XML 56 R9.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Note 4. Long-Term Assets Related to Indian Casino Projects - Notes and Interest Receivable | 6 Months Ended
--- | ---
Jun. 30, 2013
Long Term Assets Related To Indian Casino Projects Notes And Interest Receivable [Abstract] |
Long Term Assets Related To Indian Casino Projects Notes And Interest Receivable | 4. Long-Term Assets Related to Indian Casino Projects — Notes and Interest Receivable Notes and interest receivable included in long-term assets related to Indian casino projects consists of notes and interest receivable due from the Shingle Springs Band of Miwok Indians (the “Shingle Springs Tribe”) pursuant to the Company’s development and management agreement with the Shingle Springs Tribe for the Red Hawk Casino. Under the terms of the development and management agreement, Lakes made advances to the Shingle Springs Tribe of $74.4 million including interest accrued through the opening date of the Red Hawk Casino on December 17, 2008 (the “Transition Loan”) and has an agreement to manage the property through December 17, 2015 (see note 19, Subsequent Event). The repayment terms of the Transition Loan are dependent upon the operating performance of the Red Hawk Casino. Repayment of the Transition Loan is required only if distributable profits are available from the operation of the Red Hawk Casino. In addition, repayment of the Transition Loan 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 Transition Loan); management fees due to Lakes; other obligations, if any; and the remaining funds, if any, distributed to the Shingle Springs Tribe. The Company performs an impairment analysis on the notes receivable at least quarterly. 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 June 30, 2013 and December 30, 2012 and concluded that the notes receivable continue to be impaired. As part of the impairment analysis, the Company estimates the timing and amount of future repayments on the notes receivable by analyzing actual payments received on the notes receivable compared to scheduled payments required under the contractual terms of the notes receivable. The Company also considers forecasts for future periods which are based on a variety of factors including actual historical performance, changes in competition in the market the property serves, changes in the economic environment in the market the property serves, any regulatory changes, marketing initiatives and property offerings. Estimates of timing and amount of future repayments are then compared to payments required per the contractual terms of the notes receivable to estimate the remaining amounts due on the notes receivable at the end of the contract term with the Shingle Springs Tribe, which expires in December 2015. Per the contractual terms of the notes receivable, all amounts due on the notes receivable are to be repaid during the contract term. Due to improvements in certain of the factors considered in the impairment analysis, including operational results, the estimated amounts due at the end of the contract term decreased as of June 30, 2013 and December 30, 2012 compared to the estimated amounts due at the end of the contract term as of January 2, 2011. Although the estimated amounts due at the end of the contract term decreased, the estimated amounts due remained significant and as a result, the Company determined that a significant change that would cause the impairment on the notes receivable to be remeasured had not occurred as of June 30, 2013 and December 30, 2012. The Shingle Springs Tribe will remain legally obligated to repay any remaining amounts due to Lakes subsequent to the conclusion of the agreement. In order to assist the Red Hawk Casino in increasing cash levels, allowed payments of principal on the Transition Loan to 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 management agreement for 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 agreement. 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 June 30, 2013 and December 30, 2012, no amount was outstanding under this obligation. Information with respect to the notes and interest receivable is summarized in the following table (in thousands):
|  | June 30, 2013 |  |  | December 30, 2012 |
Transition loan |  | $ | 66,720 |  |  | $ | 66,720 |
Minimum guarantee payment advances |  |  | — |  |  |  | — |
Interest receivable |  |  | 3,547 |  |  |  | 2,704 |
Unearned discount |  |  | (11,492 | ) |  |  | (12,299 | )
Allowance for impaired notes receivable |  |  | (18,114 | ) |  |  | (18,878 | )
Total notes and interest receivable, net of discount and allowance |  | $ | 40,661 |  |  | $ | 38,247 |
A summary of the activity in the allowance for impaired notes receivable is as follows (in thousands):
2013 |  |  |  |
Allowance for impaired notes balance, December 30, 2012 |  | $ | 18,878 |
Impairment charge on notes receivable |  |  | — |
Recoveries |  |  | — |
Charge-offs |  |  | — |
Accretion of impairment charge on notes receivable included in interest income |  |  | (764 | )
Allowance for impaired notes balance, June 30, 2013 |  | $ | 18,114 |
2012 |  |  |  |
Allowance for impaired notes balance, January 1, 2012 |  | $ | 20,118 |
Impairment charge on notes receivable |  |  | — |
Recoveries |  |  | — |
Charge-offs |  |  | — |
Accretion of impairment charge on notes receivable included in interest income |  |  | (538 | )
Allowance for impaired notes balance, July 1, 2012 |  | $ | 19,580 |

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

X
- Details
Name: | laco_LongTermAssetsRelatedToIndianCasinoProjectsNotesAndInterestReceivableAbstract
Namespace Prefix: | laco_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration