Write-downs, reserves and recoveries, net

Write-downs, reserves and recoveries consist of the following:



	For the year ended December 31,
	2011		2010			2009
	(in millions)
Loss on disposal of assets, net	$	3.4	$	2.6		$	1.2
Impairment of assets	0.4		0.2			—
Legal settlement expense (recoveries)	0.4		(6.5		)	—
Write-downs, reserves and recoveries, net	$	4.2	$	(3.7	)	$	1.2

Loss on disposal of assets, net: In October 2011, we entered into an agreement with the Port of Lake Charles in relation to the cancellation of the lease for our canceled project, Sugarcane Bay. We exchanged land parcels and received a parcel of land that exceeded the value of the land we gave up. In addition, we will receive $2.5 million of rent credits on our future L'Auberge Lake Charles lease payments. We recorded a gain of $3.2 million as a result of these transactions in 2011. In April 2011, we donated land with a book value of $5.7 million to the City of Lake Charles, Louisiana, and recognized a loss accordingly. In addition, we realized a gain on the sale of a warehouse and the sale of unused houses. The remainder of the loss on disposal of assets for the year ended December 31, 2011 relates to the disposal of slot machines and other equipment in the normal course of business. During 2010, we sold our corporate jet, two seaplanes and a warehouse and disposed of various slot equipment at our properties for a net loss of $2.6 million. During 2009, we sold and disposed of slot machines and equipment at our properties for losses of $1.2 million.

Impairment of assets: In 2011, we incurred an impairment charge related to previously capitalized costs associated with projects that will not be pursued. In 2010, we incurred an impairment loss related to sales tax incremental bonds. In April 2010, we purchased $5.3 million face amount of these bonds for $5.0 million. During the second quarter of 2010, we recorded an impairment of $0.2 million related to these bonds. In 2011, there were no events or circumstances that indicated that the carrying value may not be recoverable.

Legal settlement expense (recoveries): In 2011, we paid $0.4 million in regards to a legal settlement. In 2010, we received a $6.5 million legal settlement related to the recovery of legal fees.