ANNUAL REPORT 2006 The Venetian Macao on the Cotai StripTM ~ Coming Summer 2007 The Venetain The Palazzo Sands Bethworks Sands Macao Marina Bay Sands Las Vegas ~ May 3, 1999 Las Vegas ~ 2007 Pennsylvania ~ 2008 Macao ~ May 18, 2004 Singapore ~ 2009 ellow Shareholders: I am pleased to present to you our third Annual Report. The Year 2006 was another record-setting year for our company as we executed on our operating and development plans around the globe. Our strong financial and operating performance, coupled with our victory in the global competition to build Singapore’s first Integrated Resort at Marina Bay, has clearly cemented our position as the preeminent worldwide developer and operator of premium convention-based destination hotel casino resorts. We again set occupancy and financial records at our flagship resort, The Venetian in Las Vegas. We also delivered record financial results at the Sands Macao, the first Las Vegas-style casino in The People’s Republic of China’s Special Administrative Region of Macao. In addition, we made substantial progress toward the completion of construction of two new mega-resorts, The Palazzo™, adjacent to The Venetian on the Las Vegas Strip, and The Venetian Macao, which will anchor our Cotai Strip™ development in Macao. Each of these resorts will open in 2007. In addition to our progress on The Venetian Macao, we continued to execute our master plan to develop the Cotai Strip into Asia’s premier leisure and convention destination. We began the development of six additional Cotai Strip properties, three of which will open in 2008, with the remainder to open in 2009. Upon completion, our Cotai Strip developments will contain seven interconnected destination properties featuring twelve internationally recognized hotel brands and an unprecedented collection of hotel, gaming, retail, entertainment and residential offerings. We also advanced our plans to develop a complementary convention and leisure destination on nearby Hengqin Island in Zhuhai, Guangdong Province, in the People’s Republic of China. Our track record of strong execution in the development and operation of premium destination resorts enabled us to win two exciting development opportunities in 2006. In May, we were selected by the government of Singapore to develop Singapore’s first Integrated Resort, The Marina Bay Sands. We signed the development agreement with the Singapore Tourist Board in 2006 and formally broke ground in 2007. We look forward to opening The Marina Bay Sands, which will bring the economic benefits of our convention-based Integrated Resort model to Singapore and South Asia, in 2009. In December, we were selected by the Pennsylvania Gaming Control Board to build an Integrated Resort in the Lehigh Valley in Bethlehem, Pennsylvania on the site of the historic Bethlehem Steelworks. This project will bring the power of our Integrated Resort model to the redevelopment of the largest existing brownfield site in the United States. We began construction of Sands Bethworks in 2007, and will open the resort in 2008. We continue working to assure that our growth pipeline is filled with additional new opportunities in emerging gaming jurisdictions. Our many additional 2006 accomplishments are summarized in our 2006 Form 10-K report which follows. As one shareholder to another, thank you for your support and the confidence you continue to show in our company. Sheldon G. Adelson Chairman and Chief Executive Officer April, 2007 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ¥ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2006 or n TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-32373 LAS VEGAS SANDS CORP. (Exact name of registrant as specified in its charter) Nevada 27-0099920 (State or other jurisdiction of (IRS Employer incorporation or organization) Identification No.) 3355 Las Vegas Boulevard South 89109 Las Vegas, Nevada (Zip Code) (Address of principal executive offices) Registrant’s telephone number, including Area Code: (702) 414-1000 Securities registered pursuant to Section 12(b) of the Act: Title of Each Class Name of Each Exchange on Which Registered Common Stock ($0.001 par value) New York Stock Exchange Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ¥ No n Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes n No ¥ Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days. Yes ¥ No n Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. No ¥ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one): Large accelerated filer ¥ Accelerated filer n Non-accelerated filer n Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes n No ¥ As of June 30, 2006, the aggregate market value of the registrant’s common stock held by non-affiliates of the regis- trant was $8,218,219,702 based on the closing sale price on that date as reported on the New York Stock Exchange. The Company had 354,682,930 shares of common stock outstanding as of February 23, 2007. DOCUMENTS INCORPORATED BY REFERENCE Description of document Part of the Form 10-K Portions of the definitive Proxy Statement to be used in Part III (Item 10 through Item 14) connection with the registrant’s 2007 Annual Meeting of Stockholders Las Vegas Sands Corp. Table of Contents Page PARTI ........................................................................ 1 ITEM 1. — BUSINESS ........................................................... 1 ITEM 1A. — RISK FACTORS ....................................................... 22 ITEM 1B. — UNRESOLVED STAFF COMMENTS ....................................... 39 ITEM 2. — PROPERTIES ......................................................... 39 ITEM 3. — LEGAL PROCEEDINGS................................................. 40 ITEM 4. — SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.............. 41 PARTII........................................................................ 42 ITEM 5. — MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES ................ 42 ITEM 6. — SELECTED FINANCIAL DATA ........................................... 43 ITEM 7. — MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS ......................................... 45 ITEM 7A. — QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK ..... 68 ITEM 8. — FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA .................... 70 ITEM 9. — CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.......................................... 123 ITEM 9A. — CONTROLS AND PROCEDURES ......................................... 123 ITEM 9B. — OTHER INFORMATION................................................. 124 PARTIII....................................................................... 124 ITEM 10. — DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE......... 124 ITEM 11. — EXECUTIVE COMPENSATION ........................................... 124 ITEM 12. — SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS ................... 124 ITEM 13. — CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE ...................................................... 124 ITEM 14. — PRINCIPAL ACCOUNTING FEES AND SERVICES............................ 124 PARTIV....................................................................... 125 ITEM 15. — EXHIBITS, FINANCIAL STATEMENT SCHEDULES .......................... 125 ii PART I ITEM 1. — BUSINESS Overview Las Vegas Sands Corp. and its subsidiaries (“we” or the “Company”) own and operate The Venetian Resort Hotel Casino (also referred to as “The Venetian”) and The Sands Expo and Convention Center (also referred to as “The Sands Expo Center”) in Las Vegas, Nevada, and The Sands Macao Casino (also referred to as “The Sands Macao”) in Macao, China. We are also in the process of developing additional integrated resorts and properties in Las Vegas and Macao, including The Palazzo Resort Hotel Casino (also referred to as “The Palazzo”), which will be adjacent to and connected with The Venetian, The Venetian Macao Resort Hotel Casino (also referred to as “The Venetian Macao”) and other casino resort properties on the Cotai StripTM in Macao. We recently were awarded licenses to develop Marina Bay Sands, an integrated resort in Singapore,