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Note 20. Financial Instruments and Fair Value Measurements | 12 Months Ended
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Dec. 29, 2013
Fair Value Disclosures [Abstract] |
Fair Value Disclosures [Text Block] | 20. Financial Instruments and Fair Value Measurements Overview Estimates of fair value for financial assets and liabilities are based on the framework established in the accounting guidance for fair value measurements. The framework defines fair value, provides guidance for measuring fair value and requires certain disclosures. The framework discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow) and the cost approach (cost to replace the service capacity of an asset or replacement cost). The framework utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:
| ● | Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.
| ● | Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.
| ● | Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions.
The Company’s financial instruments consist of cash and cash equivalents, short-term investments, notes receivable and other long-term assets related to Indian casino projects, cost method investments, accounts payable, contract acquisition costs payable and long-term debt. For the Company’s cash and cash equivalents, accounts payable and current portion of contract acquisition costs payable, the carrying amounts approximate fair value because of the short duration of these financial instruments. Balances Measured at Fair Value on a Nonrecurring Basis During fiscal 2013 and 2012, Lakes measured certain of the Company’s assets and liabilities at fair value on a nonrecurring basis. Financing Facility - Effective November 1, 2013, Lakes amended the Financing Facility with Centennial Bank to reduce the interest rate from 10.5% to 5.5%. As a result of this amendment, it was determined that the original and new debt instruments were substantially different, and therefore the new debt instrument was recorded at its fair value of $11.4 million using Level 3 inputs. The fair value was determined using a discount rate of 10.5% and a term of 84 months. See note 13, Debt, for further discussion regarding the modification of the terms of the Financing Facility. Land held for sale – During fiscal 2012, land held for sale was measured on a nonrecurring basis at less than $0.1 million using unobservable (Level 3) inputs that utilized the market approach technique and reflected management’s estimates about the assumptions that market participants would use in pricing the asset. Significant inputs included recent transactions of comparable properties as well as consideration of its highest and best use. Property and equipment related to the acquisition of Rocky Gap – Property and equipment acquired in connection with the Company’s acquisition of the Rocky Gap Resort during the third quarter of 2012 were measured using unobservable (Level 3) inputs at a fair value of $6.2 million. The fair value of the building, site improvements, and furniture, fixtures and equipment were calculated using the cost approach. The cost approach computes the cost to replace the asset, less accrued depreciation resulting from physical deterioration, functional obsolescence and external obsolescence. The cost estimates for these assets were based on the guidelines provided by Marshall Valuation Services and Hotel Cost Estimating Guide 2012 published by HVS. See note 3, Rocky Gap Casino Resort, for further discussion regarding the acquisition of Rocky Gap’s property and equipment. Intangible assets related to the acquisition of Rocky Gap – The identified intangible assets acquired in connection with the Company’s acquisition of Rocky Gap during the third quarter of 2012 were measured using unobservable (Level 3) inputs at a fair value of $0.6 million. The fair value of the advance bookings was calculated using the excess earnings approach which is an application of the income approach and computes the present value of cash flows attributable to the associated future income stream. Significant inputs included advance revenue, related operating expense, sales and marketing expense avoided and a discount rate. The fair value of the memberships was calculated using the income approach with significant inputs including estimated attrition rate, revenue growth rate, and discount rate. See note 3, Rocky Gap Casino Resort, for further discussion regarding the acquisition of Rocky Gap’s intangible assets. Balances Measured at Fair Value on a Recurring Basis The following table shows certain of the Company’s financial instruments measured at fair value on a recurring basis as of December 29, 2013 (in thousands). There were no such financial instruments as of December 30, 2012.
|  | Fair Value |  | Fair Value Hierarchy
Assets |  |  |  |  |
Commercial paper |  | $ | 21,993 |  | Level 1
Corporate bonds |  |  | 27,106 |  | Level 1
Balances Disclosed at Fair Value The following table shows certain of the Company’s financial instruments disclosed at estimated fair value as of December 30, 2012 (in thousands). There were no such financial instruments as of December 29, 2013.
|  | Carrying Value, net of Current Portion |  |  | Estimated Fair Value |  | Fair Value Hierarchy
Assets |  |  |  |  |  |  |  |  |
Shingle Springs notes and interest receivable |  | $ | 38,247 |  |  | $ | 49,920 |  | Level 3
Other assets related to Indian casino projects |  |  | 4,786 |  |  |  | 4,011 |  | Level 3
Shingle Springs notes and interest receivable - The significant inputs utilized in the calculation of the estimated fair value of the Shingle Springs notes and interest receivable as of December 30, 2012 included a discount rate and forecasted cash flows for the remaining duration of the management agreement with the Shingle Springs Tribe. Lakes estimated the fair value of the notes and interest receivable from the Shingle Springs Tribe as of December 30, 2012, to be approximately $49.9 million using a discount rate of 12.8% and a remaining estimated term of 97 months. The discount rate utilized in the estimation of the fair value of the notes and interest receivable was indexed on the actual yield of the Shingle Springs Tribal Gaming Authority Senior Notes (“Senior Notes”) due on June 15, 2015. Lakes believes it was reasonable to utilize the actual yield of the Senior Notes, which were traded on the open market, as a basis in the fair value estimation of the Shingle Springs notes and interest receivable because the Shingle Springs notes receivable and the Senior Notes had similar collateral. Lakes adjusted the actual yield by 2.3% to determine the discount rate because the Shingle Springs notes receivable were subordinated to the Senior Notes. The Shingle Springs notes and interest receivable were repaid during the third quarter of 2013 (see note 4, Debt Termination Agreement with the Shingle Springs Tribe). Other assets related to Indian casino projects - These assets included financial instruments related to deferred management fees and interest due from the Shingle Springs Tribe and other receivables as of December 30, 2012 (see note 9, Intangible and Other Assets Related to Indian Casino Projects). The Company estimated the fair value of these financial instruments to be $4.0 million as of December 30, 2012 using a discount rate of 19.5%. Investment in unconsolidated investees - The fair value of the Company’s investment in unconsolidated investees was not estimated as of December 29, 2013 or December 30, 2012, as there were no events or changes in circumstances that may have a significant adverse effect on the fair value of the investments, and Lakes’ management determined that it was not practicable to estimate the fair value of the investments (see note 10, Investment in Rock Ohio Ventures, LLC and note 11, Investment in Dania Entertainment Holdings, LLC). Contract acquisition costs payable - The carrying amount of the liability approximated its estimated fair value of $4.6 million as of December 30, 2012. This liability was extinguished during the third quarter of 2013 (see note 14, Contract Acquisition Costs Payable).

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=28364263&loc=d3e13537-108611 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=28364263&loc=d3e13433-108611 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 28 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=25499696&loc=d3e19207-110258 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 16 -URI http://asc.fasb.org/extlink&oid=28364263&loc=d3e13504-108611 + Details
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