Financial instruments

6 Months Ended

Jul. 03, 2011


4.	Financial instruments

The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, notes receivable and other long-term assets related to Indian casino projects, cost method investments, accounts payable and contract acquisition costs payable.

For the Company’s cash and cash equivalents, accounts receivable, accounts payable and current portion of contract acquisition costs payable, the carrying amounts approximate fair value because of the short duration of these financial instruments. The methods used in estimating the fair value of the Company’s notes and interest receivable from the Shingle Springs Tribe and the Iowa Tribe of Oklahoma (Note 6), investment in unconsolidated investee (Note 8), other long-term assets related to Indian casino projects (Note 7) and long-term contract acquisition costs payable (Note 10) are discussed in the referenced notes to the unaudited consolidated financial statements.

Notes receivable from the Jamul Indian Village (the “Jamul Tribe”) are related to a project under development and are measured at estimated fair value on a recurring basis using unobservable (Level 3) inputs that reflect management’s estimates about the assumptions that market participants would use in pricing the asset or liability, including estimated cash flows and valuation metrics. The determination of fair value for these items is described in Note 5.