Note 3. Termination of Jamul Development Agreement	12 Months Ended
Dec. 30, 2012
Termination Of Development Agreement	3. Termination of Jamul Development Agreement Lakes entered into an agreement with the Jamul Tribe during 1999 to develop and manage a casino on behalf of the Jamul Tribe on the Jamul Tribe’s existing reservation approximately 20 miles east of San Diego, California (the “Jamul Casino Project”). Due to Lakes’ corporate strategic objectives, Lakes determined that it would not move forward with the Jamul Casino Project and terminated the agreement with the Jamul Tribe in March 2012. As a result of the termination of Lakes’ agreement with the Jamul Tribe, Lakes estimated the fair value of the notes receivable from the Jamul Tribe to be zero as of December 30, 2012 and January 1, 2012. As of the date of termination, Lakes had advanced approximately $57.5 million including accrued interest to the Jamul Tribe related to casino development efforts. Lakes made total advances of $1.8 million to the Jamul Tribe during fiscal 2012, $0.5 million of which had been made as of the date of the termination of the agreement. Pursuant to the agreement with the Jamul Tribe, Lakes advanced an additional $1.3 million subsequent to the date of termination. All of the fiscal 2012 advances are included as impairment charges in Lakes’ consolidated statement of operations for the twelve months ended December 30, 2012. Lakes recorded an impairment charge of $3.7 million for the year ended January 1, 2012 on intangible assets related to the Jamul Casino Project. Lakes incurred a net unrealized loss of zero and $11.9 million during fiscal 2012 and 2011, respectively, related to the notes receivable. Although the Jamul Tribe remains obligated to repay all advances including accrued interest, it is not contemplated that the Jamul Tribe will have sufficient funds to make such payments unless it opens a gaming facility on its reservation. Lakes continues to have a collateral interest in all revenues from any future casino owned by the Jamul Tribe, and such casino’s furnishings and equipment.

Note 3. Termination of Jamul Development Agreement

12 Months Ended

Dec. 30, 2012

3. Termination of Jamul Development Agreement

Lakes entered into an agreement with the Jamul Tribe during 1999 to develop and manage a casino on behalf of the Jamul Tribe on the Jamul Tribe’s existing reservation approximately 20 miles east of San Diego, California (the “Jamul Casino Project”). Due to Lakes’ corporate strategic objectives, Lakes determined that it would not move forward with the Jamul Casino Project and terminated the agreement with the Jamul Tribe in March 2012.

As a result of the termination of Lakes’ agreement with the Jamul Tribe, Lakes estimated the fair value of the notes receivable from the Jamul Tribe to be zero as of December 30, 2012 and January 1, 2012. As of the date of termination, Lakes had advanced approximately $57.5 million including accrued interest to the Jamul Tribe related to casino development efforts. Lakes made total advances of $1.8 million to the Jamul Tribe during fiscal 2012, $0.5 million of which had been made as of the date of the termination of the agreement. Pursuant to the agreement with the Jamul Tribe, Lakes advanced an additional $1.3 million subsequent to the date of termination. All of the fiscal 2012 advances are included as impairment charges in Lakes’ consolidated statement of operations for the twelve months ended December 30, 2012. Lakes recorded an impairment charge of $3.7 million for the year ended January 1, 2012 on intangible assets related to the Jamul Casino Project. Lakes incurred a net unrealized loss of zero and $11.9 million during fiscal 2012 and 2011, respectively, related to the notes receivable.

Although the Jamul Tribe remains obligated to repay all advances including accrued interest, it is not contemplated that the Jamul Tribe will have sufficient funds to make such payments unless it opens a gaming facility on its reservation. Lakes continues to have a collateral interest in all revenues from any future casino owned by the Jamul Tribe, and such casino’s furnishings and equipment.