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Note 5. Long-Term Assets Related to Indian Casino Projects - Notes and Interest Receivable | 9 Months Ended
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Sep. 30, 2012
Long Term Assets Related To Indian Casino Projects Notes And Interest Receivable | 5. Long-Term Assets Related to Indian Casino Projects — Notes and Interest Receivable The majority of the long-term assets related to Indian casino projects is in the form of notes and interest receivable due from the Shingle Springs Band of Miwok Indians (the “Shingle Springs Tribe”) pursuant to the Company’s development, financing, consulting and management agreement with the Shingle Springs Tribe for the Red Hawk Casino. The repayment terms of the notes are dependent upon the operating performance of the Red Hawk Casino. Repayment of the notes is required only if distributable profits are available from the operation of the Red Hawk Casino. In addition, repayment of the notes and the management fees are subordinated to certain other financial obligations of the Red Hawk Casino. The order of priority of payments from the Red Hawk Casino’s cash flows has been as follows: a certain minimum monthly guaranteed payment to the Shingle Springs Tribe; repayment of various debt with interest accrued thereon (including the Company’s pre-construction advances); management fees due to Lakes; other obligations, if any; and the remaining funds, if any, distributed to the Shingle Springs Tribe. At January 2, 2011, Lakes evaluated the notes receivable from the Shingle Springs Tribe for impairment and concluded that it was probable that substantial amounts due would not be repaid within the contract term and therefore determined that the notes receivable were impaired. Lakes evaluated the notes receivable from the Shingle Springs Tribe for impairment as of September 30, 2012 and concluded that the notes receivable continue to be impaired. This determination was based on the continued economic pressures in the northern California market and competition in the market the property serves, both of which have negatively impacted cash flows for the property. As a result of these factors, Lakes determined it was probable that substantial amounts due would not be repaid within the contract term. In order to assist the Red Hawk Casino in increasing cash levels, allowed payments of principal on the preconstruction advances made by Lakes, if any, are being deferred from March 2011 through December 2013. These deferrals, if any, do not constitute forgiveness of contractual principal amounts due to Lakes. The notes and interest receivable carrying amounts at September 30, 2012 and January 1, 2012 represent the present value of expected future cash flows. While Lakes has concluded that it is probable that substantial amounts due from the Shingle Springs Tribe will not be repaid within the contract term, the Shingle Springs Tribe will remain legally obligated to repay any remaining amounts due to Lakes subsequent to the conclusion of the contract. The management contract with the Red Hawk Casino includes a minimum guaranteed payment to the Shingle Springs Tribe of $0.5 million a month for the duration of the contract, which expires in December 2015. Lakes is obligated to advance funds for these minimum guaranteed monthly payments when the casino operating results are not sufficient, and is repaid the advances in subsequent periods when operating results are sufficient. As of September 30, 2012, no amount was outstanding under this obligation. Lakes collected payments of $1.1 million under this obligation during the nine months ended September 30, 2012. Information with respect to the notes and interest receivable from the Shingle Springs Tribe at September 30, 2012 and January 1, 2012 is summarized in the following table (in thousands):
|  | September 30, 2012 |  |  | January 1, 2012 |
Pre-construction advances |  | $ | 66,720 |  |  | $ | 66,720 |
Minimum guarantee payment advances |  |  | — |  |  |  | 1,076 |
Interest receivable |  |  | 2,273 |  |  |  | 1,217 |
Unearned discount |  |  | (12,610 | ) |  |  | (13,659 | )
Allowance for impaired notes receivable |  |  | (19,280 | ) |  |  | (20,118 | )
Total notes and interest receivable, net of allowance |  |  | 37,103 |  |  |  | 35,236 |
Less current portion of notes receivable |  |  | — |  |  |  | (1,076 | )
Long-term notes and interest receivable, net of current portion and allowance |  | $ | 37,103 |  |  | $ | 34,160 |
Information with respect to the activity in the allowance for impaired notes receivable is summarized in the following table (in thousands):
2012 |  |  |
Allowance for impaired notes balance, January 1, 2012 |  | $ | 20,118 |
Impairment charge on notes receivable |  |  | — |
Recoveries |  |  | — |
Charge-offs |  |  | — |
Accretion included in interest income |  |  | (838 | )
Allowance for impaired notes balance, September 30, 2012 |  | $ | 19,280 |
2011 |  |  |
Allowance for impaired notes balance, January 2, 2011 |  | $ | 20,975 |
Impairment charge on notes receivable |  |  | — |
Recoveries |  |  | — |
Charge-offs |  |  | — |
Accretion included in interest income |  |  | (629 | )
Allowance for impaired notes balance, October 2, 2011 |  | $ | 20,346 |

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- Definition No authoritative reference available. + References No definition available. + Details
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Namespace Prefix: | laco_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration