Lakes recognized impairment losses of $0.6 million during the second quarter of 2011 compared to $0.7 million in the prior-year period. Impairment losses in the second quarters of 2011 and 2010 were due primarily to continued uncertainty surrounding the completion of the project with the Jamul Indian Village (“Jamul Tribe”) near San Diego, California.
Net unrealized losses on notes receivable relate to the Company’s notes receivable from Indian tribes for casino projects that are not yet open, which are adjusted to estimated fair value based upon the current status of the related tribal casino projects and evolving market conditions. In the second quarter of 2011, net unrealized losses on notes receivable were $0.1 million, compared to $1.5 million in the prior year period. The net unrealized losses in the second quarters of 2011 and 2010 were related to the project with the Jamul Tribe due primarily to ongoing issues in the credit markets.
Amortization of intangible assets related to the operating casinos was $9.2 million for the second quarter of 2011 compared to $2.8 million for the second quarter of 2010. The increase in amortization costs related primarily to the Buy-Out Agreement with the Pokagon Band which resulted in the full amortization of the remaining intangible assets associated with that project during the second quarter of 2011.
Other income (expense), net for the second quarter of 2011 was $1.3 million compared to $1.8 million for the second quarter of 2010, a significant portion of which relates to non-cash interest income.The income tax provision for the second quarter of 2011 was $7.7 million compared to a tax benefit of $5.6 million for the second quarter of 2010. Lakes’ income tax provision in the current year quarter consists primarily of current income tax provision. Lakes’ income tax benefit in the prior year period consisted primarily of current income tax benefit.
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