Dispositions, Divestitures, and Other Property Matters

Dispositions and Divestitures

Harrah's Tunica, Mississippi

Harrah’s Tunica casino closed effective June 2, 2014. As a result, we recorded intangible and tangible asset impairment charges totaling $68.0 million during the first quarter of 2014. In the second quarter of 2014, we recorded a charge for approximately $10.9 million related to accrued exit costs associated with the closure of this casino. We have presented the operations of the Harrah's Tunica casino as discontinued operations in the Consolidated Condensed Statements of Operations.

Showboat Atlantic City

In June 2014, we announced the closure of Showboat Atlantic City, effective August 31, 2014. As a result, we recorded a $4.8 million charge in the second quarter of 2014 for accrued severance costs. In periods subsequent to the closure, we will present the operations of Showboat Atlantic City as discontinued operations in the Consolidated Condensed Statements of Operations.

Golden Nugget

In February 2014, we permanently closed the Golden Nugget casino in London. As a result, in the first quarter of 2014, we recorded charges of $1.7 million related to the impairment of intangible and tangible assets and $13.1 million related to accrued exit costs. We have presented the operations of the Golden Nugget casino as discontinued operations in the Consolidated Condensed Statements of Operations.

Claridge Hotel Tower

In October 2013, we entered into an agreement to sell the Claridge Hotel Tower, which was part of the Bally's Atlantic City asset group, for $12.5 million, less customary closing adjustments. We received these proceeds in February 2014 upon the transaction closing. The Claridge Hotel Tower assets of $11.9 million were classified as assets held for sale as of December 31, 2013.

Other Property Matters

Iowa Dog Racing Legislation

As a result of new legislation passed in May 2014 in the State of Iowa, we are required to cease our greyhound racing activities at our Horseshoe Council Bluffs casino in Council Bluffs, Iowa, effective December 31, 2015. The new legislation ("Iowa Dog Racing Legislation") requires that we pay a total of $65.0 million to the Iowa Racing and Gaming Commission over a seven-year period, beginning in January 2016. These exit costs were recorded at the present value of the future liability and will be accreted over the term of the payments. The liability related to the exit costs was $40.3 million as of June 30, 2014.

Discontinued Operations

	Three Months Ended June 30,						Six Months Ended June 30,
(In millions)	2014			2013			2014			2013
Net revenues
Harrah's Tunica	$	14.3		$	33.8		$	46.4		$	68.0
Golden Nugget	—			3.1			1.3			5.2
Alea Leeds	—			—			—			0.7
Macau	—			0.8			—			1.8
Harrah's St. Louis	—			—			—			—
Total net revenues	$	14.3		$	37.7		$	47.7		$	75.7

Pre-tax income/(loss) from operations
Harrah's Tunica	$	(25.6	)	$	(7.1	)	$	(96.4	)	$	(9.6	)
Golden Nugget	(0.3		)	(0.1		)	(15.7		)	(1.1		)
Alea Leeds	(0.5		)	(0.5		)	(1.0		)	(23.0		)
Macau	—			0.2			—			(20.5		)
Harrah's St. Louis	—			—			—			(0.7		)
Total pre-tax income/(loss) from discontinued operations	$	(26.4	)	$	(7.5	)	$	(113.1	)	$	(54.9	)

Income/(loss), net of income taxes
Harrah's Tunica	$	(25.6	)	$	(4.6	)	$	(96.4	)	$	(6.2	)
Golden Nugget	(0.3		)	(0.1		)	(15.7		)	(1.1		)
Alea Leeds	(0.5		)	(0.5		)	(1.0		)	(23.0		)
Macau	—			0.2			—			(18.0		)
Harrah's St. Louis	—			—			—			(0.4		)
Total income/(loss) from discontinued operations, net of income taxes	$	(26.4	)	$	(5.0	)	$	(113.1	)	$	(48.7	)