Investment In Mesquite (Mesquite [Member])

9 Months Ended

Sep. 30, 2011

Mesquite [Member]

Investment In Mesquite

5. Investment in Mesquite

The Company's 40% investment in Mesquite, which was acquired on August 1, 2011 for $8,222,222, is accounted for under the equity method. The investment, which is reported as a component of Equity income (loss) on unconsolidated investees on the consolidated statements of operations, was originally recorded at fair value and is adjusted by the Company's share of earnings, losses and distributions, The Company's allocated loss related to Mesquite for the two months ended September 30, 2011 is included as a component of net loss on the consolidated statements of operations. As of September 30, 2011, there was no indication that impairment may have existed in relation to the investment in Mesquite.

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

	Total
Beginning balance at August 1, 2011	$	8,222,222
Equity loss on Mesquite		(1,604,000	)
Ending balance at September 30, 2011	$	6,618,222

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

	September 30, 2011		December 31, 2010
	(Successor)		(Predecessor)
Current assets	$	12,196	$	13,737
Property and equipment, net		65,647		83,461
Notes receivable, less current portion		—		5
Intangible assets, net		9,116		6,515
Deferred financing fees		1,269		25
Other assets, net		2,225		2,343
Total assets	$	90,453	$	106,086
Current liabilities	$	12,837	$	25,941
Gaming equipment financing, less current portion		376		—
Liabilities subject to compromise		—		218,613
Long term debt		63,000		—
Members' equity (deficit)		14,240		(138,468	)
Total liabilities and members' deficit	$	90,453	$	106,086

Summarized results of operations for Mesquite are as follows (in thousands):

	Successor			Predecessor					Combined
	Two Months Ended Sept.  30, 2011			One Day Ended Aug. 1, 2011		One Month Ended July 31, 2011			Three Months Ended Sept. 30, 2011
Net revenues	$	13,176		$	—	$	7,138		$	20,314
Operating expenses		(16,205	)		—		(8,126	)		(24,331	)
Operating (loss) income		(3,029	)		—		(988	)		(4,017	)
Other income (expense)		(981	)		91,255		(309	)		89,965
Net income (loss)	$	(4,010	)	$	91,255	$	(1,297	)	$	85,948
	Successor			Predecessor					Combined
	Two Months Ended Sept.  30, 2011			One Day Ended Aug. 1, 2011		Seven Months Ended July 31, 2011			Nine Months Ended Sept. 30, 2011
Net revenues	$	13,176		$	—	$	60,785		$	73,961
Operating expenses		(16,205	)		—		(57,749	)		(73,954	)
Operating (loss) income		(3,029	)		—		3,036			7
Other income (expense)		(981	)		91,255		(1,598	)		88,676
Net income (loss)	$	(4,010	)	$	91,255	$	1,438		$	88,683