XML 103 R18.htm IDEA: XBRL DOCUMENT v2.4.0.6
Write-downs, Reserves, and Project Opening Costs, net of Recoveries
12 Months Ended
Dec. 31, 2012
Disclosure Writedowns Reserves And Project Opening Costs Net Of Recoveries Components Of Write Downs Reserves And Project Opening Costs Net Of Recoveries [Abstract]  
Write-downs, Reserves, and Project Opening Costs, net of Recoveries
Write-downs, Reserves, and Project Opening Costs, net of Recoveries
Write-downs, reserves, and project opening costs, net of recoveries include project opening costs and various pre-tax charges to record contingent liability reserves, costs associated with efficiency projects, project write-offs, demolition costs, and other non-routine transactions, net of recoveries of previously recorded non-routine items.
The components of write-downs, reserves, and project opening costs, net of recoveries are as follows:
 
Year Ended December 31,
(In millions)
2012
 
2011
 
2010
Write-downs and reserves, net of recoveries:
 
 
 
 
 
Divestitures and abandonments
$
59.1

 
$
10.1

 
$
29.0

Remediation costs
21.1

 
11.0

 
42.7

Write-down of long-term note receivable

 

 
52.2

Efficiency projects
17.5

 
46.6

 
1.4

Litigation reserves, awards, and settlements
(0.2
)
 
3.2

 
20.9

Gain on Thistledown contribution
(11.0
)
 

 

Other
7.1

 
(1.8
)
 
1.4

     Total write-downs and reserves, net of recoveries
93.6

 
69.1

 
147.6

Project opening costs
12.6

 
4.7

 
2.1

Total write-downs, reserves, and project opening costs, net of recoveries
$
106.2

 
$
73.8

 
$
149.7


Divestitures and abandonments include (gains)/losses on divested or abandoned assets and costs associated with various projects that are determined to no longer be viable. For 2012, divestitures and abandonments included a charge of $15.0 million related to an investment in a potential venture. For 2012 and 2011, divestitures and abandonments included charges of $28.8 million and $8.3 million, respectively, related to a previously halted development project in Biloxi, Mississippi. Divestitures and abandonments for 2010 primarily related to write-offs of specific assets associated with certain capital projects no longer expected to be completed in the Las Vegas and Atlantic City regions.
Remediation costs relate to projects at certain of our Las Vegas properties.
For 2010, we recorded a $52.2 million write-down on a long-term note receivable related to land and pre-development costs contributed to a venture for development of a casino project in Philadelphia with which we were involved. In April 2010, the proposed operator for the project withdrew from the project and the Pennsylvania Gaming Control Board commenced proceedings to revoke the license for the project. As a result, we fully reserved the note.
Efficiency projects represent costs incurred to identify and implement efficiency programs aimed at streamlining corporate and operating functions to achieve cost savings and efficiencies, including Project Renewal, an initiative designed to reinvent certain aspects of the Company's functional and operating units to gain significant further cost reductions and streamline its operations.
Litigation reserves, awards, and settlements include costs incurred or reversed as a result of the Company’s involvement in various litigation matters, including contingent losses. During 2010, we recorded a $25.0 million charge related to the Hilton matter, which is more fully discussed in Note 15, "Litigation, Contractual Commitments and Contingent Liabilities."
As previously discussed in Note 3, "Acquisitions, Investments, Dispositions and Divestitures,“ the Company divested of Thistledown, recognizing an $11.0 million gain on the transaction.
Other includes demolition costs and other non-routine transactions.