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Acquisitions
9 Months Ended
Sep. 30, 2011
Acquisitions [Abstract] 
Acquisitions
2.
ACQUISITIONS
 
Century Casino Calgary
 
On January 13, 2010, the Company, through Century Casinos Europe ("CCE"), acquired 100% of the issued and outstanding shares of Frank Sisson's Silver Dollar Ltd. ("FSSD") and 100% of the issued and outstanding shares of EGC Properties Ltd. ("EGC"). FSSD and EGC collectively owned and operated the Silver Dollar Casino and related land in Calgary, Alberta, Canada. In November 2010, the Company rebranded the casino under the name Century Casino Calgary.
 
The total consideration for the transaction was $11.5 million, which consisted of a $10.7 million purchase price plus a net working capital adjustment of $0.8 million. CCE paid $1.0 million of the consideration in November 2009 and the remaining $10.5 million in January 2010. The purchase price was paid from cash on hand. There was no contingent consideration for the transaction.
 
The Company incurred acquisition costs of approximately $0.3 million. The majority of these costs, which include legal, accounting and valuation fees, were recorded as general and administrative expenses during the fourth quarter of 2009.
 
The following table presents the allocation of the purchase price to the assets acquired and liabilities assumed based on their estimated fair values on January 13, 2010, the date of acquisition:
 
 
Amounts in thousands
  
 
Acquisition Date
January 13, 2010
 
Cash
$1,193
 
Accounts receivable
202
 
Prepaid expenses
207
 
Inventory
56
 
Property and equipment
10,977
 
Deferred tax asset, net
                                                            690
 
Total assets acquired
13,325
 
Accounts payable and accrued liabilities
                                                            429
 
Accrued payroll
                                                            222
 
Total liabilities assumed
                                                            651
 
Net assets
                                                       12,674
 
Excess of net assets over purchase consideration (bargain purchase)
                                                       (1,180)
 
Purchase consideration
                                                       11,494
     
 
Cash acquired
                                                       (1,193)
 
Cash deposit made in 2009
                                                       (1,000)
 
Net cash paid in 2010
$9,301

 
During the year ended December 31, 2010, the Company recognized a $1.2 million gain on the bargain purchase associated with the Century Casino Calgary acquisition. The bargain purchase was the result of the fair market value of the assets acquired exceeding the purchase price. Pro forma results of operations for 2010 have not been presented, as the impact on consolidated financial results would not have been material.