PROPERTY AND EQUIPMENT, NET

12 Months Ended

Sep. 30, 2014

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET:

Property and equipment, net, consisted of the following (in thousands):

	September 30, 2014			September 30, 2013
Land	$	65,485		$	65,485
Land improvements	97,146			96,735
Buildings and improvements	1,734,673			1,691,924
Furniture and equipment	547,719			541,832
Construction in process	8,011			55,569
Subtotal	2,453,034			2,451,545
Less: accumulated depreciation	(1,028,966		)	(975,370		)
Total property and equipment, net	$	1,424,068		$	1,476,175

Depreciation expense totaled $79.6 million, $79.8 million and $84.5 million for the fiscal years ended September 30, 2014, 2013 and 2012, respectively. Capitalized interest totaled $735,000, $2.0 million and $34,000 for the fiscal years ended September 30, 2014, 2013 and 2012, respectively.

In September 2008, the Authority suspended certain elements of its Project Horizon expansion due to a slowdown in business volumes and uncertainties in the financial markets. Costs incurred on the suspended elements related to excavation and foundation work for a planned podium and new hotel tower, as well as professional fees for design and architectural work. During its fourth quarter ended September 30, 2010, the Authority re-evaluated its plans with respect to the development of the new hotel element of the project, and based on a modified plan, which encompassed a smaller hotel to be located closer to the existing hotel, determined that certain assets related to the suspended elements did not have any future benefit to the Authority. Accordingly, in fiscal 2010, the Authority recorded a related $58.1 million impairment charge. During its fourth quarter ended September 30, 2014, the Authority further re-evaluated its modified plan, which now includes a hotel to be developed and owned by an instrumentality of the Tribe, as well as a third-party developed and owned retail center, and, based on new design plans, including the final location of the planned hotel, determined that certain design and earthwork related assets did not have any future benefit to the Authority. Accordingly, the Authority recognized a related $5.0 million impairment charge, which is recorded in the accompanying consolidated statement of loss for the fiscal year ended September 30, 2014. Of the $5.0 million impairment charge recognized in the fiscal year ended September 30, 2014, approximately $2.0 million relates to conceptual design work associated with the original hotel and should have been written-off in conjunction with the impairment charge recognized in fiscal 2010. The Authority concluded that this error was not material to its previously issued consolidated financial statements and the resulting correction is not material to the accompanying consolidated financial statements. As of September 30, 2014 and 2013, Project Horizon related assets, including related capitalized interest, anticipated to be utilized totaled $4.4 million and $9.4 million, respectively, and were included in construction in process. The Authority continues to evaluate its options with respect to the development of a new hotel and retail center; however, it can provide no assurance regarding if or when this modified plan will commence. If this modified plan does not commence, factors that the Authority will consider in determining the feasibility of a future hotel and retail center include the Authority’s financial performance, project cash flow projections, project costs, financing options, economic conditions, industry trends, demand and competition.