OTHER OPERATING ITEMS, NET



	Year Ended December 31,
	2012			2011			2010
	(In thousands)
Impairments	$	1,053,526		$	6,051		$	—

Other operating items, net
Acquisition-related expenses	$	18,651		$	6,375		$	3,977
Gain on insurance settlement, net of flood expenses	(7,098		)	1,428			—
Gain on insurance proceeds	(7,694		)	—			—
Hurricane expenses	2,668			—			—
Asset write-downs, net of gain on disposal	123			690			736
Measurement period adjustments	—			(486		)	—
Total other operating items, net	$	6,650		$	8,007		$	4,713

Impairments

During the year ended December 31, 2012, we recorded asset impairments primarily related to the following items:

Development Assets: We recorded a non-cash impairment charge of $1.05 billion, primarily consisting of $993.9 million related to the Echelon development and $39.4 million related to various parcels of undeveloped land. We decided not to proceed with the development of the Echelon site and as a result, recognized impairment associated with the project development costs.

Sam's Town Shreveport: We recorded a non-cash impairment charge of $17.5 million which relates to the write-down of Sam's Town Shreveport's gaming license in connection with our annual impairment test. During the year ended December 31, 2012, this property's operating results were less than expected due to weaker than anticipated discretionary consumer spending and increased competition.

Borgata: We recorded a non-cash impairment charge of $2.8 million related to a parking structure project that will not be further developed.

During the year ended December 31, 2011, we recorded asset impairments and write-downs, net primarily related to the following items:

Impairment of Trademark: Due to our consideration of certain facts and circumstances surrounding an adverse change in the business climate in Atlantic City, we performed an interim impairment test on the indefinite lived trademark recorded upon the consolidation of Borgata. We believe our actual results have been adversely impacted by increased regional competition, and that in addition, Borgata's projected future results will be further negatively impacted by the opening of a new property in Atlantic City, which was announced in February 2011. We also believe the refinancing of Borgata's debt and recapitalization of its member equity contributed to the results of this impairment test.

Our analysis consisted of a valuation of the trademark, using the relief from royalty method. The only significant change in our assumptions from the initial fair valuation were revised revenue and profitability projections, reflecting the impact of the changed present and forecasted circumstances. The impairment test consisted of a comparison of the fair value of trademark with its carrying amount. As a result, we recorded a $5.0 million impairment to the trademark, representing the amount by which the carrying amount exceeded its fair value.

Impairment of Investment in Unconsolidated Subsidiary: We also recorded a non-cash impairment charge to Borgata's investment in an unconsolidated subsidiary in the amount of $1.1 million, representing the amount by which the carrying value of the investment exceeded its potential liquidated value. Borgata previously entered into an agreement with two other Atlantic City casinos to form ACES. With each member having a 33.3% interest, this New Jersey limited liability company was formed for the purpose of contracting with New Jersey Transit to operate express rail service between Manhattan and Atlantic City. Each member has guaranteed, jointly and severally, liability for all terms, covenants and conditions of the ACES agreement with New Jersey Transit consisting primarily of the necessary operating and capital expenses of ACES. ACES suspended services in September, 2011, and accordingly, the joint venture agreement terminated in January 2012, which forced a liquidation of the joint venture's assets. Subsequent to the recordation of this impairment charge, the carrying value of this investment was $2.8 million at December 31, 2011. During the year ended December 31, 2012, the primary asset related to this investment was liquidated.

Other Operating Items, Net

Acquisition-Related Expenses

During the year ended December 31, 2012, 2011, and 2010, we recorded $18.7 million, $6.4 million, and $4.0 million of expenses related to evaluating various acquisition possibilities and other business development activities. Acquisition related expenses for the year ended December 31, 2012, primarily relate to our acquisition of Peninsula Gaming that was completed on November 20, 2012. Acquisition expenses for the years ended December 31, 2011 and 2010 primarily relate to our acquisition of IP that was completed on October 4, 2011.

Gain on Insurance Settlement, Net of Flood Expenses

During the year ended December 31, 2012, we recorded $7.1 million of gains on business interruption insurance proceeds, net of flood expenses, due to flooding of the Mississippi River and temporary closure of our Tunica property in May 2011, compared to flood expenses of $1.4 million, net of recoveries, during the year ended December 31, 2011.

Gain on Insurance Proceeds

During the year ended December 31, 2012, we recognized a gain of $7.7 million consisting of $3.9 million related to the subrogation of insurance claims related to the fire that occurred during construction of The Water Club at Borgata in September 2007 and $3.8 million from business interruption proceeds due to the mandated closure of the property by civil authorities and the Division of Gaming Enforcement for three days in August 2011 related to Hurricane Irene.

Hurricane Expenses

During the year ended December 31, 2012, we recognized $2.7 million for hurricane expenses in our Midwest and South region related to the mandatory closure of several of our properties for Hurricane Isaac.

Asset Write-downs, Net of Gain on Disposal

During the year ended December 31, 2012, 2011 and 2010, we recognized $0.1 million, $0.7 million, and $0.7 million respectively, in connection with the disposal of certain property and equipment in the ordinary course of business.

Measurement Period Adjustments

In connection with the valuation procedures we performed on Borgata, we recorded measurement adjustments during the year ended December 31, 2011, which were primarily comprised of a $0.3 million bargain purchase gain.