Discontinued Operations.

6 Months Ended

Jun. 30, 2012

Discontinued Operations.

Discontinued Operations.

3.Discontinued Operations.

The Company began terminating live games operation at Rozvadov at the end of January 2012, and continued running the unit as a slot-only operation until March 31, 2012, when all gaming operations were ceased.  Rozvadov’s net losses, shown as discontinued operations for the first six months of 2012 and 2011 were $106 and $122, respectively, net of rental income.  No write-downs of inventories or furniture, fixtures and equipment (“FF&E”) were incurred because its slot machines were leased, while the Company’s owned FF&E was subsequently rented out and remaining inventories were transferred to other operating units at an immaterial cost.  Employees at Rozvadov received cash severance benefits aggregating approximately $79.  In light of the lessee exercising its option to buy the Rozvadov property (as discussed below), the Rozvadov assets are classified as held for sale at June 30, 2012 and December 31, 2011, and the assets and liabilities are included in the respective current assets and liabilities sections of the Condensed Consolidated Balance Sheets. The following table provides a detail of the net assets held for sale:

	At		At
(amounts in thousands)	June 30, 2012		December 31, 2011
Assets:
Land	$	30	$	32
Building	792		839
FF&E	16		29
Total assets	838		900
Liabilities related to assets held for sale	100		207
Net assets held for sale	$	738	$	693

Effective March 1, 2012, pursuant to a five-year lease agreement, the Company leased the Rozvadov casino building and its staff housing facilities to a local Czech casino operator.  However, due to a gaming license delay by the lessee, TWC continued operating the unit through the end of March 2012.  The lessee commenced operations at that site on April 4, 2012.  The lease terms also gave the lessee the option to buy out the lease for €1,000, or approximately $1,300, anytime during the first year of the agreement.  On July 11, 2012, the lessee exercised its option to buy out the lease by making the full purchase payment of €1,000, or $1,300 to TWC.