Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 29, 2013 | Mar. 12, 2014 | Jun. 28, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'LAKES ENTERTAINMENT INC | ' | ' |
Document Type | '10-K | ' | ' |
Current Fiscal Year End Date | '--12-29 | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 26,728,402 | ' |
Entity Public Float | ' | ' | $68,200,000 |
Amendment Flag | 'false | ' | ' |
Entity Central Index Key | '0001071255 | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Document Period End Date | 29-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 29, 2013 | Dec. 30, 2012 |
Current assets: | ' | ' |
Cash and cash equivalents | $37,897,000 | $32,480,000 |
Short-term investments | 49,099,000 | 0 |
Income taxes receivable | 2,155,000 | 2,161,000 |
Other | 1,774,000 | 1,255,000 |
Total current assets | 90,925,000 | 35,896,000 |
Property and equipment | 37,200,000 | 16,898,000 |
Accumulated depreciation | -5,541,000 | -3,619,000 |
Property and equipment, net | 31,659,000 | 13,279,000 |
Long-term assets related to Indian casino projects: | ' | ' |
Notes and interest receivable, net of current portion and allowance | ' | 38,247,000 |
Intangible assets, net of accumulated amortization of $2.1 million | ' | 3,127,000 |
Management fees receivable and other | ' | 4,786,000 |
Total long-term assets related to Indian casino projects | ' | 46,160,000 |
Other assets: | ' | ' |
Investment in unconsolidated investee | 20,997,000 | 20,161,000 |
Gaming license | 2,015,000 | 2,100,000 |
Land held for development | 1,130,000 | 1,130,000 |
Other | 535,000 | 996,000 |
Total other assets | 24,677,000 | 24,387,000 |
Total assets | 147,261,000 | 119,722,000 |
Current liabilities: | ' | ' |
Current portion of contract acquisition costs payable, net of $0.7 million discount | ' | 1,265,000 |
Current portion of long-term debt, net of discount | 1,251,000 | ' |
Accounts payable | 420,000 | 433,000 |
Accrued taxes, other than income taxes | 462,000 | 17,000 |
Accrued payroll and related | 1,403,000 | 737,000 |
Other accrued expenses | 1,325,000 | 1,791,000 |
Total current liabilities | 4,861,000 | 4,243,000 |
Long-term contract acquisition costs payable, net of current portion and $0.7 million discount | ' | 3,302,000 |
Long-term debt, net of current portion and discount | 10,321,000 | ' |
Total long-term liabilities | 10,321,000 | 3,302,000 |
Total liabilities | 15,182,000 | 7,545,000 |
Shareholders' equity: | ' | ' |
Common stock, $.01 par value; authorized 200,000 shares; 26,721 and 26,441 common shares issued and outstanding | 267,000 | 264,000 |
Additional paid-in capital | 205,212,000 | 203,964,000 |
Deficit | -73,400,000 | -92,051,000 |
Total shareholders' equity | 132,079,000 | 112,177,000 |
Total liabilities and shareholders' equity | $147,261,000 | $119,722,000 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Dec. 29, 2013 | Dec. 30, 2012 |
In Millions, except Share data in Thousands, unless otherwise specified | ||
Intangible assets, accumulated amortization (in Dollars) | ' | $2.10 |
Current portion of contract acquisition costs, discount (in Dollars) | ' | 0.7 |
Long-term contract acquistion costs payable, discount (in Dollars) | ' | $0.70 |
Common stock, par value (in Dollars per share) | $10 | $10 |
Common stock, shares authorized | 200,000 | 200,000 |
Common stock, shares issued | 26,721 | 26,441 |
Common stock, shares outstanding | 26,721 | 26,441 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 |
Revenues: | ' | ' |
Management fees | $7,762 | $7,726 |
Gaming | 22,673 | ' |
Room | 4,096 | 1,383 |
Food and beverage | 3,775 | 1,281 |
Other operating | 1,526 | 498 |
License fees and other | 94 | 64 |
Gross revenues | 39,926 | 10,952 |
Less promotional allowances | 1,136 | ' |
Net revenues | 38,790 | 10,952 |
Costs and expenses: | ' | ' |
Gaming | 13,470 | ' |
Room | 863 | 296 |
Food and beverage | 3,758 | 955 |
Other operating | 1,420 | 415 |
Selling, general and administrative | 19,332 | 10,191 |
Recovery of impairment on notes receivable | -17,382 | ' |
Gain on extinguishment of liabilities | -3,752 | ' |
Impairments and other losses | 3,356 | 4,453 |
Preopening expenses | 1,184 | ' |
Amortization of intangible assets related to Indian casino projects | 716 | 1,056 |
Loss on disposal of property and equipment | 143 | ' |
Depreciation and amortization | 2,273 | 675 |
Total costs and expenses | 25,381 | 18,041 |
Earnings (loss) from operations | 13,409 | -7,089 |
Other income (expense): | ' | ' |
Interest income | 4,803 | 6,442 |
Interest expense | -1,244 | -940 |
Gain on modification of debt | 1,658 | ' |
Legal settlement | ' | 2,160 |
Other | 25 | 123 |
Total other income, net | 5,242 | 7,785 |
Earnings before income taxes | 18,651 | 696 |
Income tax benefit | 0 | -2,464 |
Net earnings including noncontrolling interest | 18,651 | 3,160 |
Net loss attributable to noncontrolling interests | ' | 61 |
Net earnings attributable to Lakes Entertainment, Inc. | $18,651 | $3,221 |
Weighted-average common shares outstanding | ' | ' |
Basic (in Shares) | 26,483 | 26,438 |
Dilutive impact of stock options (in Shares) | 206 | 1 |
Diluted (in Shares) | 26,689 | 26,439 |
Earnings per share | ' | ' |
Basic (in Dollars per share) | $0.70 | $0.12 |
Diluted (in Dollars per share) | $0.70 | $0.12 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | Total |
In Thousands, except Share data | |||||
Balances at Jan. 01, 2012 | $264 | $203,747 | ($95,272) | $350 | $109,089 |
Balances (in Shares) at Jan. 01, 2012 | 26,406,000 | ' | ' | ' | ' |
Proceeds from issuance of stock on options exercised (in Shares) | ' | ' | ' | ' | 0 |
Vesting of restricted stock, net | ' | -6 | ' | ' | -6 |
Vesting of restricted stock, net (in Shares) | 35,000 | ' | ' | ' | ' |
Effect of share-based compensation | ' | 386 | ' | ' | 386 |
Net income (loss) | ' | ' | 3,221 | ' | 3,221 |
Noncontrolling interest | ' | ' | ' | 77 | 77 |
Purchase of noncontrolling interest | ' | -163 | ' | -427 | -590 |
Balances at Dec. 30, 2012 | 264 | 203,964 | -92,051 | ' | 112,177 |
Balances (in Shares) at Dec. 30, 2012 | 26,441,000 | ' | ' | ' | ' |
Proceeds from issuance of stock on options exercised | 3 | 770 | ' | ' | 773 |
Proceeds from issuance of stock on options exercised (in Shares) | 280,000 | ' | ' | ' | 280,466 |
Effect of share-based compensation | ' | 478 | ' | ' | 478 |
Net income (loss) | ' | ' | 18,651 | ' | 18,651 |
Balances at Dec. 29, 2013 | $267 | $205,212 | ($73,400) | ' | $132,079 |
Balances (in Shares) at Dec. 29, 2013 | 26,721,000 | ' | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 |
OPERATING ACTIVITIES: | ' | ' |
Net earnings including noncontrolling interest | $18,651 | $3,160 |
Adjustments to reconcile net earnings including noncontrolling interest to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 2,273 | 675 |
Amortization of debt issuance costs and imputed interest on contract acquisition costs | 621 | 940 |
Accretion of interest and additions to long-term interest receivable | -3,782 | -4,087 |
Amortization of intangible assets related to Indian casino projects | 716 | 1,056 |
Share-based compensation | 478 | 386 |
Loss on disposal of property and equipment | 143 | ' |
Gain on modification of debt | -1,658 | ' |
Gain on extinguishment of liabilities | -3,752 | ' |
Recovery of impairment on notes receivable | -17,382 | ' |
Impairments and other losses | 3,356 | 4,453 |
Changes in operating assets and liabilities: | ' | ' |
Management fees receivable | 3,983 | 2,262 |
Other current assets | -789 | 227 |
Income taxes receivable | 6 | 1,311 |
Accrued taxes, other than income taxes | 445 | ' |
Accounts payable and accrued expenses | 221 | 1,774 |
Net cash provided by operating activities | 3,530 | 12,157 |
INVESTING ACTIVITIES: | ' | ' |
Acquisition of the Rocky Gap Resort | ' | -6,834 |
Purchase of short-term investments | -57,398 | ' |
Sales and maturities of short-term investments | 8,253 | ' |
Payments to acquire investment in unconsolidated investee | -836 | -4,455 |
Changes in long-term management fees receivable and other | ' | 267 |
Purchase of property and equipment | -20,695 | -3,795 |
Proceeds from sale of land | ' | 368 |
Proceeds from disposal of property and equipment | 25 | ' |
Advances on notes receivable | ' | -2,069 |
Collection on notes receivable | 59,253 | 1,076 |
Changes in other assets | 348 | 77 |
Net cash used in investing activities | -11,050 | -15,365 |
FINANCING ACTIVITIES: | ' | ' |
Repayments of borrowings | -191 | ' |
Proceeds from borrowings | 13,688 | ' |
Purchase of non-controlling interest | ' | -590 |
Payments for debt issuance costs | ' | -418 |
Proceeds from issuance of common stock | 773 | ' |
Noncontrolling interest member contributions | ' | 139 |
Contract acquisition costs payable | -1,333 | -2,000 |
Net cash provided by (used in) financing activities | 12,937 | -2,869 |
Net increase (decrease) in cash and cash equivalents | 5,417 | -6,077 |
Cash and cash equivalents - beginning of period | 32,480 | 38,557 |
Cash and cash equivalents - end of period | 37,897 | 32,480 |
Cash paid during the period for: | ' | ' |
Interest | 678 | ' |
Income taxes | ' | 18 |
Noncash investing activities: | ' | ' |
Capital expenditures in accounts payable and accrued expenses | 477 | 1,253 |
Redemption of restricted stock for payment of accrued expenses | ' | $7 |
Note_1_Nature_of_Business
Note 1. Nature of Business | 12 Months Ended | ||
Dec. 29, 2013 | |||
Disclosure Text Block [Abstract] | ' | ||
Business Description and Basis of Presentation [Text Block] | ' | ||
1. Nature of Business | |||
Overview | |||
Lakes Entertainment Inc. and subsidiaries (collectively “the Company” or “Lakes”) develops, finances, manages and owns casino properties with a historical emphasis on Indian-owned properties. An overview of the Company’s projects as of December 29, 2013 is as follows: | |||
• | Lakes owns and operates the Rocky Gap Casino Resort in Allegany County, Maryland (“Rocky Gap”) which it acquired on August 3, 2012 for $6.8 million. In connection with the closing of the acquisition of Rocky Gap, Lakes entered into a 40 year operating ground lease with the Maryland Department of Natural Resources (“Maryland DNR”) for approximately 268 acres in the Rocky Gap State Park on which Rocky Gap is situated. The AAA Four Diamond Award® winning resort included a hotel, convention center, spa, two restaurants and the only Jack Nicklaus signature golf course in Maryland. Lakes converted existing convention center space at Rocky Gap into a gaming facility which opened to the public on May 22, 2013 and features 558 video lottery terminals (“VLTs”), 10 table games, three poker tables, a casino bar and a new lobby food and beverage outlet. A new event and conference center, which can accommodate large groups and features flexible use meeting rooms, opened during the fourth quarter of 2013. The total cost of the Rocky Gap project was approximately $35.0 million, which included the initial acquisition cost. Lakes has a financing facility that was used to finance $13.4 million of the project costs. The amount outstanding on this financing facility as of December 29, 2013 was $13.3 million. | ||
• | Lakes developed and had a seven-year contract to manage the Red Hawk Casino that was built on the Rancheria of the Shingle Springs Band of Miwok Indians (the “Shingle Springs Tribe”) in El Dorado County, California, adjacent to U.S. Highway 50, approximately 30 miles east of Sacramento, California. Lakes began managing the Red Hawk Casino when it opened to the public on December 17, 2008. | ||
On July 17, 2013, Lakes entered into a debt termination agreement with the Shingle Springs Tribe relating to amounts Lakes had previously advanced to the Shingle Springs Tribe (the “Shingle Springs Notes”) for the development of the Red Hawk Casino (the “Debt Termination Agreement”). The Debt Termination Agreement required certain conditions to be met, including a lump sum payment by the Shingle Springs Tribe to Lakes of $57.1 million (the “Debt Payment”). The Debt Payment was made on August 29, 2013 (the “Payment Date”) and constituted full and final payment of all debt owed to Lakes as of that date. As a result of the receipt of the Debt Payment, during the third quarter of 2013, Lakes recognized approximately $17.4 million in recovery of impairment on notes receivable because the Shingle Springs Notes had previously been impaired and were valued at $39.7 million. The face value of the Shingle Springs Notes including accrued interest was $69.7 million as of the Payment Date. The management agreement under which Lakes was managing the Red Hawk Casino also terminated on the Payment Date. | |||
• | Lakes has an investment in Rock Ohio Ventures, LLC (“Rock Ohio Ventures”) that owns the Horseshoe Casino Cleveland in Cleveland, Ohio; the Horseshoe Casino Cincinnati in Cincinnati, Ohio; the Thistledown Racino in North Randall, Ohio; and Turfway Park located in Florence, Kentucky. As of December 29, 2013, Lakes has contributed approximately $21.0 million to Rock Ohio Ventures. Lakes currently maintains a 10% interest in Rock Ohio Ventures’ 80% ownership in these properties. Lakes currently plans to contribute additional capital as needed to maintain its equity position in Rock Ohio Ventures. | ||
The Horseshoe Casino Cleveland opened in May 2012. The casino features approximately 1,900 slot machines, 89 table games, a 30-table poker room and multiple food and beverage outlets. The Horseshoe Casino Cincinnati opened in March 2013 and features approximately 2,000 slot machines, 118 table games (including poker), food and beverage outlets, and a parking structure with approximately 2,500 parking spaces. The Thistledown Racino added approximately 1,100 VLTs to its existing racetrack in April 2013. Turfway Park is a thoroughbred horseracing track located in Florence, Kentucky. | |||
Significant Customers | |||
Fees earned for services related to the management of the Red Hawk Casino in fiscal 2013 and 2012 were in excess of ten percent of consolidated net revenues in the accompanying consolidated statements of operations. | |||
Collective Bargaining Agreement | |||
At December 29, 2013, Lakes had 536 employees, of which 400 were full-time employees. The majority of Lakes’ employees are employees of Rocky Gap, and approximately 70% of these employees are covered by a collective bargaining agreement that became effective on November 1, 2013. The collective bargaining agreement expires on November 1, 2019. |
Note_2_Summary_of_Significant_
Note 2. Summary of Significant Accounting Policies | 12 Months Ended | |||
Dec. 29, 2013 | ||||
Accounting Policies [Abstract] | ' | |||
Significant Accounting Policies [Text Block] | ' | |||
2. Summary of Significant Accounting Policies | ||||
Use of Estimates | ||||
Preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates that affect the reported amounts of assets and liabilities and disclosures at the date of the financial statements and the reported amounts of net earnings during the reporting periods. Actual results could differ from those estimates. Significant estimates that are particularly susceptible to change materially within the next year relate to fair value measurements, income tax liabilities and deferred income tax asset valuation allowances. | ||||
Year End | ||||
The Company has a 52- or 53-week accounting period ending on the Sunday closest to December 31 of each year. The Company’s fiscal years for the periods shown on the accompanying consolidated statements of operations ended on December 29, 2013 (“fiscal 2013”) and December 30, 2012 (“fiscal 2012”). | ||||
Basis of Presentation | ||||
The accompanying consolidated financial statements include the accounts of Lakes and its subsidiaries. | ||||
All material intercompany accounts and transactions have been eliminated in consolidation. | ||||
Investments in unconsolidated investees, which are 20% or less owned and the Company does not have the ability to significantly influence the operating or financial decisions of the entity, are accounted for under the cost method. See note 10, Investment in Rock Ohio Ventures, LLC and note 11, Investment in Dania Entertainment Holdings, LLC. | ||||
Acquisition Accounting | ||||
On August 3, 2012, Lakes acquired the assets of Rocky Gap for $6.8 million paid with cash on hand. Lakes completed its valuation procedures during fiscal 2012, and the resulting fair value of the acquired assets and assumed liabilities was recorded based upon the valuation of the business enterprise and Rocky Gap's tangible and intangible assets. Enterprise value allocation methodology requires management to make assumptions and apply judgment to estimate the fair value of acquired assets and assumed liabilities. If estimates or assumptions used to complete the enterprise valuation and estimates of the fair value of the acquired assets and assumed liabilities significantly differed from assumptions made, the resulting difference could materially affect the fair value of net assets. | ||||
The calculation of the fair value of the tangible assets, including the building, site improvements, and furniture, fixtures and equipment, utilized the cost approach, which was based on replacement cost of the assets. | ||||
The calculation of the fair value of the identified intangible assets was determined using cash flow models following the income approach. The calculation of the fair value of the advance bookings was determined using an excess earnings method, which is an application of the income approach and computes the present value of cash flows attributable to the associated future income stream. The determination of the fair value of memberships utilized the income approach and included projections of membership revenue, estimates of operating expenses associated with the memberships and a charge for the contributory assets. The net present value of the membership income was then calculated using a selected discount rate. As a result of the business combination and fair value analysis, Lakes recorded $0.2 million for advance bookings and $0.4 million for memberships. Goodwill or a gain from a bargain purchase was not recorded as the fair value of the acquired assets and assumed liabilities approximated the purchase price. | ||||
The application of the acquisition method of accounting guidance had the following effects on Lakes’ consolidated financial statements: | ||||
● | Lakes measured the fair value of identifiable assets and liabilities in accordance with required valuation recognition and measurement provisions; the application of such provisions resulted in recording the fair value of the assets acquired of $7.0 million and the fair value of the liabilities assumed of $0.2 million in the Company’s consolidated balance sheet as of August 3, 2012. In total, the assets of Rocky Gap acquired represented approximately 6% of the Company’s consolidated total assets as of December 30, 2012. | |||
● | Lakes has reported the operating results of Rocky Gap in its consolidated statements of operations and cash flows for the period from August 3, 2012 through December 30, 2012. During this period, Lakes recorded $3.2 million in revenue and $(0.8) million in net loss from Rocky Gap’s operations. | |||
Cash and Cash Equivalents | ||||
Cash and cash equivalents consist of highly-liquid investments with original maturities of three months or less. Although these balances may at times exceed the federal insured deposit limit, the Company believes such risk is mitigated by the quality of the institution holding such deposit. | ||||
Short-Term Investments and Concentrations of Credit Risk | ||||
Short-term investments consist of commercial paper and corporate bonds which are classified as available-for-sale securities and are valued at current market value, with the resulting unrealized gains and losses, if any, excluded from earnings and reported, net of tax, as a separate component of shareholders' equity until realized. There were no net unrealized gains or losses as of December 29, 2013. All of the Company’s investments carry a rating by one or more of the nationally recognized statistical rating organizations. Any change in such rating agencies' approach to evaluating credit and assigning an opinion could negatively impact the fair value of the Company’s investments. Any impairment loss to reduce an investment's carrying amount to its fair market value is recognized in income when a decline in the fair market value of an individual security below its cost or carrying value is determined to be other than temporary. | ||||
Property and Equipment | ||||
Property and equipment is stated at cost less accumulated depreciation. Depreciation of property and equipment is computed using the straight-line method over the following estimated useful lives: | ||||
Building and site improvements (years) | 5 | - | 40 | |
Furniture and equipment (years) | 3 | - | 15 | |
Long-Term Assets Related to Indian Casino Projects | ||||
Lakes had $46.2 million of long-term assets related to Indian casino projects recorded on its consolidated balance sheet as of December 30, 2012. Due to the August 2013 Debt Termination Agreement, and related Debt Payment and termination of the management agreement between Lakes and the Shingle Springs Tribe, there were no long-term assets related to Indian casino projects as of December 29, 2013. | ||||
Notes Receivable | ||||
When evaluating opportunities for potential Indian-owned casino development projects, Lakes has formal procedures that it follows before entering into agreements to provide financial support for the development of these projects. Lakes determines whether there is probable future economic benefit prior to recording any asset related to the Indian casino project. Lakes’ management initially evaluates several factors involving critical milestones that affect the probability of developing and operating a casino. Lakes had no development projects with Indian tribes as of December 29, 2013. | ||||
Lakes accounted for its notes receivable from the tribes as in-substance structured notes. Under their terms, the notes did not become due and payable unless the projects were completed and operational, and distributable profits were available from their operations. However, in the event its development activity was terminated prior to completion, Lakes generally retained the right to collect in the event of completion by another developer. Because the stated rate of the notes receivable alone were not commensurate with the risk inherent in these projects (at least prior to commencement of operations), the estimated fair value of the notes receivable was generally less than the amount advanced. At the date of each advance, the difference between the estimated fair value of the note receivable and the actual amount advanced was recorded as an intangible asset, and the two assets were accounted for separately. | ||||
Subsequent to its initial recording at estimated fair value, the note receivable portion of the advance was adjusted to its current estimated fair value at each balance sheet date until the casino opens using then current assumptions including casino opening dates, typical market discount rates, pre- and post-opening date interest rates, probabilities of the projects opening and financial models prepared by management. The notes receivable were not adjusted to a fair value estimate that exceeded the face value of the note plus accrued interest, if any. Due to uncertainties surrounding the projects, no interest income was recognized during the development period, but changes in estimated fair value of the notes receivable still held as of the balance sheet date were recorded as unrealized gains or losses in Lakes’ consolidated statement of operations. | ||||
Upon opening of the casino, any difference between the then estimated fair value of the notes receivable and the amount contractually due under the notes was amortized into income using the effective interest method over the remaining term of the note. Notes receivable were stated at the amount of unpaid principal and were net of unearned discount and, if applicable, an allowance for impaired notes receivable. | ||||
Lakes monitored the credit quality of notes receivable through reviews of the casino’s financial position, operating results and projected operating results that were available to Lakes in its capacity as manager of the casino. In addition, Lakes continuously monitored the economic, political, regulatory and competitive conditions that could have adversely impacted casinos’ projected operating results. | ||||
Historically, notes receivable for open casinos were periodically evaluated for impairment pursuant to Accounting Standards Codification (“ASC”) 310, Receivables (“ASC 310”). Lakes considered a note receivable to be impaired when, based on current information and events, it was determined that Lakes would not be able to collect all amounts due according to the terms of the note receivable agreement. Subsequent to the initial impairment evaluation, Lakes continued to monitor the note receivable for any changes in expected cash flows and recognized those changes in accordance with ASC 310. Impairment was measured based on the present value of expected future cash flows discounted at the note receivable’s effective interest rate. Interest income for impaired notes receivable were accrued on the net carrying amount of the impaired note receivable under the effective interest method with significant changes to expected cash flows reflected in the impairment charge on notes receivable. | ||||
Any allowance for impaired notes receivable was established through a charge to expense. Any note receivable principal considered to be uncollectible by management was charged against the allowance for impaired notes receivable. | ||||
Lakes classified principal amounts expected to be received within the next fiscal year, if any, as current portion of notes receivable from casino projects on the consolidated balance sheets. | ||||
Intangible Assets Related to Indian Casino Projects | ||||
Historically, intangible assets related to the acquisition of the management, development, consulting or financing contracts were periodically evaluated for impairment based on the estimated cash flows from the respective contract on an undiscounted basis. In the event the carrying value of the intangible assets, in combination with the carrying value of other assets associated with the Indian casino projects described below, exceeded the undiscounted cash flow, an impairment charge was recorded. Such an impairment charge was measured based on the difference between the fair value and carrying value of the assets. Lakes amortized the intangible assets related to the acquisition of the management, development, consulting or financing contracts under the straight-line method over the lives of the contracts commencing when the related casino opened. In addition to the intangible asset associated with the cash advances to tribes described above, these assets included actual costs incurred to acquire Lakes’ interest in the projects from third parties. | ||||
Management Fees Receivable and Other | ||||
Other assets have historically included deferred management fees and interest due from the Shingle Springs Tribe and amounts due from related parties that are directly related to the development and opening of Lakes’ Indian casino projects. | ||||
Investments in Unconsolidated Investees | ||||
Investments in an entity where the Company owns 20% or less of the voting stock of the entity and does not exercise significant influence over operating and financial policies of the entity are accounted for using the cost method. | ||||
The Company has a policy in place to review its investments at least annually, to evaluate the accounting method and carrying value of its investments in unconsolidated investees. The Company's cost method investments are evaluated, on at least a quarterly basis, for potential other-than-temporary impairment, or when an event or change in circumstances has occurred that may have a significant adverse effect on the fair value of the investments. Lakes monitors the investments for impairment by considering all information available to the Company including the economic environment of the markets served by the properties; market conditions including existing and potential future competition; recent or expected changes in the regulatory environment; operational performance and financial results; known changes in the objectives of the properties’ management; known or expected changes in ownership; and any other known significant factors relating to the businesses underlying the investments. If the Company believes that the carrying value of an investment is in excess of its estimated fair value, it is the Company’s policy to record an impairment charge to adjust the carrying value to the estimated fair value, if the impairment is considered other-than-temporary. | ||||
Gaming License | ||||
The Company’s gaming license represents the right to conduct gaming in the State of Maryland. This intangible asset is subject to amortization as it has a definite life of 15 years. Amortization of the gaming license began on the date the gaming facility opened for public play, which was May 22, 2013. Lakes evaluates this intangible asset for impairment on at least a quarterly basis. | ||||
Land Held for Development | ||||
Included in land held for development is undeveloped land in California related to the Company’s previous involvement in a potential casino project with the Jamul Indian Village (“Jamul Tribe”) and undeveloped land in Oklahoma related to its previous involvement in a potential casino project with the Iowa Tribe of Oklahoma. Lakes evaluates these assets for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. | ||||
Rewards Club Program | ||||
Lakes has established a Rewards Club promotional program at Rocky Gap to encourage repeat business from frequent customers and patrons. Members earn points based on gaming activity and amounts spent on the purchase of rooms, food, beverage and resort activities. Such points can be redeemed for complimentary slot play and free goods and services at Rocky Gap’s hotel, restaurants, spa and golf course. Lakes records points redeemed for complimentary slot play as a reduction to gaming revenue and points redeemed for free goods and services as promotional allowances. The Rewards Club point accrual is included in current liabilities on Lakes’ consolidated balance sheet. | ||||
Revenue Recognition and Promotional Allowances | ||||
Revenue from the management, development, financing of and consulting with Indian-owned casino gaming facilities is recognized as it is earned pursuant to each respective agreement. Food, beverage, and retail revenues are recorded at the time of sale. Room revenue is recorded at the time of occupancy. Sales taxes and surcharges collected from guests and remitted to governmental authorities are presented on a net basis. Accounts receivable deemed uncollectible are charged off through a provision for uncollectible accounts. No material amounts were deemed uncollectible during fiscal 2013 and fiscal 2012. | ||||
Gaming revenue, which is defined as the difference between gaming wins and losses, is recognized as wins and losses occur from gaming activities. The retail value of rooms, food and beverage, and other services furnished to guests without charge is included in gross revenues and then deducted as a promotional allowance. The estimated cost of providing such promotional allowances is included in gaming expenses. | ||||
Gaming Taxes | ||||
Rocky Gap is subject to gaming taxes based on gross gaming revenues and also pays an annual flat tax based on the number of table games and VLTs in operation during the year. These gaming taxes are recorded as gaming expenses in the consolidated statements of operations. Total gaming taxes were $10.7 million for the twelve months ended December 29, 2013. There were no gaming taxes for the twelve months ended December 30, 2012. | ||||
Advertising Expenses | ||||
The Company expenses advertising costs as incurred. Advertising expense, which is included in general and administrative expenses, was $2.0 million and $0.1 million for fiscal 2013 and fiscal 2012, respectively. | ||||
Share-Based Compensation Expense | ||||
Lakes has various share-based compensation programs, which provide for equity awards including stock options and restricted stock. Lakes uses the straight-line method to recognize compensation expense associated with share-based awards based on the fair value on the date of grant, net of the estimated forfeiture rate, if any. Expense is recognized over the requisite service period related to each award, which is the period between the grant date and the award’s stated vesting term. The fair value of stock options is estimated using the Black-Scholes option pricing model. All of Lakes’ stock compensation expense is recorded in selling, general and administrative expenses in the consolidated statements of operations. See note 16, Share-Based Compensation, for additional discussion. | ||||
Income Taxes | ||||
The determination of the Company’s income tax-related account balances requires the exercise of significant judgment by management. Accordingly, the Company determines deferred tax assets and liabilities based upon the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to affect taxable income. Management assesses the likelihood that deferred tax assets will be recovered from future taxable income and establishes a valuation allowance when management believes recovery is not likely. | ||||
The Company records estimated penalties and interest related to income tax matters, including uncertain tax positions, if any, as a component of income tax expense. | ||||
Litigation Costs | ||||
The Company does not accrue for future litigation costs, if any, to be incurred in connection with outstanding litigation and other dispute matters but rather records such costs when the legal and other services are rendered. | ||||
New Accounting Standards | ||||
In July 2013, the FASB issued Accounting Standards Update “(ASU”) No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU 2013-11 requires entities to present an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss (“NOL”) or tax credit carryforward whenever the NOL or tax credit carryforward would be available to reduce the additional taxable income or tax due if the tax position is disallowed. This ASU requires entities to assess whether to net the unrecognized tax benefit with a deferred tax asset as of the reporting date. ASU 2013-11 will be effective for the Company’s first quarter of 2014. Lakes does not expect the adoption of ASU 2013-11 to have an impact on its consolidated financial statements. |
Note_3_Rocky_Gap_Casino_Resort
Note 3. Rocky Gap Casino Resort | 12 Months Ended | ||||||||||||||||||||||||
Dec. 29, 2013 | |||||||||||||||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||||||||||||||
Business Combination Disclosure [Text Block] | ' | ||||||||||||||||||||||||
3. Rocky Gap Casino Resort | |||||||||||||||||||||||||
Background | |||||||||||||||||||||||||
In April 2012, a video lottery operation license (“Gaming License”) for the Rocky Gap Lodge & Golf Resort was awarded to the Company by the State of Maryland Video Lottery Facility Location Commission (the “Commission”). In August 2012, Lakes acquired the assets of Rocky Gap for $6.8 million and simultaneously entered into an operating lease for the underlying land (see note 21, Commitments and Contingencies). The AAA Four Diamond Award® winning resort included a hotel, convention center, spa, two restaurants and the only Jack Nicklaus signature golf course in Maryland. | |||||||||||||||||||||||||
After acquiring Rocky Gap, the Company converted the existing convention center space into a gaming facility and renamed the property Rocky Gap Casino Resort. The gaming facility opened to the public on May 22, 2013 and features 558 video lottery terminals (“VLTs”), 10 table games, three poker tables, a casino bar and a new lobby food and beverage outlet. A new event and conference center, which can accommodate large groups and features multiple flexible use meeting rooms opened during the fourth quarter of 2013. The total cost of the Rocky Gap project was approximately $35.0 million, which included the initial acquisition cost. | |||||||||||||||||||||||||
Total assets related to Rocky Gap were approximately $34.4 million and $12.0 million as of December 29, 2013 and December 30, 2012, respectively, which consisted primarily of property, equipment, construction in process, intangible assets related to the acquisition of Rocky Gap, and the Gaming License. Included in impairments and other losses during fiscal 2012 was $1.2 million related to costs associated with initial development plans for Rocky Gap which were subsequently revised. | |||||||||||||||||||||||||
Application of the Acquisition Method of Accounting | |||||||||||||||||||||||||
The acquisition of Rocky Gap was accounted for under the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations. Under the acquisition method of accounting, the total purchase price is allocated to the net tangible and intangible assets of Rocky Gap acquired in connection with the acquisition, based on their estimated fair values. The allocation of the purchase price to the assets acquired and liabilities assumed is as follows (in thousands): | |||||||||||||||||||||||||
Amount | |||||||||||||||||||||||||
Building | $ | 2,788 | |||||||||||||||||||||||
Site improvements | 2,091 | ||||||||||||||||||||||||
Furniture and equipment | 1,294 | ||||||||||||||||||||||||
Intangible assets | 627 | ||||||||||||||||||||||||
Inventories | 126 | ||||||||||||||||||||||||
Other assets | 136 | ||||||||||||||||||||||||
Current liabilities assumed | (228 | ) | |||||||||||||||||||||||
Total purchase price | $ | 6,834 | |||||||||||||||||||||||
The amounts assigned to intangible assets by category are summarized in the table below (in thousands): | |||||||||||||||||||||||||
Useful Life (years) | Amount Assigned | ||||||||||||||||||||||||
Advance bookings | 1.4 | $ | 179 | ||||||||||||||||||||||
Memberships | 25 | 448 | |||||||||||||||||||||||
Total intangible assets | $ | 627 | |||||||||||||||||||||||
Advance bookings – Advance bookings are reservations that represent future cash flows the Company will enjoy when the guest visits Rocky Gap. These reservations have been “pre-sold” as of the acquisition date of August 3, 2012 and would not require future sales or marketing expenses to be incurred. | |||||||||||||||||||||||||
Memberships – Memberships provide access to the golf course and related amenities in exchange for the payment of dues. The portion of Rocky Gap’s income attributed to the possession of such membership contracts forms the basis of the intangible value. | |||||||||||||||||||||||||
Amortization expense related to the advance bookings and memberships intangible assets for the twelve months ended December 29, 2013 was less than $0.1 million and was approximately $0.2 million for the period from August 3, 2012 through December 30, 2012. | |||||||||||||||||||||||||
Gaming License | |||||||||||||||||||||||||
Amortization of the Gaming License began on May 22, 2013, the date the gaming facility opened for public play, and is being amortized over its 15 year term. Amortization expense related to the Gaming License was $0.1 million and zero for the twelve months ended December 29, 2013 and December 30, 2012, respectively. | |||||||||||||||||||||||||
Information with respect to the Gaming License is as follows (in thousands): | |||||||||||||||||||||||||
December 29, | December 30, | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Original cost | $ | 2,100 | $ | 2,100 | |||||||||||||||||||||
Accumulated amortization | (85 | ) | — | ||||||||||||||||||||||
$ | 2,015 | $ | 2,100 | ||||||||||||||||||||||
The estimated future amortization expense related to the Gaming License for the next five years and thereafter is as follows (in thousands): | |||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | ||||||||||||||||||||
Estimated amortization expense | $ | 140 | $ | 140 | $ | 140 | $ | 140 | $ | 140 | $ | 1,315 | |||||||||||||
Unaudited Pro Forma Condensed Consolidated Financial Information | |||||||||||||||||||||||||
The following unaudited pro forma condensed consolidated financial results of operations for the fiscal year ended December 30, 2012 are presented as if the acquisition had been completed at the beginning of the period. The amounts shown for the year ended December 29, 2013 are based on actual results for the period: | |||||||||||||||||||||||||
Years Ended | |||||||||||||||||||||||||
December 29, | December 30, | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(Pro forma) | |||||||||||||||||||||||||
(In thousands, except per-share data) | |||||||||||||||||||||||||
Total net revenues | $ | 38,790 | $ | 15,078 | |||||||||||||||||||||
Net earnings attributable to Lakes Entertainment, Inc. | 18,651 | 2,062 | |||||||||||||||||||||||
Earnings per share: | |||||||||||||||||||||||||
Basic | 0.7 | 0.08 | |||||||||||||||||||||||
Diluted | 0.7 | 0.08 | |||||||||||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||||||
Basic | 26,483 | 26,438 | |||||||||||||||||||||||
Diluted | 26,689 | 26,439 | |||||||||||||||||||||||
The unaudited pro forma condensed consolidated financial results for the year ended December 30, 2012 have been prepared for illustrative purposes only and do not purport to be indicative of the results of operations that actually would have resulted had the acquisition occurred on the first day of the 2012 period presented, or of future results of the consolidated entities. The unaudited pro forma condensed consolidated financial information does not reflect any operating efficiencies and cost savings that may be realized from the integration of the acquisition. The following adjustments have been made to the pro forma net earnings attributable to Lakes and pro forma earnings per share for the year ended December 30, 2012 in the table above: | |||||||||||||||||||||||||
● | Management and service fees paid by Rocky Gap to the previous management company have been excluded as Rocky Gap would not have incurred these costs if owned by Lakes. | ||||||||||||||||||||||||
● | Ground rent expense incurred by Rocky Gap has been adjusted to reflect the terms of the lease agreement that Lakes and the Maryland DNR entered into upon the acquisition of Rocky Gap, as further discussed in note 21, Commitments and Contingencies. | ||||||||||||||||||||||||
● | Interest expense incurred by Rocky Gap has been excluded as Lakes did not assume the debt of Rocky Gap upon the acquisition of the property. | ||||||||||||||||||||||||
Note_4_Debt_Termination_Agreem
Note 4. Debt Termination Agreement with the Shingle Springs Tribe | 12 Months Ended |
Dec. 29, 2013 | |
Receivables [Abstract] | ' |
Financing Receivables [Text Block] | ' |
4. Debt Termination Agreement with the Shingle Springs Tribe | |
On July 17, 2013, Lakes entered into a Debt Termination Agreement with the Shingle Springs Tribe relating to amounts Lakes had previously advanced to the Shingle Springs Tribe under the development and management agreement for the Red Hawk Casino between Lakes and the Shingle Springs Tribe. The Debt Termination Agreement required certain conditions to be met, including a lump sum payment by the Shingle Springs Tribe to Lakes of $57.1 million. The Debt Payment was made on August 29, 2013 and constituted full and final payment of all debt owed to Lakes as of that date. As a result of the receipt of the Debt Payment, during the third quarter of 2013, Lakes recognized approximately $17.4 million in recovery of impairment on notes receivable because the Shingle Springs Notes had previously been impaired and were valued at $39.7 million (see note 8, Long-Term Assets Related to Indian Casino Projects – Notes and Interest Receivable). The face value of the Shingle Springs Notes including accrued interest was $69.7 million as of the Payment Date. The management agreement under which Lakes was managing the Red Hawk Casino also terminated on the Payment Date. | |
During the third quarter of 2013, Lakes also recognized a gain of $3.8 million on extinguishment of liabilities associated with contract acquisition costs related to the project with the Shingle Springs Tribe that were no longer owed upon the termination of the management agreement between Lakes and the Shingle Springs Tribe (see note 14, Contract Acquisition Costs Payable). | |
As of the Payment Date, $2.4 million of intangible assets related to the development and management agreement with the Shingle Springs Tribe were considered fully impaired and were written down to zero resulting in Lakes recognizing an impairment charge of $2.4 million during the third quarter of 2013. See note 9, Intangible and Other Assets Related to Indian Casino Projects. |
Note_5_Termination_of_Jamul_De
Note 5. Termination of Jamul Development Agreement | 12 Months Ended |
Dec. 29, 2013 | |
Termination Of Development Agreement [Abstract] | ' |
Termination Of Development Agreement [Text Block] | ' |
5. 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”). Lakes terminated the agreement with the Jamul Tribe in March 2012. | |
Lakes estimated the fair value of the notes receivable from the Jamul Tribe to be zero as of December 29, 2013 and December 30, 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. | |
During the third quarter of 2012, Lakes entered into a Subordination and Intercreditor Agreement (“Intercreditor Agreement”) with Penn National Gaming, Inc. (“Penn National”) and the Jamul Tribe. Pursuant to the Intercreditor Agreement, Lakes modified the terms of its outstanding debt with the Jamul Tribe to reflect that the total debt outstanding, including accrued interest, is $60.0 million, and that interest on such debt will accrue at 4.25% after the opening of a casino to be developed by Penn National on the Jamul Tribe’s trust land. Additionally, Lakes’ debt will be subordinate to the senior financing until such financing is paid in full, but current interest on the subordinated debt will be paid to Lakes on a quarterly basis when the Penn National casino opens, so long as there is no default under the senior financing agreement. When the senior financing is paid in full, Lakes will receive repayment of outstanding principal and interest. | |
Also during the third quarter of 2012, Lakes entered into a ten-year option agreement with Penn National that grants Penn National the right to purchase approximately 98 acres of land which Lakes owns adjacent to the Jamul Tribe’s trust land (“Option Agreement”). The purchase price for the land is $7.1 million and increases annually by 1%. Pursuant to the Option Agreement, annual option payments of less than $0.1 million are required to be made by Penn National to Lakes. |
Note_6_ShortTerm_Investments
Note 6. Short-Term Investments | 12 Months Ended | ||||||||||||
Dec. 29, 2013 | |||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | ' | ||||||||||||
6. Short-Term Investments | |||||||||||||
Short-term investments consist of commercial paper and corporate bonds which are classified as available-for-sale securities and are carried at current fair market value, with the resulting unrealized gains and losses, if any, excluded from earnings and reported, net of tax, as a separate component of shareholders' equity until realized. There were no net unrealized gains or losses as of December 29, 2013. If the carrying value of an investment is in excess of its fair market value, an impairment charge to adjust the carrying value to the fair market value is recorded if the impairment is considered other-than-temporary. There were no other-than-temporary impairments related to declines in fair market value of short-term investments during the year ended December 29, 2013. All short-term investments held as of December 29, 2013 have original maturity dates of twelve months or less and are classified as current assets. The Company held no short-term investments as of December 30, 2012. As of December 29, 2013, short-term investments consisted of the following (in thousands): | |||||||||||||
Amortized Cost | Fair Value | Unrealized Gain/(Loss) | |||||||||||
Commercial paper | $ | 21,986 | $ | 21,993 | $ | 7 | |||||||
Corporate bonds | 27,113 | 27,106 | (7 | ) | |||||||||
Balances at December 29, 2013 | $ | 49,099 | $ | 49,099 | $ | — | |||||||
Note_7_Property_and_Equipment_
Note 7. Property and Equipment, net | 12 Months Ended | ||||||||
Dec. 29, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | ||||||||
7. Property and Equipment, net | |||||||||
The following table summarizes the components of property and equipment, at cost (in thousands): | |||||||||
December 29, | December 30, | ||||||||
2013 | 2012 | ||||||||
Building and site improvements | $ | 24,611 | $ | 11,497 | |||||
Furniture and equipment | 12,370 | 3,228 | |||||||
Construction in process | 219 | 2,173 | |||||||
37,200 | 16,898 | ||||||||
Less accumulated depreciation | (5,541 | ) | (3,619 | ) | |||||
$ | 31,659 | $ | 13,279 | ||||||
Note_8_LongTerm_Assets_Related
Note 8. Long-Term Assets Related to Indian Casino Projects - Notes and Interest Receivable | 12 Months Ended | ||||
Dec. 29, 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 | ' | ||||
8. 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 as of December 30, 2012 consisted of notes and interest receivable due from 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 and had an agreement to manage the property through December 17, 2015. | |||||
The notes and related interest receivable were considered paid in full on August 29, 2013, when the Shingle Springs Tribe paid Lakes $57.1 million pursuant to the Debt Termination Agreement. See note 4, Debt Termination Agreement with the Shingle Springs Tribe. As a result of the receipt of the Debt Payment, during the third quarter of 2013, Lakes recognized approximately $17.4 million in recovery of impairment on notes receivable because the Shingle Springs Notes had previously been impaired and were valued at $39.7 million. The face value of the Shingle Springs Notes including accrued interest was $69.7 million as of the Payment Date. The management agreement under which Lakes was managing the Red Hawk Casino also terminated on the Payment Date. | |||||
Until the Payment Date, the Company performed 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 December 30, 2012 and January 1, 2012 and concluded that the notes receivable continue to be impaired. | |||||
As part of the impairment analysis, the Company estimated 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 considered forecasts for future periods which were 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 were 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. Prior to entering into the Debt Termination Agreement, the contractual terms of the notes receivable required that all amounts due on the notes receivable were 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 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 December 30, 2012. | |||||
Information with respect to the notes and interest receivable is summarized in the following table (in thousands). There were no notes and interest receivable related to Indian casino projects as of December 29, 2013. | |||||
December 30, | |||||
2012 | |||||
Transition loan | $ | 66,720 | |||
Minimum guarantee payment advances | — | ||||
Interest receivable | 2,704 | ||||
Unearned discount | (12,299 | ) | |||
Allowance for impaired notes receivable | (18,878 | ) | |||
Total notes and interest receivable, net of discount and allowance | $ | 38,247 | |||
A summary of the activity in the allowance for impaired notes receivable is as follows (in thousands): | |||||
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 | (1,240 | ) | |||
Allowance for impaired notes balance, December 30, 2012 | 18,878 | ||||
Impairment charge on notes receivable | — | ||||
Recoveries | (17,816 | ) | |||
Charge-offs | — | ||||
Accretion of impairment charge on notes receivable included in interest income | (1,062 | ) | |||
Allowance for impaired notes balance, December 29, 2013 | $ | — | |||
Note_9_Intangible_and_Other_As
Note 9. Intangible and Other Assets Related to Indian Casino Projects | 12 Months Ended | ||||||||||||
Dec. 29, 2013 | |||||||||||||
Intangible And Other Assets Related To Projects [Abstract] | ' | ||||||||||||
Intangible And Other Assets Related To Projects [Text Block] | ' | ||||||||||||
9. Intangible and Other Assets Related to Indian Casino Projects | |||||||||||||
Intangible Assets | |||||||||||||
Intangible assets related to Indian casino projects consisted of costs associated with the acquisition of the management, development, consulting, or financing contracts related to tribal gaming projects and were periodically evaluated for impairment after they were initially recorded. | |||||||||||||
Information with respect to the intangible assets by project is summarized as follows (in thousands): | |||||||||||||
Shingle | Jamul | Total | |||||||||||
Springs | Tribe (**) | ||||||||||||
Tribe (*) | |||||||||||||
Balance, January 1, 2012 | $ | 4,184 | $ | — | $ | 4,184 | |||||||
Allocation of advances | — | 1,766 | 1,766 | ||||||||||
Amortization | (1,057 | ) | — | (1,057 | ) | ||||||||
Impairment losses | — | (1,766 | ) | (1,766 | ) | ||||||||
Balance, December 30, 2012 | 3,127 | — | 3,127 | ||||||||||
Allocation of advances | — | — | — | ||||||||||
Amortization | (716 | ) | — | (716 | ) | ||||||||
Impairment losses | (2,411 | ) | (— | ) | (2,411 | ) | |||||||
Balance, December 29, 2013 | $ | — | $ | — | $ | — | |||||||
(*) | The intangible assets related to the Shingle Springs Tribe were being amortized through the end of the management contract. In accordance with the Debt Termination Agreement with the Shingle Springs Tribe as discussed in note 3, Debt Termination Agreement with the Shingle Springs Tribe, the management agreement under which Lakes was managing the Red Hawk Casino terminated as of August 29, 2013. Therefore, Lakes will earn no fees from the management of the Red Hawk Casino subsequent to August 29, 2013. As a result, as of the Payment Date, the intangible assets related to the Shingle Springs Tribe were considered fully impaired and were written down to zero. | ||||||||||||
(**) | Lakes terminated the agreement with the Jamul Tribe in March 2012, and therefore recognized an impairment charge of $1.8 million in fiscal 2012 related to this project. The impairment losses are included in impairments and other losses in the consolidated statements of operations for fiscal 2012. | ||||||||||||
Management Fees Receivable and Other | |||||||||||||
Management fees receivable and other included financial instruments related to deferred management fees and interest due from the Shingle Springs Tribe and other receivables of $4.8 million as of December 30, 2012. During the third quarter of 2013, all earned and unpaid management fees were paid in full. Other receivables of approximately $1.0 million from related parties that are directly related to the development and opening of Lakes’ Indian casino projects were determined to be uncollectible and were impaired during the third quarter of 2013. As a result, there were no management fees receivable and other as of December 29, 2013. |
Note_10_Investment_in_Rock_Ohi
Note 10. Investment in Rock Ohio Ventures, LLC | 12 Months Ended |
Dec. 29, 2013 | |
Rock Ohio Ventures [Member] | ' |
Note 10. Investment in Rock Ohio Ventures, LLC [Line Items] | ' |
Cost-method Investments, Description [Text Block] | ' |
10. Investment in Rock Ohio Ventures, LLC | |
Lakes has a 10% ownership investment in Rock Ohio Ventures, LLC (“Rock Ohio Ventures”) a privately-held company, that owns 80% of the Horseshoe Casino Cleveland in Cleveland, Ohio which opened to the public in May 2012; the Horseshoe Casino Cincinnati in Cincinnati, Ohio which opened in March 2013; the Thistledown Racino in North Randall, Ohio which added approximately 1,100 VLTs to its existing racetrack in April 2013; and Turfway Park, a thoroughbred horseracing track located in Florence, Kentucky. This investment is accounted for using the cost method since Lakes owns less than 20% of Rock Ohio Ventures and does not have the ability to significantly influence the operating and financial decisions of the entity. At December 29, 2013 and December 30, 2012, Lakes had invested a total of $21.0 million and $20.2 million, respectively, in Rock Ohio Ventures, which is included in investment in unconsolidated investee in the accompanying consolidated balance sheets. | |
The Company's cost method investment is evaluated, on at least a quarterly basis, for potential other-than-temporary impairment, or when an event or change in circumstances has occurred that may have a significant adverse effect on the fair value of the investment. Lakes monitors this investment for impairment by considering all information available to the Company including the economic environment of the markets served by the properties Rock Ohio Ventures owns; market conditions including existing and potential future competition; recent or expected changes in the regulatory environment; operational performance and financial results; known changes in the objectives of Rock Ohio Venture’s management; known or expected changes in ownership of Rock Ohio Ventures; and any other known significant factors relating to the business underlying the investment. | |
As part of the review of operational performance and financial results for considering if there are indications of impairment, the Company utilizes financial statements of Rock Ohio Ventures and its owned gaming properties to assess the investee’s ability to operate from a financial standpoint. The Company also analyzes Rock Ohio Ventures’ cash flows and working capital to determine if the Company’s investment in this entity has experienced an other-than-temporary impairment. As part of this process, the Company analyzes actual historical results compared to forecast and has periodic discussions with management of Rock Ohio Ventures to obtain additional information related to the Company’s investment in Rock Ohio Ventures to determine whether any events have occurred that would necessitate further analysis of the Company’s recorded investment in Rock Ohio Ventures for impairment. Based on these procedures, no events or changes in circumstances were identified that would require further analysis as to whether the Company’s investment in Rock Ohio has experienced an other-than-temporary impairment as of December 29, 2013 and December 30, 2012. | |
The fair value of the cost method investment is considered impracticable to estimate. The impracticability in developing such an estimate is due primarily to insufficient information necessary to prepare a valuation model to determine fair value. | |
Lakes has the right, but not the obligation, to make additional investments up to 10% of equity required by Rock Ohio Ventures to develop the properties it owns in return for a corresponding equity interest in those properties (see note 21, Commitments and Contingencies). | |
Dania Entertainment Holdings [Member] | ' |
Note 10. Investment in Rock Ohio Ventures, LLC [Line Items] | ' |
Cost-method Investments, Description [Text Block] | ' |
11. Investment in Dania Entertainment Holdings, LLC | |
On May 22, 2013, Dania Entertainment Center, LLC (“DEC”) purchased the Dania Jai Alai property located in Dania Beach, Florida, from Boyd Gaming Corporation, for $65.5 million. | |
As part of a previous plan to purchase the property, during 2011 Lakes loaned $4.0 million to DEC (the “Loan”) which was written down to zero during the third quarter of 2011 when the acquisition did not close. During 2013, the Loan was exchanged for a 20% ownership interest in Dania Entertainment Holdings, LLC (“DEH”). DEH maintains a 25% ownership interest in DEC resulting in Lakes effectively holding a 5% ownership in DEC, which now owns and operates the Dania Jai Alai property. Lakes will have no operational responsibility of DEC or DEH and will not be required to invest any additional money in either entity. | |
The Company accounts for its investment in DEH as a cost method investment. At the time the Loan was exchanged for an equity investment in DEH, Lakes determined its value remained at zero due to the negative cash flows of the existing operations of the Dania Jai Alai property as well as uncertainty surrounding completion of the project. Therefore, no value associated with this investment is recorded in the Company’s accompanying consolidated balance sheet as of December 29, 2013. Should Lakes receive any distributions in the form of dividends from its investment in DEH, the distributions will be recorded as income in the Company’s consolidated statement of earnings as of the date of distribution. | |
The fair value of this investment was considered impracticable to estimate without incurring excessive costs relative to the materiality of the investment. |
Note_12_Land
Note 12. Land | 12 Months Ended |
Dec. 29, 2013 | |
Real Estate [Abstract] | ' |
Real Estate Disclosure [Text Block] | ' |
12. Land | |
Lakes owns parcels of undeveloped land related to its previous involvement in a potential casino project with the Jamul Tribe near San Diego, California. During the third quarter of 2012, Lakes entered into a ten-year option agreement with Penn National that grants Penn National the right to purchase this land. The purchase price for the land is $7.1 million and increases annually by 1%. Pursuant to the Option Agreement, annual option payments of less than $0.1 million are required to be made by Penn National to Lakes. | |
Lakes also owns undeveloped land in Oklahoma related to its previous involvement in a potential casino project with the Iowa Tribe of Oklahoma. | |
As of December 29, 2013 and December 30, 2012, these parcels of land are carried at a total of $1.1 million on the accompanying consolidated balance sheets. The Company performs an impairment analysis on the land it owns at least quarterly and determined that no impairment had occurred as of December 29, 2013 and December 30, 2012. |
Note_13_Debt
Note 13. Debt | 12 Months Ended | ||||
Dec. 29, 2013 | |||||
Debt Disclosure [Abstract] | ' | ||||
Debt Disclosure [Text Block] | ' | ||||
13. Debt | |||||
Loan Agreement | |||||
Lakes has a two-year interest-only $8.0 million revolving line of credit loan agreement (the “Loan Agreement”) with Centennial Bank that expires in October 2014. The Loan Agreement is collateralized by primarily all of Lakes’ interest in the real property it owns in Minnetonka, Minnesota. Amounts borrowed under the Loan Agreement, if any, bear interest at 8.95%. Lakes’ Chief Executive Officer, Lyle Berman, personally guaranteed the Loan Agreement on behalf of Lakes. As of December 29, 2013 and December 30, 2012, no amounts were outstanding under the Loan Agreement. | |||||
Financing Facility | |||||
In December 2012, Lakes closed on a $17.5 million financing facility with Centennial Bank (the “Financing Facility”) to finance Rocky Gap project costs. Approximately $13.4 million was drawn on the Financing Facility. Lakes was required to invest $17.5 million in the Rocky Gap project prior to drawing on the Financing Facility. The Financing Facility is collateralized by the leasehold estate and the furniture, fixtures and equipment of Rocky Gap. In addition, Lakes guaranteed repayment of the loan and granted a second mortgage on its real property located in Minnetonka, Minnesota. Effective November 1, 2013, Lakes amended the Financing Facility with Centennial Bank to reduce the interest rate from 10.5% to 5.5%. Monthly payments of principal and interest began on December 1, 2013 and continue for 84 months. Although Lakes does not currently plan to make further draws on the Financing Facility, Lakes has the ability to draw the remaining $4.1 million on the Financing Facility through December 31, 2018. As of December 29, 2013, $13.3 million of principal was outstanding under the Financing Facility. As of December 30, 2012, no amounts had been drawn and no amounts were outstanding under the Financing Facility. | |||||
As a result of the amendment of the Financing Facility with Centennial Bank effective November 1, 2013, Lakes recorded a $1.7 million gain on modification of debt during the fourth quarter of 2013. This amount includes $2.0 million recorded as a discount to the principal amount of the Financing Facility, which is being accreted to interest expense over the term of the Financing Facility using the effective interest method, and $0.3 million of original debt issuance costs expensed at the time of the amendment. See note 20, Financial Instruments and Fair Value Instruments, for further discussion regarding the recorded value of the Financing Facility. | |||||
Summary of Outstanding Debt | |||||
Long-term debt, net of current maturities, is comprised of the following as of December 29, 2013 (in thousands). No debt was outstanding as of December 30, 2012. | |||||
Financing Facility | $ | 13,315 | |||
Capital lease obligations | 182 | ||||
Total debt | 13,497 | ||||
Less: current maturities | (1,744 | ) | |||
Less: unamortized debt discount, net of current portion | (1,432 | ) | |||
Long-term debt, net of current maturities and discount | $ | 10,321 | |||
Future Principal Payments on Long-Term Debt | |||||
The aggregate principal payments due on long-term debt as of December 29, 2013 over the next five years and thereafter, are as follows (in thousands): | |||||
Fiscal years ending: | |||||
2014 | $ | 1,744 | |||
2015 | 1,778 | ||||
2016 | 1,813 | ||||
2017 | 1,918 | ||||
2018 | 2,028 | ||||
Thereafter | 4,216 | ||||
$ | 13,497 | ||||
Note_14_Contract_Acquisition_C
Note 14. Contract Acquisition Costs Payable | 12 Months Ended |
Dec. 29, 2013 | |
Contract Acquisition Costs Payable [Abstract] | ' |
Contract Acquisition Costs Payable [Text Block] | ' |
14. Contract Acquisition Costs Payable | |
During 2009, the Company became obligated to pay Mr. Jerry Argovitz and Mr. Kevin Kean each $1 million per year (prorated based on a 365 day year) during the remainder of the seven-year initial term of the Red Hawk Casino management agreement, as long as Lakes was the manager of the Red Hawk Casino. The management agreement commenced in December 2008. These obligations resulted from Mr. Argovitz’s and Mr. Kean’s elections under existing agreements with Lakes to relinquish their respective other rights related to the Red Hawk Casino project. As of December 30, 2012, the remaining carrying amount of the liability was $4.6 million, net of a $1.4 million discount. As a result of the August 2013 termination of the management agreement between Lakes and the Shingle Springs Tribe for the management of the Red Hawk Casino, Lakes is no longer obligated to make payments under the existing agreements between Lakes and Mr. Kean and Mr. Argovitz, respectively. As a result, Lakes recognized a gain of $3.8 million on extinguishment of these liabilities during the third quarter of 2013. |
Note_15_Promotional_Allowances
Note 15. Promotional Allowances | 12 Months Ended | ||||||||
Dec. 29, 2013 | |||||||||
Promotional Allowances [Abstract] | ' | ||||||||
Promotional Allowances [Text Block] | ' | ||||||||
15. Promotional Allowances | |||||||||
The retail value of rooms, food and beverage, and other services furnished to guests without charge is included in gross revenues and then deducted as promotional allowances. The estimated retail value of these promotional allowances is as follows (in thousands): | |||||||||
Year Ended | |||||||||
December 29, | December 30, | ||||||||
2013 | 2012 | ||||||||
Food and beverage | $ | 131 | $ | — | |||||
Rooms | 1,005 | — | |||||||
Total promotional allowances | $ | 1,136 | $ | — | |||||
The estimated cost of providing these promotional allowances, which are included in gaming costs and expenses, is as follows (in thousands): | |||||||||
Year Ended | |||||||||
December 29, | December 30, | ||||||||
2013 | 2012 | ||||||||
Food and beverage | $ | 131 | $ | — | |||||
Rooms | 242 | — | |||||||
Total promotional allowances | $ | 373 | $ | — | |||||
Note_16_ShareBased_Compensatio
Note 16. Share-Based Compensation | 12 Months Ended | ||||||||||||||||
Dec. 29, 2013 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||||||
16. Share-Based Compensation | |||||||||||||||||
Overview | |||||||||||||||||
In June 2007, Lakes’ shareholders approved the 2007 Lakes Stock Option and Compensation Plan (the “2007 Plan”), which is authorized to grant a total of 2.5 million shares of Lakes’ common stock. Stock options granted under the 2007 Plan typically vest in equal installments over three-year, four-year and five-year periods, beginning on the first anniversary of the date of each grant and continue on each subsequent anniversary date until the option is fully vested. The employee must be employed by Lakes on the anniversary date in order to vest in any shares that year. Vested options are exercisable for ten years from the date of grant; however, if the employee is terminated (voluntarily or involuntarily), any unvested options as of the date of termination will be forfeited. | |||||||||||||||||
Lakes also has a 1998 Stock Option and Compensation Plan. There were 27,000 stock options outstanding under this plan as of December 29, 2013. No additional options will be granted under this plan. | |||||||||||||||||
Consolidated share-based compensation expense, which includes stock options and restricted stock units, was $0.5 million and $0.4 million for fiscal 2013 and fiscal 2012, respectively. | |||||||||||||||||
For fiscal 2013 and fiscal 2012, no income tax benefit was recognized in Lakes’ consolidated statements of operations for share-based compensation arrangements. Management assessed the likelihood that the deferred tax assets relating to future tax deductions from share-based compensation will be recovered from future taxable income and determined that a valuation allowance is necessary to the extent that management currently believes it is more likely than not that tax benefits will not be realized. Management’s determination is based primarily on historical losses and earnings volatility. | |||||||||||||||||
Stock Options | |||||||||||||||||
The following table summarizes stock option activity for fiscal 2013 and fiscal 2012: | |||||||||||||||||
Number of Common Shares | |||||||||||||||||
Options | Exercisable | Available | Weighted-Average | ||||||||||||||
Outstandinge | for Grant | Exercise | |||||||||||||||
Price | |||||||||||||||||
2013 | |||||||||||||||||
Balance at December 30, 2012 | 1,528,039 | 1,298,809 | 875,627 | $ | 2.92 | ||||||||||||
Exercised | (280,466 | ) | — | 2.76 | |||||||||||||
Forfeited/cancelled/expired | (106,751 | ) | 106,751 | 3.12 | |||||||||||||
Granted | 455,500 | (455,500 | ) | 3.09 | |||||||||||||
Balance at December 29, 2013 | 1,596,322 | 1,171,520 | 526,878 | 2.98 | |||||||||||||
2012 | |||||||||||||||||
Balance at January 1, 2012 | 1,644,639 | 1,155,347 | 874,627 | $ | 2.92 | ||||||||||||
Restricted stock unit activity, net | — | — | — | ||||||||||||||
Forfeited/cancelled/expired | (116,600 | ) | 1,000 | 2.88 | |||||||||||||
Granted | — | — | — | ||||||||||||||
Balance at December 30, 2012 | 1,528,039 | 1,298,809 | 875,627 | 2.92 | |||||||||||||
Lakes’ determination of fair value of share-based option awards on the date of grant using an option-pricing model is affected by the following assumptions regarding complex and subjective variables. Any changes in these assumptions may materially affect the estimated fair value of the share-based award. | |||||||||||||||||
• | Expected dividend yield — As the Company has not historically paid dividends, the dividend rate variable in the Black-Scholes model is zero. | ||||||||||||||||
• | Risk-free interest rate — The risk free interest rate assumption is based on the U.S. Treasury yield curve in effect at the time of grant and with maturities consistent with the expected term of options. | ||||||||||||||||
• | Expected term — The expected term of employee stock options represents the weighted-average period that the stock options are expected to remain outstanding. It is based upon an analysis of the historical behavior of option holders during the period from September 1995 to December 29, 2013. Management believes historical data is reasonably representative of future exercise behavior. | ||||||||||||||||
• | Expected volatility — The volatility assumption is based on the historical weekly price data of Lakes’ stock over a two-year period. Management evaluated whether there were factors during that period which were unusual and which would distort the volatility figure if used to estimate future volatility and concluded that there were no such factors. | ||||||||||||||||
• | Forfeiture rate — As share-based compensation expense recognized is based on awards ultimately expected to vest, expense for grants is reduced for estimated forfeitures at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Lakes’ management has reviewed the historical forfeitures which have been minimal, and as such presently amortizes the grants to the end of the vesting period and will adjust for forfeitures at the end of the term. | ||||||||||||||||
The following assumptions were used to estimate the fair value of stock options granted during fiscal 2013. No stock options were granted during fiscal 2012. | |||||||||||||||||
Expected dividend yield | – | ||||||||||||||||
Risk-free interest rate | 1.96 | – | 2.70% | ||||||||||||||
Expected term (in years) | 10 | ||||||||||||||||
Expected volatility | 39.32 | – | 43.78% | ||||||||||||||
As of December 29, 2013, the options outstanding had a weighted-average remaining contractual life of 6.7 years, weighted-average exercise price of $2.98 and an aggregate intrinsic value of $1.6 million. The options exercisable have a weighted-average exercise price of $2.94, a weighted-average remaining contractual life of 5.8 years and an aggregate intrinsic value of $1.3 million as of December 29, 2013. The total intrinsic value of stock options exercised during fiscal 2013 was $0.4 million. No stock options were exercised during fiscal 2012. | |||||||||||||||||
As of December 29, 2013, Lakes’ unrecognized share-based compensation related to stock options was approximately $0.5 million, which is expected to be recognized over a weighted-average period of 2.1 years. The weighted-average grant-date fair value of stock options granted during fiscal 2013 was $1.73 per share. | |||||||||||||||||
Lakes issues new shares of common stock upon exercise of options. | |||||||||||||||||
Restricted Stock Units | |||||||||||||||||
There was no restricted stock activity during the year ended December 29, 2013. The following table summarizes Lakes’ restricted stock unit activity for fiscal 2012: | |||||||||||||||||
Restricted | Weighted-Average | ||||||||||||||||
Stock Units | Grant- | ||||||||||||||||
Date Fair Value | |||||||||||||||||
2012 | |||||||||||||||||
Balance at January 1, 2012 | 38,337 | $ | 3.25 | ||||||||||||||
Vested | (38,337 | ) | 3.25 | ||||||||||||||
Forfeited | — | 3.25 | |||||||||||||||
Balance at December 30, 2012 | — | 3.25 | |||||||||||||||
During fiscal 2012, 35,257 common shares were issued upon the vesting of restricted stock units, net of common shares redeemed at the election of the grantee for payroll tax payment. |
Note_17_Earnings_per_Share
Note 17. Earnings per Share | 12 Months Ended |
Dec. 29, 2013 | |
Earnings per share [Abstract] | ' |
Earnings Per Share [Text Block] | ' |
17. Earnings per Share | |
For all periods, basic earnings per share (“EPS”) is calculated by dividing net earnings attributable to Lakes Entertainment, Inc. by the weighted-average common shares outstanding. Diluted EPS in profitable periods reflects the effect of all potentially dilutive common shares outstanding by dividing net earnings attributable to Lakes Entertainment, Inc. by the weighted-average of all common and potentially dilutive shares outstanding. Potentially dilutive stock options of 1,389,511 for the year ended December 29, 2013 and 1,527,620 for the year ended December 30, 2012, were not used to compute diluted earnings per share because the effects would have been anti-dilutive. |
Note_18_Income_Taxes
Note 18. Income Taxes | 12 Months Ended | ||||||||
Dec. 29, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Income Tax Disclosure [Text Block] | ' | ||||||||
18. Income Taxes | |||||||||
The provision (benefit) for income taxes for fiscal 2013 and fiscal 2012 consist of the following (in thousands): | |||||||||
For the Fiscal Year Ended | |||||||||
2013 | 2012 | ||||||||
Current: | |||||||||
Federal | $ | — | $ | (2,482 | ) | ||||
State | — | 18 | |||||||
— | (2,464 | ) | |||||||
Deferred: | |||||||||
Federal | — | — | |||||||
State | — | — | |||||||
— | — | ||||||||
Total: | $ | — | $ | (2,464 | ) | ||||
Reconciliations of the statutory federal income tax rate to the Company’s actual rate based on earnings before income taxes for fiscal 2013 and fiscal 2012 are summarized as follows: | |||||||||
For the Fiscal Year Ended | |||||||||
2013 | 2012 | ||||||||
Statutory federal tax rate | 35 | % | 35 | % | |||||
State income taxes, net of federal income taxes | — | 1.6 | |||||||
Change in valuation allowance | (35.3 | ) | (373.8 | ) | |||||
Permanent tax differences | 0.3 | 5.5 | |||||||
Other, net | — | 6 | |||||||
— | % | (325.7 | )% | ||||||
The Company’s deferred income tax (liabilities) and assets are as follows (in thousands): | |||||||||
December 29, | December 30, | ||||||||
2013 | 2012 | ||||||||
Current deferred tax asset: | |||||||||
Accruals and reserves | $ | 448 | $ | 273 | |||||
Valuation allowances | (448 | ) | (273 | ) | |||||
$ | — | $ | — | ||||||
Non-current deferred taxes: | |||||||||
Development costs | $ | 3,848 | $ | 3,863 | |||||
Deferred interest on notes receivable | 1,121 | 6,995 | |||||||
Unrealized losses on notes receivable | — | (9,360 | ) | ||||||
Allowance for impaired notes receivable | — | 7,082 | |||||||
Stock compensation expense | 1,367 | 1,518 | |||||||
Amortization and impairment of intangible assets | 58 | 8,646 | |||||||
Alternative minimum tax credit carryforward | 919 | 919 | |||||||
Net operating loss carryforwards | 30,594 | 23,008 | |||||||
Investment in unconsolidated investee | (3,172 | ) | (1,939 | ) | |||||
Other | (699 | ) | 130 | ||||||
Valuation allowances | (34,036 | ) | (40,862 | ) | |||||
$ | — | $ | — | ||||||
As of December 29, 2013, Lakes has evaluated all available positive and negative evidence related to its ability to utilize its deferred tax assets. Lakes considered the non-recurring nature of current year book income, expected future book income (losses), lack of taxable loss carryback potential and other factors in reaching the conclusion that the deferred tax assets are not currently expected to be realized, and therefore the valuation allowance against the deferred tax assets continues to be appropriate as of December 29, 2013. | |||||||||
As of December 29, 2013, Lakes had approximately $72.3 million of federal net operating loss carryforwards, which will begin to expire in 2022, and approximately $96.5 million of state net operating loss carryforwards, which will expire at various times depending on specific state laws. | |||||||||
Lakes files a consolidated U.S. federal income tax return, as well as income tax returns in various states. The U.S. federal income tax returns for the years 2009 – 2012 and state income tax returns in various states for the years 2009 – 2012 remain subject to examination. The Company is currently under IRS audit for the 2009-2011 tax years and is under audit by the State of California for the 2010 tax year. No adjustments have been made as a result of these audits. However, there is no assurance that the taxing authorities will not propose adjustments that are different from the Company’s expected outcome and that may impact the provision for income taxes. |
Note_19_Employee_Retirement_Pl
Note 19. Employee Retirement Plan | 12 Months Ended |
Dec. 29, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Pension and Other Postretirement Benefits Disclosure [Text Block] | ' |
19. Employee Retirement Plan | |
Lakes has a qualified defined contribution employee savings plan for all full-time employees. The savings plan allows eligible participants to defer, on a pre-tax basis, a portion of their salary and accumulate tax-deferred earnings as a retirement fund. Lakes currently matches employee contributions up to a maximum of 4% of participating employees’ gross wages. The Company contributed approximately $0.1 million during each fiscal 2013 and fiscal 2012. Company contributions are vested over five years. |
Note_20_Financial_Instruments_
Note 20. Financial Instruments and Fair Value Measurements | 12 Months Ended | |||||||||
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, | Estimated Fair | Fair Value | ||||||||
net of Current | Value | Hierarchy | ||||||||
Portion | ||||||||||
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). |
Note_21_Commitments_and_Contin
Note 21. Commitments and Contingencies | 12 Months Ended | ||||||||||||||||||||||||
Dec. 29, 2013 | |||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Text Block] | ' | ||||||||||||||||||||||||
21. Commitments and Contingencies | |||||||||||||||||||||||||
Operating Lease with the Maryland Department of Natural ResourcesRelated to Rocky Gap | |||||||||||||||||||||||||
In connection with the closing of the acquisition of Rocky Gap, Lakes entered into a 40 year operating ground lease (the “Lease Agreement”) with the Maryland DNR for approximately 268 acres in the Rocky Gap State Park on which Rocky Gap is situated. The Lease Agreement contains an option to renew for 20 years after the initial 40-year term. | |||||||||||||||||||||||||
From August 3, 2012 and until the casino opened for public play on May 22, 2013, rent in the form of surcharges was due and payable with a minimum annual payment of $150,000. From May 22, 2013 through the remaining term of the Lease Agreement, rent payments are due and payable annually in the amount of $275,000 plus 0.9% of any gross operator share of gaming revenue (as defined in the Lease Agreement) in excess of $275,000, and $150,000 plus any surcharge revenue in excess of $150,000. Surcharge revenue consists of amounts billed to and collected from guests and are $3.00 per room per night and $1.00 per round of golf. Rent expense associated with the Lease Agreement was $0.4 million and $0.1 million for fiscal 2013 and fiscal 2012, respectively. | |||||||||||||||||||||||||
Future minimum lease payments under the Lease Agreement at December 29, 2013 are as follows (in thousands): | |||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | ||||||||||||||||||||
Minimum lease payment | $ | 425 | $ | 425 | $ | 425 | $ | 425 | $ | 425 | $ | 14,025 | |||||||||||||
Rock Ohio Ventures, LLC | |||||||||||||||||||||||||
Lakes’ has a 10% ownership in Rock Ohio Ventures and as of December 29, 2013, Lakes has contributed approximately $21.0 million as required (see note 10, Investment in Rock Ohio Ventures, LLC). Lakes may contribute additional capital up to $4.1 million as needed to maintain its equity position in Rock Ohio Ventures. If Lakes chooses not to fund any additional amounts, it will maintain an ownership position in Rock Ohio Ventures in a pro rata amount of what its $2.8 million initial payment is to the total amount of equity funded to develop casino operations, and all equity funded in excess of the initial $2.8 million is required to be repurchased at an amount equal to the price paid. Payment to Lakes in the event of such repurchase would be deferred and paid in accordance with the terms of the Rock Ohio Ventures First Amended and Restated Operating Agreement. | |||||||||||||||||||||||||
Employment Agreements | |||||||||||||||||||||||||
Lakes has entered into employment agreements with certain key employees of the Company. The agreements provide for certain benefits to the employee as well as severance if the employee is terminated without cause or due to a “constructive termination” as defined in the agreements. The severance amounts depend upon the term of the agreement and can be up to two years of base salary and two years of bonus calculated as the average bonus earned in the previous two years. If such termination occurs within three years of a change of control as defined in the agreements by the Company without cause or due to a constructive termination, the employee will receive a lump sum payment equal to two times the annual base salary and bonus/incentive compensation along with insurance costs, 401(k) matching contributions and certain other benefits. In the event the employee’s employment terminates for any reason, including death, disability, expiration of an initial term, non-renewal by the Company with or without cause, by the employee with notice, or due to constructive termination, all unvested stock options vest at the date of termination and remain exercisable for three years. The agreements provide for a base salary, bonus, stock options and other customary benefits. | |||||||||||||||||||||||||
Quest Media Group, LLC Litigation | |||||||||||||||||||||||||
In May 2012, Lakes received service of a breach of contract lawsuit filed in the Franklin County Court of Common Pleas, Franklin County, Ohio by Quest Media Group, LLC (“Quest”) with respect to an agreement (the “Agreement”) entered into between Lakes Ohio Development, LLC (a wholly owned subsidiary of Lakes) (“Lakes Ohio Development”) and Quest on March 9, 2010. The Agreement relates to Quest assisting Lakes Ohio Development in partnering with Rock Ohio Ventures, LLC and Penn Ventures, LLC (“Penn”) with respect to funding the proposed citizen-initiated referendum in November 2009 to amend the Ohio constitution to permit one casino each in Cleveland, Cincinnati, Toledo and Columbus, Ohio. The lawsuit alleges, among other things, that Lakes breached the Agreement by selling Lakes Ohio Development’s interest in the Toledo and Columbus casino projects to Penn, failing to pay the proper fee to Quest as a result of such sale, and incorrectly calculating the costs that are to be offset against Quest’s fee. The lawsuit seeks unspecified compensatory damages in excess of $25,000, punitive damages, declaratory and injunctive relief. The lawsuit names as defendants Lakes Entertainment, Inc., Lakes Ohio Development, LLC and Lyle Berman, Chairman and CEO of Lakes. Lakes removed the case to federal court and answered the pleadings. The case is still in the discovery stage and Lakes has moved for dismissal of the lawsuit. No hearing on the motion has been set. Lakes believes the suit to be without merit and intends to vigorously defend itself in this lawsuit. | |||||||||||||||||||||||||
Litigation Settlement | |||||||||||||||||||||||||
Lakes entered into a Settlement and Mutual Releases Agreement (the “Settlement Agreement”) in October 2012 related to the lawsuit entitled WPT Enterprises, Inc., et al vs. Deloitte & Touche, LLP. The Settlement Agreement provided for payment to Lakes of $2.2 million, which was received in November 2012. This payment is recorded as other income in the Company’s consolidated statement of operations for fiscal 2012. | |||||||||||||||||||||||||
Miscellaneous Legal Matters | |||||||||||||||||||||||||
Lakes and its subsidiaries are involved in various other inquiries, administrative proceedings and litigation relating to contracts and other matters arising in the normal course of business. While any proceeding or litigation has an element of uncertainty, and although unable to estimate the minimum costs, if any, to be incurred in connection with these matters, management currently believes that the likelihood of an unfavorable outcome is remote, and is not likely to have a material adverse effect upon Lakes’ consolidated financial statements. Accordingly, no provision has been made with regard to these matters. |
Note_22_Related_Party_Transact
Note 22. Related Party Transactions | 12 Months Ended |
Dec. 29, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions Disclosure [Text Block] | ' |
22. Related Party Transactions | |
KAR Entities | |
In 1999, Kean Argovitz Resorts — Jamul, LLC (“KAR-Jamul”) and KAR-Shingle Springs (together, the “KAR Entities”) held rights in development and management agreements for the Jamul and Shingle Springs casino projects and Lakes initially acquired interests in those casino projects by entering into joint ventures with the KAR Entities. | |
In 2003, Lakes purchased the respective joint venture interests of the KAR Entities. In connection with the purchase transactions, Lakes entered into separate agreements with Kevin M. Kean and Jerry A. Argovitz, the two individual owners of the KAR Entities. | |
During 2009, Mr. Kean elected to receive $1 million per year (prorated based on a 365 day year) as long as Lakes was managing the Red Hawk Casino during the remainder of the seven-year initial term of the management agreement with the Shingle Springs Tribe related to the Red Hawk Casino under the terms of his agreement with the Company. As a result of this election, Mr. Kean was not entitled to receive consulting fees equal to 15% of the management fees earned by the Company from the Red Hawk Casino operations. The payments to Mr. Kean were a cost of acquiring contract rights and were therefore recorded as an intangible asset (see note 9, Intangible and Other Assets Related to Indian Casino Projects), which were amortized through the end of the management agreement for the Red Hawk Casino which terminated on August 29, 2013. As of December 30, 2012, this obligation, which terminated with the termination of the management agreement, was included in contract acquisition costs payable (see note 14, Contract Acquisition Costs Payable). | |
Lakes had previously made loans to Mr. Kean, of which $1.3 million were included in other assets in the accompanying consolidated balance sheet as of December 30, 2012. Mr. Kean agreed that 50% of the amounts payable to him under the agreement with Lakes be applied toward repayment of his indebtedness to Lakes. Approximately $0.3 million was applied to Mr. Kean’s indebtedness to Lakes during fiscal 2013. The remaining balance of $1.0 million was determined to be uncollectible and was impaired during fiscal 2013 and is included in impairments and other losses in the consolidated statement of operations for the period ended December 29, 2013. | |
During 2009, Mr. Argovitz elected to receive $1 million per year (prorated based on a 365 day year) as long as Lakes was managing the Red Hawk Casino during the remainder of the seven-year initial term of the management agreement with the Shingle Springs Tribe related to the Red Hawk Casino under the terms of his agreement with the Company. As a result of this election, Mr. Argovitz was not entitled to obtain a 15% equity interest in the Company’s entity that held the rights to the management fees earned by the Company from the Red Hawk Casino operations. The payments to Mr. Argovitz were a cost of acquiring contract rights and therefore recorded as an intangible asset (see note 9, Intangible and Other Assets Related to Indian Casino Projects), which were amortized through the end of the management agreement for the Red Hawk Casino which terminated on August 29, 2013. As of December 30, 2012, this obligation, which terminated with the termination of the management agreement, was included in contract acquisition costs payable (see note 14, Contract Acquisition Costs Payable). | |
As of December 30, 2012, the remaining carrying amount of the liability was $4.6 million, net of a $1.4 million discount. As a result of the August 2013 termination of the management agreement between Lakes and the Shingle Springs Tribe for the management of the Red Hawk Casino, Lakes was no longer obligated to make payments under the existing agreements between Lakes and Mr. Kean and Mr. Argovitz, respectively. As a result, Lakes recognized a gain of $3.8 million on extinguishment of these liabilities during the third quarter of 2013. | |
Transfer of Secured Note | |
In March 2013, Lakes transferred to Lyle Berman, Lakes' Chairman of the Board and Chief Executive Officer, a $250,000 secured note from an unrelated third party company in exchange for a cash payment of $150,000 from Mr. Berman. The secured note was in default and related to a fiscal 2012 potential business development opportunity that Lakes decided not to pursue. The $250,000 note receivable, which originated in fiscal 2012, was adjusted to $150,000 and recorded as other current assets in the Company’s consolidated balance sheet as of December 30, 2012, resulting in the recognition of an impairment charge of $100,000 in the Company’s consolidated statement of operations during the fourth quarter of 2012. |
Note_23_Segment_Information
Note 23. Segment Information | 12 Months Ended | ||||||||||||||||||||
Dec. 29, 2013 | |||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||
Segment Reporting Disclosure [Text Block] | ' | ||||||||||||||||||||
23. Segment Information | |||||||||||||||||||||
Lakes’ segments reported below (in millions) are the segments of the Company for which separate financial information is available and for which operating results are evaluated by the chief operating decision-maker in deciding how to allocate resources and in assessing performance. | |||||||||||||||||||||
The Rocky Gap segment includes results of operations and assets related to the Rocky Gap Casino Resort near Cumberland, Maryland. The Indian Casino Projects segment includes results of operations and assets related to the development, financing, and management of gaming-related properties for the Shingle Springs Tribe and the Jamul Tribe. The Other segment includes Lakes’ cash and cash equivalents, short-term investments, Lakes corporate overhead and the investment in Rock Ohio Ventures. Costs in Other have not been allocated to the other segments because these costs are not easily allocable and to do so would not be practical. Amounts in Eliminations represent the intercompany management fee for Rocky Gap. | |||||||||||||||||||||
Indian | |||||||||||||||||||||
Rocky | Casino | ||||||||||||||||||||
Gap | Projects | Other | Eliminations | Consolidated | |||||||||||||||||
Fiscal 2013 | |||||||||||||||||||||
Net revenue | $ | 30.9 | $ | 7.8 | $ | 0.8 | $ | (0.7 | ) | $ | 38.8 | ||||||||||
Management fee revenue – Rocky Gap | — | — | 0.7 | (0.7 | ) | — | |||||||||||||||
Management fee expense – Rocky Gap | (0.7 | ) | — | — | 0.7 | — | |||||||||||||||
Impairments and other losses | — | 3.4 | — | — | 3.4 | ||||||||||||||||
Amortization of intangible assets related to Indian casino projects | — | 0.7 | — | — | 0.7 | ||||||||||||||||
Depreciation and amortization expense | 2.1 | — | 0.2 | — | 2.3 | ||||||||||||||||
Earnings (loss) from operations | (5.2 | ) | 24.5 | (5.9 | ) | — | 13.4 | ||||||||||||||
Interest expense | 0.7 | 0.5 | — | — | 1.2 | ||||||||||||||||
Gain on modification of debt | 1.7 | — | — | — | 1.7 | ||||||||||||||||
Total assets | 34.4 | — | 112.9 | — | 147.3 | ||||||||||||||||
Capital expenditures | 20.6 | — | 0.1 | — | 20.7 | ||||||||||||||||
Investment in unconsolidated investee | — | — | 21 | — | 21 | ||||||||||||||||
Fiscal 2012 | |||||||||||||||||||||
Net revenue | $ | 3.2 | $ | 7.7 | $ | 0.1 | $ | — | $ | 11 | |||||||||||
Impairments and other losses | 1.2 | 1.8 | 1.5 | — | 4.5 | ||||||||||||||||
Amortization of intangible assets related to Indian casino projects | — | 1.1 | — | — | 1.1 | ||||||||||||||||
Depreciation and amortization expense | 0.5 | — | 0.2 | — | 0.7 | ||||||||||||||||
Earnings (loss) from operations | (2.7 | ) | 4.4 | (8.8 | ) | — | (7.1 | ) | |||||||||||||
Interest expense | — | 0.9 | — | — | 0.9 | ||||||||||||||||
Total assets | 12 | 46.7 | 61 | — | 119.7 | ||||||||||||||||
Capital expenditures | 8.7 | — | — | — | 8.7 | ||||||||||||||||
Investment in unconsolidated investee | — | — | 20.2 | — | 20.2 | ||||||||||||||||
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 12 Months Ended | |||
Dec. 29, 2013 | ||||
Accounting Policies [Abstract] | ' | |||
Use of Estimates, Policy [Policy Text Block] | ' | |||
Use of Estimates | ||||
Preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates that affect the reported amounts of assets and liabilities and disclosures at the date of the financial statements and the reported amounts of net earnings during the reporting periods. Actual results could differ from those estimates. Significant estimates that are particularly susceptible to change materially within the next year relate to fair value measurements, income tax liabilities and deferred income tax asset valuation allowances. | ||||
Fiscal Period, Policy [Policy Text Block] | ' | |||
Year End | ||||
The Company has a 52- or 53-week accounting period ending on the Sunday closest to December 31 of each year. The Company’s fiscal years for the periods shown on the accompanying consolidated statements of operations ended on December 29, 2013 (“fiscal 2013”) and December 30, 2012 (“fiscal 2012”) | ||||
Basis of Accounting, Policy [Policy Text Block] | ' | |||
Basis of Presentation | ||||
The accompanying consolidated financial statements include the accounts of Lakes and its subsidiaries. | ||||
All material intercompany accounts and transactions have been eliminated in consolidation. | ||||
Investments in unconsolidated investees, which are 20% or less owned and the Company does not have the ability to significantly influence the operating or financial decisions of the entity, are accounted for under the cost method. See note 10, Investment in Rock Ohio Ventures, LLC and note 11, Investment in Dania Entertainment Holdings, LLC. | ||||
Cash and Cash Equivalents, Policy [Policy Text Block] | ' | |||
Cash and Cash Equivalents | ||||
Cash and cash equivalents consist of highly-liquid investments with original maturities of three months or less. Although these balances may at times exceed the federal insured deposit limit, the Company believes such risk is mitigated by the quality of the institution holding such deposit. | ||||
Marketable Securities, Policy [Policy Text Block] | ' | |||
Short-Term Investments and Concentrations of Credit Risk | ||||
Short-term investments consist of commercial paper and corporate bonds which are classified as available-for-sale securities and are valued at current market value, with the resulting unrealized gains and losses, if any, excluded from earnings and reported, net of tax, as a separate component of shareholders' equity until realized. There were no net unrealized gains or losses as of December 29, 2013. All of the Company’s investments carry a rating by one or more of the nationally recognized statistical rating organizations. Any change in such rating agencies' approach to evaluating credit and assigning an opinion could negatively impact the fair value of the Company’s investments. Any impairment loss to reduce an investment's carrying amount to its fair market value is recognized in income when a decline in the fair market value of an individual security below its cost or carrying value is determined to be other than temporary. | ||||
Property, Plant and Equipment, Policy [Policy Text Block] | ' | |||
Property and Equipment | ||||
Property and equipment is stated at cost less accumulated depreciation. Depreciation of property and equipment is computed using the straight-line method over the following estimated useful lives: | ||||
Building and site improvements (years) | 5 | - | 40 | |
Furniture and equipment (years) | 3 | - | 15 | |
Long Term Assets Related To Indian Casino Projects Policy [Policy Text Block] | ' | |||
Long-Term Assets Related to Indian Casino Projects | ||||
Lakes had $46.2 million of long-term assets related to Indian casino projects recorded on its consolidated balance sheet as of December 30, 2012. Due to the August 2013 Debt Termination Agreement, and related Debt Payment and termination of the management agreement between Lakes and the Shingle Springs Tribe, there were no long-term assets related to Indian casino projects as of December 29, 2013. | ||||
Notes Receivable | ||||
When evaluating opportunities for potential Indian-owned casino development projects, Lakes has formal procedures that it follows before entering into agreements to provide financial support for the development of these projects. Lakes determines whether there is probable future economic benefit prior to recording any asset related to the Indian casino project. Lakes’ management initially evaluates several factors involving critical milestones that affect the probability of developing and operating a casino. Lakes had no development projects with Indian tribes as of December 29, 2013. | ||||
Lakes accounted for its notes receivable from the tribes as in-substance structured notes. Under their terms, the notes did not become due and payable unless the projects were completed and operational, and distributable profits were available from their operations. However, in the event its development activity was terminated prior to completion, Lakes generally retained the right to collect in the event of completion by another developer. Because the stated rate of the notes receivable alone were not commensurate with the risk inherent in these projects (at least prior to commencement of operations), the estimated fair value of the notes receivable was generally less than the amount advanced. At the date of each advance, the difference between the estimated fair value of the note receivable and the actual amount advanced was recorded as an intangible asset, and the two assets were accounted for separately. | ||||
Subsequent to its initial recording at estimated fair value, the note receivable portion of the advance was adjusted to its current estimated fair value at each balance sheet date until the casino opens using then current assumptions including casino opening dates, typical market discount rates, pre- and post-opening date interest rates, probabilities of the projects opening and financial models prepared by management. The notes receivable were not adjusted to a fair value estimate that exceeded the face value of the note plus accrued interest, if any. Due to uncertainties surrounding the projects, no interest income was recognized during the development period, but changes in estimated fair value of the notes receivable still held as of the balance sheet date were recorded as unrealized gains or losses in Lakes’ consolidated statement of operations. | ||||
Upon opening of the casino, any difference between the then estimated fair value of the notes receivable and the amount contractually due under the notes was amortized into income using the effective interest method over the remaining term of the note. Notes receivable were stated at the amount of unpaid principal and were net of unearned discount and, if applicable, an allowance for impaired notes receivable. | ||||
Lakes monitored the credit quality of notes receivable through reviews of the casino’s financial position, operating results and projected operating results that were available to Lakes in its capacity as manager of the casino. In addition, Lakes continuously monitored the economic, political, regulatory and competitive conditions that could have adversely impacted casinos’ projected operating results. | ||||
Historically, notes receivable for open casinos were periodically evaluated for impairment pursuant to Accounting Standards Codification (“ASC”) 310, Receivables (“ASC 310”). Lakes considered a note receivable to be impaired when, based on current information and events, it was determined that Lakes would not be able to collect all amounts due according to the terms of the note receivable agreement. Subsequent to the initial impairment evaluation, Lakes continued to monitor the note receivable for any changes in expected cash flows and recognized those changes in accordance with ASC 310. Impairment was measured based on the present value of expected future cash flows discounted at the note receivable’s effective interest rate. Interest income for impaired notes receivable were accrued on the net carrying amount of the impaired note receivable under the effective interest method with significant changes to expected cash flows reflected in the impairment charge on notes receivable. | ||||
Any allowance for impaired notes receivable was established through a charge to expense. Any note receivable principal considered to be uncollectible by management was charged against the allowance for impaired notes receivable. | ||||
Lakes classified principal amounts expected to be received within the next fiscal year, if any, as current portion of notes receivable from casino projects on the consolidated balance sheets. | ||||
Intangible Assets Related to Indian Casino Projects | ||||
Historically, intangible assets related to the acquisition of the management, development, consulting or financing contracts were periodically evaluated for impairment based on the estimated cash flows from the respective contract on an undiscounted basis. In the event the carrying value of the intangible assets, in combination with the carrying value of other assets associated with the Indian casino projects described below, exceeded the undiscounted cash flow, an impairment charge was recorded. Such an impairment charge was measured based on the difference between the fair value and carrying value of the assets. Lakes amortized the intangible assets related to the acquisition of the management, development, consulting or financing contracts under the straight-line method over the lives of the contracts commencing when the related casino opened. In addition to the intangible asset associated with the cash advances to tribes described above, these assets included actual costs incurred to acquire Lakes’ interest in the projects from third parties. | ||||
Management Fees Receivable and Other | ||||
Other assets have historically included deferred management fees and interest due from the Shingle Springs Tribe and amounts due from related parties that are directly related to the development and opening of Lakes’ Indian casino projects. | ||||
Investment, Policy [Policy Text Block] | ' | |||
Investments in Unconsolidated Investees | ||||
Investments in an entity where the Company owns 20% or less of the voting stock of the entity and does not exercise significant influence over operating and financial policies of the entity are accounted for using the cost method. | ||||
The Company has a policy in place to review its investments at least annually, to evaluate the accounting method and carrying value of its investments in unconsolidated investees. The Company's cost method investments are evaluated, on at least a quarterly basis, for potential other-than-temporary impairment, or when an event or change in circumstances has occurred that may have a significant adverse effect on the fair value of the investments. Lakes monitors the investments for impairment by considering all information available to the Company including the economic environment of the markets served by the properties; market conditions including existing and potential future competition; recent or expected changes in the regulatory environment; operational performance and financial results; known changes in the objectives of the properties’ management; known or expected changes in ownership; and any other known significant factors relating to the businesses underlying the investments. If the Company believes that the carrying value of an investment is in excess of its estimated fair value, it is the Company’s policy to record an impairment charge to adjust the carrying value to the estimated fair value, if the impairment is considered other-than-temporary. | ||||
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | ' | |||
Gaming License | ||||
The Company’s gaming license represents the right to conduct gaming in the State of Maryland. This intangible asset is subject to amortization as it has a definite life of 15 years. Amortization of the gaming license began on the date the gaming facility opened for public play, which was May 22, 2013. Lakes evaluates this intangible asset for impairment on at least a quarterly basis. | ||||
Land Held For Development Policy [Policy Text Block] | ' | |||
Land Held for Development | ||||
Included in land held for development is undeveloped land in California related to the Company’s previous involvement in a potential casino project with the Jamul Indian Village (“Jamul Tribe”) and undeveloped land in Oklahoma related to its previous involvement in a potential casino project with the Iowa Tribe of Oklahoma. Lakes evaluates these assets for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable | ||||
Revenue Recognition, Loyalty Programs [Policy Text Block] | ' | |||
Rewards Club Program | ||||
Lakes has established a Rewards Club promotional program at Rocky Gap to encourage repeat business from frequent customers and patrons. Members earn points based on gaming activity and amounts spent on the purchase of rooms, food, beverage and resort activities. Such points can be redeemed for complimentary slot play and free goods and services at Rocky Gap’s hotel, restaurants, spa and golf course. Lakes records points redeemed for complimentary slot play as a reduction to gaming revenue and points redeemed for free goods and services as promotional allowances. The Rewards Club point accrual is included in current liabilities on Lakes’ consolidated balance sheet. | ||||
Revenue Recognition, Policy [Policy Text Block] | ' | |||
Revenue Recognition and Promotional Allowances | ||||
Revenue from the management, development, financing of and consulting with Indian-owned casino gaming facilities is recognized as it is earned pursuant to each respective agreement. Food, beverage, and retail revenues are recorded at the time of sale. Room revenue is recorded at the time of occupancy. Sales taxes and surcharges collected from guests and remitted to governmental authorities are presented on a net basis. Accounts receivable deemed uncollectible are charged off through a provision for uncollectible accounts. No material amounts were deemed uncollectible during fiscal 2013 and fiscal 2012. | ||||
Gaming revenue, which is defined as the difference between gaming wins and losses, is recognized as wins and losses occur from gaming activities. The retail value of rooms, food and beverage, and other services furnished to guests without charge is included in gross revenues and then deducted as a promotional allowance. The estimated cost of providing such promotional allowances is included in gaming expenses. | ||||
Gaming Tax, Policy [Policy Text Block] | ' | |||
Gaming Taxes | ||||
Rocky Gap is subject to gaming taxes based on gross gaming revenues and also pays an annual flat tax based on the number of table games and VLTs in operation during the year. These gaming taxes are recorded as gaming expenses in the consolidated statements of operations. Total gaming taxes were $10.7 million for the twelve months ended December 29, 2013. There were no gaming taxes for the twelve months ended December 30, 2012. | ||||
Advertising Costs, Policy [Policy Text Block] | ' | |||
Advertising Expenses | ||||
The Company expenses advertising costs as incurred. Advertising expense, which is included in general and administrative expenses, was $2.0 million and $0.1 million for fiscal 2013 and fiscal 2012, respectively. | ||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' | |||
Share-Based Compensation Expense | ||||
Lakes has various share-based compensation programs, which provide for equity awards including stock options and restricted stock. Lakes uses the straight-line method to recognize compensation expense associated with share-based awards based on the fair value on the date of grant, net of the estimated forfeiture rate, if any. Expense is recognized over the requisite service period related to each award, which is the period between the grant date and the award’s stated vesting term. The fair value of stock options is estimated using the Black-Scholes option pricing model. All of Lakes’ stock compensation expense is recorded in selling, general and administrative expenses in the consolidated statements of operations. See note 16, Share-Based Compensation, for additional discussion. | ||||
Income Tax, Policy [Policy Text Block] | ' | |||
Income Taxes | ||||
The determination of the Company’s income tax-related account balances requires the exercise of significant judgment by management. Accordingly, the Company determines deferred tax assets and liabilities based upon the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to affect taxable income. Management assesses the likelihood that deferred tax assets will be recovered from future taxable income and establishes a valuation allowance when management believes recovery is not likely. | ||||
The Company records estimated penalties and interest related to income tax matters, including uncertain tax positions, if any, as a component of income tax expense. | ||||
Legal Costs, Policy [Policy Text Block] | ' | |||
Litigation Costs | ||||
The Company does not accrue for future litigation costs, if any, to be incurred in connection with outstanding litigation and other dispute matters but rather records such costs when the legal and other services are rendered. | ||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | |||
New Accounting Standards | ||||
In July 2013, the FASB issued Accounting Standards Update “(ASU”) No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU 2013-11 requires entities to present an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss (“NOL”) or tax credit carryforward whenever the NOL or tax credit carryforward would be available to reduce the additional taxable income or tax due if the tax position is disallowed. This ASU requires entities to assess whether to net the unrecognized tax benefit with a deferred tax asset as of the reporting date. ASU 2013-11 will be effective for the Company’s first quarter of 2014. Lakes does not expect the adoption of ASU 2013-11 to have an impact on its consolidated financial statements. |
Note_2_Summary_of_Significant_1
Note 2. Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||
Dec. 29, 2013 | ||||
Accounting Policies [Abstract] | ' | |||
Property, Plant and Equipment, Schedule of Significant Acquisitions and Disposals [Table Text Block] | ' | |||
Building and site improvements (years) | 5 | - | 40 | |
Furniture and equipment (years) | 3 | - | 15 |
Note_3_Rocky_Gap_Casino_Resort1
Note 3. Rocky Gap Casino Resort (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 29, 2013 | |||||||||||||||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | ' | ||||||||||||||||||||||||
Amount | |||||||||||||||||||||||||
Building | $ | 2,788 | |||||||||||||||||||||||
Site improvements | 2,091 | ||||||||||||||||||||||||
Furniture and equipment | 1,294 | ||||||||||||||||||||||||
Intangible assets | 627 | ||||||||||||||||||||||||
Inventories | 126 | ||||||||||||||||||||||||
Other assets | 136 | ||||||||||||||||||||||||
Current liabilities assumed | (228 | ) | |||||||||||||||||||||||
Total purchase price | $ | 6,834 | |||||||||||||||||||||||
Schedule of Intangible Assets and Goodwill [Table Text Block] | ' | ||||||||||||||||||||||||
Useful Life (years) | Amount Assigned | ||||||||||||||||||||||||
Advance bookings | 1.4 | $ | 179 | ||||||||||||||||||||||
Memberships | 25 | 448 | |||||||||||||||||||||||
Total intangible assets | $ | 627 | |||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | ' | ||||||||||||||||||||||||
December 29, | December 30, | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Original cost | $ | 2,100 | $ | 2,100 | |||||||||||||||||||||
Accumulated amortization | (85 | ) | — | ||||||||||||||||||||||
$ | 2,015 | $ | 2,100 | ||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | ' | ||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | ||||||||||||||||||||
Estimated amortization expense | $ | 140 | $ | 140 | $ | 140 | $ | 140 | $ | 140 | $ | 1,315 | |||||||||||||
Business Acquisition, Pro Forma Information [Table Text Block] | ' | ||||||||||||||||||||||||
Years Ended | |||||||||||||||||||||||||
December 29, | December 30, | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(Pro forma) | |||||||||||||||||||||||||
(In thousands, except per-share data) | |||||||||||||||||||||||||
Total net revenues | $ | 38,790 | $ | 15,078 | |||||||||||||||||||||
Net earnings attributable to Lakes Entertainment, Inc. | 18,651 | 2,062 | |||||||||||||||||||||||
Earnings per share: | |||||||||||||||||||||||||
Basic | 0.7 | 0.08 | |||||||||||||||||||||||
Diluted | 0.7 | 0.08 | |||||||||||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||||||
Basic | 26,483 | 26,438 | |||||||||||||||||||||||
Diluted | 26,689 | 26,439 |
Note_6_ShortTerm_Investments_T
Note 6. Short-Term Investments (Tables) | 12 Months Ended | ||||||||||||
Dec. 29, 2013 | |||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | ' | ||||||||||||
Amortized Cost | Fair Value | Unrealized Gain/(Loss) | |||||||||||
Commercial paper | $ | 21,986 | $ | 21,993 | $ | 7 | |||||||
Corporate bonds | 27,113 | 27,106 | (7 | ) | |||||||||
Balances at December 29, 2013 | $ | 49,099 | $ | 49,099 | $ | — |
Note_7_Property_and_Equipment_1
Note 7. Property and Equipment, net (Tables) | 12 Months Ended | ||||||||
Dec. 29, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment [Table Text Block] | ' | ||||||||
December 29, | December 30, | ||||||||
2013 | 2012 | ||||||||
Building and site improvements | $ | 24,611 | $ | 11,497 | |||||
Furniture and equipment | 12,370 | 3,228 | |||||||
Construction in process | 219 | 2,173 | |||||||
37,200 | 16,898 | ||||||||
Less accumulated depreciation | (5,541 | ) | (3,619 | ) | |||||
$ | 31,659 | $ | 13,279 |
Note_8_LongTerm_Assets_Related1
Note 8. Long-Term Assets Related to Indian Casino Projects - Notes and Interest Receivable (Tables) | 12 Months Ended | ||||
Dec. 29, 2013 | |||||
Long Term Assets Related To Indian Casino Projects Notes And Interest Receivable [Abstract] | ' | ||||
Schedule of Receivables with Imputed Interest [Table Text Block] | ' | ||||
December 30, | |||||
2012 | |||||
Transition loan | $ | 66,720 | |||
Minimum guarantee payment advances | — | ||||
Interest receivable | 2,704 | ||||
Unearned discount | (12,299 | ) | |||
Allowance for impaired notes receivable | (18,878 | ) | |||
Total notes and interest receivable, net of discount and allowance | $ | 38,247 | |||
Impaired Financing Receivables [Table Text Block] | ' | ||||
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 | (1,240 | ) | |||
Allowance for impaired notes balance, December 30, 2012 | 18,878 | ||||
Impairment charge on notes receivable | — | ||||
Recoveries | (17,816 | ) | |||
Charge-offs | — | ||||
Accretion of impairment charge on notes receivable included in interest income | (1,062 | ) | |||
Allowance for impaired notes balance, December 29, 2013 | $ | — |
Note_9_Intangible_and_Other_As1
Note 9. Intangible and Other Assets Related to Indian Casino Projects (Tables) | 12 Months Ended | ||||||||||||
Dec. 29, 2013 | |||||||||||||
Intangible And Other Assets Related To Projects [Abstract] | ' | ||||||||||||
Schedule of Intangible Assets [Text Block] | ' | ||||||||||||
Shingle | Jamul | Total | |||||||||||
Springs | Tribe (**) | ||||||||||||
Tribe (*) | |||||||||||||
Balance, January 1, 2012 | $ | 4,184 | $ | — | $ | 4,184 | |||||||
Allocation of advances | — | 1,766 | 1,766 | ||||||||||
Amortization | (1,057 | ) | — | (1,057 | ) | ||||||||
Impairment losses | — | (1,766 | ) | (1,766 | ) | ||||||||
Balance, December 30, 2012 | 3,127 | — | 3,127 | ||||||||||
Allocation of advances | — | — | — | ||||||||||
Amortization | (716 | ) | — | (716 | ) | ||||||||
Impairment losses | (2,411 | ) | (— | ) | (2,411 | ) | |||||||
Balance, December 29, 2013 | $ | — | $ | — | $ | — |
Note_13_Debt_Tables
Note 13. Debt (Tables) | 12 Months Ended | ||||
Dec. 29, 2013 | |||||
Debt Disclosure [Abstract] | ' | ||||
Schedule of Debt [Table Text Block] | ' | ||||
Financing Facility | $ | 13,315 | |||
Capital lease obligations | 182 | ||||
Total debt | 13,497 | ||||
Less: current maturities | (1,744 | ) | |||
Less: unamortized debt discount, net of current portion | (1,432 | ) | |||
Long-term debt, net of current maturities and discount | $ | 10,321 | |||
Schedule of Maturities of Long-term Debt [Table Text Block] | ' | ||||
Fiscal years ending: | |||||
2014 | $ | 1,744 | |||
2015 | 1,778 | ||||
2016 | 1,813 | ||||
2017 | 1,918 | ||||
2018 | 2,028 | ||||
Thereafter | 4,216 | ||||
$ | 13,497 |
Note_15_Promotional_Allowances1
Note 15. Promotional Allowances (Tables) | 12 Months Ended | ||||||||
Dec. 29, 2013 | |||||||||
Promotional Allowances [Abstract] | ' | ||||||||
Estimated Retail Value for Promotional Allowances [Table Text Block] | ' | ||||||||
Year Ended | |||||||||
December 29, | December 30, | ||||||||
2013 | 2012 | ||||||||
Food and beverage | $ | 131 | $ | — | |||||
Rooms | 1,005 | — | |||||||
Total promotional allowances | $ | 1,136 | $ | — | |||||
Cost of Promotional Allowances [Table Text Block] | ' | ||||||||
Year Ended | |||||||||
December 29, | December 30, | ||||||||
2013 | 2012 | ||||||||
Food and beverage | $ | 131 | $ | — | |||||
Rooms | 242 | — | |||||||
Total promotional allowances | $ | 373 | $ | — |
Note_16_ShareBased_Compensatio1
Note 16. Share-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 29, 2013 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||||||
Number of Common Shares | |||||||||||||||||
Options | Exercisable | Available | Weighted-Average | ||||||||||||||
Outstandinge | for Grant | Exercise | |||||||||||||||
Price | |||||||||||||||||
2013 | |||||||||||||||||
Balance at December 30, 2012 | 1,528,039 | 1,298,809 | 875,627 | $ | 2.92 | ||||||||||||
Exercised | (280,466 | ) | — | 2.76 | |||||||||||||
Forfeited/cancelled/expired | (106,751 | ) | 106,751 | 3.12 | |||||||||||||
Granted | 455,500 | (455,500 | ) | 3.09 | |||||||||||||
Balance at December 29, 2013 | 1,596,322 | 1,171,520 | 526,878 | 2.98 | |||||||||||||
2012 | |||||||||||||||||
Balance at January 1, 2012 | 1,644,639 | 1,155,347 | 874,627 | $ | 2.92 | ||||||||||||
Restricted stock unit activity, net | — | — | — | ||||||||||||||
Forfeited/cancelled/expired | (116,600 | ) | 1,000 | 2.88 | |||||||||||||
Granted | — | — | — | ||||||||||||||
Balance at December 30, 2012 | 1,528,039 | 1,298,809 | 875,627 | 2.92 | |||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | ||||||||||||||||
Expected dividend yield | – | ||||||||||||||||
Risk-free interest rate | 1.96 | – | 2.70% | ||||||||||||||
Expected term (in years) | 10 | ||||||||||||||||
Expected volatility | 39.32 | – | 43.78% | ||||||||||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | ' | ||||||||||||||||
Restricted | Weighted-Average | ||||||||||||||||
Stock Units | Grant- | ||||||||||||||||
Date Fair Value | |||||||||||||||||
2012 | |||||||||||||||||
Balance at January 1, 2012 | 38,337 | $ | 3.25 | ||||||||||||||
Vested | (38,337 | ) | 3.25 | ||||||||||||||
Forfeited | — | 3.25 | |||||||||||||||
Balance at December 30, 2012 | — | 3.25 |
Note_18_Income_Taxes_Tables
Note 18. Income Taxes (Tables) | 12 Months Ended | ||||||||
Dec. 29, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ' | ||||||||
For the Fiscal Year Ended | |||||||||
2013 | 2012 | ||||||||
Current: | |||||||||
Federal | $ | — | $ | (2,482 | ) | ||||
State | — | 18 | |||||||
— | (2,464 | ) | |||||||
Deferred: | |||||||||
Federal | — | — | |||||||
State | — | — | |||||||
— | — | ||||||||
Total: | $ | — | $ | (2,464 | ) | ||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | ||||||||
For the Fiscal Year Ended | |||||||||
2013 | 2012 | ||||||||
Statutory federal tax rate | 35 | % | 35 | % | |||||
State income taxes, net of federal income taxes | — | 1.6 | |||||||
Change in valuation allowance | (35.3 | ) | (373.8 | ) | |||||
Permanent tax differences | 0.3 | 5.5 | |||||||
Other, net | — | 6 | |||||||
— | % | (325.7 | )% | ||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | ||||||||
December 29, | December 30, | ||||||||
2013 | 2012 | ||||||||
Current deferred tax asset: | |||||||||
Accruals and reserves | $ | 448 | $ | 273 | |||||
Valuation allowances | (448 | ) | (273 | ) | |||||
$ | — | $ | — | ||||||
Non-current deferred taxes: | |||||||||
Development costs | $ | 3,848 | $ | 3,863 | |||||
Deferred interest on notes receivable | 1,121 | 6,995 | |||||||
Unrealized losses on notes receivable | — | (9,360 | ) | ||||||
Allowance for impaired notes receivable | — | 7,082 | |||||||
Stock compensation expense | 1,367 | 1,518 | |||||||
Amortization and impairment of intangible assets | 58 | 8,646 | |||||||
Alternative minimum tax credit carryforward | 919 | 919 | |||||||
Net operating loss carryforwards | 30,594 | 23,008 | |||||||
Investment in unconsolidated investee | (3,172 | ) | (1,939 | ) | |||||
Other | (699 | ) | 130 | ||||||
Valuation allowances | (34,036 | ) | (40,862 | ) | |||||
$ | — | $ | — |
Note_20_Financial_Instruments_1
Note 20. Financial Instruments and Fair Value Measurements (Tables) | 12 Months Ended | |||||||||
Dec. 29, 2013 | ||||||||||
As of December 29, 2013 [Member] | ' | |||||||||
Note 20. Financial Instruments and Fair Value Measurements (Tables) [Line Items] | ' | |||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | ' | |||||||||
Fair Value | Fair Value | |||||||||
Hierarchy | ||||||||||
Assets | ||||||||||
Commercial paper | $ | 21,993 | Level 1 | |||||||
Corporate bonds | 27,106 | Level 1 | ||||||||
As of December 30, 2012 [Member] | ' | |||||||||
Note 20. Financial Instruments and Fair Value Measurements (Tables) [Line Items] | ' | |||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | ' | |||||||||
Carrying Value, | Estimated Fair | Fair Value | ||||||||
net of Current | Value | Hierarchy | ||||||||
Portion | ||||||||||
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 |
Note_21_Commitments_and_Contin1
Note 21. Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 29, 2013 | |||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | ' | ||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | ||||||||||||||||||||
Minimum lease payment | $ | 425 | $ | 425 | $ | 425 | $ | 425 | $ | 425 | $ | 14,025 |
Note_23_Segment_Information_Ta
Note 23. Segment Information (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 29, 2013 | |||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | ||||||||||||||||||||
Indian | |||||||||||||||||||||
Rocky | Casino | ||||||||||||||||||||
Gap | Projects | Other | Eliminations | Consolidated | |||||||||||||||||
Fiscal 2013 | |||||||||||||||||||||
Net revenue | $ | 30.9 | $ | 7.8 | $ | 0.8 | $ | (0.7 | ) | $ | 38.8 | ||||||||||
Management fee revenue – Rocky Gap | — | — | 0.7 | (0.7 | ) | — | |||||||||||||||
Management fee expense – Rocky Gap | (0.7 | ) | — | — | 0.7 | — | |||||||||||||||
Impairments and other losses | — | 3.4 | — | — | 3.4 | ||||||||||||||||
Amortization of intangible assets related to Indian casino projects | — | 0.7 | — | — | 0.7 | ||||||||||||||||
Depreciation and amortization expense | 2.1 | — | 0.2 | — | 2.3 | ||||||||||||||||
Earnings (loss) from operations | (5.2 | ) | 24.5 | (5.9 | ) | — | 13.4 | ||||||||||||||
Interest expense | 0.7 | 0.5 | — | — | 1.2 | ||||||||||||||||
Gain on modification of debt | 1.7 | — | — | — | 1.7 | ||||||||||||||||
Total assets | 34.4 | — | 112.9 | — | 147.3 | ||||||||||||||||
Capital expenditures | 20.6 | — | 0.1 | — | 20.7 | ||||||||||||||||
Investment in unconsolidated investee | — | — | 21 | — | 21 | ||||||||||||||||
Fiscal 2012 | |||||||||||||||||||||
Net revenue | $ | 3.2 | $ | 7.7 | $ | 0.1 | $ | — | $ | 11 | |||||||||||
Impairments and other losses | 1.2 | 1.8 | 1.5 | — | 4.5 | ||||||||||||||||
Amortization of intangible assets related to Indian casino projects | — | 1.1 | — | — | 1.1 | ||||||||||||||||
Depreciation and amortization expense | 0.5 | — | 0.2 | — | 0.7 | ||||||||||||||||
Earnings (loss) from operations | (2.7 | ) | 4.4 | (8.8 | ) | — | (7.1 | ) | |||||||||||||
Interest expense | — | 0.9 | — | — | 0.9 | ||||||||||||||||
Total assets | 12 | 46.7 | 61 | — | 119.7 | ||||||||||||||||
Capital expenditures | 8.7 | — | — | — | 8.7 | ||||||||||||||||
Investment in unconsolidated investee | — | — | 20.2 | — | 20.2 |
Note_1_Nature_of_Business_Deta
Note 1. Nature of Business (Details) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 5 Months Ended | |||||
Dec. 29, 2013 | Dec. 30, 2012 | Dec. 29, 2013 | Dec. 30, 2012 | Aug. 29, 2013 | Sep. 29, 2013 | Dec. 29, 2013 | Aug. 03, 2012 | Dec. 30, 2012 | Dec. 30, 2012 | Dec. 29, 2013 | |
Rock Ohio Ventures [Member] | Rock Ohio Ventures [Member] | Shingle Springs Tribe [Member] | Shingle Springs Tribe [Member] | Centennial Bank [Member] | Rocky Gap Resort [Member] | Rocky Gap Resort [Member] | Rocky Gap Resort [Member] | Rocky Gap Resort [Member] | |||
Rocky Gap Resort [Member] | |||||||||||
Note 1. Nature of Business (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments to Acquire Businesses, Gross | ' | ' | ' | ' | ' | ' | ' | $6,800,000 | ' | ' | ' |
Construction and Development Costs | ' | ' | ' | ' | ' | ' | ' | ' | 35,000,000 | 35,000,000 | ' |
Proceeds from Lines of Credit | ' | ' | ' | ' | ' | ' | 13,400,000 | ' | ' | ' | ' |
Line of Credit Facility, Amount Outstanding | 13,315,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,300,000 |
Proceeds from Collection of Loans Receivable | ' | ' | ' | ' | 57,100,000 | ' | ' | ' | ' | ' | ' |
Allowance for Doubtful Accounts Receivable, Recoveries | 17,382,000 | ' | ' | ' | ' | 17,400,000 | ' | ' | ' | ' | ' |
Notes, Loans and Financing Receivable, Net, Noncurrent | ' | 38,247,000 | ' | ' | 39,700,000 | 39,700,000 | ' | ' | ' | ' | ' |
Notes, Loans and Financing Receivable, Gross, Noncurrent | ' | 4,786,000 | ' | ' | 69,700,000 | 69,700,000 | ' | ' | ' | ' | ' |
Cost Method Investments | $20,997,000 | $20,161,000 | $21,000,000 | $20,200,000 | ' | ' | ' | ' | ' | ' | ' |
Cost Method Investments Ownership Percentage | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Note_2_Summary_of_Significant_2
Note 2. Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | 5 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2013 | Dec. 30, 2012 | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 30, 2012 | Dec. 29, 2013 | Dec. 30, 2012 | Aug. 03, 2012 | Aug. 03, 2012 | Aug. 03, 2012 | Dec. 30, 2012 | Dec. 29, 2013 | |||
General and Administrative Expense [Member] | General and Administrative Expense [Member] | Rocky Gap Resort [Member] | Gaming Revenue [Member] | Gaming Revenue [Member] | Rocky Gap Resort [Member] | Rocky Gap Resort [Member] | Rocky Gap Resort [Member] | Rocky Gap Resort [Member] | Licensing Agreements [Member] | |||||
Advance Bookings [Member] | Memberships [Member] | |||||||||||||
Note 2. Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Business Combinations Policy [Policy Text Block] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Acquisition Accounting | ||||||||||||||
On August 3, 2012, Lakes acquired the assets of Rocky Gap for $6.8 million paid with cash on hand. Lakes completed its valuation procedures during fiscal 2012, and the resulting fair value of the acquired assets and assumed liabilities was recorded based upon the valuation of the business enterprise and Rocky Gap's tangible and intangible assets. Enterprise value allocation methodology requires management to make assumptions and apply judgment to estimate the fair value of acquired assets and assumed liabilities. If estimates or assumptions used to complete the enterprise valuation and estimates of the fair value of the acquired assets and assumed liabilities significantly differed from assumptions made, the resulting difference could materially affect the fair value of net assets. | ||||||||||||||
The calculation of the fair value of the tangible assets, including the building, site improvements, and furniture, fixtures and equipment, utilized the cost approach, which was based on replacement cost of the assets. | ||||||||||||||
The calculation of the fair value of the identified intangible assets was determined using cash flow models following the income approach. The calculation of the fair value of the advance bookings was determined using an excess earnings method, which is an application of the income approach and computes the present value of cash flows attributable to the associated future income stream. The determination of the fair value of memberships utilized the income approach and included projections of membership revenue, estimates of operating expenses associated with the memberships and a charge for the contributory assets. The net present value of the membership income was then calculated using a selected discount rate. As a result of the business combination and fair value analysis, Lakes recorded $0.2 million for advance bookings and $0.4 million for memberships. Goodwill or a gain from a bargain purchase was not recorded as the fair value of the acquired assets and assumed liabilities approximated the purchase price. | ||||||||||||||
The application of the acquisition method of accounting guidance had the following effects on Lakes’ consolidated financial statements: | ||||||||||||||
● | Lakes measured the fair value of identifiable assets and liabilities in accordance with required valuation recognition and measurement provisions; the application of such provisions resulted in recording the fair value of the assets acquired of $7.0 million and the fair value of the liabilities assumed of $0.2 million in the Company’s consolidated balance sheet as of August 3, 2012. In total, the assets of Rocky Gap acquired represented approximately 6% of the Company’s consolidated total assets as of December 30, 2012. | |||||||||||||
● | Lakes has reported the operating results of Rocky Gap in its consolidated statements of operations and cash flows for the period from August 3, 2012 through December 30, 2012. During this period, Lakes recorded $3.2 million in revenue and $(0.8) million in net loss from Rocky Gap’s operations. | |||||||||||||
Payments to Acquire Businesses, Gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6,800,000 | ' | ' | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | ' | ' | ' | ' | ' | ' | ' | 200,000 | 400,000 | ' | ' | ' | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,000,000 | ' | ' | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' | ||
Acquired Assets As Percent Of Total Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.00% | ' | ||
Revenues | 39,926,000 | 10,952,000 | ' | ' | 3,200,000 | ' | ' | ' | ' | ' | ' | ' | ||
Net Income (Loss) Attributable to Parent | 18,651,000 | 3,221,000 | ' | ' | -800,000 | ' | ' | ' | ' | ' | ' | ' | ||
Long-term Assets Related to Projects | ' | 46,160,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Finite-Lived Intangible Asset, Useful Life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '15 years | ||
Gaming Tax Expense | ' | ' | ' | ' | ' | 10,700,000 | 0 | ' | ' | ' | ' | ' | ||
Advertising Expense | ' | ' | $2,000,000 | $100,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Note_2_Summary_of_Significant_3
Note 2. Summary of Significant Accounting Policies (Details) - Property, Plant and Equipment, Estimated Useful Lives | 12 Months Ended |
Dec. 29, 2013 | |
Building and Building Improvements [Member] | Minimum [Member] | ' |
Significant Acquisitions and Disposals [Line Items] | ' |
Estimated useful lives | '5 years |
Building and Building Improvements [Member] | Maximum [Member] | ' |
Significant Acquisitions and Disposals [Line Items] | ' |
Estimated useful lives | '40 years |
Furniture and Equipment [Member] | Minimum [Member] | ' |
Significant Acquisitions and Disposals [Line Items] | ' |
Estimated useful lives | '3 years |
Furniture and Equipment [Member] | Maximum [Member] | ' |
Significant Acquisitions and Disposals [Line Items] | ' |
Estimated useful lives | '15 years |
Note_3_Rocky_Gap_Casino_Resort2
Note 3. Rocky Gap Casino Resort (Details) (USD $) | 12 Months Ended | 5 Months Ended | 12 Months Ended | 0 Months Ended | 5 Months Ended | 12 Months Ended | |||
Dec. 29, 2013 | Dec. 30, 2012 | Dec. 30, 2012 | Dec. 29, 2013 | Dec. 30, 2012 | Aug. 03, 2012 | Dec. 30, 2012 | Dec. 29, 2013 | Dec. 30, 2012 | |
Rocky Gap Resort [Member] | Rocky Gap Resort [Member] | Rocky Gap Resort [Member] | Rocky Gap Resort [Member] | Rocky Gap Resort [Member] | Licensing Agreements [Member] | Licensing Agreements [Member] | |||
Note 3. Rocky Gap Casino Resort (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments to Acquire Businesses, Gross | ' | ' | ' | ' | ' | $6,800,000 | ' | ' | ' |
Construction and Development Costs | ' | ' | ' | ' | ' | ' | 35,000,000 | ' | ' |
Assets | 147,261,000 | 119,722,000 | 12,000,000 | 34,400,000 | 12,000,000 | ' | ' | ' | ' |
Asset Impairment Charges | ' | ' | ' | ' | 1,200,000 | ' | ' | ' | ' |
Amortization of Intangible Assets | $716,000 | $1,056,000 | $200,000 | $100,000 | ' | ' | ' | $100,000 | $0 |
Finite-Lived Intangible Asset, Useful Life | ' | ' | ' | ' | ' | ' | ' | '15 years | ' |
Note_3_Rocky_Gap_Casino_Resort3
Note 3. Rocky Gap Casino Resort (Details) - Allocation of Purchanse Price to the Assets Acquired and Liabilities Assumed (USD $) | Dec. 29, 2013 | Aug. 03, 2012 |
In Thousands, unless otherwise specified | ||
Allocation of Purchanse Price to the Assets Acquired and Liabilities Assumed [Abstract] | ' | ' |
Building | $2,788 | ' |
Site improvements | 2,091 | ' |
Furniture and equipment | 1,294 | ' |
Intangible assets | 627 | 627 |
Inventories | 126 | ' |
Other assets | 136 | ' |
Current liabilities assumed | -228 | ' |
Total purchase price | $6,834 | ' |
Note_3_Rocky_Gap_Casino_Resort4
Note 3. Rocky Gap Casino Resort (Details) - Summary of Intangible Assets by Category (USD $) | Dec. 29, 2013 | Aug. 03, 2012 | Aug. 03, 2012 | Aug. 03, 2012 |
In Thousands, unless otherwise specified | Rocky Gap Resort [Member] | Rocky Gap Resort [Member] | ||
Advance Bookings [Member] | Memberships [Member] | |||
Note 3. Rocky Gap Casino Resort (Details) - Summary of Intangible Assets by Category [Line Items] | ' | ' | ' | ' |
Useful Life (years) | ' | ' | '1 year 146 days | '25 years |
Amount Assigned | $627 | $627 | $179 | $448 |
Note_3_Rocky_Gap_Casino_Resort5
Note 3. Rocky Gap Casino Resort (Details) - Gaming License (USD $) | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Accumulated amortization | ' | ($2,100,000) | ' |
0 | 3,127,000 | 4,184,000 | |
Licensing Agreements [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Original cost | 2,100,000 | 2,100,000 | ' |
Accumulated amortization | -85,000 | ' | ' |
$2,015,000 | $2,100,000 | ' |
Note_3_Rocky_Gap_Casino_Resort6
Note 3. Rocky Gap Casino Resort (Details) - Estimated Future Amortization Expense for Gaming License (Licensing Agreements [Member], USD $) | Dec. 29, 2013 |
In Thousands, unless otherwise specified | |
Licensing Agreements [Member] | ' |
Note 3. Rocky Gap Casino Resort (Details) - Estimated Future Amortization Expense for Gaming License [Line Items] | ' |
Estimated amortization expense | $140 |
Estimated amortization expense | 140 |
Estimated amortization expense | 140 |
Estimated amortization expense | 140 |
Estimated amortization expense | 140 |
Estimated amortization expense | $1,315 |
Note_3_Rocky_Gap_Casino_Resort7
Note 3. Rocky Gap Casino Resort (Details) - Unaudited Pro Forma Condensed Consolidated Financial Information (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 |
Note 3. Rocky Gap Casino Resort (Details) - Unaudited Pro Forma Condensed Consolidated Financial Information [Line Items] | ' | ' |
Total net revenues | $38,790 | $10,952 |
Net earnings attributable to Lakes Entertainment, Inc. | 18,651 | 3,221 |
Earnings per share: | ' | ' |
Basic | $0.70 | $0.12 |
Diluted | $0.70 | $0.12 |
Weighted average common shares outstanding: | ' | ' |
Basic | 26,483 | ' |
Diluted | 26,689 | 26,439 |
Pro Forma [Member] | Rocky Gap Resort [Member] | ' | ' |
Note 3. Rocky Gap Casino Resort (Details) - Unaudited Pro Forma Condensed Consolidated Financial Information [Line Items] | ' | ' |
Total net revenues | ' | 15,078 |
Net earnings attributable to Lakes Entertainment, Inc. | ' | $2,062 |
Earnings per share: | ' | ' |
Basic | ' | $0.08 |
Diluted | ' | $0.08 |
Weighted average common shares outstanding: | ' | ' |
Basic | ' | 26,438 |
Diluted | ' | 26,439 |
Note_4_Debt_Termination_Agreem1
Note 4. Debt Termination Agreement with the Shingle Springs Tribe (Details) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | ||
Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 | Aug. 29, 2013 | Sep. 29, 2013 | |
Shingle Springs Tribe [Member] | Shingle Springs Tribe [Member] | ||||
Note 4. Debt Termination Agreement with the Shingle Springs Tribe (Details) [Line Items] | ' | ' | ' | ' | ' |
Proceeds from Collection of Loans Receivable | ' | ' | ' | $57,100,000 | ' |
Allowance for Doubtful Accounts Receivable, Recoveries | 17,382,000 | ' | ' | ' | 17,400,000 |
Notes, Loans and Financing Receivable, Net, Noncurrent | ' | 38,247,000 | ' | 39,700,000 | 39,700,000 |
Notes, Loans and Financing Receivable, Gross, Current | ' | ' | ' | ' | 69,700,000 |
Gains (Losses) on Extinguishment of Debt | 3,752,000 | ' | ' | ' | 3,800,000 |
Impairment of Intangible Assets, Finite-lived | 2,411,000 | 1,766,000 | ' | ' | 2,400,000 |
Finite-Lived Intangible Assets, Net | $0 | $3,127,000 | $4,184,000 | ' | $0 |
Note_5_Termination_of_Jamul_De1
Note 5. Termination of Jamul Development Agreement (Details) (USD $) | Dec. 29, 2013 | Dec. 30, 2012 | Sep. 29, 2012 | Sep. 29, 2012 | Mar. 31, 2012 | Dec. 30, 2012 | Dec. 30, 2012 | Dec. 29, 2013 | Dec. 30, 2012 | Mar. 31, 2012 |
Intercreditor Agreement [Member] | Option Agreement [Member] | Impairment Charges [Member] | Impairment Charges [Member] | Impairment Charges [Member] | Jamul Tribe [Member] | Jamul Tribe [Member] | Jamul Tribe [Member] | |||
Jamul Tribe [Member] | Penn National [Member] | Jamul Tribe [Member] | Jamul Tribe [Member] | Jamul Tribe [Member] | ||||||
Note 5. Termination of Jamul Development Agreement (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes Receivable, Fair Value Disclosure | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | ' |
Accrued Advances on Notes Receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | 57,500,000 |
Advances on Notes Receivable | ' | ' | ' | ' | 500,000 | 1,300,000 | 1,800,000 | ' | ' | ' |
Notes, Loans and Financing Receivable, Gross, Noncurrent | ' | 4,786,000 | 60,000,000 | ' | ' | ' | ' | ' | ' | ' |
Loans Receivable with Fixed Rates of Interest | ' | ' | 0.0425 | ' | ' | ' | ' | ' | ' | ' |
Land Available for Development | 1,130,000 | 1,130,000 | ' | 7,100,000 | ' | ' | ' | ' | ' | ' |
Land Available for Development, Inflation, Percent | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' |
Annual Payment Option, Land Available for Development | ' | ' | ' | $100,000 | ' | ' | ' | ' | ' | ' |
Note_6_ShortTerm_Investments_D
Note 6. Short-Term Investments (Details) (USD $) | Dec. 29, 2013 | Dec. 30, 2012 |
Investments, Debt and Equity Securities [Abstract] | ' | ' |
Short-term Investments | $49,099,000 | $0 |
Note_6_ShortTerm_Investments_D1
Note 6. Short-Term Investments (Details) - Short-term Investments (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Note 6. Short-Term Investments (Details) - Short-term Investments [Line Items] | ' |
Amortized Cost | $49,099 |
Fiar Value | 49,099 |
Unrealized Gain/(Loss) | 0 |
Commercial Paper, Not Included with Cash and Cash Equivalents [Member] | ' |
Note 6. Short-Term Investments (Details) - Short-term Investments [Line Items] | ' |
Amortized Cost | 21,986 |
Fiar Value | 21,993 |
Unrealized Gain/(Loss) | 7 |
Corporate Debt Securities [Member] | ' |
Note 6. Short-Term Investments (Details) - Short-term Investments [Line Items] | ' |
Amortized Cost | 27,113 |
Fiar Value | 27,106 |
Unrealized Gain/(Loss) | ($7) |
Note_7_Property_and_Equipment_2
Note 7. Property and Equipment, net (Details) - Property, Plant and Equipment, at Cost (USD $) | Dec. 29, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | $37,200 | $16,898 |
Less accumulated depreciation | -5,541 | -3,619 |
31,659 | 13,279 | |
Building and Building Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 24,611 | 11,497 |
Furniture and Fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 12,370 | 3,228 |
Construction in Progress [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | $219 | $2,173 |
Note_8_LongTerm_Assets_Related2
Note 8. Long-Term Assets Related to Indian Casino Projects - Notes and Interest Receivable (Details) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | ||
Dec. 29, 2013 | Dec. 30, 2012 | Aug. 29, 2013 | Sep. 29, 2013 | Dec. 30, 2012 | |
Shingle Springs Tribe [Member] | Shingle Springs Tribe [Member] | Shingle Springs Tribe [Member] | |||
Note 8. Long-Term Assets Related to Indian Casino Projects - Notes and Interest Receivable (Details) [Line Items] | ' | ' | ' | ' | ' |
Advances On Transition Loan | ' | $66,720,000 | ' | ' | $74,400,000 |
Proceeds from Collection of Loans Receivable | ' | ' | 57,100,000 | ' | ' |
Allowance for Doubtful Accounts Receivable, Recoveries | 17,382,000 | ' | ' | 17,400,000 | ' |
Notes, Loans and Financing Receivable, Net, Noncurrent | ' | 38,247,000 | 39,700,000 | 39,700,000 | ' |
Notes, Loans and Financing Receivable, Gross, Noncurrent | ' | $4,786,000 | $69,700,000 | $69,700,000 | ' |
Note_8_LongTerm_Assets_Related3
Note 8. Long-Term Assets Related to Indian Casino Projects - Notes and Interest Receivable (Details) - Table of Notes and Interest Receivable from the Shingle Springs Tribe (USD $) | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 |
In Thousands, unless otherwise specified | |||
Table of Notes and Interest Receivable from the Shingle Springs Tribe [Abstract] | ' | ' | ' |
Transition loan | ' | $66,720 | ' |
Interest receivable | ' | 2,704 | ' |
Unearned discount | ' | -12,299 | ' |
Allowance for impaired notes receivable | 0 | -18,878 | -20,118 |
Total notes and interest receivable, net of discount and allowance | ' | $38,247 | ' |
Note_8_LongTerm_Assets_Related4
Note 8. Long-Term Assets Related to Indian Casino Projects - Notes and Interest Receivable (Details) - Table of Activity in the Allowance for Impaired Notes Receivable (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 |
Table of Activity in the Allowance for Impaired Notes Receivable [Abstract] | ' | ' |
Impairment charge on notes receivable | $18,878 | $20,118 |
Impairment charge on notes receivable | 0 | 0 |
Recoveries | -17,816 | 0 |
Charge-offs | 0 | 0 |
Accretion included in interest income | -1,062 | -1,240 |
Impairment charge on notes receivable | $0 | $18,878 |
Note_9_Intangible_and_Other_As2
Note 9. Intangible and Other Assets Related to Indian Casino Projects (Details) (USD $) | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 | Aug. 29, 2013 | Dec. 30, 2012 | Sep. 29, 2013 | Dec. 30, 2012 |
Shingle Springs Tribe [Member] | Jamul Tribe [Member] | Shingle Springs Tribe [Member] | Shingle Springs Tribe [Member] | ||||
Note 9. Intangible and Other Assets Related to Indian Casino Projects (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Net | $0 | $3,127,000 | $4,184,000 | $0 | ' | $0 | ' |
Asset Impairment Charges | ' | ' | ' | ' | 1,800,000 | ' | ' |
Other Receivables | ' | ' | ' | ' | ' | $1,000,000 | $4,800,000 |
Note_9_Intangible_and_Other_As3
Note 9. Intangible and Other Assets Related to Indian Casino Projects (Details) - Table of Intangible Assets Related to Shingle Springs Tribe (USD $) | 12 Months Ended | |||
Dec. 29, 2013 | Dec. 30, 2012 | |||
Note 9. Intangible and Other Assets Related to Indian Casino Projects (Details) - Table of Intangible Assets Related to Shingle Springs Tribe [Line Items] | ' | ' | ||
Intangible assets | $3,127,000 | $4,184,000 | ||
Allocation of advances | 0 | 1,766,000 | ||
Amortization | -716,000 | -1,056,000 | ||
Impairment charges | -2,411,000 | -1,766,000 | ||
Intangible assets | 0 | 3,127,000 | ||
Shingle Springs Tribe [Member] | ' | ' | ||
Note 9. Intangible and Other Assets Related to Indian Casino Projects (Details) - Table of Intangible Assets Related to Shingle Springs Tribe [Line Items] | ' | ' | ||
Intangible assets | 3,127,000 | [1] | 4,184,000 | [1] |
Allocation of advances | 0 | [1] | 0 | [1] |
Amortization | -716,000 | [1] | -1,057,000 | [1] |
Impairment charges | -2,411,000 | [1] | 0 | [1] |
Intangible assets | 0 | [1] | 3,127,000 | [1] |
Jamul Tribe [Member] | ' | ' | ||
Note 9. Intangible and Other Assets Related to Indian Casino Projects (Details) - Table of Intangible Assets Related to Shingle Springs Tribe [Line Items] | ' | ' | ||
Intangible assets | 0 | [2] | 0 | [2] |
Allocation of advances | 0 | [2] | 1,766,000 | [2] |
Amortization | 0 | [2] | 0 | [2] |
Impairment charges | 0 | [2] | -1,766,000 | [2] |
Intangible assets | $0 | [2] | $0 | [2] |
[1] | The intangible assets related to the Shingle Springs Tribe were being amortized through the end of the management contract. In accordance with the Debt Termination Agreement with the Shingle Springs Tribe as discussed in note 3, Debt Termination Agreement with the Shingle Springs Tribe, the management agreement under which Lakes was managing the Red Hawk Casino terminated as of August 29, 2013. Therefore, Lakes will earn no fees from the management of the Red Hawk Casino subsequent to August 29, 2013. As a result, as of the Payment Date, the intangible assets related to the Shingle Springs Tribe were considered fully impaired and were written down to zero. | |||
[2] | Lakes terminated the agreement with the Jamul Tribe in March 2012, and therefore recognized an impairment charge of $1.8 million in fiscal 2012 related to this project. The impairment losses are included in impairments and other losses in the consolidated statements of operations for fiscal 2012. |
Note_10_Investment_in_Rock_Ohi1
Note 10. Investment in Rock Ohio Ventures, LLC (Details) (USD $) | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 29, 2013 | Jan. 01, 2012 | Dec. 29, 2013 | Dec. 29, 2013 | Dec. 30, 2012 |
Dania Entertainment Holdings [Member] | Dania Entertainment Center [Member] | Dania Entertainment Center [Member] | Rock Ohio Ventures [Member] | Rock Ohio Ventures [Member] | |||
Note 10. Investment in Rock Ohio Ventures, LLC (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Noncontrolling Interest, Ownership Percentage by Parent | ' | ' | ' | ' | ' | 10.00% | ' |
Cost Method Investments | $20,997,000 | $20,161,000 | ' | ' | ' | $21,000,000 | $20,200,000 |
Advances on Notes Receivable | ' | ' | ' | 4,000,000 | ' | ' | ' |
Notes, Loans and Financing Receivable, Net, Current | ' | ' | ' | $0 | ' | ' | ' |
Investment Owned, Percent of Net Assets | ' | ' | 20.00% | ' | 5.00% | ' | ' |
Note_12_Land_Details
Note 12. Land (Details) (USD $) | Dec. 29, 2013 | Dec. 30, 2012 | Sep. 30, 2012 |
Option Agreement [Member] | |||
Penn National [Member] | |||
Note 12. Land (Details) [Line Items] | ' | ' | ' |
Land Available for Development | $1,130,000 | $1,130,000 | $7,100,000 |
Land Available for Development, Inflation, Percent | ' | ' | 1.00% |
Annual Payment Option, Land Available for Development | ' | ' | $100,000 |
Note_13_Debt_Details
Note 13. Debt (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Dec. 29, 2013 | Dec. 29, 2013 | Dec. 29, 2013 | Dec. 30, 2012 | Nov. 01, 2013 | |
Note 13. Debt (Details) [Line Items] | ' | ' | ' | ' | ' |
Line of Credit Facility, Amount Outstanding | $13,315,000 | $13,315,000 | $13,315,000 | ' | ' |
Gains (Losses) on Restructuring of Debt | ' | ' | 1,658,000 | ' | ' |
1,432,000 | 1,432,000 | 1,432,000 | ' | ' | |
Scenario, Previously Reported [Member] | Centennial Bank [Member] | Financing Facility [Member] | ' | ' | ' | ' | ' |
Note 13. Debt (Details) [Line Items] | ' | ' | ' | ' | ' |
Line of Credit Facility, Interest Rate at Period End | ' | ' | ' | ' | 10.50% |
Rocky Gap Resort [Member] | ' | ' | ' | ' | ' |
Note 13. Debt (Details) [Line Items] | ' | ' | ' | ' | ' |
Required Investment In Project | 17,500,000 | 17,500,000 | 17,500,000 | ' | ' |
Centennial Bank [Member] | Revolving Credit Facility [Member] | ' | ' | ' | ' | ' |
Note 13. Debt (Details) [Line Items] | ' | ' | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 8,000,000 | 8,000,000 | 8,000,000 | ' | ' |
Line of Credit Facility, Interest Rate at Period End | 8.95% | 8.95% | 8.95% | ' | ' |
Line of Credit Facility, Amount Outstanding | 0 | 0 | 0 | 0 | ' |
Centennial Bank [Member] | Financing Facility [Member] | ' | ' | ' | ' | ' |
Note 13. Debt (Details) [Line Items] | ' | ' | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | ' | ' | 17,500,000 | ' |
Line of Credit Facility, Interest Rate at Period End | ' | ' | ' | ' | 5.50% |
Line of Credit Facility, Amount Outstanding | 13,300,000 | 13,300,000 | 13,300,000 | 0 | ' |
Proceeds from Lines of Credit | ' | ' | 13,400,000 | 0 | ' |
Line of Credit Facility, Expiration Period | '84 months | ' | ' | ' | ' |
Line of Credit Facility, Remaining Borrowing Capacity | ' | ' | ' | ' | 4,100,000 |
Gains (Losses) on Restructuring of Debt | ' | 1,700,000 | ' | ' | ' |
2,000,000 | 2,000,000 | 2,000,000 | ' | ' | |
Debt Issuance Cost | ' | $300,000 | ' | ' | ' |
Note_13_Debt_Details_Longterm_
Note 13. Debt (Details) - Long-term Debt (USD $) | Dec. 29, 2013 |
In Thousands, unless otherwise specified | |
Long-term Debt [Abstract] | ' |
Financing Facility | $13,315 |
Capital lease obligations | 182 |
Total debt | 13,497 |
Less: current maturities | -1,744 |
Less: unamortized debt discount, net of current portion | -1,432 |
Long-term debt, net of current maturities and discount | $10,321 |
Note_13_Debt_Details_Longterm_1
Note 13. Debt (Details) - Long-term Debt, Principal Payment Schedule (USD $) | Dec. 29, 2013 |
In Thousands, unless otherwise specified | |
Long-term Debt, Principal Payment Schedule [Abstract] | ' |
2014 | $1,744 |
2015 | 1,778 |
2016 | 1,813 |
2017 | 1,918 |
2018 | 2,028 |
Thereafter | 4,216 |
$13,497 |
Note_14_Contract_Acquisition_C1
Note 14. Contract Acquisition Costs Payable (Details) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||
Dec. 29, 2013 | Dec. 30, 2012 | Sep. 29, 2013 | Jan. 03, 2010 | Dec. 30, 2012 | |
Red Hawk Casino [Member] | Red Hawk Casino [Member] | Red Hawk Casino [Member] | |||
Note 14. Contract Acquisition Costs Payable (Details) [Line Items] | ' | ' | ' | ' | ' |
Related Party Transaction, Amounts of Transaction | ' | ' | ' | $1,000,000 | ' |
Related Party Remaining Repayment Term | ' | ' | ' | '7 years | ' |
Contract Acquisition Costs Payable Net of Discount | ' | 3,302,000 | ' | ' | 4,600,000 |
Contract Acquisition Costs Payable Discount | ' | ' | ' | ' | 1,400,000 |
Gains (Losses) on Extinguishment of Debt | $3,752,000 | ' | $3,800,000 | ' | ' |
Note_15_Promotional_Allowances2
Note 15. Promotional Allowances (Details) - Estimated Retail Value of Promotional Allowance (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 29, 2013 |
Note 15. Promotional Allowances (Details) - Estimated Retail Value of Promotional Allowance [Line Items] | ' |
Promotional Allowances | $1,136 |
Food and Beverage [Member] | ' |
Note 15. Promotional Allowances (Details) - Estimated Retail Value of Promotional Allowance [Line Items] | ' |
Promotional Allowances | 131 |
Rooms [Member] | ' |
Note 15. Promotional Allowances (Details) - Estimated Retail Value of Promotional Allowance [Line Items] | ' |
Promotional Allowances | $1,005 |
Note_15_Promotional_Allowances3
Note 15. Promotional Allowances (Details) - Estimated Cost of Providing Promotional Allowances (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 |
Note 15. Promotional Allowances (Details) - Estimated Cost of Providing Promotional Allowances [Line Items] | ' | ' |
Food and beverage | $3,758 | $955 |
Rooms | 863 | 296 |
Total promotional allowances | 373 | ' |
Cost of Sales [Member] | ' | ' |
Note 15. Promotional Allowances (Details) - Estimated Cost of Providing Promotional Allowances [Line Items] | ' | ' |
Food and beverage | 131 | ' |
Rooms | $242 | ' |
Note_16_ShareBased_Compensatio2
Note 16. Share-Based Compensation (Details) (USD $) | 12 Months Ended | 1 Months Ended | ||||||
Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 | Jun. 30, 2007 | Jun. 30, 2007 | Jun. 30, 2007 | Jun. 30, 2007 | Dec. 29, 2013 | |
Stock Option And Compensation Plan Of 2007 [Member] | Stock Option And Compensation Plan Of 2007 [Member] | Stock Option And Compensation Plan Of 2007 [Member] | Stock Option And Compensation Plan Of 2007 [Member] | 1998 Stock Option and Compensation Plan [Member] | ||||
Vesting Period One [Member] | Vesting Period Two [Member] | Vesting Period Three [Member] | ||||||
Note 16. Share-Based Compensation (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | ' | ' | ' | ' | ' | ' | 2,500,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | ' | '3 years | '4 years | '5 years | ' | ' |
Share Based Compensation Vested Options Exercisable Term | ' | ' | ' | ' | ' | ' | '10 years | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number (in Shares) | 1,596,322 | 1,528,039 | 1,644,639 | ' | ' | ' | ' | 27,000 |
Share-based Compensation (in Dollars) | $478,000 | $386,000 | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 455,500 | 0 | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | '6 years 255 days | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price (in Dollars per share) | $2.98 | $2.92 | $2.92 | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value (in Dollars) | 1,600,000 | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price (in Dollars per share) | $2.94 | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | '5 years 292 days | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value (in Dollars) | 1,300,000 | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value (in Dollars) | 400,000 | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (in Shares) | 280,466 | 0 | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars) | ' | $500,000 | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | '2 years 36 days | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $1.73 | ' | ' | ' | ' | ' | ' | ' |
Note_16_ShareBased_Compensatio3
Note 16. Share-Based Compensation (Details) - Table of Lakesb Stock Option Activity (USD $) | 12 Months Ended | |
Dec. 29, 2013 | Dec. 30, 2012 | |
Table of Lakesb Stock Option Activity [Abstract] | ' | ' |
Options Outstanding | 1,528,039 | 1,644,639 |
Exercisable | 1,298,809 | 1,155,347 |
Available for Grant | 875,627 | 874,627 |
Weighted-Average Exercise Price (in Dollars per share) | $2.92 | $2.92 |
Forfeited/cancelled/expired | -106,751 | -116,600 |
Forfeited/cancelled/expired | ' | 1,000 |
Forfeited/cancelled/expired (in Dollars per share) | $3.12 | $2.88 |
Exercised | -280,466 | 0 |
Exercised (in Dollars per share) | $2.76 | ' |
Forfeited/cancelled/expired | -106,751 | -116,600 |
Forfeited/cancelled/expired | 106,751 | 116,600 |
Forfeited/cancelled/expired (in Dollars per share) | $3.12 | $2.88 |
Options, Granted | 455,500 | 0 |
Options Available for Grant | -455,500 | ' |
Weighted-Average Exercise Price, Granted (in Dollars per share) | $3.09 | ' |
Options Outstanding | 1,596,322 | 1,528,039 |
Exercisable | 1,171,520 | 1,298,809 |
Available for Grant | 526,878 | 875,627 |
Weighted-Average Exercise Price (in Dollars per share) | $2.98 | $2.92 |
Note_16_ShareBased_Compensatio4
Note 16. Share-Based Compensation (Details) - Fair Value of Stock Options Granted | 12 Months Ended |
Dec. 29, 2013 | |
Note 16. Share-Based Compensation (Details) - Fair Value of Stock Options Granted [Line Items] | ' |
Expected term (in years) | '10 years |
Minimum [Member] | ' |
Note 16. Share-Based Compensation (Details) - Fair Value of Stock Options Granted [Line Items] | ' |
Risk-free interest rate | 1.96% |
Expected volatility | 39.32% |
Maximum [Member] | ' |
Note 16. Share-Based Compensation (Details) - Fair Value of Stock Options Granted [Line Items] | ' |
Risk-free interest rate | 2.70% |
Expected volatility | 43.78% |
Note_16_ShareBased_Compensatio5
Note 16. Share-Based Compensation (Details) - Table of Lakesb Restricted Stock Unit Activity (USD $) | 12 Months Ended |
Dec. 29, 2012 | |
2012 | ' |
Balance at January 1, 2012 | 38,337 |
Balance at January 1, 2012 | $3.25 |
Balance at December 30, 2012 | 0 |
Balance at December 30, 2012 | $3.25 |
Vested | -38,337 |
Vested | $3.25 |
Forfeited | 0 |
Forfeited | $3.25 |
Note_17_Earnings_per_Share_Det
Note 17. Earnings per Share (Details) | 12 Months Ended | |
Dec. 29, 2013 | Dec. 30, 2012 | |
Earnings per share [Abstract] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,389,511 | 1,527,620 |
Note_18_Income_Taxes_Details
Note 18. Income Taxes (Details) (USD $) | Dec. 29, 2013 |
In Millions, unless otherwise specified | |
Income Tax Disclosure [Abstract] | ' |
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | $72.30 |
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | $96.50 |
Note_18_Income_Taxes_Details_C
Note 18. Income Taxes (Details) - Components of Income Tax Provision (Benefit) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 |
Current: | ' | ' |
Federal | $0 | ($2,482) |
State | 0 | 18 |
0 | -2,464 | |
Deferred: | ' | ' |
Federal | 0 | 0 |
State | 0 | 0 |
0 | 0 | |
Total: | $0 | ($2,464) |
Note_18_Income_Taxes_Details_E
Note 18. Income Taxes (Details) - Effective Income Tax Rate Reconciliation | 12 Months Ended | |
Dec. 29, 2013 | Dec. 30, 2012 | |
Effective Income Tax Rate Reconciliation [Abstract] | ' | ' |
Statutory federal tax rate | 35.00% | 35.00% |
State income taxes, net of federal income taxes | ' | 1.60% |
Change in valuation allowance | -35.30% | -373.80% |
Permanent tax differences | 0.30% | 5.50% |
Other, net | ' | 6.00% |
' | -325.70% |
Note_18_Income_Taxes_Details_D
Note 18. Income Taxes (Details) - Deferred Tax Assets and Liabilities (USD $) | Dec. 29, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Current deferred tax asset: | ' | ' |
Accruals and reserves | $448 | $273 |
Valuation allowances | -448 | -273 |
0 | 0 | |
Non-current deferred taxes: | ' | ' |
Development costs | 3,848 | 3,863 |
Deferred interest on notes receivable | 1,121 | 6,995 |
Unrealized losses on notes receivable | 0 | -9,360 |
Allowance for impaired notes receivable | 0 | 7,082 |
Stock compensation expense | 1,367 | 1,518 |
Amortization and impairment of intangible assets | 58 | 8,646 |
Alternative minimum tax credit carryforward | 919 | 919 |
Net operating loss carryforwards | 30,594 | 23,008 |
Investment in unconsolidated investee | -3,172 | -1,939 |
Other | -699 | 130 |
Valuation allowances | -34,036 | -40,862 |
$0 | $0 |
Note_19_Employee_Retirement_Pl1
Note 19. Employee Retirement Plan (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 |
Compensation and Retirement Disclosure [Abstract] | ' | ' |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 4.00% | ' |
Defined Benefit Plan, Contributions by Employer | $0.10 | $0.10 |
Defined Contribution Vesting Term | '5 years | ' |
Note_20_Financial_Instruments_2
Note 20. Financial Instruments and Fair Value Measurements (Details) (USD $) | 12 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | |||||
Dec. 29, 2013 | Dec. 30, 2012 | Nov. 01, 2013 | Dec. 30, 2012 | Dec. 30, 2012 | Nov. 01, 2013 | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 30, 2012 | |
Scenario, Previously Reported [Member] | Contract Acquisition Cost [Member] | Shingle Springs Tribe [Member] | Centennial Bank [Member] | Centennial Bank [Member] | Rocky Gap Resort [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Centennial Bank [Member] | Financing Facility [Member] | Financing Facility [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||
Financing Facility [Member] | |||||||||
Note 20. Financial Instruments and Fair Value Measurements (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value Measurements, Valuation Processes, Description | 'three | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Interest Rate at Period End | ' | ' | 10.50% | ' | ' | 5.50% | ' | ' | ' |
Lines of Credit, Fair Value Disclosure | ' | ' | ' | ' | ' | $11,400,000 | ' | ' | ' |
Fair Value Inputs, Discount Rate | ' | 19.50% | ' | ' | 12.80% | 10.50% | ' | ' | ' |
Fair Value Assumptions, Expected Term | ' | ' | ' | ' | '97 months | ' | '84 months | ' | ' |
Assets Held-for-sale, Long Lived | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 |
Property, Plant and Equipment, Gross | 37,200,000 | 16,898,000 | ' | ' | ' | ' | ' | 6,200,000 | ' |
Finite-Lived Intangible Assets, Gross | ' | ' | ' | ' | ' | ' | ' | 600,000 | ' |
Notes Receivable, Fair Value Disclosure | ' | ' | ' | ' | 49,900,000 | ' | ' | ' | ' |
Fair Value Assumptions, Yield Adjustment | ' | ' | ' | ' | 2.30% | ' | ' | ' | ' |
Other Assets, Fair Value Disclosure | ' | 4,000,000 | ' | ' | ' | ' | ' | ' | ' |
Contract Acquisition Costs Payable Fair Value | ' | ' | ' | $4,600,000 | ' | ' | ' | ' | ' |
Note_20_Financial_Instruments_3
Note 20. Financial Instruments and Fair Value Measurements (Details) - Table of Estimated Fair Value of Financial Instruments, Current Year (USD $) | Dec. 31, 2013 | Dec. 29, 2013 | Dec. 31, 2013 | Dec. 29, 2013 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Commercial Paper, Not Included with Cash and Cash Equivalents [Member] | Commercial Paper, Not Included with Cash and Cash Equivalents [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Note 20. Financial Instruments and Fair Value Measurements (Details) - Table of Estimated Fair Value of Financial Instruments, Current Year [Line Items] | ' | ' | ' | ' | ' |
Available for Sale Securities | $49,099 | $21,993 | $21,993 | $27,106 | $27,106 |
Note_20_Financial_Instruments_4
Note 20. Financial Instruments and Fair Value Measurements (Details) - Table of Estimated Fair Value of Financial Instruments, Previous Year (USD $) | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Reported Value Measurement [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Note 20. Financial Instruments and Fair Value Measurements (Details) - Table of Estimated Fair Value of Financial Instruments, Previous Year [Line Items] | ' | ' | ' | ' |
Shingle Springs notes and interest receivable | ' | ' | $38,247 | $49,920 |
Other assets related to Indian casino projects | $24,677 | $24,387 | $4,786 | $4,011 |
Note_21_Commitments_and_Contin2
Note 21. Commitments and Contingencies (Details) (USD $) | 1 Months Ended | 7 Months Ended | 10 Months Ended | 12 Months Ended | |||||||||
Nov. 30, 2012 | Jul. 01, 2012 | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 29, 2013 | Dec. 29, 2013 | Dec. 29, 2013 | Dec. 29, 2013 | 22-May-13 | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 29, 2013 | Dec. 30, 2012 | |
Per Room Per Night [Member] | Per Round of Golf [Member] | Gaming Revenue [Member] | Surcharge Revenue [Member] | Maryland DNR [Member] | Maryland DNR [Member] | Maryland DNR [Member] | Rock Ohio Ventures [Member] | Rock Ohio Ventures [Member] | |||||
Maryland DNR [Member] | Maryland DNR [Member] | Maryland DNR [Member] | Maryland DNR [Member] | Rocky Gap State Park [Member] | Rocky Gap State Park [Member] | Rocky Gap State Park [Member] | |||||||
Rocky Gap State Park [Member] | Rocky Gap State Park [Member] | Rocky Gap State Park [Member] | Rocky Gap State Park [Member] | acre | |||||||||
Note 21. Commitments and Contingencies (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Area of Real Estate Property (in Acres) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 268 | ' | ' | ' |
Lessee Leasing Arrangements, Operating Leases, Renewal Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | '20 years | ' | ' | ' |
Lessee Leasing Arrangements, Operating Leases, Term of Contract | ' | ' | ' | ' | ' | ' | ' | ' | ' | '40 years | ' | ' | ' |
Operating Leases, Rent Expense | ' | ' | ' | ' | ' | ' | $275,000 | $150,000 | $150,000 | $400,000 | $100,000 | ' | ' |
Operating Leases, Income Statement, Percent Revenue, Percent | ' | ' | ' | ' | ' | ' | 0.90% | ' | ' | ' | ' | ' | ' |
Operating Lease, Lease Terms, Base Revenue | ' | ' | ' | ' | ' | ' | 275,000 | 150,000 | ' | ' | ' | ' | ' |
Operating Leases, Surcharge Revenue, Per Unit | ' | ' | ' | ' | 3 | 1 | ' | ' | ' | ' | ' | ' | ' |
Cost Method Investments Ownership Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' |
Cost Method Investments | ' | ' | 20,997,000 | 20,161,000 | ' | ' | ' | ' | ' | ' | ' | 21,000,000 | 20,200,000 |
Cost Method Investment Future Investments Into Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,100,000 | ' |
Cost Method Investment Initial Payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,800,000 | ' |
Loss Contingency, Damages Sought, Value | ' | 25,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation Settlement, Amount | $2,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note_21_Commitments_and_Contin3
Note 21. Commitments and Contingencies (Details) - Future Minimum Payments for Operating Lease (USD $) | Dec. 29, 2013 |
In Thousands, unless otherwise specified | |
Future Minimum Payments for Operating Lease [Abstract] | ' |
Minimum lease payment | $425 |
Minimum lease payment | 425 |
Minimum lease payment | 425 |
Minimum lease payment | 425 |
Minimum lease payment | 425 |
Minimum lease payment | $14,025 |
Note_22_Related_Party_Transact1
Note 22. Related Party Transactions (Details) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | |||||
Dec. 29, 2013 | Dec. 29, 2013 | Jan. 03, 2010 | Dec. 30, 2012 | Sep. 29, 2013 | Dec. 30, 2012 | Jan. 03, 2010 | Mar. 31, 2013 | Dec. 30, 2012 | |
Mr. Kean [Member] | Mr. Kean [Member] | Mr. Kean [Member] | Mr. Argovitz [Member] | Mr. Argovitz [Member] | Mr. Argovitz [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | ||
Note 22. Related Party Transactions (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related Party Transaction, Amounts of Transaction | ' | ' | $1,000,000 | ' | ' | ' | $1,000,000 | ' | ' |
Related Party Remaining Repayment Term | ' | ' | '7 years | ' | ' | ' | '7 years | ' | ' |
Related Party Transaction, Rate | ' | ' | 15.00% | ' | ' | ' | 15.00% | ' | ' |
Due from Related Parties | ' | ' | ' | 1,300,000 | ' | ' | ' | ' | ' |
Proceeds from Related Party Debt | ' | 300,000 | ' | ' | ' | ' | ' | ' | ' |
Financing Receivable, Individually Evaluated for Impairment | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | 100,000 |
Due to Related Parties | ' | ' | ' | ' | ' | 4,600,000 | ' | ' | ' |
Amortization of Debt Discount (Premium) | ' | ' | ' | ' | ' | 1,400,000 | ' | ' | ' |
Gains (Losses) on Extinguishment of Debt | 3,752,000 | ' | ' | ' | 3,800,000 | ' | ' | ' | ' |
Increase (Decrease) in Notes Receivables | ' | ' | ' | ' | ' | ' | ' | -250,000 | ' |
Proceeds from Sale of Notes Receivable | ' | ' | ' | ' | ' | ' | ' | $150,000 | ' |
Note_23_Segment_Information_De
Note 23. Segment Information (Details) - Table of Assets and Operations of Report Segments (USD $) | 12 Months Ended | 5 Months Ended | 12 Months Ended | ||||||||
Dec. 29, 2013 | Dec. 30, 2012 | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 30, 2012 | Dec. 29, 2013 | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 29, 2013 | |
Rocky Gap Resort [Member] | Rocky Gap Resort [Member] | Rocky Gap Resort [Member] | Rocky Gap Resort [Member] | Indian Casino Projects [Member] | Indian Casino Projects [Member] | Other Segments [Member] | Other Segments [Member] | Consolidation, Eliminations [Member] | |||
Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | ||||||
Fiscal 2013 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | $38,790,000 | $10,952,000 | $30,900,000 | $3,200,000 | ' | ' | $7,800,000 | $7,700,000 | $800,000 | $100,000 | ($700,000) |
Management fee revenue b Rocky Gap | 7,762,000 | 7,726,000 | ' | ' | ' | ' | ' | ' | 700,000 | ' | -700,000 |
Management fee expense b Rocky Gap | 19,332,000 | 10,191,000 | -700,000 | ' | ' | ' | ' | ' | ' | ' | 700,000 |
Impairments and other losses | 3,400,000 | 4,500,000 | ' | 1,200,000 | ' | ' | 3,400,000 | 1,800,000 | ' | 1,500,000 | ' |
Amortization of intangible assets related to operating casinos | 716,000 | 1,056,000 | ' | ' | 200,000 | 100,000 | 700,000 | 1,100,000 | ' | ' | ' |
Depreciation expense | 2,273,000 | 675,000 | 2,100,000 | 500,000 | ' | ' | ' | ' | 200,000 | 200,000 | ' |
Earnings (loss) from operations | 13,400,000 | -7,100,000 | -5,200,000 | -2,700,000 | ' | ' | 24,500,000 | 4,400,000 | -5,900,000 | -8,800,000 | ' |
Interest expense | 1,200,000 | 900,000 | 700,000 | ' | ' | ' | 500,000 | 900,000 | ' | ' | ' |
Gain on modification of debt | 1,658,000 | ' | 1,700,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Total assets | 147,261,000 | 119,722,000 | 34,400,000 | 12,000,000 | 12,000,000 | 34,400,000 | ' | 46,700,000 | 112,900,000 | 61,000,000 | ' |
Capital expenditures | 20,700,000 | 8,700,000 | 20,600,000 | 8,700,000 | ' | ' | ' | ' | 100,000 | ' | ' |
Investment in unconsolidated investees | $20,997,000 | $20,161,000 | ' | ' | ' | ' | ' | ' | $21,000,000 | $20,200,000 | ' |