
7.	Intangible and other assets related to Indian casino projects

Intangible assets. Intangible assets consist of costs associated with the acquisition of the management, development, consulting or financing contracts related to tribal gaming projects and are periodically evaluated for impairment after they are initially recorded.

Information with respect to the intangible assets by project is summarized as follows (in thousands):


				Shingle
	Pokagon			Springs			Jamul
	*Band()**			Tribe			Tribe()**			Total

Balances, January 2, 2011	$	10,631		$	5,242		$	—		$	15,873
Allocation of advances		—			—			1,599			1,599
Amortization		(10,631	)		(529	)		—			(11,160	)
Impairment losses		—			—			(1,599	)		(1,599	)

Balances, July 3, 2011 (unaudited)	$	—		$	4,713		$	—		$	4,713


(*)		Due to the Buy-Out Agreement, the remaining estimated useful life of intangible assets associated with the Pokagon Band was revised and was determined to be through June 30, 2011 resulting in the intangible assets being fully amortized as of June 30, 2011.

(**)		Due to the continued uncertainty surrounding the Jamul Casino project, Lakes recognized an impairment of $0.7 million and $1.6 million related to the intangible assets associated with this project during the three and six months ended July 3, 2011, respectively.

Management fee receivable and other. Long-term assets include financial instruments related to deferred management fees and interest due from the Shingle Springs Tribe of $4.4 million and $3.1 million as of July 3, 2011 and January 2, 2011, respectively. As defined in the management and development agreement with the Shingle Spring Tribe, payment of management fees, if any, are deferred when operating results are not sufficient and are paid in subsequent periods when operating results are sufficient. In addition, long-term assets included amounts due from Mr. Kevin M. Kean (Note 10). Financial instruments related to Mr. Kean have a carrying value of $1.5 million and $1.8 million, net of current portion, as of July 3, 2011 and January 2, 2011, respectively. Management estimates the fair value of these financial instruments related to Mr. Kean and the Shingle Springs Tribe to be $4.9 million as of July 3, 2011 using a discount rate of 17.5%. Management estimated the fair value of these financial instruments related to Mr. Kean and the Shingle Springs Tribe to be $4.2 million as of January 2, 2011 using a discount rate of 18.0%.