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Acquisition and Purchase Accounting (Tables) | 3 Months Ended
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Mar. 31, 2015
Acquisition and Purchase Accounting |
Schedule of calculation of the purchase price, which was calculated using the fair value of the outstanding common stock of MTR Gaming based on closing stock price and reconciliation of the total shares outstanding on the Merger Date |
ERI Outstanding Share Calculation: |  |  |  |
Shares issued to HoldCo(1) |  |  | 23,286,202 |
Number of MTR Gaming shares outstanding on the Merger Date(2) |  |  | 28,386,084 |
MTR Gaming RSUs that vested upon closing of the Merger(3) |  |  | 499,179 |
​ | ​ | ​ | ​ | ​
Total ERI shares outstanding—before share repurchase |  |  | 52,171,465 |
MTR Gaming shares acquired at $6.05 per share based on $35.0 million cash election(4) |  |  | (5,785,123 | )
​ | ​ | ​ | ​ | ​
Total ERI shares outstanding at Merger Date(5) |  |  | 46,386,342 |
Resorts % ownership |  |  | 50.20 | %
MTR Gaming % ownership |  |  | 49.80 | %
Consideration Transferred (dollars in thousands, except stock price) |  |  |  |
Number of MTR Gaming shares outstanding at the Merger Date |  |  | 28,386,084 |
MTR Gaming RSUs that vested upon closing of the Merger |  |  | 499,179 |
MTR Gaming shares acquired at $6.05 per share based on $35.0 million cash election |  |  | (5,785,123 | )
​ | ​ | ​ | ​ | ​
Total net MTR Gaming shares |  |  | 23,100,140 |
FMV of MTR Gaming common stock at Merger Date |  | $ | 4.43 |
​ | ​ | ​ | ​ | ​
Fair value of MTR Gaming shares |  | $ | 102,334 |
Fair value of MTR Gaming stock options(3) |  |  | 677 |
​ | ​ | ​ | ​ | ​
Total consideration transferred |  | $ | 103,011 |
​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​
(1) | The number of shares issued to members of HoldCo in the Mergers as merger consideration was determined pursuant to the terms of the Merger Agreement. The shares have been adjusted based upon the final review, as defined in the Merger Agreement. As a result, 25,290 escrow shares previously issued were returned to authorized and unissued prior to December 31, 2014.
(2) | Number of shares of MTR Gaming common stock issued and outstanding immediately prior to closing.
(3) | Pursuant to the MTR Gaming 2010 Long-Term Incentive Plan, immediately prior to closing, all outstanding stock options and MTR Gaming RSUs vested and became immediately exercisable. All vested MTR Gaming RSUs were exchanged for one share of ERI common stock. All outstanding stock options became exercisable for shares of ERI common stock with the same terms as the previous awards.
(4) | Total cash election includes $30.0 million paid by MTR Gaming and $5.0 million paid by HoldCo on the Merger Date.
(5) | The number of shares issued and outstanding, after settlement of the escrow shares, as determined pursuant to the terms of the Merger Agreement.
Summary of the preliminary estimated fair values of the assets acquired and liabilities assumed at the Merger Date | The following table summarizes the final purchase price allocation of the acquired assets and assumed liabilities as recorded at fair value on the Merger Date (dollars in thousands):
Current and other assets |  | $ | 75,031 |
Property and equipment |  |  | 289,211 |
Goodwill |  |  | 66,826 |
Intangible assets(1) |  |  | 473,000 |
Other noncurrent assets |  |  | 20,381 |
​ | ​ | ​ | ​ | ​
Total assets |  |  | 924,449 |
​ | ​ | ​ | ​ | ​
Current liabilities |  |  | 46,446 |
Long-term debt(2) |  |  | 624,877 |
Deferred income taxes(3) |  |  | 143,104 |
Other noncurrent liabilities |  |  | 7,011 |
​ | ​ | ​ | ​ | ​
Total liabilities assumed |  |  | 821,438 |
​ | ​ | ​ | ​ | ​
Net assets acquired |  | $ | 103,011 |
​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​
(1) | Intangible assets consist of gaming licenses, trade names and customer loyalty programs.
(2) | Long-term debt was comprised of MTR Second Lien Notes totaling $570.7 million.
(3) | Deferred tax liabilities were derived based on fair value adjustments for property and equipment, identified intangibles, deferred financing costs, certain long term liabilities and long-term debt.
Schedule of unaudited pro forma financial results | The following table includes the pro forma results for the three months ended March 31, 2014 which gives effect to the Merger as if it had occurred on January 1, 2013 and reflect proforma adjustments that are expected to have a continuing impact on the results of operations of the Company and are directly attributable to the Merger (amounts in thousands, except per share data):
|  | Three Months Ended March 31, 2014 (unaudited) |
Net revenues |  | $ | 171,858 |
Net loss |  |  | (3,127 | )
Net loss per common share: |  |  |  |
Basic and diluted |  | $ | (0.07 | )
Weighted shares outstanding: |  |  |  |
Basic and diluted |  |  | 46,386,342 |

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