Note 6. Intangible and Other Assets Related to Indian Casino Projects

12 Months Ended

Dec. 30, 2012

Intangible And Other Assets Related To Projects

6. 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
Balance, January 2, 2011	$	10,631		$	5,242		$	—		$	15,873
Allocation of advances		—			—			3,678			3,678
Amortization		(10,631	)		(1,058	)		—			(11,689	)
Impairment charges		—			—			(3,678	)		(3,678	)
Balance, January 1, 2012		—			4,184			—			4,184
Allocation of advances		—			—			1,766			—
Amortization		—			(1,057	)		—			(1,057	)
Impairment charges		—			—			(1,766	)		—
Balance, December 30, 2012	$	—		$	3,127		$	—		$	3,127

() (*)	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 assets related to the Shingle Springs Tribe are being amortized through the end of the management agreement, which expires in December 2015.

(***)	Due to the continued uncertainty surrounding the Jamul Casino Project and Lakes’ termination of the agreement with the Jamul Tribe in March 2012, Lakes recognized an impairment charge of $1.8 million in fiscal 2012 and $3.7 million in fiscal 2011 related to this project. The impairment charges are included in impairments and other losses in the consolidated statements of operations.

Based on the length of the management agreement with the Shingle Springs Tribe, the Company expects to recognize amortization expense related to the Shingle Springs intangible assets as follows (in thousands):

Fiscal year
2013	$	1,057
2014		1,057
2015		1,013
	$	3,127

Management Fees Receivable and Other

Management fees receivable and other include financial instruments related to deferred management fees and interest due from the Shingle Springs Tribe of $4.0 million and $6.0 million as of December 30, 2012 and January 1, 2012, respectively. As defined in the management 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, management fees receivable and other 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 $0.8 million and $1.3 million, net of current portion of $0.5 million as of December 30, 2012 and January 1, 2012.