At the end of 2010, Lakes concluded that the notes receivable from the Shingle Springs Tribal Gaming Authority were impaired resulting in an impairment charge on notes receivable of $21.0 million during 2010. This impairment was taken because it was estimated that substantial amounts due would not be repaid within the contract terms due to various factors which negatively impacted cash flows for the property. No additional impairment charges were recorded during fiscal 2011.Lakes recognized impairments and other losses of $8.5 million and $22.8 million, during the twelve months ended January 1, 2012 and the twelve months ended January 2, 2011, respectively. Impairments and other losses for 2011 included losses of $3.3 million related to the early termination of the Company’s airplane lease. Also included were impairments of $1.6 million during both 2011 and 2010, due to declines in the estimated fair value of land owned by Lakes in Vicksburg, Mississippi. Impairment losses of $3.6 million in 2011, and $2.5 million in 2010, related to the continued uncertainty surrounding the completion of the project with the Jamul Tribe. During March 2012, Lakes determined that it would not continue to move forward with the Jamul casino project and terminated its agreement with the Jamul Tribe. In addition, the 2010 impairment losses included $16.7 million related to intangible assets associated with the Shingle Springs project. These intangible assets were impaired because their carrying value exceeded estimated future cash flows. Also contributing to the prior-year impairments were losses of $2.0 million related to the termination of the agreements with the Iowa Tribe of Oklahoma.
Lakes Entertainment Announces Results For Fourth Quarter And Full Year 2011
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