Equity Method Investments in Affiliates

12 Months Ended

Dec. 31, 2011

13. Equity method investments in affiliates

We hold the following investments in unconsolidated affiliates:


		Carrying Value
	Type of affiliate	December 31, 2011		December 31, 2010 (Restated, see note 2)
Whitehall Group	Equity-Accounted Affiliate	$	0	$	243,010

	Total Carrying value	$	0	$	243,010

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 no longer has 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 from January 1, 2011 through February 7, 2011, when Whitehall was consolidated under the 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 year ended December 31, 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 December 31, 2011		Total December 31, 2010
Current assets	$	0	$	142,256
Noncurrent assets		0		101,329
Current liabilities		0		101,966
Noncurrent liabilities		0		0


	Total Year ended December 31, 2011 (Restated, see note 2)			Total Year ended December 31, 2010 (Restated, see note 2)
Net sales	$	6,494		$	185,807
Gross margin		1,995			62,798
Operating profit		(9,975	)		15,598
Income from continuing operations		(9,933	)		16,733
Net income		(9,933	)		16,733
Net income/(loss) attributable to CEDC		(7,946	)		13,386

- Definition

The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group.

+ References+ Details