Equity Method Investments in Affiliates

6 Months Ended

Jun. 30, 2011

Equity Method Investments in Affiliates

Equity Method Investments in Affiliates

7. EQUITY METHOD INVESTMENTS IN AFFILIATES

We held the following investments in unconsolidated affiliates:

		Carrying Value
	Type of affiliate	June 30, 2011		December 31, 2010
Whitehall Group	Equity-Accounted Affiliate	$	0	$	243,128
	Total Carrying value	$	0	$	243,128

As of December 31, 2010, the Company had an 80% economic interest and an effective voting interest of 49% in Whitehall and a voting interest of 25% in the Moet Hennessy Russia joint venture ("MH"), through Whitehall's 50% stake in MH. On February 7, 2011, the acquisition of the remaining portion of Whitehall not previously owned was completed. The Company changed the accounting treatment for its interest in Whitehall from the equity method of accounting to consolidation starting from February 7, 2011.

On March 30, 2011, the Company through its ownership of Whitehall sold its stake in MH to Moet Hennessey. As of the completion of this transaction, Whitehall will no longer have any direct ownership stake in MH, however, it will continue cooperation with MH as a key distributor in the Russian market.

The Company received $10.9 million of dividends from Whitehall during the year ended December 31, 2010 and $7.6 million of dividends received in January 2011, when Whitehall was consolidated under equity method.

The summarized financial information of investments are shown in the below table with the balance sheet financial information reflecting Whitehall and MH accounted under the equity method as of December 31, 2010. The results from operations for the three and six month periods ended June 30, 2011 include the results of Whitehall from January 1, 2011 to February 7, 2011 and MH from January 1, 2011 to March 30, 2011.

	Total		Total
	June 30, 2011		December 31, 2010
Current assets	$	0	$	142,256
Noncurrent assets		0		101,329
Current liabilities		0		101,966
Noncurrent liabilities	$	0	$	0

	Total Three months ended  June 30,				Total Six months ended  June 30,
	2011		2010		2011			2010
Net sales	$	0	$	32,894	$	6,494		$	56,544
Gross margin		0		12,529		1,995			19,800
Operating profit/(loss)		0		2,582		(9,975	)		(1,761	)
Income/(loss) from continuing operations		0		2,825		(11,018	)		556
Net income/(loss)		0		2,825		(11,018	)		556
Net income/(loss) attributable to CEDC	$	0	$	2,265	$	(8,814	)	$	444