Share-Based Compensation

12 Months Ended

Dec. 31, 2011

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation

Share-Based Compensation

Predecessors

Long-term incentive compensation was provided in the form of non-voting limited liability company membership interests in Fertitta Colony Partners LLC, a Nevada limited liability company (“FCP”), and Fertitta Partners LLC, a Nevada limited liability company (“Fertitta Partners”), pursuant to the Second Amended and Restated Operating Agreement of Fertitta Colony Partners and the Amended and Restated Operating Agreement of Fertitta Partners, respectively (collectively “the Operating Agreements”). The Operating Agreements allowed certain officers and members of management of STN to participate in the long-term growth and financial success of STN through indirect ownership of Class B Units and direct ownership of Class C Units (collectively, the "FCP Units") in FCP and Fertitta Partners. The purpose was to promote STN's long-term growth and profitability by aligning the interests of STN's management with the interests of the owners of STN and by encouraging retention.

Upon consummation of STN's merger in November 2007, FCP and Fertitta Partners issued Class B Units to an affiliate of Frank J. Fertitta III and Lorenzo J. Fertitta, and during the year ended December 31, 2008, certain members of management were awarded indirect ownership of Class B Units and direct ownership of Class C Units in each of FCP and Fertitta Partners. Pursuant to the accounting guidance for share-based payments, the unearned share-based compensation related to the Units was being amortized to compensation expense over the requisite service period (immediate to five years). The share-based expense for the awards was based on the estimated fair market value of the FCP Units at the date of grant applied to the total number of FCP Units that were anticipated to fully vest, amortized over the vesting period. The Class C Units included certain call and put provisions as defined in the Operating Agreements, such that under certain circumstances, within 90 days after termination of the Class C Unit holder's employment with STN, FCP and Fertitta Partners could call the Class C Units and the employee could put the Class C Units back to FCP and Fertitta Partners. The conditions that could result in the employee putting the Class C Units back to FCP and Fertitta Partners were either contingent or within the control of the issuer, therefore the units were accounted for as equity.

On the Effective Date, the grants of the FCP Units were canceled and as a result, STN Predecessor recognized share-based compensation expense of approximately $19.4 million representing the remaining amount of compensation cost measured at the grant date that had not yet been recognized.

The following table shows the classification of share-based compensation expense within the accompanying consolidated financial statements (amounts in thousands):

	STN Predecessor
	Station Casinos, Inc.
	Period January 1, 2011 Through June 16, 2011			Year Ended December 31, 2010			Year Ended December 31, 2009
Total share-based compensation	$	25,673		$	13,617		$	14,083
Less compensation costs capitalized	—			(236		)	(237		)
Share-based compensation recognized as expense	$	25,673		$	13,381		$	13,846
Casino expense	$	3		$	138		$	89
Selling, general &administrative	302			1,938			2,264
Corporate	5,857			8,173			8,296
Development and preopening	62			3,132			3,197
Reorganization items	19,449			—			—
Share-based compensation recognized as expense	25,673			13,381			13,846
Tax benefit	(8,986		)	(4,683		)	(4,846		)
Share-based compensation expense, net of tax	$	16,687		$	8,698		$	9,000