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Investment in Unconsolidated Affiliates | 3 Months Ended
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Mar. 31, 2015
Investment in Unconsolidated Affiliates |
Investment in Unconsolidated Affiliates | Note 3. Investment in Unconsolidated Affiliates Effective March 1, 1994, ELLC and Galleon, (each a "Partner" and, together, the "Partners"), entered into the Silver Legacy Joint Venture pursuant to a joint venture agreement (the "Original Joint Venture Agreement" and, as amended to date, the "Joint Venture Agreement") to develop the Silver Legacy. The Silver Legacy consists of a casino and hotel located in Reno, Nevada, which began operations on July 28, 1995. Each partner owned a 50% interest in the Silver Legacy Joint Venture. The Company owns a direct or indirect 48.1% interest in the Silver Legacy Joint Venture. The noncontrolling interest's share of $103,000 in income earned prior to the Merger Date is reflected in the accompanying consolidated statements of operations. Under the Plan of Reorganization, each of Resorts through ELLC and Galleon retained its 50% interest in the Silver Legacy, but was required to advance $7.5 million to the Silver Legacy pursuant to a subordinated loan and provide credit support by depositing $5.0 million of cash into a bank account as collateral in favor of the lender under the Silver Legacy credit agreement. The $7.5 million note receivable from Resorts to the Silver Legacy was issued on November 16, 2012 with a stated interest rate of 5% per annum and a maturity date of May 16, 2018 and is included on the accompanying consolidated balance sheets in Investment in and Advances to Unconsolidated Affiliates at March 31, 2015 and December 31, 2014. In December 2014, Silver Legacy deposited $5.0 million of cash into a cash collateral account securing its obligations under its credit agreement, which reduced the credit support obligation of ELLC and Galleon to $2.5 million each and resulted in the return of $2.5 million of the $5.0 million of collateral that Resorts previously provided as credit support for Silver Legacy's obligations under its credit agreement. The collateral deposit is included as noncurrent restricted cash in the amount of $2.5 million in the accompanying consolidated balance sheets at March 31, 2015 and December 31, 2014. On December 16, 2013, the Silver Legacy Joint Venture entered into a new senior secured term loan facility totaling $90.5 million (the "Silver Legacy Credit Facility") to refinance its indebtedness under its then existing senior secured term loan and Silver Legacy Second Lien Notes. The Silver Legacy Credit Facility matures on November 16, 2017. Equity in losses related to the Silver Legacy Joint Venture for the three months ended March 31, 2015 and 2014 amounted to $0.5 million and $0.7 million, respectively. Summarized information for the Company's investment in and advances to the Silver Legacy Joint Venture as of and for the three months ended March 31, 2015 and 2014 is as follows (in thousands):
|  | March 31, 2015 |  | March 31, 2014 |
|  | (unaudited) |
Beginning balance |  | $ | 14,009 |  | $ | 13,081 |
Equity in losses of unconsolidated affiliate |  |  | (518 | ) |  | (652 | )
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Ending balance |  | $ | 13,491 |  | $ | 12,429 |
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Summarized balance sheet information for the Silver Legacy Joint Venture is as follows (in thousands):
|  | March 31, 2015 |  | December 31, 2014 |
|  | (unaudited) |  |  |
Current assets |  | $ | 30,994 |  | $ | 30,563 |
Property and equipment, net |  |  | 188,747 |  |  | 190,592 |
Other assets, net |  |  | 5,904 |  |  | 6,412 |
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Total assets |  | $ | 225,645 |  | $ | 227,567 |
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Current liabilities |  | $ | 18,549 |  | $ | 18,707 |
Long-term liabilities |  |  | 88,634 |  |  | 89,322 |
Partners' equity |  |  | 118,462 |  |  | 119,538 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total liabilities and partners' equity |  | $ | 225,645 |  | $ | 227,567 |
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Summarized unaudited results of operations for the Silver Legacy Joint Venture are as follows (in thousands):
|  | Three Months Ended March 31, |
|  | 2015 |  | 2014 |
|  | (unaudited) |
Net revenues |  | $ | 27,651 |  | $ | 27,577 |
Operating expenses |  |  | 25,989 |  |  | 26,146 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Operating income |  |  | 1,662 |  |  | 1,431 |
Other expense |  |  | (2,738 | ) |  | (2,737 | )
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net loss |  | $ | (1,076 | ) | $ | (1,306 | )
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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.12) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6382943&loc=d3e33918-111571 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=35687916&loc=d3e32787-111569 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=35687916&loc=d3e32847-111569 + Details
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