Effective September 19, 2014, as a result of the ERI Merger, the Company’s previous 17.0359% equity interest in Eldorado was converted into 4,030,440 shares (including post-closing adjustments) of ERI common stock, $0.00001 par value, representing approximately 8.6% of such shares then outstanding. Upon conversion, the fair market value of the ERI shares, based on then current trading activity, was approximately $7.1 million less than the carrying value of the Eldorado Interest prior to the ERI Merger, resulting in a write down of the Company's investment and a charge to other comprehensive loss. Subsequently through February 28, 2015, additional adjustments to carrying value of the ERI shares based on trading activity resulted in an unrealized holding gain of approximately 1.9 million. On May 29, 2015, the date this document was filed with the United States Securities and Exchange Commission, the estimated fair value of the ERI shares was approximately $33.5 million and the net unrealized holding gain was approximately $9.8 million.

The original cost of the Company’s investment in Eldorado in December14, 2007 (prior to subsequent impairment charges and the recording of equity in the earnings (losses) of the investee through September 18, 2014) was approximately $38 million, the quoted market price of debt and equity securities exchanged for the interest in Eldorado.

Changes in the Company’s investment in Eldorado through September 18, 2014 and for the year ended February 28, 2014 are as follows:



	Through September 18, 2014			Year Ended February 29, 2014
Balance, beginning of period	$	25,496,573		$	22,988,441
Equity in net income (loss) of Eldorado	(107,587		)	3,110,862
Distributions received from Eldorado	(1,350,000		)	(904,606		)
Equity in (reversal of) other comprehensive income of unconsolidated investee	(301,876		)	301,876
Conversion into ERI shares	(23,737,110		)	—
Balance, end of period	$	—		$	25,496,573

The Company did not record any impairment related to its equity method investment in Eldorado during the years ended February 28, 2015 and 2014.

The ERI Merger was accounted for as a reverse acquisition in which Eldorado was the acquirer for accounting purposes. The following tables present condensed financial information of ERI and Eldorado as of December 31, 2014 and 2013, respectively, and for the years then ended (in thousands). Management notes that comparability between the two periods is affected by the inclusion of MTR from September 19, 2014.



	2014		2013
Balance Sheets
Current assets	$	117,493	$	39,429
Restricted cash	2,500		5,000
Investment in and advances to unconsolidated affiliate	14,009		18,349
Property and equipment, net	456,139		180,342
Other assets, net	585,189		27,062
Total assets	$	1,175,330	$	270,182

Current liabilities	$	91,844	$	25,147
Other liabilities	931,864		169,460
Members' equity	151,622		75,575
Total liabilities and members' equity	$	1,175,330	$	270,182



	2014			2013
Statements of Operations
Net operating revenues	$	361,823		$	247,186
Operating income	$	17,555		$	22,582
Net income (loss)	$	(14,425	)	$	18,897
Other comprehensive income (loss)	$	(1,685	)	$	1,772
Comprehensive income (loss)	$	(16,110	)	$	20,669

The following tables present condensed financial information of one of ERI’s unconsolidated investees, the Silver Legacy Joint Venture, as of December 31, 2014 and 2013 and for the year then ended (in thousands).



	2014		2013
Balance Sheets
Current assets	$	30,563	$	29,565
Property and equipment, net	190,592		198,150
Other assets, net	6,412		8,201
Total assets	$	227,567	$	235,916

Current liabilities	$	18,707	$	27,475
Other liabilities	89,322		92,541
Partners' equity	119,538		115,900
Total liabilities and partners' equity	$	227,567	$	235,916



	2014			2013
Statements of Operations
Net operating revenues	$	127,095		$	125,841
Operating income	$	15,009		$	13,283
Net income	$	5,402		$	28,482
Other comprehensive income (loss) - minimum pension liability adjustment	$	(3,544	)	$	3,544
Comprehensive income	$	1,858		$	32,026