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Insurance Recoveries and Deductibles
3 Months Ended
Mar. 31, 2012
Insurance Recoveries and Deductibles  
Insurance Recoveries and Deductibles

12.  Insurance Recoveries and Deductibles

 

Hollywood Casino Tunica Flood

 

On May 1, 2011, Hollywood Casino Tunica was forced to close as a result of flooding by the Mississippi River. Due to the flooding, access to the property was temporarily cut off and the property sustained minor damage. The property reopened on May 25, 2011.

 

At the time of the flood, the Company carried property insurance coverage with a flood limit of $300 million for both property damage and business interruption applicable to this event. This coverage included a $5 million property damage and two day business interruption deductible for the peril of flood.

 

The Company received $12.0 million in insurance proceeds related to the flood at Hollywood Casino Tunica, with $5.0 million received during the three months ended March 31, 2012. As the insurance recovery amount exceeded the net book value of assets believed to be damaged and other costs incurred as a result of the flood, the Company recorded a pre-tax gain of $3.9 million during the three months ended March 31, 2012.