INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED AFFILIATES

Summarized below is financial information for our equity investments:



	December 31,
(in millions)	2017		2016
Assets
Current assets	$	64.5	$	38.8
Property and equipment, net	234.6		198.0
Other assets, net	236.5		165.0
Total assets	$	535.6	$	401.8

Liabilities and Members' Equity
Current liabilities	$	100.3	$	77.5
Long-term debt	110.1		69.2
Other liabilities	0.1		0.1
Members' equity	325.1		255.0
Total liabilities and members' equity	$	535.6	$	401.8



	Years Ended December 31,
(in millions)	2017			2016			2015
Net revenue	$	303.3		$	216.1		$	195.2
Operating and SG&A expense	204.9			142.8			137.2
Depreciation and amortization	25.9			18.5			15.2
Operating income	72.5			54.8			42.8
Interest and other expense, net	(8.5		)	(6.9		)	(6.2		)
Net income	$	64.0		$	47.9		$	36.6

Miami Valley Gaming Joint Venture

We own a 50% interest in MVG, which has a harness racetrack and video lottery terminal ("VLT") gaming facility in Lebanon, Ohio. Delaware North Companies Gaming & Entertainment Inc. ("DNC") owns the remaining 50% interest in this entity.

Since both we and DNC have participating rights over MVG, and both must consent to MVG's operating, investing and financing decisions, we account for MVG using the equity method.

The joint venture's long-term debt consists of a $50.0 million secured note payable from MVG payable quarterly over 6 years through August 2019 at a 5.0% interest rate for which it has funded $33.3 million in principal repayments. We received distributions from MVG of $17.0 million in 2017, $15.0 million in 2016 and $15.0 million in 2015.

Our accompanying Consolidated Statements of Comprehensive Income include our 50% share of MVG's net income as follows:



	Years Ended December 31,
(in millions)	2017		2016		2015
Equity in income of unconsolidated investments	$	16.7	$	14.2	$	10.6

SHRI Equity Investment

On October 2, 2015, we completed the acquisition of a 25% equity investment in Saratoga Casino Holdings LLC ("SCH") which owns Saratoga Casino and Raceway ("Saratoga's New York facility") in Saratoga Springs, New York, for $24.5 million from Saratoga Harness Racing, Inc. ("SHRI"). Saratoga's New York facility has a casino with approximately 1,700 VLTs, a 1/2-mile harness racetrack with a racing simulcast center, and three dining facilities. Saratoga's New York facility has a 50% interest in a joint venture with DNC to manage the Gideon Putnam Hotel and Resort. We signed a five-year management agreement with SCH to manage Saratoga's New York facility for which we receive management fee revenue.

On July 6, 2016, Saratoga's New York facility completed a significant expansion which included a 117-room hotel, additional dining facilities and a 3,000 square-foot multi-functional event space.

On November 21, 2016, we completed the acquisition of a 25% equity investment in Saratoga Casino Black Hawk in Black Hawk, Colorado ("Saratoga's Colorado facility") for $6.5 million from SHRI. Saratoga's Colorado facility has a casino with approximately 600 slot machines, seven table games, three lounges and two dining facilities.

Our investment in SCH recorded under the equity method includes our share of the basis difference between the fair value of property and equipment and definite-lived intangible assets of $3.7 million and $2.7 million, respectively. These basis differences are charged to expense over the remaining estimated useful lives of the property and equipment and intangible assets and are recorded as a component of equity in income of unconsolidated investments. Basis differences related to non-depreciable assets, such as land and indefinite lived-intangible assets, are not being amortized.

Ocean Downs

In August 2016, we signed a limited liability company operating agreement with Saratoga Casino Holdings LLC ("SCH"), with each entity having a 50% interest, and formed Old Bay Gaming and Racing LLC ("Old Bay"). The Old Bay agreement provides both the Company and SCH equal participating rights, and both entities must consent to Old Bay's operating, investing and financing decisions.

On January 3, 2017, Old Bay acquired all of the equity interests of Ocean Enterprise 589 LLC, Ocean Downs LLC and Racing Services LLC (collectively, "Ocean Downs"). The Company's portion of the initial equity investment in Ocean Downs was $24.0 million. Ocean Downs, located near Ocean City, Maryland, owns and operates VLTs and table games at the Casino at Oceans Downs and conducts harness racing at Ocean Downs Racetrack. The Company's 25% interest in SCH provides an additional 12.5% interest in Ocean Downs, resulting in an effective 62.5% interest in Ocean Downs. Since both the Company and SCH have participating rights and both must consent to Old Bay's operating, investing and financing decisions, the Company accounts for Ocean Downs using the equity method of accounting.