Marketable Securities, Eldorado Resorts, Inc.

12 Months Ended

Feb. 29, 2016

Eldorado

Schedule of Equity Method Investments [Line Items]

Marketable Securities, Eldorado Resorts, Inc.

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 29, 2016, additional adjustments to carrying value of the ERI shares based on trading activity resulted in an unrealized holding gain of approximately 21.3 million. During the period from January 26, 2016 through March 29, 2016, the Company liquidated its ownership interest in ERI through sales in multiple open market transactions. The transactions resulted in a realized gain of $17.7 million, including $2.2 million during the year ended February 29, 2016.

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 then quoted market price of debt and equity securities exchanged for the interest in Eldorado.

The Company did not record any impairment related to its equity method investment in Eldorado during the years ended February 29, 2016 and February 28, 2015.

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, 2015 and 2014, respectively, and for the years then ended (in thousands). Management notes that comparability between the two periods is affected by the exclusion of MTR prior to September 19, 2014.

	2015		2014
Balance Sheets
Current assets	$	116,179	$	117,493
Restricted cash	—		2,500
Investment in and advances to unconsolidated affiliate	1,286		14,009
Property and equipment, net	625,416		456,139
Other assets, net	582,127		581,418
Total assets	$	1,325,008	$	1,171,559
Current liabilities	$	105,710	$	91,844
Other liabilities	948,631		928,093
Members' equity	270,667		151,622
Total liabilities and members' equity	$	1,325,008	$	1,171,559

	2015			2014
Statements of Operations
Net operating revenues	$	719,784		$	361,823
Operating income	$	72,516		$	17,555
Net income (loss)	$	114,183		$	(14,425	)
Other comprehensive loss	$	(75	)	$	(1,685	)
Comprehensive income (loss)	$	114,108		$	(16,110	)

The following tables present condensed financial information of the Silver Legacy Joint Venture as of December 31, 2014 and for the period from January 1, 2015 through November 23, 2015 when it became wholly owned by ERI (in thousands).

	December 31, 2014
Balance Sheets
Current assets	$	30,563
Property and equipment, net	190,592
Other assets, net	6,412
Total assets	$	227,567
Current liabilities	$	18,707
Other liabilities	89,322
Partners' equity	119,538
Total liabilities and partners' equity	$	227,567

	Period from January 1, 2015 through November 23, 2015		For the year ended December 31, 2014
Statements of Operations
Net operating revenues	$	117,029	$	127,095
Operating income	$	26,241	$	15,009
Net income	$	7,195	$	5,402
Other comprehensive loss - minimum pension liability adjustment	$	—	$	(3,544	)
Comprehensive income	$	7,195	$	1,858