Fertitta Interactive

The Company's majority-owned consolidated subsidiary, Fertitta Interactive ceased operations during the fourth quarter of 2014. Fertitta Interactive previously operated online gaming in New Jersey and online poker in Nevada under the Ultimate Gaming and Ultimate Poker brands, respectively.

The Company acquired a 50.1% ownership interest in Fertitta Interactive in November 2012 for $20.7 million in cash. Frank J. Fertitta III and Lorenzo J. Fertitta, who became the controlling members of the Company in April 2012, controlled Fertitta Interactive prior to its acquisition by the Company. As a result, the acquisition was accounted for as a transaction between entities under common control, and the consolidated financial statements include the financial results of Fertitta Interactive for all periods subsequent to April 30, 2012. The acquisition was accounted for in a manner similar to a pooling of interests, and the excess of the purchase price over the historical cost of the net assets acquired was treated as a deemed distribution for accounting purposes.

In September 2014, Fertitta Interactive terminated its online gaming operations agreement with its partner in New Jersey due to multiple breaches by the partner. Later in the same month, the partner filed for Chapter 11 bankruptcy reorganization and Fertitta Interactive ceased operating online gaming in New Jersey. As a result of these developments, management determined that the carrying amounts of Fertitta Interactive's long-lived assets were no longer recoverable, primarily due to forecasted negative cash flows. Accordingly, the Company performed an interim impairment test for all of Fertitta Interactive's long-lived assets during the third quarter of 2014 and recognized impairment charges totaling $21.5 million to write off all of the assets. The charges included $5.6 million for goodwill impairment and $15.9 million for other asset impairment, primarily representing property and equipment and an advancement fee related to its New Jersey operations. In November 2014, Fertitta Interactive ceased operating online poker in Nevada and commenced a wind-down of its operations.

The results of Fertitta Interactive have been reported as discontinued operations in the accompanying Consolidated Statements of Operations for all periods presented. Following is an analysis of discontinued operations (amounts in thousands):



	Year Ended December 31,
	2014			2013			2012
Revenues	$	6,859		$	5,341		$	174
Operating costs and expenses	27,971			29,226			10,750
Asset impairment charges and other	22,298			1,768			2,931
Net loss from discontinued operations	(43,410		)	(25,653		)	(13,507		)
Less net loss from discontinued operations attributable to noncontrolling interests	(18,689		)	(11,509		)	(7,025		)
Net loss from discontinued operations attributable to Station Casinos LLC	$	(24,721	)	$	(14,144	)	$	(6,482	)

The assets and liabilities of Fertitta Interactive are reported separately in the Consolidated Balance Sheets. The major classes of assets of discontinued operations are presented below (amounts in thousands):



	December 31,
	2014		2013
Cash	$	737	$	4,482
Accounts receivable and other	1,009		818
Total current assets	1,746		5,300
Property and equipment	—		7,369
Goodwill and intangible assets	—		8,747
Other noncurrent assets	—		7,553
Total noncurrent assets	—		23,669
Total assets	$	1,746	$	28,969

Fertitta Interactive's current liabilities at December 31, 2014 and December 31, 2013 consisted primarily of accounts payable, accrued expenses and gaming-related liabilities.

The Consolidated Statements of Cash Flows have not been adjusted for discontinued operations.