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LVS » Topics » OUR DEVELOPMENT PROJECTS

This excerpt taken from the LVS 8-K filed Nov 9, 2009.

OUR DEVELOPMENT PROJECTS

We have submitted plans to the Macau Government for three integrated resort developments on an area of approximately 320,000 square meters (which we refer to as Parcels 3, 5, 6, 7 and 8). The following map indicates the location of our existing and planned Cotai Strip properties:

LOGO

We expect these integrated resorts on Parcels 3, 5, 6, 7 and 8 to include hotels, MICE facilities, casinos or gaming areas, showrooms, theaters, shopping malls and other amenities.

Given the recent challenging conditions in the capital markets and the global economy, we suspended these development projects. As of June 30, 2009, we had capitalized construction costs of approximately US$1.9 billion for non-completed projects, including US$1.7 billion for our projects on Parcels 5 and 6 and US$115.7 million for our projects on Parcels 7 and 8. See “Risk Factors—Risks Relating to Our Cotai Strip Development.”

We currently intend to develop our other Cotai Strip properties as follows:

 

  Ÿ  

Parcels 5 and 6.    Parcels 5 and 6 will together comprise an integrated resort located across the street from The Venetian Macao and the Plaza Macao, and which we expect will be connected to our other existing and future Cotai Strip properties via elevated, covered pedestrian bridges. Upon completion of Phases I and II, the integrated resort is expected to feature approximately 6,000 hotel rooms, approximately 1.2 million square feet of retail, entertainment and dining facilities, MICE space and a multi-purpose theater. The integrated resort will also feature approximately 300,000 square feet of gaming space, which, subject to Macau Government approval, will be sufficient to accommodate up to 670 tables and 2,200 slot machines. We have entered into management agreements with Shangri-La to manage hotels under its Shangri-La and Traders brands, and with Starwood to manage two hotel towers under its Sheraton brand and a luxury hotel and mixed use tower under its St. Regis brand.

Phase I is expected to consist of two hotel towers with over 3,700 Sheraton-, Shangri-La- and Traders-branded hotel rooms, as well as completion of the structural works for an adjacent 2,300 room Sheraton hotel tower. Phase I will also consist of the completion of gaming

 

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THIS WEB PROOF INFORMATION PACK IS IN DRAFT FORM. The information contained in it is incomplete and is subject to change. This Web Proof Information Pack must be read in conjunction with the section headed ‘‘Warning’’ on the cover of this Web Proof Information Pack.

 

BUSINESS

 

 

space, which is expected to include approximately 670 tables and 2,200 slot machines, a multi- purpose theater, and a partial opening of the retail and MICE facilities. The total cost to complete Phase I, excluding interest expense, is expected to be approximately US$2.0 billion.

Phase II consists of the internal fit-out of the second Sheraton-branded hotel tower, as well as completion and fit-out of the remaining retail facilities. The second Sheraton-branded hotel tower is expected to take another six months to complete and the remaining retail facilities are expected to be completed within 24 months after the second Sheraton-branded hotel tower is completed. The total cost to complete Phase II, excluding interest expense, is expected to be approximately US$190.0 million.

Phase III is expected to include a luxury St. Regis-branded hotel and mixed use tower. The total cost to complete Phase III, excluding interest expense, is expected to be approximately US$443.0 million. Consistent with our strategy to monetize non-core assets, we plan to sell the retail mall located within our integrated resort project on Parcels 5 and 6. Subject to Macau Government approval, and reaching agreement with Starwood, we also plan to monetize the St. Regis mixed use tower. See “—Business Strategies.”

In November 2008, we suspended construction on Parcels 5 and 6. We plan to restart construction once we have sufficient funds necessary to complete Phases I and II. We intend to fully fund the development and construction costs related to Phases I and II with [·], together with project financing of up to US$1.75 billion that we are currently seeking to obtain from a group of lenders and, to the extent necessary, cash flow from existing and future operations. As of the Latest Practicable Date, we have received aggregate commitments for project financing in the amount of US$1.45 billion from commercial banks and other financial institutions, including from [·], towards the targeted US$1.75 billion of total project financing that we are seeking. Once we recommence construction, we estimate that it will take approximately 18 months to complete construction of Phase I and another six months thereafter to complete the internal fit-out of the additional Sheraton hotel tower in Phase II. We expect to commence construction of Phase III at a future date as demand and market conditions warrant.

As of June 30, 2009, we had capitalized construction costs of approximately US$1.7 billion (HK$13.2 billion) on the development of Parcels 5 and 6 and, if supplemental financing is obtained, we expect to spend an additional US$2.2 billion to complete Phases I and II. Our management agreements with Starwood impose certain development deadlines and opening obligations on us. As a result of the delays described above, we have not met certain of these deadlines and obligations. See “Risk Factors—Risks Relating to Our Cotai Strip Development.”

 

  Ÿ  

Parcel 3.    Parcel 3 is expected to contain an integrated resort that will be connected to the Plaza Macao and the The Venetian Macao, and may contain over 4,000 branded hotel rooms, gaming areas and other integrated resort amenities. These plans are based on general building plans submitted to the Land, Public Works and Transport Bureau of the MSAR on June 18, 2009, which we are continuing to refine and update during the course of its overall design and development. We commenced pre-construction and had capitalized construction costs of US$35.6 million (HK$275.9 million) as of June 30, 2009, which consisted primarily of consultant costs, in particular for architect and interior designer consultant costs. We are unable to provide any details on necessary financing, the estimated total development costs or the time required to complete the integrated resort on Parcel 3. We only intend to commence construction of Parcel 3 after the completion of Parcels 5 and 6, after necessary government approvals are obtained, regional and global economic conditions improve, conceptual designs are further refined, future demand warrants and additional financing is secured. See also “Risk Factors—Risks Relating to Our Cotai Strip Development.”

 

  Ÿ  

Parcels 7 and 8.    Parcels 7 and 8 are expected to contain an integrated resort similar in size and scope to the integrated resort located on Parcels 5 and 6. These plans are based on initial conceptual designs, which we will continue to refine and update during the course of its overall design and development. We have commenced pre-construction on Parcels 7 and 8 and had

 

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Table of Contents

THIS WEB PROOF INFORMATION PACK IS IN DRAFT FORM. The information contained in it is incomplete and is subject to change. This Web Proof Information Pack must be read in conjunction with the section headed ‘‘Warning’’ on the cover of this Web Proof Information Pack.

 

BUSINESS

 

 

 

capitalized construction costs of US$115.7 million (HK$896.7 million) as of June 30, 2009, which consisted primarily of site preparation, piling and architect and interior designer consultant costs. As of the Latest Practicable Date, we have obtained soil investigation licenses, a ground improvement works license and a revalidation of ground investigation works license for Parcels 7 and 8. In addition to these licenses, we have applied for the land concession for Parcels 7 and 8 and must obtain construction licenses and architectural plan approval, in order to commence construction on Parcels 7 and 8. We are unable to provide any details on the necessary financing, the estimated total development costs or the time required to complete the integrated resort on Parcels 7 and 8. We only intend to commence construction after necessary government approvals are obtained, regional and global economic conditions improve, conceptual designs are further refined, future demand warrants and additional financing is secured. See “—Land Concessions” below.

As Parcels 5, 6, 7 and 8 are not designated by the Macau Government for our Group’s projects that formed part of the investment obligations that VML agreed to pursuant to the Subconcession Contract or pursuant to any other agreement, our Group has separately engaged in discussions with the Macau Government to obtain land concessions for these parcels.

Our Macau legal advisor is of the opinion that although we have commenced development on Parcels 5 and 6 without a land concession to these land parcels, we commenced development on Parcels 5 and 6 with the authorization of the Macau Government, including authorization through the grant of relevant construction licenses prior to commencing development. Based on our experience with Parcels 1 and 2, in which we commenced development with Macau Government authorization before the land concession was received, but nonetheless subsequently obtained the land concession, our Macau legal advisor is of the opinion that the Macau Government will adopt the same procedure as with Parcels 1 and 2 in the granting of land concessions for Parcels 5, 6, 7 and 8. In the event that we do not secure the land concession for Parcels 5, 6, 7 and 8, however, we will not be entitled to any occupier or compensation rights for the buildings or other developments erected on the land.

See “Risk Factors—Risks Relating to Our On-going Operations—Our current substantial debt or the incurrence of additional debt to finance our planned development projects could impair our financial condition, results of operations and cash flows.”

This excerpt taken from the LVS 8-K filed Nov 2, 2009.

OUR DEVELOPMENT PROJECTS

We have submitted plans to the Macau Government for three integrated resort developments on an area of approximately 320,000 square meters (which we refer to as Parcels 3, 5, 6, 7 and 8). The following map indicates the location of our existing and planned Cotai Strip properties:

LOGO

We expect these integrated resorts on Parcels 3, 5, 6, 7 and 8 to include hotels, MICE facilities, casinos or gaming areas, showrooms, theaters, shopping malls and other amenities.

Given the recent challenging conditions in the capital markets and the global economy, we suspended these development projects. As of June 30, 2009, we had capitalized construction costs of approximately US$1.9 billion for non-completed projects, including US$1.7 billion for our projects on Parcels 5 and 6 and US$115.7 million for our projects on Parcels 7 and 8. See “Risk Factors—Risks Relating to Our Cotai Strip Development.”

We currently intend to develop our other Cotai Strip properties as follows:

 

  Ÿ  

Parcels 5 and 6.    Parcels 5 and 6 will together comprise an integrated resort located across the street from The Venetian Macao and the Plaza, and which we expect will be connected to our other existing and future Cotai Strip properties via elevated, covered pedestrian bridges. Upon completion of Phases I and II, the integrated resort is expected to feature approximately 6,000 hotel rooms, approximately 1.2 million square feet of retail, entertainment and dining facilities, MICE space and a multi-purpose theater. The integrated resort will also feature approximately 300,000 square feet of gaming space, which, subject to Macau Government approval, will be sufficient to accommodate up to 670 tables and 2,200 slot machines. We have entered into management agreements with Shangri-La to manage hotels under its Shangri-La and Traders brands, and with Starwood to manage two hotel towers under its Sheraton brand and a luxury hotel and apart-hotel tower under its St. Regis brand.

Phase I is expected to consist of two hotel towers with over 3,700 Sheraton-, Shangri-La- and Traders-branded hotel rooms, as well as completion of the structural works for an adjacent 2,300 room Sheraton hotel tower. Phase I will also consist of the completion of the gaming

 

95

Table of Contents

THIS WEB PROOF INFORMATION PACK IS IN DRAFT FORM. The information contained in it is incomplete and is subject to change. This Web Proof Information Pack must be read in conjunction with the section headed ‘‘Warning’’ on the cover of this Web Proof Information Pack.

 

BUSINESS

 

 

space, which is expected to include approximately 670 tables and 2,200 slot machines, a multi- purpose theater, and a partial opening of the retail and MICE facilities. The total cost to complete Phase I, excluding interest expense, is expected to be approximately US$2.0 billion.

Phase II consists of the internal fit-out of the second Sheraton-branded hotel tower, as well as completion and fit-out of the remaining retail facilities. The additional Sheraton hotel tower is expected to take another six months to complete and the remaining retail facilities are expected to be completed within 24 months after the adjacent Sheraton hotel tower is completed. The total cost to complete Phase II, excluding interest expense, is expected to be approximately US$190.0 million.

Phase III is expected to include a luxury St. Regis-branded hotel and apart-hotel tower. The total cost to complete Phase III, excluding interest expense, is expected to be approximately US$443.0 million. Consistent with our strategy to monetize non-core assets, we plan to sell the retail mall located within our integrated resort project on Parcels 5 and 6. Subject to Macau Government approval, we also plan to monetize the St. Regis apart-hotel units. See “—Business Strategies.”

In November 2008, we suspended construction on Parcels 5 and 6. We plan to restart construction of Phases I and II with a portion of the proceeds from [·], together with supplemental financing that we are currently seeking to obtain from a group of lenders. We do not intend to restart construction until such supplemental financing is committed or arranged and currently estimate that it will take approximately 18 months to complete construction of Phase I and another six months thereafter to complete the internal fit-out of the additional Sheraton hotel tower in Phase II. We expect to commence construction of Phase III at a future date as demand and market conditions warrant.

As of June 30, 2009, we had capitalized construction costs of approximately US$1.7 billion (HK$13.2 billion) on the development of Parcels 5 and 6 and, if supplemental financing is obtained, we expect to spend an additional US$2.2 billion to complete Phases I and II. Our management agreements with Starwood impose certain development deadlines and opening obligations on us. As a result of the delays described above, we have not met certain of these deadlines and obligations. See “Risk Factors—Risks Relating to Our Cotai Strip Development.”

 

  Ÿ  

Parcel 3.    Parcel 3 is expected to contain an integrated resort that will be connected to the Plaza and the The Venetian Macao, and may contain up to 3,900 hotel rooms, gaming areas and other integrated resort amenities. These plans are based on initial designs conceptualized in 2005, which we have continued to refine and update during the course of its overall design and development. We commenced pre-construction and had capitalized construction costs of US$35.6 million (HK$275.9 million) as of June 30, 2009, which consisted primarily of consultant costs, in particular for architect and interior designer consultant costs. As of the Latest Practicable Date, we have obtained a soil investigation license and a temporary hoarding license for Parcel 3. We are unable to provide any details on necessary financing, the estimated total development costs or the time required to complete the integrated resort on Parcel 3. We only intend to commence construction of Parcel 3 after the completion of Parcels 5 and 6, after necessary government approvals are obtained, regional and global economic conditions improve, conceptual designs are further refined, future demand warrants and additional financing is secured. See also “Risk Factors—Risks Relating to Our Cotai Strip Development.”

 

  Ÿ  

Parcels 7 and 8.    Parcels 7 and 8 are expected to contain an integrated resort similar in size and scope to the integrated resort located on Parcels 5 and 6. These plans are based on initial conceptual designs, which we will continue to refine and update during the course of its overall design and development. We have commenced pre-construction on Parcels 7 and 8 and had capitalized construction costs of US$115.7 million (HK$896.7 million) as of June 30, 2009, which consisted primarily of site preparation, piling and architect and interior designer consultant costs. As of the Latest Practicable Date, we have obtained soil investigation licenses, a ground improvement works license and a revalidation of ground investigation works

 

96

Table of Contents

THIS WEB PROOF INFORMATION PACK IS IN DRAFT FORM. The information contained in it is incomplete and is subject to change. This Web Proof Information Pack must be read in conjunction with the section headed ‘‘Warning’’ on the cover of this Web Proof Information Pack.

 

BUSINESS

 

 

 

license for Parcels 7 and 8. In addition to these licenses, we have applied for the land concession for Parcels 7 and 8 and must obtain construction licenses and architectural plan approval, in order to commence construction on Parcels 7 and 8. We are unable to provide any details on the necessary financing, the estimated total development costs or the time required to complete the integrated resort on Parcels 7 and 8. We only intend to commence construction after necessary government approvals are obtained, regional and global economic conditions improve, conceptual designs are further refined, future demand warrants and additional financing is secured. See “—Land Concessions” below.

As Parcels 5, 6, 7 and 8 are not designated by the Macau Government for our Group’s projects that formed part of the investment obligations that VML agreed to pursuant to the Subconcession Contract or pursuant to any other agreement, our Group has separately engaged in discussions with the Macau Government to obtain land concessions for these parcels.

Our Macau legal advisor is of the opinion that although we have commenced development on Parcels 5 and 6 without a land concession to these land parcels, we commenced development on Parcels 5 and 6 with the authorization of the Macau Government, including authorization through the grant of relevant construction licenses prior to commencing development. Based on our experience with Parcels 1 and 2, in which we commenced development with Macau Government authorization before the land concession was received, but nonetheless subsequently obtained the land concession, our Macau legal advisor is of the opinion that the Macau Government will adopt the same procedure as with Parcels 1 and 2 in the granting of land concessions for Parcels 5, 6, 7 and 8. In the event that we do not secure the land concession for Parcels 5, 6, 7 and 8, however, we will not be entitled to any occupier or compensation rights for the buildings or other developments erected on the land.

See “Risk Factors—Risks Relating to Our On-going Operations—Our current substantial debt or the incurrence of additional debt to finance our planned development projects could impair our financial condition, results of operations and cash flows.”

These excerpts taken from the LVS 10-K filed Mar 2, 2009.
Development Projects
 
Given current conditions in the capital markets and the global economy and their impact on our ongoing operations, on November 10, 2008, we announced our revised development plan to suspend portions of our development projects and focus our development efforts on those projects with the highest rates of expected return on invested capital. Should general economic conditions not improve, if we are unable to obtain sufficient funding such that completion of our suspended projects is not probable, or should management decide to abandon certain projects, all or a portion of our investment to date on our suspended projects could be lost and would result in an impairment charge. In addition, we may be subject to penalties under the termination clauses in our construction contracts.
 
Development Projects
 
Given current conditions in the capital markets and the global economy and their impact on our ongoing operations, on November 10, 2008, we announced our revised development plan to suspend portions of our development projects and focus our development efforts on those projects with the highest rates of expected return on invested capital. Should general economic conditions not improve, if we are unable to obtain sufficient funding such that completion of our suspended projects is not probable, or should management decide to abandon certain projects, all or a portion of our investment to date on our suspended projects could be lost and would result in an impairment charge. In addition, we may be subject to penalties under the termination clauses in our construction contracts.
 
Development Projects
 
Given current conditions in the capital markets and the global economy and their impact on our ongoing operations, on November 10, 2008, we announced our revised development plan to suspend portions of our development projects and focus our development efforts on those projects with the highest rates of expected return on invested capital. Should general economic conditions not improve, if we are unable to obtain sufficient funding such that completion of our suspended projects is not probable, or should management decide to abandon certain projects, all or a portion of our investment to date on our suspended projects could be lost and would result in an impairment charge. In addition, we may be subject to penalties under the termination clauses in our construction contracts.
 
Development
Projects


 



Given current conditions in the capital markets and the global
economy and their impact on our ongoing operations, on
November 10, 2008, we announced our revised development
plan to suspend portions of our development projects and focus
our development efforts on those projects with the highest rates
of expected return on invested capital. Should general economic
conditions not improve, if we are unable to obtain sufficient
funding such that completion of our suspended projects is not
probable, or should management decide to abandon certain
projects, all or a portion of our investment to date on our
suspended projects could be lost and would result in an
impairment charge. In addition, we may be subject to penalties
under the termination clauses in our construction contracts.


 




Development
Projects


 



Given current conditions in the capital markets and the global
economy and their impact on our ongoing operations, on
November 10, 2008, we announced our revised development
plan to suspend portions of our development projects and focus
our development efforts on those projects with the highest rates
of expected return on invested capital. Should general economic
conditions not improve, if we are unable to obtain sufficient
funding such that completion of our suspended projects is not
probable, or should management decide to abandon certain
projects, all or a portion of our investment to date on our
suspended projects could be lost and would result in an
impairment charge. In addition, we may be subject to penalties
under the termination clauses in our construction contracts.


 




Development
Projects


 



Given current conditions in the capital markets and the global
economy and their impact on our ongoing operations, on
November 10, 2008, we announced our revised development
plan to suspend portions of our development projects and focus
our development efforts on those projects with the highest rates
of expected return on invested capital. Should general economic
conditions not improve, if we are unable to obtain sufficient
funding such that completion of our suspended projects is not
probable, or should management decide to abandon certain
projects, all or a portion of our investment to date on our
suspended projects could be lost and would result in an
impairment charge. In addition, we may be subject to penalties
under the termination clauses in our construction contracts.


 




Development
Projects


 



Given current conditions in the capital markets and the global
economy and their impact on our ongoing operations, on
November 10, 2008, we announced our revised development
plan to suspend portions of our development projects and focus
our development efforts on those projects with the highest rates
of expected return on invested capital. Should general economic
conditions not improve, if we are unable to obtain sufficient
funding such that completion of our suspended projects is not
probable, or should management decide to abandon certain
projects, all or a portion of our investment to date on our
suspended projects could be lost and would result in an
impairment charge. In addition, we may be subject to penalties
under the termination clauses in our construction contracts.


 




Development Projects
 
As mentioned above, given current conditions in the capital markets and the global economy and their impact on our ongoing operations, we have chosen to suspend portions of our development projects and will focus our development efforts on those projects with the highest rates of expected return on invested capital. Should general economic conditions not improve, if we are unable to obtain sufficient funding such that completion of our suspended projects is not probable, or should management decide to abandon certain projects, all or a portion of our investment to date on our suspended projects could be lost and would result in an impairment charge. In addition, we may be subject to penalties under the termination clauses in our construction contracts.
 
Development Projects
 
As mentioned above, given current conditions in the capital markets and the global economy and their impact on our ongoing operations, we have chosen to suspend portions of our development projects and will focus our development efforts on those projects with the highest rates of expected return on invested capital. Should general economic conditions not improve, if we are unable to obtain sufficient funding such that completion of our suspended projects is not probable, or should management decide to abandon certain projects, all or a portion of our investment to date on our suspended projects could be lost and would result in an impairment charge. In addition, we may be subject to penalties under the termination clauses in our construction contracts.
 
Development Projects
 
As mentioned above, given current conditions in the capital markets and the global economy and their impact on our ongoing operations, we have chosen to suspend portions of our development projects and will focus our development efforts on those projects with the highest rates of expected return on invested capital. Should general economic conditions not improve, if we are unable to obtain sufficient funding such that completion of our suspended projects is not probable, or should management decide to abandon certain projects, all or a portion of our investment to date on our suspended projects could be lost and would result in an impairment charge. In addition, we may be subject to penalties under the termination clauses in our construction contracts.
 
Development
Projects


 



As mentioned above, given current conditions in the capital
markets and the global economy and their impact on our ongoing
operations, we have chosen to suspend portions of our
development projects and will focus our development efforts on
those projects with the highest rates of expected return on
invested capital. Should general economic conditions not
improve, if we are unable to obtain sufficient funding such that
completion of our suspended projects is not probable, or should
management decide to abandon certain projects, all or a portion
of our investment to date on our suspended projects could be
lost and would result in an impairment charge. In addition, we
may be subject to penalties under the termination clauses in our
construction contracts.


 




Development
Projects


 



As mentioned above, given current conditions in the capital
markets and the global economy and their impact on our ongoing
operations, we have chosen to suspend portions of our
development projects and will focus our development efforts on
those projects with the highest rates of expected return on
invested capital. Should general economic conditions not
improve, if we are unable to obtain sufficient funding such that
completion of our suspended projects is not probable, or should
management decide to abandon certain projects, all or a portion
of our investment to date on our suspended projects could be
lost and would result in an impairment charge. In addition, we
may be subject to penalties under the termination clauses in our
construction contracts.


 




Development
Projects


 



As mentioned above, given current conditions in the capital
markets and the global economy and their impact on our ongoing
operations, we have chosen to suspend portions of our
development projects and will focus our development efforts on
those projects with the highest rates of expected return on
invested capital. Should general economic conditions not
improve, if we are unable to obtain sufficient funding such that
completion of our suspended projects is not probable, or should
management decide to abandon certain projects, all or a portion
of our investment to date on our suspended projects could be
lost and would result in an impairment charge. In addition, we
may be subject to penalties under the termination clauses in our
construction contracts.


 




Development
Projects


 



As mentioned above, given current conditions in the capital
markets and the global economy and their impact on our ongoing
operations, we have chosen to suspend portions of our
development projects and will focus our development efforts on
those projects with the highest rates of expected return on
invested capital. Should general economic conditions not
improve, if we are unable to obtain sufficient funding such that
completion of our suspended projects is not probable, or should
management decide to abandon certain projects, all or a portion
of our investment to date on our suspended projects could be
lost and would result in an impairment charge. In addition, we
may be subject to penalties under the termination clauses in our
construction contracts.


 




Development Projects
 
Given current conditions in the capital markets and the global economy and their impact on the Company’s ongoing operations, on November 10, 2008, the Company announced its revised development plan to suspend portions of its development projects and focus its development efforts on those projects with the highest rates of


77

Table of Contents

 
LAS VEGAS SANDS CORP. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
 
expected return on invested capital. Should general economic conditions not improve, if the Company is unable to obtain sufficient funding such that completion of its suspended projects is not probable, or should management decide to abandon certain projects, all or a portion of the Company’s investment to date on its suspended projects could be lost and would result in an impairment charge. In addition, the Company may be subject to penalties under the termination clauses in its construction contracts.
 
Development Projects
 
Given current conditions in the capital markets and the global economy and their impact on the Company’s ongoing operations, on November 10, 2008, the Company announced its revised development plan to suspend portions of its development projects and focus its development efforts on those projects with the highest rates of


77

Table of Contents

 
LAS VEGAS SANDS CORP. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
 
expected return on invested capital. Should general economic conditions not improve, if the Company is unable to obtain sufficient funding such that completion of its suspended projects is not probable, or should management decide to abandon certain projects, all or a portion of the Company’s investment to date on its suspended projects could be lost and would result in an impairment charge. In addition, the Company may be subject to penalties under the termination clauses in its construction contracts.
 
Development Projects
 
Given current conditions in the capital markets and the global economy and their impact on the Company’s ongoing operations, on November 10, 2008, the Company announced its revised development plan to suspend portions of its development projects and focus its development efforts on those projects with the highest rates of


77

Table of Contents

 
LAS VEGAS SANDS CORP. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
 
expected return on invested capital. Should general economic conditions not improve, if the Company is unable to obtain sufficient funding such that completion of its suspended projects is not probable, or should management decide to abandon certain projects, all or a portion of the Company’s investment to date on its suspended projects could be lost and would result in an impairment charge. In addition, the Company may be subject to penalties under the termination clauses in its construction contracts.
 
Development
Projects


 



Given current conditions in the capital markets and the global
economy and their impact on the Company’s ongoing
operations, on November 10, 2008, the Company announced its
revised development plan to suspend portions of its development
projects and focus its development efforts on those projects
with the highest rates of





77




Table of Contents





 




LAS VEGAS
SANDS CORP. AND SUBSIDIARIES




 




NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)

 



expected return on invested capital. Should general economic
conditions not improve, if the Company is unable to obtain
sufficient funding such that completion of its suspended
projects is not probable, or should management decide to abandon
certain projects, all or a portion of the Company’s
investment to date on its suspended projects could be lost and
would result in an impairment charge. In addition, the Company
may be subject to penalties under the termination clauses in its
construction contracts.


 




Development
Projects


 



Given current conditions in the capital markets and the global
economy and their impact on the Company’s ongoing
operations, on November 10, 2008, the Company announced its
revised development plan to suspend portions of its development
projects and focus its development efforts on those projects
with the highest rates of





77




Table of Contents





 




LAS VEGAS
SANDS CORP. AND SUBSIDIARIES




 




NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)

 



expected return on invested capital. Should general economic
conditions not improve, if the Company is unable to obtain
sufficient funding such that completion of its suspended
projects is not probable, or should management decide to abandon
certain projects, all or a portion of the Company’s
investment to date on its suspended projects could be lost and
would result in an impairment charge. In addition, the Company
may be subject to penalties under the termination clauses in its
construction contracts.


 




Development
Projects


 



Given current conditions in the capital markets and the global
economy and their impact on the Company’s ongoing
operations, on November 10, 2008, the Company announced its
revised development plan to suspend portions of its development
projects and focus its development efforts on those projects
with the highest rates of





77




Table of Contents





 




LAS VEGAS
SANDS CORP. AND SUBSIDIARIES




 




NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)

 



expected return on invested capital. Should general economic
conditions not improve, if the Company is unable to obtain
sufficient funding such that completion of its suspended
projects is not probable, or should management decide to abandon
certain projects, all or a portion of the Company’s
investment to date on its suspended projects could be lost and
would result in an impairment charge. In addition, the Company
may be subject to penalties under the termination clauses in its
construction contracts.


 




Development
Projects


 



Given current conditions in the capital markets and the global
economy and their impact on the Company’s ongoing
operations, on November 10, 2008, the Company announced its
revised development plan to suspend portions of its development
projects and focus its development efforts on those projects
with the highest rates of





77




Table of Contents





 




LAS VEGAS
SANDS CORP. AND SUBSIDIARIES




 




NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)

 



expected return on invested capital. Should general economic
conditions not improve, if the Company is unable to obtain
sufficient funding such that completion of its suspended
projects is not probable, or should management decide to abandon
certain projects, all or a portion of the Company’s
investment to date on its suspended projects could be lost and
would result in an impairment charge. In addition, the Company
may be subject to penalties under the termination clauses in its
construction contracts.


 




EXCERPTS ON THIS PAGE:

8-K
Nov 9, 2009
8-K
Nov 2, 2009
10-K (21 sections)
Mar 2, 2009

RELATED TOPICS for LVS:

"OUR DEVELOPMENT PROJECTS" elsewhere:

Wynn Resorts (WYNN)
Melco Crown Entertainment LTD (MPEL)
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