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Fair value measurements
 6 Months Ended
Jul. 03, 2011
Fair value measurements [Abstract]  
Fair value measurements
 
5.   Fair value measurements
 
Notes receivable at fair value.  Notes receivable from the Jamul Tribe for a project under development are carried at their estimated fair value of $12.2 million and $11.1 million as of July 3, 2011 and January 2, 2011, respectively. The most significant factors affecting the estimated cash flows and discount rates used in the Company’s valuation model for notes receivable from the Jamul Tribe for the project under development include:
 
  •  Probability of the casino opening based on the status of critical project milestones and the expected opening date,
 
  •  estimated pre- and post-opening interest rates,
 
  •  contractual interest rate and other terms,
 
  •  yield rates on US Treasury Bills and other financial instruments,
 
  •  the risk/return indicators of equity investments in general,
 
  •  specific risks associated with operating the casino and similar projects, and
 
  •  scenario weighting alternatives.
 
Changes in the carrying value of notes receivable from the Jamul Tribe is as follows (in thousands):
 
         
Balance, January 2, 2011
  $ 11,129  
Net unrealized gains on notes receivable
    618  
Advances
    2,053  
Allocation of advances to intangible asset
    (1,599 )
         
Balance, July 3, 2011(unaudited)
  $ 12,201  
         
 
To value the Company’s notes receivable from Indian tribes for projects under development, the Company utilizes valuation models based on management’s estimates of expected cash flow streams, discount rates, and as applicable, probabilities of casinos opening and the expected opening dates, projected pre- and post-opening date interest rates. The discount rate for the projects is based on the yields available on certain financial instruments at the valuation date, the risk level of equity investments in general, and the specific operating risks associated with similar financial instruments. In estimating this discount rate, market data of other public gaming related companies is also considered. The estimated casino opening date used in the valuations of the notes receivable related to Indian casino projects that are not yet under construction and in the development phase reflects the weighted-average of three scenarios: a base case (which is based on the Company’s forecasted casino opening date) and one and two years out from the base case. Once a casino project is under construction, the weighted-average scenarios are no longer used and only the planned opening date is used in the valuation. The projected pre- and post-opening interest rates are based upon the one year U.S. Treasury Bill spot-yield curve per Bloomberg and the specific assumptions on contract term, stated interest rate and casino opening date. The probability applied to each project is based upon a weighting of various possible scenarios with one scenario assuming the casino never opens. The other scenarios assume the casino opens but apply different opening dates. The probability-weighting applied to each scenario is intended to effectively capture the element of risk in these projects and is based upon the status of each project, review of the critical milestones and likelihood of achieving the milestones.
 
Land held for development.  Land held for development is measured at estimated fair value on a nonrecurring basis using unobservable (Level 3) inputs that utilize the market approach technique and reflect management’s estimates about the assumptions that market participants would use in pricing the asset. Significant inputs include recent transactions of comparable properties as well as consideration of its highest and best use.