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Investments and Acquisition Activities
6 Months Ended
Jun. 30, 2013
Equity Method Investments and Joint Ventures [Abstract]  
Investments and Acquisition Activities
Note 6—Investments and Acquisition Activities

ACDL Investment: In August 2011, we invested in ACDL in exchange for a minority ownership interest, which was accounted for under the equity method. During the fourth quarter of 2012, we concluded that the carrying value of our investment in ACDL experienced a decline in value due to delays in receiving necessary approvals from the Vietnamese government for opening the casino as originally anticipated in the project scope, and funding issues thats resulted from the delays in approval. We recorded an impairment of approximately $25 million as of December 31, 2012. During the first quarter of 2013, MGM Hospitality International Holdings Limited ("MGM"), the anticipated manager of the casino operations, terminated their management agreement with ACDL for failure to meet certain milestones, including obtaining the necessary government approvals. During the first quarter of 2013, we concluded that the carrying value of our investment in ACDL experienced a further decline in value due to the management agreement termination, the uncertainty of project funding, and additional capital needs of ACDL. As a result, we recorded an impairment of approximately $92.2 million, impairing the remaining asset carrying value of our investment in ACDL. To estimate fair value, we used a discounted cash flow analysis based on estimated future results of ACDL and market indicators of terminal year capitalization rates. As of March 31, 2013, we discontinued applying the equity method for our investment in ACDL and will not provide for additional losses until our share of future ACDL net income, if any, equals the share of ACDL net losses not recognized during the period the equity method was suspended. On July 26, 2013, the first integrated resort of the Ho Tram Strip project opened to the public.

Equity Method Investment: During the first quarter of 2012, we committed to invest $2.0 million in Farmworks, a land re-utilization project in downtown St. Louis. As of June 30, 2013, we have invested $1.5 million included in "Equity method investment" in our unaudited Condensed Consolidated Balance Sheet. This investment is accounted for under the equity method.

Retama Park Racetrack: In April 2012, we acquired certain bonds (the "RDC Bonds") and promissory notes (the "RDC Notes") issued by the Retama Development Corporation ("RDC") and a 50% interest in additional rights to operate and receive revenue from expanded gaming in the future (the "Gaming Enhancement Rights" and together with the RDC Bonds and RDC Notes, the "Acquired Property") for cash consideration of $7.8 million. On January 29, 2013, we acquired 75.5% of the equity of PRP through a contribution of a majority of the Acquired Property, cash funding of $16.7 million, and commitments to future capital funding up to $2.0 million annually over the next five years. Cash consideration in the transaction was used primarily to refinance existing RDC indebtedness and to provide RDC working capital.

The acquisition of 75.5% of the equity of PRP was accounted for as a business combination. The purchase price for the equity of PRP was allocated based upon estimated fair values of the assets, with the excess of the purchase price over the estimated fair value of the assets acquired recorded as goodwill. The provisional purchase price allocation includes goodwill of $3.3 million and other intangibles of $5.0 million. The allocation of fair value is preliminary and may be adjusted up to one year after the acquisition date.

As of June 30, 2013, we held $9.0 million in promissory notes issued by RDC, included in "Other Assets, net" in our unaudited Condensed Consolidated Balance Sheet, which have long-term contractual maturities and are collateralized by Retama Park Racetrack assets. The contractual terms of these promissory notes include interest payments due at maturity. Uncertainty exists as to RDC's ability to make these interest payments, therefore we have not recorded accrued interest on these promissory notes.

Heartland Poker Tour: In July 2012, we closed on an agreement to purchase substantially all of the assets of Federated Sports & Gaming, Inc. and Federated Heartland, Inc., owners of the Heartland Poker Tour and other related assets and intellectual property, for total consideration of $4.6 million. The purchase was accounted for as a business combination. The purchase price for the assets of Federated Sports & Gaming Inc. and Federated Heartland, Inc. was allocated based upon estimated fair values of the assets, with the excess of estimated fair value over the net book value of the assets acquired recorded as goodwill. The allocation of fair value was finalized during the fourth quarter of 2012.

Investments Securities: As of June 30, 2013, we held $3.4 million in STAR bonds, with long-term contractual maturities, issued through the City of Reno, Nevada, included in "Other Assets, net" in our unaudited Condensed Consolidated Balance Sheet. The STAR bonds are held at an amortized cost basis, which was reduced by an impairment charge taken during the second quarter of 2013 totaling $1.1 million.

As of June 30, 2013, we held, at amortized cost, $11.4 million in local government corporation bonds, with long-term contractual maturities, issued by RDC, a local government corporation of the City of Selma, Texas, included in "Other Assets, net" in our unaudited Condensed Consolidated Balance Sheet. It is not likely that we will be required to sell these investments prior to the recovery of the amortized cost.