During the third quarter of 2011 Lakes incurred a loss on convertible note receivable of $4.0 million related to a potential Jai Alai fronton project in Florida. There were no such losses during 2012.
Lakes recognized impairments and other losses of $4.3 million and $2.6 million during the first nine months of 2012 and 2011, respectively. The current year impairments and other losses included $1.8 million due to the termination of Lakes’ agreement with the Jamul Tribe. Also included in impairments and other losses for the nine months ended September 30, 2012 were $1.2 million related to costs associated with development plans for the Rocky Gap project which were subsequently revised as well as $1.3 million associated with the write-down of land held for sale near Vicksburg, Mississippi to its agreed upon sale price. The prior year impairments and other losses were due primarily to uncertainty surrounding the completion of the project with the Jamul Tribe.
Amortization of intangible assets related to the operating casinos was $0.8 million for the nine months ended September 30, 2012 compared to $11.4 million for the nine months ended October 2, 2011. The decrease in amortization costs related primarily to the buy-out of the management agreement for the Four Winds Casino Resort which resulted in the full amortization of the remaining intangible assets associated with that project during the second quarter of 2011.
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. There were no net unrealized losses on notes receivable during the first nine months of 2012. During the first nine months of 2011, net unrealized losses on notes receivable were $2.1 million related to the project with the Jamul Tribe due primarily to ongoing issues in the credit markets during that period.
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