Nashville Flood

6 Months Ended

Jun. 30, 2011

Nashville Flood [Abstract]

NASHVILLE FLOOD

3. NASHVILLE FLOOD:

As more fully discussed in the Company’s Annual Report on Form 10-K as of and for the year ended December 31, 2010 filed with the SEC, on May 3, 2010, Gaylord Opryland, the Grand Ole Opry, certain of the Company’s Nashville-based attractions, and certain of the Company’s corporate offices experienced significant flood damage as a result of the historic flooding of the Cumberland River (collectively, the “Nashville Flood”). Substantially all of the affected properties reopened in the second half of 2010; however, the Company will continue to have various flood-related expenses during 2011 as it completes the remaining flood-related projects. The Company has segregated all costs and insurance proceeds related to the Nashville Flood from normal operations and reported those amounts as casualty loss or preopening costs in the accompanying condensed consolidated statements of operations.

Casualty Loss

Casualty loss in the accompanying condensed consolidated statements of operations for the respective periods was comprised of the following (in thousands):

	Three Months Ended June 30, 2011
	Hospitality		Opry and Attractions		Corporate and Other		Total
Site remediation	$	—	$	277	$	—	$	277
Non-capitalized repairs of buildings and equipment		—		2		—		2
Other		—		31		159		190
Net casualty loss	$	—	$	310	$	159	$	469

	Six Months Ended June 30, 2011
	Hospitality			Opry and Attractions		Corporate and Other			Total
Site remediation	$	(179	)	$	285	$	(41	)	$	65
Non-capitalized repairs of buildings and equipment		—			4		13			17
Other		6			52		328			386
Net casualty loss	$	(173	)	$	341	$	300		$	468

	Three Months and Six Months Ended June 30, 2010
	Hospitality		Opry and Attractions		Corporate and Other		Insurance Proceeds			Total
Site remediation	$	11,924	$	2,391	$	562	$	—		$	14,877
Impairment of property and equipment		30,244		5,163		6,134		—			41,541
Other asset write-offs		1,846		1,106		—		—			2,952
Non-capitalized repairs of buildings and equipment		1,406		1,494		66		—			2,966
Continuing costs during shut-down period		15,957		2,194		629		—			18,780
Other		117		77		37		—			231
Insurance proceeds		—		—		—		(50,000	)		(50,000	)
Net casualty loss	$	61,494	$	12,425	$	7,428	$	(50,000	)	$	31,347

All costs directly related to remediating the affected properties are included in casualty loss. Lost profits from the interruption of the various businesses are not reflected in the above tables.

Preopening Costs

The Company expenses the costs associated with start-up activities and organization costs associated with its development of hotels and significant attractions as incurred. As a result of the extensive damage to Gaylord Opryland and the Grand Ole Opry House and the extended period in which these properties were closed, the Company incurred costs associated with the redevelopment and reopening of these facilities through the date of reopening. The Company has included all costs directly related to redeveloping and reopening the affected properties, as well as all continuing operating costs other than depreciation and amortization incurred from June 10, 2010 (the date at which the Company determined that the remediation was substantially complete) through the date of reopening, as preopening costs in the accompanying condensed consolidated statement of operations.