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Intangible and Other Assets Related to Indian Casino Projects

9 Months Ended

Oct. 02, 2011

Intangible and Other Assets Related to Indian Casino Projects [Abstract]

Intangible and Other Assets Related to Indian Casino Projects

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):


	Pokagon *Band()**			Shingle Springs Tribe()**			Jamul Tribe()*			Total
Balances, January 2, 2011	$	10,631		$	5,242		$	—		$	15,873
Allocation of advances		—			—			2,401			2,401
Amortization		(10,631	)		(794	)		—			(11,425	)
Impairment losses		—			—			(2,401	)		(2,401	)

Balances, October 2, 2011 (unaudited)	$	—		$	4,448		$	—		$	4,448

(*)	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.

(**)	The intangible asset related to the Shingle Springs Tribe is being amortized through the end of the management contract, which expires in December 2015.

(***)

Due to the continued uncertainty surrounding the Jamul Casino project, Lakes recognized an impairment charge of $0.8 million and $2.4 million related to the intangible assets associated with this project during the three and nine months ended October 2, 2011, respectively. The impairment charge is included in impairments and other losses in the consolidated statement of earnings (loss).

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 $4.7 million and $3.1 million as of October 2, 2011 and January 2, 2011, respectively. As defined in the management and development agreement with the Shingle Springs 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 include amounts due from Mr. Kevin M. Kean (see note 11, Contract Acquisition Costs Payable). Financial instruments related to Mr. Kean have a carrying value of $1.4 million and $1.8 million, net of current portion of $0.5 million as of October 2, 2011 and January 2, 2011.