Components of Landry\'s Restaurants\' Income

¶ … components of Landry's Restaurants' income statement, balance sheet and statement of cash flows for Year Ended December 31, 2008 (Landry's Restaurant Form 10-K).

a) What is the amount of net income? Which financial statement did you find this information? What are the components of this financial statement?

According to Landry's Income Statement, the company lost money, reporting a net income of -$21,769,723. The income statement states all relevant income and all expenses that have been incurred to generate this negative income.

Landry's reports its revenues by two business lines, restaurant and hospitality and gaming (casino, rooms, food and beverage, other, and promotional allowances). Total revenue was $1, 101,993, 507.

Likewise, Landry's breaks down its operating costs and expenses, which as $1,005,214,099 into its two lines of business. Restaurant and hospitality is further broken down into cost of revenues, labor and other operating expenses. Gaming costs and expenses are reported by casino, rooms, food and beverage and other. Other operating costs and expense components include general and administrative expense, depreciation and amortization, asset impairment expense, loss on disposal of assets, and pre-opening expenses.

Landry's reports an operating income (revenues minus operating costs and expenses of $96,779, 408. However, other expenses including interest expense, and other, net, which total $49,009, 924 are subtracted on the income statement. Net income, are also adjusted by other components such as income from continuing operations before income taxes, provision (benefit) for income taxes, income from continuing operations after income taxes, income from discontinued operations net of income taxes and equity in earnings of subsidiaries.

b) What are the total assets? Which financial statement did you find this information? What are the components of this financial statement?

Total assets reported on Landry's Balance Sheet are $1,502,982,529. These represent the productive assets Landry's owns. These assets are broken down into current assets, property and equipment, net, goodwill, other intangible assets, investment in and advances to subsidiaries and other assets, net. Current assets are further reported by cash and cash equivalents, accounts receivable -- trade and other, net, inventories, deferred taxes, assets related to discontinued operations and other current assets.

The second part of Landry's Balance Sheet shows all financing methods such as liabilities and shareholders' equity. Current liabilities are $1,186,083,456. Liabilities consist of current liabilities, long-term notes, net of current portion, deferred taxes, and other liabilities. Total current liabilities are further broken into components such as accounts payable, accrued liabilities, income taxes payable, current position of long-term debt and other obligations, and liabilities related to discontinued operations. The company also reports commitments and contingencies.

Lastly, total stockholders' equity (assets minus liabilities) for Landry's is shown as $316,899,073.

c) How much did they spend on property and equipment additions? Which financial statement did you find this information? What are the components of this financial statement?

Landry's reports spending on property and equipment additions as -$122,997,511. This is reported on the Statement of Cash Flows. Cash Flows are divided into three components, cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities.

Cash flows from operating activities were $122,654,806. Components include net income, adjustments to reconcile net income to net cash provided by operating activities, depreciation and amortization, asset impairment expense, deferred tax provision, gain on disposition of assets, deferred rent and other charges, net, stock-based compensation expense, change in assets and liabilities, net, and other.