Marketable Securities, Eldorado Resorts, Inc.

3 Months Ended

May. 31, 2015

Eldorado

Schedule of Equity Method Investments [Line Items]

Available-for-sale Securities

Marketable Securities, Eldorado Resorts, Inc.

Effective September 19, 2014, as a result of the ERI Merger, the Company’s previous interest in Eldorado was converted into 4,040,440 shares of ERI common stock, $0.00001 par value, including post-closing adjustments, 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 for an unrealized holding 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. During the three months ended May 31, 2015, additional adjustments to carrying value of the ERI shares based on trading activity resulted in an unrealized holding gain of approximately $16.2 million at May 31, 2015.

Through the date of this filing, the estimated fair value of this the ERI common shares based on trading activity has not changed materially from the carrying value as of May 31, 2015.

The original cost of the Company’s investment in Eldorado in 2007 (prior to subsequent impairment charges and equity in the earnings (losses) of the investee through September 18, 2014) was approximately $38 million.

The following table presents unaudited condensed financial information of ERI and Eldorado for the three months ended March 31, 2015 and 2014, respectively (in thousands):

	Three Months Ended
	March 31,
	2015			2014
Net operating revenues	$	167,451		$	57,030
Operating income	$	12,084		$	1,552
Net income	$	(6,164	)	$	(2,333	)