Discontinued Operations And Assets Held For Sale

12 Months Ended

Dec. 31, 2015

Disposal Group, Including Discontinued Operation, Additional Disclosures [Abstract]

Discontinued Operations And Assets Held For Sale

Discontinued Operations and Assets Held for Sale

In September 2014, we decided not to proceed with further development of the Lake Charles clean energy project that would have used gasification technology to convert low-grade fossil fuels into clean-energy products.  Our decision was based on final estimates of the likely ultimate cost of completion of the project.  Project development costs to date have been expensed as incurred.  As a result, we have classified the clean energy project as a discontinued operation.

In July 2014, we sold Premier, through which we had conducted our gaming operations, for aggregate cash consideration of $250.0 million, subject to working capital adjustment.  We recorded a pre-tax gain on sale of discontinued operations of $12.1 million in the third quarter of 2014.

During the third quarter of 2013, we sold a small power production business and recorded a pre-tax gain on sale of discontinued operations of $6.4 million.

In October 2013, we concluded that we would no longer continue to fund Sangart’s research and development operations, through which we had conducted our medical product development operations.   We commenced and completed an orderly shut-down of Sangart’s operations during 2013; as a result, our medical product development operations have been classified as a discontinued operation.

A summary of the results of discontinued operations for the clean energy project, Premier, Sangart, and the small power production business is as follows for the years ended December 31, 2014 and 2013; discontinued operations for the year ended December 31, 2015 were not significant (in thousands):

	2014			2013
Revenues and other income:
Gaming entertainment	$	67,739		$	114,844
Investment and other income	4,700			4,691
	72,439			119,535
Expenses:
Direct operating expenses - Gaming entertainment	48,877			85,233
Compensation and benefits	4,503			19,534
Depreciation and amortization	5,208			8,919
Selling, general and other expenses	41,378			98,178
	99,966			211,864
Loss from discontinued operations before income taxes	(27,527		)	(92,329		)
Income tax (benefit)	(9,634		)	(32,303		)
Loss from discontinued operations after income taxes	$	(17,893	)	$	(60,026	)

During 2013, we sold our subsidiary, Empire Insurance Company, which had been undergoing a voluntary liquidation, for cash consideration of $3.2 million, subject to certain post-closing working capital adjustments, and the sale resulted in the recognition of a tax benefit of $5.4 million.  Gain on disposal of discontinued operations for 2013 reflects an after-tax gain of $8.6 million for this sale.

Gain on disposal of discontinued operations for the year ended December 31, 2015, primarily relates to additional consideration received related to the 2012 sale of our small Caribbean-based telecommunications provider, and a reversal of a legal reserve.