Note 3. Investment in Unconsolidated Affiliates

Effective March 1, 1994, Eldorado Limited Liability Company, a Nevada limited liability company that is a subsidiary of Resorts ("ELLC") and Galleon, (each a "Partner" and, together, the "Partners"), entered into the Silver Legacy Joint Venture pursuant to a joint venture agreement (the "Original Joint Venture Agreement" and, as amended to date, the "Joint Venture Agreement") to develop the Silver Legacy. The Silver Legacy consists of a casino and hotel located in Reno, Nevada, which began operations on July 28, 1995. Each Partner owns a 50% interest in the Silver Legacy Joint Venture. The Company owns an indirect 48.1% interest in the Silver Legacy Joint Venture. The Company has entered into an agreement to purchase the 50% interest in the Silver Legacy Joint Venture owned by Galleon and expects to acquire the remaining 1.9% interest held by certain of its affiliates in connection with the acquisition of the 50% interest from Galleon. See Note 13 "Pending Acquisitions."

In December 2014, Silver Legacy deposited $5.0 million of cash into a cash collateral account securing its obligations under its credit agreement, which reduced the credit support obligation of ELLC and Galleon to $2.5 million each and resulted in the return of $2.5 million of the $5.0 million of collateral that Resorts previously provided as credit support for Silver Legacy's obligations under its credit agreement. In August 2015, the remaining credit support obligation was released upon Silver Legacy's deposit of an additional $5.0 million. The $2.5 million collateral deposit is included in noncurrent restricted cash in the accompanying consolidated balance sheets at December 31, 2014.

On December 16, 2013, the Silver Legacy Joint Venture entered into a new senior secured term loan facility totaling $90.5 million (the "Silver Legacy Credit Facility") to refinance its indebtedness under its then existing senior secured term loan and Silver Legacy Second Lien Notes. The Silver Legacy Credit Facility matures on November 16, 2017. In connection with the Circus Reno/Silver Legacy Purchase, we expect all amounts outstanding under the Silver Legacy Credit Facility will be paid in full and the cash collateral securing such obligations will be released.

Equity in income related to the Silver Legacy Joint Venture for the three and nine months ended September 30, 2015 totaled $2.5 million and $3.1 million, respectively. Equity in income for the three and nine months ended September 30, 2014 totaled $1.0 million and $2.3 million, respectively.

Summarized information for the Company's investment in and advances to the Silver Legacy Joint Venture as of and for the nine months ended September 30, 2015 and 2014 was as follows (in thousands):

	September 30, 2015		September 30, 2014
	(unaudited)
Beginning balance	$	14,009	$	13,081
Equity in income of unconsolidated affiliate		3,136		2,299
Other comprehensive loss (minimum pension liability adjustment of unconsolidated affiliate)		—		(166	)

Ending balance	$	17,145	$	15,214

Summarized balance sheet information for the Silver Legacy Joint Venture is as follows (in thousands):

	September 30, 2015		December 31, 2014
	(unaudited)
Current assets	$	43,200	$	30,563
Property and equipment, net		184,319		190,592
Other assets, net		4,935		6,412

Total assets	$	232,454	$	227,567


Current liabilities	$	19,677	$	18,707
Long-term liabilities		86,744		89,322
Partners' equity		126,033		119,538

Total liabilities and partners' equity	$	232,454	$	227,567

Summarized results of operations for the Silver Legacy Joint Venture are as follows (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
	(unaudited)
Net revenues	$	38,028		$	34,447		$	97,665		$	97,540
Operating expenses		(29,953	)		(29,645	)		(82,850	)		(84,667	)

Operating income		8,075			4,802			14,815			12,873
Other expense		(2,801	)		(2,778	)		(8,319	)		(8,273	)

Net income	$	5,274		$	2,024		$	6,496		$	4,600