LEASING ACTIVITIES

12 Months Ended

Dec. 31, 2011

12.

LEASING ACTIVITIES

Rental expense for equipment under operating leases for the Successor Period, Predecessor Period and the year ended December 31, 2010 was approximately $455,397, $90,167 and $391,575, respectively. All are cancelable within one year.

The Company leases retail space to third parties (primarily retail shops and fast food vendors) under terms of non-cancelable operating leases that expire in various years through 2013, and have options to extend at the tenant’s option. Rental income, which is included in other revenue, for the Successor period, Predecessor period and year ended December 31, 2010 were approximately $1,636,410, $584,900 and $2,433,000, respectively.

At December 31, 2011, the Company had future minimum annual rental income due under non-cancelable operating leases as follows (in thousands):

2012	$	1,859
2013		1,828
2014		1,833
2015		1,833
2016		1,833
Total	$	9,185

Certain lease arrangements at the Riviera Las Vegas contain a buyout/liquidated damages provision. This provision provides that in the event of a major renovation or certain other events, the Company has the right, according to an agreed-upon formula, to buy out any remaining term of the lease by providing the tenant twelve months written notice.

- Definition

The entire disclosure for operating leases of a lessor. This may inlcude a general description of lessor's leasing arrangements for operating leases, including the basis on which contingent rental payments are determined, the existence and terms of renewal or purchase options and escalation clauses, restrictions imposed by lease arrangements, such as those concerning dividends, additional debt, and further leasing, rent holidays, rent concessions, or leasehold improvement incentives and unusual provisions or conditions.

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