011
Land and land improvements	$	7,400.3		$	7,411.8
Land concessions		504.4			606.7
Buildings, riverboats, and improvements		8,987.1			8,944.5
Furniture, fixtures, and equipment		2,464.3			2,353.2
Construction in progress		362.9			361.1

		19,719.0			19,677.3
Less: accumulated depreciation		(3,130.4	)		(2,607.4	)

	$	16,588.6		$	17,069.9

Interest capitalized was $9.5 million and $11.6 million for the quarter ended September 30, 2012 and 2011, respectively, and $27.6 million and $12.2 million for the nine months ended September 30, 2012 and 2011, respectively. Interest capitalized in 2012 was primarily related to Project Linq, a dining, entertainment, and retail development between our Flamingo and Imperial Palace casinos, on the east side of the Las Vegas Strip.

In March 2012, we halted our development project in Biloxi, Mississippi and recorded a tangible asset impairment on construction in progress of $167.5 million. In September 2012, we recorded an additional tangible asset impairment of $13.0 million related to certain land associated with the halted project.

During the second quarter of 2012, we determined that it is more likely than not that we will divest of our investment in a land concession in Macau prior to the end of the remaining 35-year term of the concession. As a result, we performed an impairment assessment on this investment and recorded an impairment charge of $101.0 million.

Depreciation expense, which is included in depreciation and amortization, corporate expense, and income from discontinued operations in our consolidated condensed statements of comprehensive loss, is as follows:


	Quarter Ended September 30,				Nine Months Ended September 30,
(In millions)	2012		2011		2012		2011
Depreciation expense	$	188.2	$	187.5	$	571.8	$	550.2

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References+ Details