MOHEGAN GAMING ADVISORS, LLC (PROJECT INSPIRE)

9 Months Ended

Jun. 30, 2018

Project Inspire

Schedule of Long-term Development Projects [Line Items]

MOHEGAN GAMING ADVISORS, LLC (PROJECT INSPIRE)

MOHEGAN GAMING ADVISORS, LLC (PROJECT INSPIRE):

In February 2018, Mohegan Gaming Advisors, LLC (“Mohegan Gaming Advisors”), a wholly-owned subsidiary of the Company, entered into an amicable settlement agreement with Miura Holdings Asia, LLC (“Miura”) to relinquish Miura’s rights in connection with certain prior agreements, pursuant to which Miura would have been entitled to a small percentage of (i) equity in Inspire Integrated Resort Co., Ltd. (“Inspire Integrated Resort”) and (ii) certain development and management fees in connection with Project Inspire, for an amount equal to approximately $10.0 million payable over 13 years. 

On May 28, 2018, Mohegan Gaming Advisors redeemed and repurchased the 49.81% membership interest in Inspire Integrated Resort that was held by an unrelated third-party and its affiliates, for an amount equal to approximately $107.0 million. The Company utilized restricted cash that was held by Inspire Integrated Resort to complete this transaction. In accordance with ASC 810, the Company accounted for this change in ownership as an equity transaction. The difference between the carrying value of the non-controlling interest and the fair value of consideration paid, which approximated $10.0 million, was recorded as a decrease to retained earnings. The non-controlling interest portion of accumulated other comprehensive income, which approximated $7.7 million, was recorded as an increase to accumulated other comprehensive income. The Company did not recognize any gain or loss in connection with this transaction.