STOCK-BASED COMPENSATION

9 Months Ended

Sep. 30, 2012

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

NOTE 3. STOCK-BASED COMPENSATION

The Company accounts for its stock-based compensation in accordance with the authoritative guidance requiring the compensation cost relating to share-based payment transactions be recognized in the Company’s consolidated statements of income.

On June 21, 2010, the Company granted stock options for 426,709 shares, each with an exercise price of $11.15, in exchange for underwater stock options for 454,319 shares, which were surrendered in a stockholder approved exchange offer that expired on June 19, 2010.  The newly granted options have a ten-year contractual term and have one of two vesting terms.  Options issued in exchange for unvested surrendered options vest one year following the anniversary date of surrendered options.  Options issued in exchange for vested surrendered options vest in three equal installments on June 21, 2011, 2012 and 2013, respectively.  The exchange ratio was calculated based on the fair values of the options surrendered and issued under a value-for-value exchange.  Incremental compensation expense was not material.

Reported stock based compensation expense was classified as follows:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2012			2011			2012			2011
Casino	$	17,033		$	20,761		$	45,025		$	60,753
Food and beverage	17,829			16,870			53,209			51,663
Hotel	5,095			4,769			13,207			12,098
Selling, general and administrative	312,943			318,730			826,810			1,114,458
Total stock-based compensation, before taxes	352,900			361,130			938,251			1,238,972
Tax benefit	(123,515		)	(125,565		)	(328,388		)	(430,790		)
Total stock-based compensation, net of tax	$	229,385		$	235,565		$	609,863		$	808,182