Investment In Eldorado (Eldorado [Member])

9 Months Ended

Sep. 30, 2011

Eldorado [Member]

Investment In Eldorado

4. Investment in Eldorado

The Company's 17.0359% investment in Eldorado (which was acquired on April 1, 2009 in exchange for a 17.0359% interest originally acquired in Resorts, as described in Note 1) is accounted for under the equity method. The investment, which is reported as Equity income (loss) on Eldorado on the consolidated statements of operations, was originally recorded at fair value and is adjusted by the Company's share of earnings, losses, distributions, and adjustments related to the amortization of definite-lived intangibles of the investment. The Company's allocated income and loss related to Eldorado for the three months ended September 30, 2011 and 2010, respectively, are included as a component of net loss on the consolidated statements of operations. As of September 30, 2011 and December 31, 2010, there was no indication that impairment may have existed in relation to the investment in Eldorado.

A roll forward of the Company's equity investment in Eldorado is as follows:

	Total
Beginning balance at January 1, 2011	$	28,197,330
Equity loss on Eldorado		(606,185	)
Distributions		(235,641	)
Ending balance at September 30, 2011	$	27,355,504

Summarized balance sheet information for Eldorado is as follows (in thousands):

	September 30, 2011		December 31, 2010
Current assets	$	45,319	$	57,747
Investment in joint ventures		30,044		42,994
Property and equipment, net		201,212		209,996
Intangible assets, net		20,720		20,720
Other assets, net		8,265		2,186
Total assets	$	305,560	$	333,643
Current liabilities	$	32,696	$	27,685
Long-term liabilities		181,422		190,764
13% Preferred equity interest		—		19,289
Non-controlling interest		4,314		4,807
Partners' equity		87,128		91,098
Total liabilities and partners' equity	$	305,560	$	333,643

Summarized results of operations for Eldorado is as follows (in thousands):

	Three months ended September 30, 2011			Nine months ended September 30, 2011
Net revenues	$	66,975		$	194,360
Operating expenses		(59,723	)		(173,621	)
Loss on sale/disposition of long-lived assets		(56	)		(94	)
Equity loss on unconsolidated affiliates		(163	)		(1,285	)
Impairment in Investment in Joint Venture		(10,900	)		(10,900	)
Operating (loss) income		(3,867	)		8,460
Other expense, net		(3,598	)		(12,034	)
Net loss		(7,465	)		(3,574	)
Less net loss attributable to noncontrolling interest		432			493
Net loss attributable to the Company	$	(7,033	)	$	(3,081	)

Effective March 1, 1994, ELLC (96% owned by Resorts) and Galleon, Inc. (a Nevada corporation and now an indirect wholly owned subsidiary of MGM Resorts International (formerly MGM MIRAGE)), entered into a joint venture (the "Silver Legacy Joint Venture") pursuant to a joint venture agreement to develop the Silver Legacy Resort Casino (the "Silver Legacy"). The Silver Legacy consists of a casino and hotel located in Reno, Nevada, which began operations on July 28, 1995. Each partner owns a 50% interest in the Silver Legacy Joint Venture.

Summarized balance sheet information for the Silver Legacy Joint Venture is as follows (in thousands):

	September 30, 2011		December 31, 2010
Current assets	$	41,837	$	38,817
Property and equipment, net		219,437		229,119
Other assets, net		6,573		7,315
Total assets	$	267,847	$	275,251
Current liabilities	$	156,917	$	18,510
Long-term liabilities		8,480		150,911
Members' equity		102,450		105,830
Total liabilities and members' equity	$	267,847	$	275,251

Summarized results of operations for the Silver Legacy Joint Venture are as follows (in thousands):

	Three months ended September 30, 2011			Nine months ended September 30, 2011
Net revenues	$	34,136		$	95,556
Operating expenses		(31,218	)		(88,298	)
Operating income		2,918			7,258
Other expense		(3,762	)		(11,284	)
Net loss	$	(844	)	$	(4,026	)