FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 2012

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

10. FAIR VALUE MEASUREMENTS

        ASC 820, Fair Value Measurements and Disclosures provides guidance for measuring the fair value of assets and liabilities and requires expanded disclosures about fair value measurements. ASC 820 indicates that fair value should be determined based on the assumptions that marketplace participants would use in pricing the asset or liability and provides additional guidelines to consider in determining the market-based measurement.

        ASC 820 requires fair value measurement be classified and disclosed in one of the following categories:

• • Level 1:    Unadjusted quoted market prices for identical assets and liabilities.

    Level 2:    Inputs other than Level 1 that are observable, either directly or indirectly, for the asset or liability through corroboration with market data for substantially the full term of the asset or liability.

    Level 3:    Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities (management's own assumptions about what market participants would use in pricing the asset or liability at the measurement date).

        Cash equivalents:    Cash equivalents include investments in money market funds. Investments in this category can be redeemed immediately at the current net asset value per share. A money market fund is a mutual fund whose investments are primarily in short-term debt securities designed to maximize current income with liquidity and capital preservation, usually maintaining per share net asset value at a constant amount, such as one dollar. The carrying amounts approximate fair value because of the short maturity of these instruments.

        Acquisition-related contingent considerations:    Contingent consideration recorded in 2012 related to the July 2003 acquisition of Scioto Downs represents the estimate of amounts to be paid to shareholders of Scioto Downs under the earn-out provisions discussed in Note 7. We consider the acquisition related contingency's fair value measurements to be Level 3 inputs within the fair value hierarchy.

        The following table presents assets and liabilities measured at fair value on a recurring basis at December 31, 2012 and 2011:

	December 31, 2012
Description	(Level 1)		(Level 2)		(Level 3)		Total
	(in thousands)
Assets
Cash equivalents	$	43,301	$	—	$	—	$	43,301
Total assets	$	43,301	$	—	$	—	$	43,301
Liabilities
Acquisition-related contingent considerations	$	—	$	—	$	517	$	517
Total liabilities	$	—	$	—	$	517	$	517

	December 31, 2011
Description	(Level 1)		(Level 2)		(Level 3)		Total
			(in thousands)
Assets
Cash equivalents	$	31,264	$	—	$	—	$	31,264
Total assets	$	31,264	$	—	$	—	$	31,264

        The carrying amounts for cash, trade accounts receivable, and trade accounts payable approximate their respective fair values based on the short-term nature of these instruments. The fair value of our $565 million 11.5% Senior Secured Second Lien Notes (See Note 9) was $609.9 million at December 31, 2012 compared to a carrying value of $556.7 million at December 31, 2012. The fair value of our $565 million 11.5% Senior Secured Second Lien Notes was $473.2 million at December 31, 2011 compared to a carrying value of $548.9 million at December 31, 2011. The fair values of our Senior Secured Second Lien Notes were determined based on Level 2 inputs including quoted market prices and bond terms and conditions.

        During the year ended December 31, 2011, we recorded impairment losses of $0.7 million and $0.5 million, respectively, related to the impairment of long-lived assets and goodwill. These non-financial assets were measured at fair value on a nonrecurring basis subsequent to their initial recognition. We consider the fair value measurements utilized within the asset impairment analyses to be Level 3 measurements due to the presence of significant inputs that are unobservable and based on management's estimates or market comparisons. For the year ended December 31, 2012, we determined there was no impairment of our indefinite-lived intangibles or long-lived assets.