10-Q/A

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q/A

(Amendment No. 1)

(MARK ONE)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2012

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM                     TO                    

COMMISSION FILE NUMBER 001-35293

CENTRAL EUROPEAN DISTRIBUTION CORPORATION

(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

Delaware	54-1865271
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)
3000 Atrium Way, Suite 265 Mt. Laurel, New Jersey	08054
(Address of Principal Executive Offices)	(Zip code)

(856) 273-6980

(REGISTRANT’S TELEPHONE NUMBER, INCLUDING AREA CODE)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ¨    No  x

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (check one):

Large Accelerated Filer	x	Accelerated Filer	¨
Non-Accelerated Filer	¨  (Do not check if a smaller reporting company)	Smaller Reporting Company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.):    Yes  ¨    No  x

The number of shares outstanding of each class of the issuer’s common stock as of May 8, 2012: Common Stock ($.01 par value) 78,842,022

EXPLANATORY NOTE

Central European Distribution Corporation (“we”, “us”, “our,” or the “Company”) is filing this Amendment No. 1 on Form 10-Q/A (this “Amendment”) to the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2012, initially filed with the SEC on May 10, 2012 (the “Original Filing”). This Form 10-Q/A amends the Original Filing to restate the Company’s unaudited condensed consolidated financial statements for the three months ended March 31, 2012 and 2011 (the “Restatement”).

As previously disclosed, the Company changed its senior management at its principal operating subsidiary in Russia, the Russian Alcohol Group (“RAG”), during April 2012. Following this change, senior Company management requested that the new management team review RAG’s business operations and internal controls, including an assessment of the resources and needs of the corporate finance and reporting departments. Based on the preliminary findings of that review, senior management concluded that the Company’s financial statements for the years ended December 31, 2011 and 2010 should no longer be relied upon because of a failure to reflect the timely reporting of the full amount of retroactive trade rebates and trade marketing refunds provided to RAG’s customers in Russia.

Thereafter, the Audit Committee of the Company’s Board of Directors initiated an internal investigation, with the assistance of outside counsel and forensic accountants engaged by outside counsel, regarding the Company’s retroactive trade rebates, trade marketing refunds and related accounting issues. The Audit Committee, through its counsel, voluntarily notified the SEC of the investigation and is cooperating with the SEC. The Audit Committee has completed its accounting investigation, and has identified accounting irregularities at RAG, which resulted in the understatement of retroactive trade rebates and trade marketing refunds, as well as certain other errors that were concealed from both the Company’s senior management and the independent auditors. Certain reclassifications have also been made to conform data for all periods presented with the current presentation. For a more detailed description of the Restatement, see Note 2, “Restatement of unaudited condensed consolidated financial statements”, to the accompanying unaudited condensed consolidated financial statements.

As a result of the investigation, the Company has also determined that a control deficiency existed which contributed to the incorrect accounting for the Company’s retroactive trade rebates and trade marketing refunds for customers giving rise to the Restatement and that this deficiency constituted a material weakness in internal control over financial reporting. In connection with the investigation, the Company’s management also identified a material weakness in the Company’s internal control over financial reporting regarding the implementation of our policy on compliance with applicable laws as of December 31, 2011. Furthermore, the Company has expanded certain disclosure items related to income taxes in Note 8, as well as fair value measurement in Note 15.

We are also filing a quarterly report on Form 10-Q for the three and six months ended June 30, 2012 which includes restated balances and results as of and for the three and six months ended June 30, 2011, an amendment on Form 10-K/A for the year ended December 31, 2011 which includes restated balances and results as of and for the year ended December 31, 2010, and an amendment on Form 10-Q/A to the Company’s quarterly report on Form 10-Q for the three and nine months ended September 30, 2011 to restate the Company’s consolidated balance sheets as of those dates, and the consolidated statements of operations, the consolidated statements of cash flows, and the consolidated statement of changes in stockholders’ equity and the notes related thereto for periods covered by such financial statements to reflect the effects of the Restatement on the Company’s respective annual and unaudited Interim financial information.

This Amendment amends and restates only Items 1, 2, and 4 of Part I of the Original Filing, in each case, solely as a result of, and to reflect, the Restatement and no other information in the Original Filing is amended hereby. Except as required to reflect the effects of the Restatement, no additional modifications or updates in this Amendment have been made to the Original Filing. Information not affected by the Restatement remains unchanged and reflects the disclosures made at the time of the Original Filing. This Amendment does not describe other events occurring after the original filing, including exhibits, or modify or update those disclosures affected by subsequent events. Accordingly, this Amendment should be read in conjunction with our filings made with the SEC subsequent to the date of the Original Filing, including any amendments to those filings. In addition, pursuant to the rules of the SEC, Item 6 of Part II of the Original Filing has been amended to contain currently dated certifications from the Company’s Chief Executive Officer and Chief Financial Officer, as required by Sections 302 and 906 of the Sarbanes-Oxley Act of 2002. The certifications of the Company’s Chief Executive Officer and Chief Financial Officer are attached to this Amendment as Exhibits 31.1, 31.2, 32.1 and 32.2.

INDEX

		PAGE
PART I FINANCIAL INFORMATION
Item 1	Condensed Consolidated Financial Statements (unaudited)
	Condensed Consolidated Balance Sheets as of March 31, 2012 (unaudited) and as of December 31, 2011		1
	Condensed Consolidated Statements of Operations and Comprehensive Income (unaudited) for the three month periods ended March 31, 2012 and March 31, 2011		2
	Condensed Consolidated Statements of Cash Flow (unaudited) for the three month periods ended March  31, 2012 and March 31, 2011		3
	Notes to Condensed Consolidated Financial Statements (unaudited)		4
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations		23
Item 3	Quantitative and Qualitative Disclosures about Market Risk		32
Item 4	Controls and Procedures		32
PART II OTHER INFORMATION			33
Item 1	Legal Proceedings		33
Item 1A	Risk Factors		33
Item 6	Exhibits		34

CENTRAL EUROPEAN DISTRIBUTION CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

All amounts are expressed in thousands

(except share information)

	March 31, 2012 (unaudited)			December 31, 2011
	(Restated, see Note 2)
ASSETS
Current Assets
Cash and cash equivalents	$	107,798		$	94,410
Accounts receivable, net of allowance for doubtful accounts at March 31, 2012 of $26,889 and at December 31, 2011 of $24,510		220,257			410,866
Inventories		120,785			117,690
Prepaid expenses		23,169			16,538
Other current assets		21,722			23,020
Deferred income taxes		2,646			4,717
Debt issuance costs		2,959			2,962
Total Current Assets		499,336			670,203
Intangible assets, net		508,605			463,848
Goodwill		735,572			670,294
Property, plant and equipment, net		190,742			176,660
Deferred income taxes, net		22,811			21,488
Debt issuance costs		12,789			13,550
Non-current assets held for sale		675			675
Total Non-Current Assets		1,471,194			1,346,515
Total Assets	$	1,970,530		$	2,016,718
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Trade accounts payable	$	69,868		$	144,797
Bank loans and overdraft facilities		66,708			85,762
Short-term obligations under Convertible Senior Notes		305,977			0
Income taxes payable		8,391			9,607
Taxes other than income taxes		101,323			189,515
Other accrued liabilities		73,441			48,208
Current portions of obligations under capital leases		1,159			1,109
Total Current Liabilities		626,867			478,998
Long-term obligations under capital leases		728			532
Long-term obligations under Convertible Senior Notes		0			304,645
Long-term obligations under Senior Secured Notes		950,643			932,089
Long-term accruals		2,191			2,000
Deferred income taxes		99,199			91,128
Commitments and contingent liabilities (Note 14)
Total Long-Term Liabilities		1,052,761			1,330,394
Stockholders’ Equity
Common Stock ($0.01 par value, 120,000,000 shares authorized, 73,125,230 and 72,740,302 shares issued and outstanding at March 31, 2012 and December 31, 2011, respectively)		731			727
Preferred Stock ($0.01 par value, 1,000,000 shares authorized, none issued and outstanding)		0			0
Additional paid-in-capital		1,370,335			1,369,471
Accumulated deficit		(1,137,700	)		(1,197,884	)
Accumulated other comprehensive income		57,686			35,162
Less Treasury Stock at cost (246,037 shares at March 31, 2012 and December 31, 2011)		(150	)		(150	)
Total Stockholders’ Equity		290,902			207,326
Total Liabilities and Stockholders’ Equity	$	1,970,530		$	2,016,718

The accompanying notes are an integral part of the condensed consolidated financial statements.

1

CENTRAL EUROPEAN DISTRIBUTION CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED)

All amounts are expressed in thousands

(except per share information)

	Three months ended March 31,
	2012			2011
	(Restated, see Note 2)			(Restated, see Note 2)
Sales	$	321,756		$	318,081
Excise taxes		(175,767	)		(179,727	)
Net sales		145,989			138,354
Cost of goods sold		90,874			85,685
Gross profit		55,115			52,669
Selling, general and administrative expenses		58,934			55,370
Gain on remeasurement of previously held equity interests		0			(7,898	)
Operating income / (loss)		(3,819	)		5,197
Non operating income / (expense), net
Interest income / (expense), net		(26,302	)		(26,852	)
Other financial income / (expense), net		97,588			30,522
Other non operating income / (expense), net		(2,598	)		(976	)
Income before income taxes and equity in net losses from unconsolidated investments		64,869			7,891
Income tax expense		(4,685	)		(1,979	)
Equity in net losses of affiliates		0			(7,946	)
Net income (loss) attributable to the company		60,184			(2,034	)
Net income from operations per share of common stock, basic	$	0.83		$	(0.03	)
Net income from operations per share of common stock, diluted	$	0.82		$	(0.03	)
Other comprehensive income, net of tax:
Foreign currency translation adjustments		22,524			134,173
Comprehensive income attributable to the company	$	82,708		$	132,139

The accompanying notes are an integral part of the condensed consolidated financial statements.

2

CENTRAL EUROPEAN DISTRIBUTION CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED)

All amounts are expressed in thousands

	Three months ended March 31,
	2012			2011
	(Restated, see Note 2)			(Restated, see Note 2)
Cash flows from operating activities
Net income	$	60,184		$	(2,034	)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		4,815			5,131
Deferred income taxes		1,488			5
Unrealized foreign exchange gains		(98,006	)		(31,859	)
Stock options fair value expense		864			693
Equity loss in affiliates		0			7,946
Gain on fair value remeasurement of previously held equity interest		0			(6,397	)
Other non cash items		221			1,771
Changes in operating assets and liabilities:
Accounts receivable		226,070			264,074
Inventories		8,413			(16,586	)
Prepaid expenses and other current assets		(2,318	)		(17,520	)
Trade accounts payable		(89,358	)		(50,002	)
Other accrued liabilities and payables (including taxes)		(88,607	)		(70,625	)
Net cash provided by operating activities		23,766			84,597
Cash flows from investing activities
Purchase of fixed assets		(1,329	)		(505	)
Proceeds from the disposal of fixed assets		127			0
Purchase of trademarks		0			(17,473	)
Acquisitions of subsidiaries, net of cash acquired		0			(23,475	)
Net cash used in investing activities		(1,202	)		(41,453	)
Cash flows from financing activities
Borrowings on bank loans and overdraft facility		8,594			0
Payment of bank loans, overdraft facility and other borrowings		(26,872	)		(4,104	)
Decrease in short term capital leases payable		90			(102	)
Proceeds from options exercised		0			66
Net cash used in financing activities		(18,188	)		(4,140	)
Currency effect on brought forward cash balances		9,012			6,992
Net increase in cash		13,388			45,996
Cash and cash equivalents at beginning of period		94,410			122,116
Cash and cash equivalents at end of period	$	107,798		$	168,112
Supplemental Schedule of Non-cash Investing Activities
Common stock issued in connection with investment in subsidiaries	$	0		$	23,131

The accompanying notes are an integral part of the condensed consolidated financial statements.

3

CENTRAL EUROPEAN DISTRIBUTION CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Amounts in tables expressed in thousands, except share and per share information

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Organization and description of business

Central European Distribution Corporation (“CEDC”) and its subsidiaries (collectively referred to as “we,” “us,” “our,” or the “Company”) operate primarily in the alcohol beverage industry. We are one of the largest producers of vodka in the world and are Central and Eastern Europe’s largest integrated spirit beverages business, measured by total volume, with approximately 33.2 million nine-liter cases produced and distributed in 2011. Our business primarily involves the production and sale of our own spirit brands (principally vodka), and the importation on an exclusive basis of a wide variety of spirits, wines and beers. Our primary operations are conducted in Poland, Russia, Ukraine and Hungary. We have six operational manufacturing facilities located in Poland and Russia.

In Poland, we are one of the largest vodka producers with a brand portfolio that includes Absolwent, Żubrówka, Żubrówka Biała, Bols, Palace and Soplica brands, each of which we produce at our Polish distilleries. We produce and sell vodkas primarily in three of four vodka sectors: premium, mainstream and economy. In Poland, we also own and produce Royal, the top-selling vodka in Hungary.

We are also the largest vodka producer in Russia, the world’s largest vodka market. Our Green Mark brand is the top-selling mainstream vodka in Russia and the second-largest vodka brand by volume in the world, and our Parliament and Zhuravli brands are two top-selling sub-premium vodkas in Russia.

As well as sales and distribution of its own branded spirits, the Company is a leading exclusive importer of wines and spirits in Poland, Russia and Hungary.

Liquidity

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. As discussed further in Note 6, certain credit and factoring facilities are coming due in 2012, which the Company expects to renew. Furthermore, our Convertible Senior Notes (the “Convertible Notes”) are due on March 15, 2013. Our current cash on hand, estimated cash from operations and available credit facilities will not be sufficient to make the repayment on Convertible Notes and, unless the transaction with Russian Standard Corporation is completed as scheduled, the Company may default on them. The Company’s cash flow forecasts include the assumption that certain credit and factoring facilities that are coming due in 2012 will be renewed to manage working capital needs. Moreover, the Company had a net loss and significant impairment charges in 2011 and current liabilities exceed current assets at March 31, 2012. These conditions raise substantial doubt about the Company’s ability to continue as a going concern unless the transaction with Russian Standard described below is completed as scheduled.

As discussed further in Note 17, on April 23, 2012, the Company announced that definitive agreements had been signed with Russian Standard Corporation (via Roust Trading Limited) for a strategic transaction. Pursuant to these agreements, on May 4, 2012 Roust Trading Limited and its affiliates invested $100 million in the Company by purchasing a combination of newly issued shares of the Company’s common stock and notes exchangeable into the Company’s common shares following shareholder approval. In addition, Roust Trading Limited has agreed to purchase from the Company up to $210 million principal amount of newly issued, Unsecured Senior Notes due July 31, 2016 at a blended interest rate of 6.00%. While we believe that this transaction would allow the Company to settle the Convertible Notes before March 15, 2013, the transaction is subject to certain risks, including shareholder approval which may not be obtained. The Company’s annual general meeting (AGM) is scheduled for June 29, 2012 at which time the final vote of the shareholders will be known. We believe that if the transaction is completed as scheduled, the Convertible Notes will be repaid by their maturity date which would substantially reduce doubts about the Company’s ability to continue as a going concern.

Basis of presentation

These unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

CEDC’s subsidiaries maintain their books of account and prepare their statutory financial statements in their respective local currencies. The subsidiaries’ financial statements have been adjusted to reflect U.S. GAAP for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary to fairly present our financial condition, results of operations and comprehensive income and cash flows for the interim periods presented have been included. Operating results for the three months ended March 31, 2012 are not necessarily indicative of the results that may be expected for the year ended December 31, 2012.

4

The balance sheet at December 31, 2011 has been derived from the audited restated financial statements at that date, but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements.

These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our annual report on Form 10-K/A for the year ended December 31, 2011, dated October 4, 2012.

The significant interim accounting policies include the recognition of a pro-rata share of certain estimated annual sales incentives, marketing, promotion and advertising costs, generally in proportion to sales, and the recognition of income taxes using an estimated annual effective tax rate adjusted for tax amendments related to prior years and changes in estimate.

On February 7, 2011, the Company acquired full voting and economic control over Whitehall Group and changed the accounting treatment for its interest in Whitehall from the equity method of accounting to consolidation beginning on February 7, 2011.

2. RESTATEMENT OF UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

In April 2012, the Company changed its senior management at the Russian Alcohol Group (“RAG”), its main operating subsidiary in Russia. Following this change, the Company’s senior management requested that the new RAG senior management team review RAG’s business operations and internal controls, including an assessment of the resources and needs of the corporate finance and reporting departments, as identified in Item 9A of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011 initially filed with the Securities Exchange Commission (“SEC”) on February 29, 2012.

Based on the preliminary findings of that review, CEDC’s senior management concluded that the Company’s financial statements for the years ended December 31, 2010 and 2011 should no longer be relied upon because of a failure to reflect the timely reporting of the full amount of retroactive trade rebates and trade marketing refunds provided to RAG’s customers in Russia.

Thereafter, the Audit Committee of the Company’s Board of Directors initiated an internal investigation, with the assistance of outside counsel and forensic accountants engaged by outside counsel, regarding the Company’s retroactive trade rebates, trade marketing refunds and related accounting issues. The Audit Committee, through its counsel, voluntarily notified the SEC of the investigation and is cooperating with the SEC. The Audit Committee has completed its accounting investigation, and has identified accounting irregularities at RAG, which resulted in the understatement of retroactive trade rebates and trade marketing refunds, as well as certain other errors that were concealed from both the Company’s senior management and the independent auditors.

As a result of the investigation, the Company determined that certain retroactive trade rebates provided to RAG’s customers in Russia were not recorded, and therefore the consolidated sales for the years ended December 31, 2011 and 2010 were overstated by $29.6 and $11.3 million, respectively. The consolidated sales for the three months ended March 31, 2012 were not affected by this error and for the three months ended March 31, 2011 were overstated by $5.5 million. The accounts receivable as at March 31, 2012, December 31, 2011 and March 31, 2011 were overstated by $48.4, $44.5 and $20.7 million, respectively. Furthermore, the Company improperly accounted for promotional compensation granted to customers and as a result the accounts receivable as at March 31, 2012, December 31, 2011 and March 31, 2011 were additionally overstated by $7.8, $8.1 and $7.7 million, respectively, and the consolidated sales for the three months ended March 31, 2012 and 2011 were overstated by $1.6 and $2.8 million, respectively.

As of March 31, 2012 the Company:

- decreased accounts receivable by additional $4.3 million (in addition to the $48.4 million relating to unrecorded retroactive trade rebates and $7.8 million relating to promotional compensation granted to customers, described above) resulting from other individually immaterial adjustments;

- decreased current deferred income taxes by $3.9 million, the adjustment is mainly a result of additional valuation allowance of $14.2 million offset by additional deferred tax recognized in relation to retroactive rebates for customers of $8.6 million, and other individually immaterial adjustments;

- increased goodwill by $3.9 million, of which $2.7 million relates to unrecognized impairment of property, plant and equipment acquired in a business combinations in RAG in 2008 (adjusted also as of December 31, 2010).

In addition to the adjustments described above as of March 31, 2011 the Company:

- decreased accounts receivable by additional $16.3 million (in addition to the $20.7 million relating to unrecorded retroactive trade rebates and $7.7 million relating to promotional compensation granted to customers, described above); this adjustment resulted mainly from a cut-off error of $14.1 million, where revenue for the second quarter of 2011 was recognized in March 2011 and other individually immaterial adjustments;

- increased inventories by $9.5 million, resulting mainly from the cut-off error described above;

- increased goodwill by $4.0 million, of which $2.7 million relates to unrecognized impairment of property, plant and equipment on acquisition of RAG in 2008;

- increased trade payables by $10.1 million, of which $8.5 million relates to payables for marketing costs wrongly presented as other accrued liabilities;

- decreased other accrued liabilities by $7.2 million, mainly as a result of adjustment to accruals for marketing costs described above, offset by immaterial adjustments.

In the unaudited condensed consolidated statement of operations for the three months ended March 31, 2011 the Company:

- decreased sales by additional $9.8 million (in addition to the $5.5 million relating to unrecorded retroactive trade rebates and $2.8 million relating to promotional compensation granted to customers, described above) mainly due to sales cut-off error in the amount of $11.9 million offset by other individually immaterial adjustments;

- decreased cost of goods sold by $11.7 million mainly due to sales cut-off error in the amount of $10.3 million and other immaterial adjustments.

As a result, the Audit Committee of the Company’s Board of Directors concluded that the Company should restate its unaudited condensed consolidated balance sheets as of March 31, 2012 and 2011, and its unaudited condensed consolidated statements of operations and comprehensive income, changes in stockholders’ equity and cash flows for three months ended March 31, 2012 and 2011.

In addition to the errors and irregularities described above, the Company also included in the restated consolidated financial statements other adjustments, which are immaterial individually and in the aggregate, related primarily to previously unrecorded adjustments identified during the preparation of the unaudited condensed consolidated financial statements at March 31, 2012 and 2011, as well as, the write-off of non-recoverable VAT and prepayments, recording provisions for known obsolete inventory and accruing for certain other operating expenses. Furthermore, the Company has expanded certain disclosure items related to income and deferred taxes in Note 8.

The impact of the corrections of the errors discussed above on the consolidated balance sheets, consolidated statements of operations and comprehensive income, consolidated statements of cash flow and consolidated statements of changes in stockholders’ equity is shown in the accompanying tables (in thousands, except for per share data).

5

Condensed Consolidated Balance Sheet – March 31, 2012 (unaudited)

	As at March 31, 2012 As reported			Adjustment			As at March 31,  2012 Restated
Current Assets
Cash and cash equivalents	$	107,798		$	0		$	107,798
Accounts receivable, net of allowance for doubtful accounts of $26,221 as reported and $26,889 as restated		280,761			(60,504	)		220,257
Inventories		121,324			(539	)		120,785
Prepaid expenses		23,594			(425	)		23,169
Other current assets		19,341			2,381			21,722
Deferred income taxes		6,572			(3,926	)		2,646
Debt issuance cost		2,959			0			2,959
Total Current Assets		562,349			(63,013	)		499,336
Intangible assets, net		508,605			0			508,605
Goodwill		731,675			3,897			735,572
Property, plant and equipment, net		193,838			(3,096	)		190,742
Deferred income taxes, net		22,811			0			22,811
Debt issuance costs		12,789			0			12,789
Non-current assets held for sale		675			0			675
Total Non-Current Assets		1,470,393			801			1,471,194
Total Assets		2,032,742			(62,212	)		1,970,530
Current Liabilities
Trade accounts payable		69,868			0			69,868
Bank loans and overdraft facilities		66,708			0			66,708
Short-term obligations under Convertible Senior Notes		305,977			0			305,977
Income taxes payable		7,208			1,183			8,391
Taxes other than income taxes		99,863			1,460			101,323
Other accrued liabilities		70,715			2,726			73,441
Current portions of obligations under capital leases		1,159			0			1,159
Total Current Liabilities		621,498			5,369			626,867
Long-term obligations under capital leases		728			0			728
Long-term obligations under Senior Secured Notes		950,643			0			950,643
Long-term accruals		2,221			(30	)		2,191
Deferred income taxes		99,199			0			99,199
Total Long-Term Liabilities		1,052,791			(30	)		1,052,761
Stockholders’ Equity
Common Stock ($0.01 par value, 120,000,000 shares authorized, 73,125,230 shares issued and outstanding)		731			0			731
Preferred Stock ($0.01 par value, 1,000,000 shares authorized, none issued and outstanding)		0			0			0
Additional paid-in-capital		1,370,335			0			1,370,335
Accumulated deficit		(1,069,070	)		(68,630	)		(1,137,700	)
Accumulated other comprehensive income		56,607			1,079			57,686
Less Treasury Stock at cost (246,037 shares)		(150	)		0			(150	)
Total Stockholder’s Equity		358,453			(67,551	)		290,902
Total Liabilities and Stockholders’ Equity	$	2,032,742		$	(62,212	)	$	1,970,530

6

Condensed Consolidated Statement of Operations – 3 months ended March 31, 2012 (unaudited)

	Three months ended March 31, 2012 As reported			Adjustment			Three months ended March 31, 2012 Restated
Sales	$	323,975		$	(2,219	)	$	321,756
Excise taxes		(175,767	)		0			(175,767	)
Net sales		148,208			(2,219	)		145,989
Cost of goods sold		89,529			1,345			90,874
Gross profit		58,679			(3,564	)		55,115
Selling, general and administrative expenses		61,770			(2,836	)		58,934
Operating income / (loss)		(3,091	)		(728	)		(3,819	)
Non operating income / (expense), net
Interest income / (expense), net		(26,224	)		(78	)		(26,302	)
Other financial income / (expense), net		97,922			(334	)		97,588
Other non operating income / (expense), net		(2,598	)		0			(2,598	)
Income before income taxes and equity in net losses from unconsolidated investments		66,009			(1,140	)		64,869
Income tax expense		(3,513	)		(1,172	)		(4,685	)
Net income attributable to the company		62,496			(2,312	)		60,184
Net income from operations per share of common stock, basic		0.86			(0.03	)		0.83
Net income from operations per share of common stock, diluted		0.86			(0.04	)		0.82
Other comprehensive income, net of tax:
Foreign currency translation adjustments		28,719			(6,195	)		22,524
Comprehensive income attributable to the company	$	91,215		$	(8,507	)	$	82,708

7

Condensed Consolidated Statements of Cash Flow – 3 months ended March 31, 2012 (unaudited)

	Three months ended March 31, 2012 As reported			Adjustment			Three months ended March 31, 2012 Restated
Cash flows from operating activities
Net income	$	62,496		$	(2,312	)	$	60,184
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		4,815			0			4,815
Deferred income taxes		121			1,367			1,488
Unrealized foreign exchange gains		(98,681	)		675			(98,006	)
Stock options fair value expense		864			0			864
Other non cash items		(26	)		247			221
Changes in operating assets and liabilities:
Accounts receivable		226,728			(658	)		226,070
Inventories		6,964			1,449			8,413
Prepaid expenses and other current assets		(3,114	)		796			(2,318	)
Trade accounts payable		(89,358	)		0			(89,358	)
Other accured liabilities and payables (including taxes)		(87,043	)		(1,564	)		(88,607	)
Net cash provided by operating activities		23,766			0			23,766
Cash flows from investing activities
Purchase of fixed assets		(1,329	)		0			(1,329	)
Proceeds from the disposal of fixed assets		127			0			127
Net cash used in investing activities		(1,202	)		0			(1,202	)
Cash flows from financing activities
Borrowings on bank loans and overdraft facility		8,594			0			8,594
Payment of bank loans, overdraft facility and other borrowings		(26,872	)		0			(26,872	)
Decrease in short term capital leases payable		90			0			90
Net cash used in financing activities		(18,188	)		0			(18,188	)
Currency effect on brought forward cash balances		9,012			0			9,012
Net increase in cash		13,388			0			13,388
Cash and cash equivalents at beginning of period		94,410			0			94,410
Cash and cash equivalents at end of period	$	107,798		$	0		$	107,798

8

Condensed Consolidated Balance Sheet - March 31, 2011 (unaudited)

	Balance as at March 31, 2011 As Reported			Adjustments			Balance as at March 31, 2011 Restated
Current Assets
Cash and cash equivalents	$	168,112		$	0		$	168,112
Accounts receivable, net of allowance for doubtful accounts of $34,056 as reported and $35,005 as restated		296,513			(44,678	)		251,835
Inventories		137,504			9,462			146,966
Prepaid expenses and other current assets		70,415			(979	)		69,436
Deferred income taxes		87,849			(677	)		87,172
Debt issuance cost		2,739			9			2,748
Total Current Assets		763,132			(36,863	)		726,269
Intangible assets, net		684,844			0			684,844
Goodwill, net		1,832,878			3,988			1,836,866
Property, plant and equipment, net		221,584			(3,202	)		218,382
Deferred income taxes		43,805			0			43,805
Debt issuance costs		16,042			0			16,042
Total Non-Current Assets		2,799,153			786			2,799,939
Total Assets	$	3,562,285		$	(36,077	)	$	3,526,208
Current Liabilities
Trade accounts payable	$	80,018		$	10,076		$	90,094
Bank loans and overdraft facilities		72,496			0			72,496
Income taxes payable		3,325			0			3,325
Taxes other than income taxes		98,525			(1,444	)		97,081
Other accrued liabilities		105,405			(7,204	)		98,201
Current portions of obligations under capital leases		838			0			838
Total Current Liabilities		360,607			1,428			362,035
Long-term obligations under capital leases		1,096			0			1,096
Long-term obligations under Senior Notes		1,288,564			0			1,288,564
Long-term accruals		2,321			(31	)		2,290
Deferred income taxes		183,000			0			183,000
Total Long Term Liabilities		1,474,981			(31	)		1,474,950
Stockholders’ Equity
Common Stock ($0.01 par value, 120,000,000 shares authorized, 72,716,235 shares issued and outstanding)		727			0			727
Additional paid-in-capital		1,367,509			0			1,367,509
Retained earnings		161,371			(37,905	)		123,466
Accumulated other comprehensive income		197,240			431			197,671
Less Treasury Stock at cost (246,037 shares)		(150	)		0			(150	)
Total Stockholder’s Equity		1,726,697			(37,474	)		1,689,223
Total Liabilities and Stockholders’ Equity	$	3,562,285		$	(36,077	)	$	3,526,208

Condensed Consolidated Statement of Operations – Three months ended March 31, 2011 (unaudited)

	Three months ended March 31, 2011 As reported			Adjustments			Three months ended March 31, 2011 Restated
Sales	$	336,139		$	(18,058	)	$	318,081
Excise taxes		(179,428	)		(299	)		(179,727	)
Net sales		156,711			(18,357	)		138,354
Cost of goods sold		97,374			(11,689	)		85,685
Gross profit		59,337			(6,668	)		52,669
Selling, general and administrative expenses		57,877			(2,507	)		55,370
Gain on remeasurement of previously held equity interests		(7,898	)		0			(7,898	)
Operating income		9,358			(4,161	)		5,197
Non operating income / (expense), net
Interest expense, net		(26,852	)		0			(26,852	)
Other financial income, net		31,046			(524	)		30,522
Other non operating expenses, net		(976	)		0			(976	)
Income before taxes and equity in net income from unconsolidated investments		12,576			(4,685	)		7,891
Income tax expense		(2,641	)		662			(1,979	)
Equity in net losses of affiliates		(8,814	)		868			(7,946	)
Net income / (loss)	$	1,121		$	(3,155	)	$	(2,034	)
Net income / (loss) from operations per share of common stock, basic	$	0.02		$	(0.05	)	$	(0.03	)
Net income / (loss) from operations per share of common stock, diluted	$	0.02		$	(0.05	)	$	(0.03	)
Other comprehensive income, net of tax
Foreign currency translation adjustments		137,016			(2,843	)		134,173
Comprehensive income attributable to the Company	$	138,137		$	(5,998	)	$	132,139

9

Condensed Consolidated Statements of Cash Flow - Three months ended March 31, 2011 (unaudited)

	Three months ended March 31, 2011 As reported			Adjustments			Three months ended March 31, 2011 Restated
Cash flows from operating activities of continuing operations
Net income / (loss)	$	1,121		$	(3,155	)	$	(2,034	)
Adjustments to reconcile net income / (loss) to net cash provided by operating activities:
Depreciation and amortization		5,131			0			5,131
Deferred income taxes		725			(720	)		5
Unrealized foreign exchange gains		(31,651	)		(208	)		(31,859	)
Stock options fair value expense		693			0			693
Equity loss in affiliates		8,814			(868	)		7,946
Gain on fair value remeasurement of previously held equity interest, net of deferred tax		(6,397	)		0			(6,397	)
Other non cash items		1,780			(9	)		1,771
Changes in operating assets and liabilities:
Accounts receivable		268,051			(3,977	)		264,074
Inventories		(5,197	)		(11,389	)		(16,586	)
Prepayments and other current assets		(16,860	)		(660	)		(17,520	)
Trade accounts payable		(83,645	)		33,643			(50,002	)
Other accrued liabilities and payables		(58,176	)		(12,449	)		(70,625	)
Net cash provided by operating activities from continuing operations		84,389			208			84,597
Cash flows from investing activities of continuing operations
Purchase of fixed assets		(505	)		0			(505	)
Purchase of trademarks		(17,473	)		0			(17,473	)
Acquisitions of subsidiaries, net of cash acquired		(23,475	)		0			(23,475	)
Net cash (used in) / provided by investing activities from continuing operations		(41,453	)		0			(41,453	)
Cash flows from financing activities of continuing operations
Payment of bank loans, overdraft facility and other borrowings		(4,104	)		0			(4,104	)
Decrease in short term capital leases payable		(102	)		0			(102	)
Proceeds from options exercised		66			0			66
Net cash used in financing activities from continuing operations		(4,140	)		0			(4,140	)
Currency effect on brought forward cash balances		6,992			0			6,992
Net increase in cash		45,788			208			45,996
Cash and cash equivalents at beginning of period		122,324			(208	)		122,116
Cash and cash equivalents at end of period	$	168,112		$	0		$	168,112
Supplemental Schedule of Non-cash Investing Activities
Common stock issued in connection with investment in subsidiaries	$	23,131		$	0		$	23,131
Supplemental disclosures of cash flow information
Interest paid	$	6,329		$	0		$	6,329
Income tax paid	$	7,012		$	0		$	7,012

10

Condensed Consolidated Statements of Changes in Stockholders’ Equity – March 31, 2011 (unaudited)

	Balance as at March 31, 2011 As Reported			Adjustments			Balance as at March 31, 2011 Restated
Common Stock	$	727		$	0		$	727
Additional Paid-in Capital		1,367,509			0			1,367,509
Retained Earnings		161,371			(37,905	)		123,466
Accumulated other comprehensive income of continuing operations		197,240			431			197,671
Accumulated other comprehensive income of discontinued operations		0			0			0
Less Treasury Stock at cost		(150	)		0			(150	)
Total	$	1,726,697		$	(37,474	)	$	1,689,223

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3. SALE OF ACCOUNTS RECEIVABLE

On February 24, 2011, two subsidiaries of the Company, namely CEDC International sp. z o.o. (“CEDC International”) and Polmos Białystok S.A. (“Polmos Bialystok”), entered into factoring arrangements (“Factoring Agreements”) with ING Commercial Finance Polska (“ING Polska”) for the sale up to 290.0 million Polish zlotys (approximately $93.0 million) of receivables. On January 1, 2012, the total limit under the Factoring Agreements was reduced from 290.0 million Polish zlotys ($93.0 million) to 250.0 million Polish zlotys ($80.2 million) and from March 1, 2012 it was further reduced to 220.0 million Polish zlotys ($70.5 million). The Factoring Agreements were to mature on April 30, 2012, however on April 25, 2012 the Company extended these agreements until September 30, 2012 with further decrease of the total limit from April 25, 2012 to 200.0 million Polish zlotys (approximately $64.1 million).

As of March 31, 2012, the total balance of receivables under factoring amounted to 177.3 million Polish zlotys (approximately $56.8 million) of the 220.0 million Polish zlotys limit available.

For the three months ended March 31, 2012, the Company sold receivables in the amount of 302.8 million Polish zlotys ($97.1 million) and recognized a loss on the sale in the statement of operations and comprehensive income in the amount of 3.2 million Polish zlotys ($1.0 million) in respect of the non-recourse factoring. The Company has no continuing involvement with the sold non-recourse receivables.

As of March 31, 2012, the liabilities from factoring with recourse amounted to $1.4 million and are included in the short term bank loans in the balance sheet. Corresponding receivables from factoring with recourse are presented under accounts receivable in the balance sheet.

4. COMPREHENSIVE INCOME

Comprehensive income is defined as all changes in equity during a period except those resulting from investments by owners and distributions to owners. Comprehensive income includes net income adjusted by foreign currency translation adjustments. The foreign translation losses/gains on the re-measurements from foreign currencies to U.S. dollars are classified separately as foreign currency translation adjustment within accumulated other comprehensive income included in stockholders’ equity.

As of March 31, 2012, our functional currencies (Polish zloty, Russian ruble and Hungarian forint) exchange rates used to translate the balance sheet strengthened against the U.S. dollar as compared to the exchange rates as of December 31, 2011, and as a result $22.5 million of foreign currency translation adjustment was recognized as part of total comprehensive income, which mainly related to an increase in goodwill and intangible assets.

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5. EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share for the periods indicated.

	Three months ended March 31,
	2012		2011
	(Restated, see Note 2)		(Restated, see Note 2)
Net income / (loss)	$	60,184	$	(2,034	)
Weighted average shares of common stock outstanding (used to calculate basic EPS)		72,885		71,208
Net effect of dilutive employee stock options based on the treasury stock method		217		147
Weighted average shares of common stock outstanding (used to calculate diluted EPS)		73,102		71,355
Net income / (loss) per common share—basic	$	0.83	$	(0.03	)
Net income / (loss) per common share—diluted	$	0.82	$	(0.03	)

Employee stock options granted have been included in the above calculations of diluted earnings per share where the exercise price is less than the average market price of the common stock during the three months ended March 31, 2012 and 2011. In addition there is no adjustment to fully diluted shares related to the Convertible Senior Notes as the average market price was below the conversion price for the periods.

6. BORROWINGS

Bank Facilities

As of March 31, 2012, the Company has outstanding liability of €25.0 million ($33.4 million) from the term loans from Zenit Bank, Alfa Bank and Raiffeisen Bank drawn by Whitehall:

• The loan agreement with Zenit Bank, dated March 29, 2011, matures on June 6, 2012. The credit limit under this loan agreement is €10.0 million ($13.3 million) and the loan is released in tranches maturing in 365 days, no later than June 6, 2012. The loan was released in four tranches between April 21, 2011 and September 13, 2011, and is repayable between April 20, 2012 and May 18, 2012. As of March 31, 2012, the Company had outstanding liability of €5.0 million ($6.7 million) from this term loan;

• The loan agreement with Alfa Bank, dated July 22, 2008, matures on October 18, 2014. The credit limit under this agreement is €20.0 million ($26.7 million) and the loan is released in tranches maturing within three, six or nine months, depending if they are pledged by inventory. The loan was released in eight tranches between September 14, 2011 and March 30, 2012, and is repayable between April 28, 2012 and October 30, 2012. As of March 31, 2012, the Company had outstanding liability of €15.1 million ($20.1 million) from this term loan;

• The loan agreement with Raiffeisen Bank, dated July 6, 2010, matures on July 6, 2012. The credit limit under this agreement is €10.0 million ($13.3 million) and the loan is released in tranches maturing within one to 12 months, not later than July 6, 2012. The loan was released in five tranches between September 12, 2011 and October 26, 2011, and is repayable between May 18, 2012, and July 6, 2012. As of March 31, 2012, the Company had outstanding liability of €4.9 million ($6.5 million) from this term loan.

The aforementioned loans drawn by Whitehall are guaranteed by Whitehall companies. The loans from Zenit Bank and Alfa Bank are secured by the Company’s inventory.

As of March 31, 2012, the Company has outstanding term loans of 879.6 million Russian rubles ($30.0 million) from Unicredit and JSC Grand Invest Bank, both drawn by Russian Alcohol, as well as, an overdraft facility from Sberbank drawn by Bravo Premium:

• The loan agreement with Unicredit, dated May 24, 2011, matures on November 23, 2012. This loan has no financial covenants and is secured by inventory of up to 720 million Russian rubles ($24.6 million) and guarantees given by companies of Russian Alcohol. As of March 31, 2012, the Company has outstanding liability of 600.0 million Russian rubles ($20.5 million) from this term loan;

• The loan agreement with JSC Grand Invest Bank, dated November 25, 2011, matures on November 23, 2012. This loan has no financial covenants that need to be met. As of March 31, 2012, the Company has outstanding liability of 279.6 million Russian rubles ($9.5 million) from this term loan;

13

• The overdraft agreement with Sberbank, dated February 6, 2012, matures on February 5, 2013. The credit limit under this agreement is 60.0 million Russian rubles ($2.0 million). This loan is secured by fixed assets. As of March 31, 2012, the Company has outstanding liability of 52.5 million Russian rubles ($1.8 million) from this overdraft facility.

As of March 31, 2012, the Company had available to use under existing overdraft facility in Hungary 100.0 million Hungarian forints ($0.5 million).

Convertible Senior Notes due 2013

On March 7, 2008, the Company completed the issuance of $310 million aggregate principal amount of 3% Convertible Senior Notes due 2013 (the “Convertible Senior Notes”). Interest is due semi-annually on the 15^th of March and September, beginning on September 15, 2008. The Convertible Senior Notes are convertible in certain circumstances into cash and, if applicable, shares of our common stock, based on an initial conversion rate of 14.7113 shares per $1,000 principal amount, subject to certain adjustments. Upon conversion of the notes, the Company will deliver cash up to the aggregate principal amount of the notes to be converted and, at the election of the Company, cash and/or shares of common stock in respect to the remainder, if any, of the conversion obligation. The proceeds from the Convertible Senior Notes were used to fund the cash portions of the acquisition of Copecresto Enterprises Limited and Whitehall.

As of March 31, 2012 and December 31, 2011, the Company had accrued interest of $0.4 million and $2.7 million, respectively, related to the Convertible Senior Notes, with the next coupon due for payment on September 15, 2012. Total obligations under the Convertible Senior Notes are shown net of deferred finance costs, amortized over the life of the borrowings using the effective interest rate method as shown in the table below:

	March 31,			December 31,
	2012			2011
Convertible Senior Notes	$	310,000		$	310,000
Unamortized debt discount		(851	)		(1,070	)
Debt discount related to ASC 470-20		(3,172	)		(4,285	)
Total	$	305,977		$	304,645

For the three months ended March 31, 2012 and March 31, 2011, the additional pre-tax non-cash interest expense recognized in the consolidated statement of operations was $1.1 million each. Accumulated amortization related to the debt discount was $16.5 million and $12.2 million as of March 31, 2012 and March 3 1, 2011, respectively. Pre-tax increase in non-cash interest expense on our consolidated statements of operations and comprehensive income to be recognized until 2013, the maturity date of the CSNs, amounts to $3.2 million.

Senior Secured Notes due 2016

On December 2, 2009, the Company issued $380 million 9.125% Senior Secured Notes due 2016 and €380 million ($507.0 million) 8.875% Senior Secured Notes due 2016 (the “2016 Notes”) in an unregistered offering to institutional investors. The Company used a portion of the net proceeds from the 2016 Notes to redeem the Company’s outstanding 2012 Notes, having an aggregate principal amount of €245.4 million ($327.4 million) on January 4, 2010. The remainder of the net proceeds from the 2016 Notes was used to (i) purchase Lion Capital’s remaining equity interest in Russian Alcohol by exercising the Lion Option and the Co-Investor Option, pursuant to the terms and conditions of the Lion Option Agreement and the Co-Investor Option Agreement, respectively (ii) repay all amounts outstanding under Russian Alcohol credit facilities; and (iii) repay certain other indebtedness.

On December 9, 2010, the Company issued an additional €50.0 million ($66.7 million) 8.875% Senior Secured Notes due 2016 (the “2016 Notes”) in an unregistered offering to institutional investors. The Company used the net proceeds from the additional 2016 Notes to repay its term loans and overdraft facilities with Bank Handlowy w Warszawie S.A and Bank Zachodni WBK S.A.

14

As of March 31, 2012 and December 31, 2011 the Company had accrued interest of $28.5 million and $7.0 million respectively, related to the Senior Secured Notes due 2016, with the next coupon due for payment on June 1, 2012.

	March 31,			December 31,
	2012			2011
Senior Secured Notes due 2016	$	953,705		$	935,296
Unamortized debt discount		(3,062	)		(3,207	)
Total	$	950,643		$	932,089

	March 31,
	2012
Principal repayments for the following years
2012	$	43,215
2013		327,912
2014		0
2015		0
2016 and beyond		950,643
Total	$	1,321,770

7. INVENTORIES

The following table summarizes our inventories:

	March 31,		December 31,
	2012 (Restated, see Note 2)		2011
Raw materials and supplies	$	22,926	$	22,237
In-process inventories		8,046		2,655
Finished goods and goods for resale		89,813		92,798
Total	$	120,785	$	117,690

Because of the nature of the products supplied by the Company, great attention is paid to inventory rotation. The number of days in inventory increased from at approximately 81 days as of December 31, 2011 to approximately 121 days as of March 31, 2012. As a comparison, the number of days in inventory as of March 31, 2011 amounted to 154 days with total balance of $147.0 million.

8. INCOME TAXES

Our tax charge for the three months ended March 31, 2012 was $4.7 million which represents an effective tax rate for this period of 7.2%. The underlying tax rates in our key jurisdictions are 19% in Poland, 20% in Russia, 21% in Ukraine, 16% in Hungary and 35% in the United States. Changes in the Company’s uncertain income tax position, excluding the related accrual for interest and penalties, for the three-month period ended March 31, 2012 result from additions to accruals for current and prior year tax positions. There were no reductions for prior year tax positions, settlements or lapses in statutes of limitations. As of March 31, 2012 and December 31, 2011, the uncertain income tax position balance was $7.0 million and $7.1 million, respectively.

15

9. OPERATING SEGMENTS

The Company operates and manages its business based upon three primary geographic segments: Poland, Russia and Hungary. Selected financial data split based upon this segmentation assuming elimination of intercompany revenues and profits is shown below: Segment information represents only continuing operations.

	Segment Net Sales Three months ended March 31,
	2012		2011
	(Restated, see Note 2)		(Restated, see Note 2)
Segment
Poland	$	47,135	$	46,617
Russia		93,426		86,579
Hungary		5,428		5,158
Total Net Sales	$	145,989	$	138,354

	Operating income / (loss) Three months ended March 31,
	2012			2011
	(Restated, see Note 2)			(Restated, see Note 2)
Segment
Poland before fair value adjustments	$	6,480		$	4,793
Gain on remeasurement of previously held equity interests		0			7,898
Poland after fair value adjustments		6,480			12,691
Russia		(8,463	)		(6,220	)
Hungary		720			661
Corporate Overhead
General corporate overhead		(1,692	)		(1,242	)
Option Expense		(864	)		(693	)
Total Operating income / (loss)	$	(3,819	)	$	5,197

	Identifiable Operating Assets
	March 31, 2012		December 31, 2011
	(Restated, see Note 2)
Segment
Poland	$	599,163	$	600,940
Russia		1,319,980		1,369,744
Hungary		22,957		20,265
Corporate		28,430		25,769
Total Identifiable Assets	$	1,970,530	$	2,016,718

	Goodwill
	March  31, 2012 (Restated, see Note 2)		December 31, 2011
Segment
Poland	$	276,188	$	252,080
Russia		452,691		412,105
Hungary		6,693		6,109
Total Goodwill	$	735,572	$	670,294

16

10. INTEREST EXPENSE, NET

The following items are included in Interest expense, net:

	Three months ended March 31,
	2012 (Restated, see Note 2)			2011
Interest income	$	245		$	525
Interest expense		(26,547	)		(27,377	)
Total interest expense, net	($	26,302	)	($	26,852	)

11. OTHER FINANCIAL INCOME, NET

The following items are included in Other financial income, net:

	Three months ended March 31,
	2012			2011
	(Restated, see Note 2)			(Restated, see Note 2)
Foreign exchange impact related to foreign currency financing	$	98,347		$	31,127
Other gains / (losses)		(759	)		(605	)
Total other financial income / (expense), net	$	97,588		$	30,522

12. OTHER NON-OPERATING EXPENSE

The following items are included in Other Non-Operating Expense:

	Three months ended March 31,
	2012			2011
Factoring costs and bank fees		(2,262	)		(671	)
Other gains / (losses)		(336	)		(305	)
Total other non operating income / (expense), net	($	2,598	)	($	976	)

13. STOCK BASED COMPENSATION PLANS AND WARRANTS

During the three months ended March 31, 2012, the range of exercise prices for outstanding options was $2.00 to $60.92. During the three months ended March 31, 2012, the weighted average remaining contractual life of options outstanding is 4.9 years. Exercise prices for options exercisable as of March 31, 2012 ranged from $2.00 to $60.92. The Company has also granted 51,761 restricted stock units at an average price of $4.38 and 399,415 restricted stock at an average price of $4.38 during the first quarter of 2012.

The Company has issued stock options to employees under stock based compensation plans. Stock options are issued at the current market price, subject to a vesting period, which varies from one to three years. As of March 31, 2012, the Company has not changed the terms of any outstanding awards.

During the three months ended March 31, 2012, the Company recognized compensation cost of $0.86 million.

As of March 31, 2012, there was $3.4 million of total unrecognized compensation cost related to non-vested stock options, restricted stock units and restricted stock granted under the Company’s Stock Incentive Plan. The costs are expected to be recognized over period through 2012-2015.

The following weighted-average assumptions were used in the calculation of fair value for options granted during 2011. For the three months ended March 31, 2012 the Company did not grant any options to its employees.

	December 31, 2011
Fair Value	$	7.60
Dividend Yield		0	%
Expected Volatility		66.1	%
Weighted Average Volatility		66.1	%
Risk Free Interest Rate		3	%
Expected Life of Options from Grant		3.2

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14. COMMITMENTS AND CONTINGENT LIABILITIES

Supply contracts

The Company has various agreements covering its sources of supply, which, in some cases, may be terminated by either party on relatively short notice. Thus, there is a risk that a portion of the Company’s supply of products could be curtailed at any time.

Bank Guarantees

In accordance with current legislation in Russia each producer of spirit beverages must acquire excise stamps and must pay excise tax in full before buying spirit for production purposes. For each lot of stamps purchased, the alcohol producer must provide the relevant body with a bank guarantee in the full amount of payment for the excise tax to secure the legality of usage of the excise stamps. This bank guarantee serves as insurance against the illegal usage of excise stamps by an alcohol producer.

In addition, under new legislation effective since August 1, 2011 the producer purchasing spirit alcohol must a) prepay the excise tax in full or b) provide the relevant tax body with a bank guarantee in the full amount of the excise tax before purchasing to secure payment of the excise tax. This bank guarantee serves as insurance that the excise tax is paid in time.

Russian Alcohol signed a guarantee line agreement with multiple banks pursuant to which it was provided with a guarantee limit of 18.2 billion Russian rubles (approximately $620.8 million) for a period from 1 to 4 years, Bravo Premium signed a guarantee line agreement with multiple banks pursuant to which it was provided with a guarantee limit of 600.0 million Russian rubles (approximately $20.5 million) for a period from 1 to 2 years and Whitehall signed a guarantee line agreement with multiple banks pursuant to which it was provided with a guarantee limit of 1.7 billion Russian rubles (approximately $58.0 million) as insurance against the illegal usage of excise stamps.

According to the agreements, companies have the right to obtain bank guarantees during the agreement term for each purchase of excise stamps and for the purchase of spirit. The guarantees for excise stamps are held by Rosalkoregulirovanie (the Federal Service for Alcohol Market Regulation), during the whole production period for which the excise stamps were purchased. The guarantee for excise tax is held by the beneficiary (the tax body) for 6 months after the end of month the spirit was purchased.

As of March 31, 2012, the Company has bank guarantees related to customs duties on imported goods in Poland of $2.0 million.

Operating Leases and Rent Commitments

The Company makes rental payments for real estate, vehicles, office, computer, and manufacturing equipment under operating leases. The following is a schedule by years of the future rental payments under the non-cancelable operating lease as of March 31, 2012:

2012	$	8,753
2013		9,130
2014		8,722
2015		8,148
2016		5,536
Thereafter		2,976
Total	$	43,265

During the first quarter of 2012, the Company continued its policy of renewing its transportation fleet by way of capital leases. The future minimum lease payments for the assets under capital lease as of March 31, 2012 are as follows:

2012	$	1,194
2013		522
2014		171
Gross payments due	$	1,887
Less interest		(132	)
Net payments due	$	1,755

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Legal proceedings

From time to time we are involved in legal proceedings arising in the normal course of our business, including opposition and cancellation proceedings with respect to trademarks similar to some of our brands, and other proceedings, both in the United States and elsewhere. Except as set forth below, we are not currently involved in or aware of any pending or threatened proceedings that we reasonably expect, either individually or in the aggregate, will result in a material adverse effect on our consolidated financial statements.

On October 24, 2011, a class action complaint titled Steamfitters Local 449 Pension Fund vs. Central European Distribution Corporation, et al., was filed in the United States District Court, District of New Jersey on behalf of a putative class of all purchasers of our common stock from August 5, 2010 through February 28, 2011 against us and certain of our officers. The complaint seeks unspecified money damages and alleges violations of federal securities law in connection with alleged materially false and misleading statements and/or omissions regarding our business, financial results and prospects in our public statements and public filings with the U.S. Securities & Exchange Commission for the second and third quarters of 2010, relating to declines in our vodka portfolio, our need to take an impairment charge relating to the deterioration in fair value of certain of our brands in Poland and negative financial results from the launch of Żubrówka Biała. Subsequent to the above complaint, a second, substantially identical class action complaint titled Tim Schuler v. Central European Distribution Corporation, et al., was filed in the same court. Motions to consolidate the two cases and for the appointment of lead plaintiff and lead counsel have been filed and are awaiting decision. As a result, no response to the complaints has yet been filed. The Company intends to mount a vigorous defense to the claims asserted. As of March 31, 2012 the original plaintiffs, Steamfitters Pension Fund and Tim Schuler, no longer remain in the lawsuits and the current plaintiffs are now the Prosperity Group and the Arkansas Pension Fund, however the names of the lawsuits have remained unchanged.

On November 11, 2011, a purported shareholder derivative action, titled Ying Yeung v. William V. Carey, et al., was filed in the United States District Court, District of New Jersey against the current members of our board of directors (and against the Company as the nominal defendant), seeking unspecified damages on behalf of the Company. A second, substantially identical shareholder derivative complaint, titled Russell Partch v. William V. Carey, et al., was subsequently filed in the same court. Plaintiff alleges that our directors breached their fiduciary duties of care, good faith and loyalty to the Company by failing to establish and maintain adequate internal controls and by failing to exercise proper oversight over management, which would have prevented the Company from disseminating the allegedly false and misleading statements to shareholders that are the subject of the securities class action litigation described above. The derivative actions are at a very preliminary stage, and no response to the complaints has yet been filed.

Although we believe the allegations in the class and derivative complaints are without merit, these types of lawsuits can be protracted, time-consuming, distracting to management and expensive and, whether or not the claims are ultimately successful, could ultimately have an adverse effect on our business.

15. FAIR VALUE MEASUREMENTS

The Company utilizes the accounting guidance for fair value measurements and disclosures for all financial assets and liabilities and nonfinancial assets and liabilities that are recognized or disclosed at fair value in the condensed financial statements on a recurring basis or on a nonrecurring basis during the reporting period. The fair value is an exit price, representing the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants based upon the best use of the asset or liability at the measurement date. The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability. The accounting guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The three levels of inputs used to measure fair value are as follows:

Level 1	—	Quoted prices in active markets for identical assets or liabilities.
Level 2	—	Observable inputs other than quoted prices included in Level 1. We value assets and liabilities included in this level using dealer and broker quotations, certain pricing models, bid prices, quoted prices for similar assets and liabilities in active markets, or other inputs that are observable or can be corroborated by observable market data.
Level 3	—	Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

As of March 31, 2012, the Company held certain financial assets that are measured at fair value on a recurring basis. These consisted of cash and cash equivalents. The monetary assets represented by these financial instruments are primarily located in Poland, Hungary and Russia. Consequently, they are subject to currency translation risk when reporting in U.S. Dollars. The fair values of the cash and cash equivalents, Convertible Senior Notes and Secured Senior Notes is determined based on quoted market prices in public markets and is categorized as Level 1. The Company does not have any financial assets measured at fair value on a recurring basis as Level 3 and there were no transfers in or out of Level 1, Level 2 or Level 3 during the three months ended March 31, 2012.

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Non-financial assets and liabilities, such as goodwill and long-lived assets, are accounted for at fair value on a nonrecurring basis. These items are tested for impairment on the occurrence of a triggering event or in the case of goodwill, on at least an annual basis. Management reviews long-lived assets for potential impairment whenever significant events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment exists when the carrying amount of the long-lived asset is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the estimated undiscounted cash flows expected to result from the use and eventual depletion of the asset. If an impairment exists, the resulting write-down would be the difference between the fair market value of the long-lived asset and the related net book value. As of the balance sheet date, the carrying value of its long-lived assets are recoverable and no impairment existed.

The following table sets forth by level, within the fair value hierarchy, the Company’s financial assets accounted for at fair value on a recurring and nonrecurring basis (cash and cash equivalents as well as assets held for sale) and fair values of financial assets accounted for at their carrying value (Convertible Senior Notes and Secured Senior Notes) as of March 31, 2012 and December 31, 2011.

			Assets at Fair Value Using
	Total		Quoted Prices  in Activated Markets for Identical Assets (Level 1)		Significant  Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
March 31, 2012
Recurring items
Cash and cash equivalents	$	107,798	$	107,798	$	0	$	0
Convertible Senior Notes	$	272,800	$	272,800	$	0	$	0
Secured Senior Notes	$	731,350	$	731,350	$	0	$	0
Nonrecurring items
Assets held for sale	$	675	$	0	$	0	$	675
December 31, 2011
Recurring items
Cash and cash equivalents	$	94,410	$	94,410	$	0	$	0
Convertible Senior Notes	$	248,000	$	248,000	$	0	$	0
Secured Senior Notes	$	702,700	$	702,700	$	0	$	0
Nonrecurring items
Assets held for sale	$	675	$	0	$	0	$	675

The Company has other financial instruments, such as receivables, accounts payable, overdrafts, short term bank loans and other liabilities which have been excluded from the tables above. Due to the short-term nature of these instruments, the carrying value approximate their fair values. The Company did not have any other financial instruments with the scope of the fair value disclosure requirements as of March 31, 2012.

16. EFFECTS OF FOREIGN CURRENCY MOVEMENTS

Substantially all of the Company’s operating cash flows and assets are denominated in Polish zloty, Russian ruble and Hungarian forint. This means that the Company is exposed to translation movements both on its balance sheet and statement of operations and comprehensive income. The impact on working capital items is demonstrated on the cash flow statement as the movement in exchange on cash and cash equivalents. The impact on the statement of operations is by the movement of the average exchange rate used to restate the statement of operations from Polish zloty, Russian ruble and Hungarian forint to U.S. dollars. The amounts shown as exchange rate gains or losses on the face of the statements of operations relate only to realized gains or losses on transactions that are not denominated in Polish zloty, Russian ruble or Hungarian forint. Table below presents the exchange rates used for translation of our balance sheet and statement of operations and comprehensive income balances as of and for the three months ended March 31, 2012:

	Balance sheet rate as of March 31, 2012		Balance sheet rate as of December 31, 2011		Average rate for the three months ended March 31, 2012		Average rate for the three months ended March 31, 2011
PLN / US$		3.1191		3.4174		3.2249		2.8800
RUR / US$		29.3148		32.2092		30.1674		29.2089
HUF / US$		221.2128		240.6620		225.5175		198.6207

Because the Company’s reporting currency is the U.S. dollar, the translation effects of fluctuations in the exchange rate of our functional currencies have impacted the Company’s financial condition and results of operations and have affected the comparability of our results between financial periods.

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The Company has borrowings including its Convertible Notes due 2013 and Senior Secured Notes due 2016 that are denominated in U.S. dollars and euros, which have been lent to its operations where the functional currency is the Polish zloty and Russian ruble. The effect of having debt denominated in currencies other than the Company’s functional currencies is to increase or decrease the value of the Company’s liabilities on that debt in terms of the Company’s functional currencies when those functional currencies depreciate or appreciate in value respectively. As a result of this, the Company is exposed to gains and losses on the re-measurement of these liabilities. The table below summarizes the pre-tax impact of a one percent movement in each of the exchange rate which could result in a significant impact in the results of the Company’s operations.

Exchange Rate	Value of notional amount	Pre-tax impact of a 1% movement in exchange rate
USD-Polish zloty	$426 million	$	4.3 million gain/loss
USD-Russian ruble	$264 million	$	2.6 million gain/loss
EUR-Polish zloty	€430 million or approximately $574 million	$	5.7 million gain/loss

17. SUBSEQUENT EVENTS

On April 23, 2012, the Company announced that definitive agreements had been signed with Russian Standard Corporation (via Roust Trading Limited) for a strategic transaction. Pursuant to a securities purchase agreement, Roust Trading Limited has agreed to make an investment in the Company in three stages, subject to typical closing conditions. First, on May 4, 2012 Roust Trading Limited acquired 5,714,286 newly issued shares of the Company’s common stock for an aggregate purchase price of $30 million, or $5.25 per share, and JSC “Russian Standard Bank,” an affiliate of Roust Trading Limited, purchased $70 million aggregate principal amount of senior notes due March 18, 2013, bearing an interest rate of 3.00% (the “New Debt”) issued by the Company. Subject to the consummation of the Second Closing (as defined in the securities purchase agreement), the Company (on or after January 30, 2013) or Roust Trading Limited (on or after the completion of the Second Closing) may cause the New Debt to effectively be exchanged for newly issued shares of the Company’s common stock equal to the then-outstanding principal amount of the New Debt, plus accrued and unpaid interest thereon as of the Second Closing, divided by $5.25. The total amount of shares of the Company’s common stock expected to be issued in relation to the New Debt is approximately 13,333,333 shares of the Company’s common stock plus any additional shares representing accrued and unpaid interest under the New Debt as of the Second Closing. Second, if shareholder approval is obtained, then (subject to typical closing conditions), Roust Trading Limited will purchase $102.6 million aggregate principal amount of senior rollover notes due July 31, 2016 (the “Rollover Notes”), from the Company. The Company must use the proceeds (net of fees and expenses) from the issuance of the Rollover Notes to repurchase the Convertible Senior Notes held by Roust Trading Limited or its affiliates, in the same principal amount as the Rollover Notes, at par. Third, the Company, at its option, may issue to Roust Trading Limited senior backstop notes in an aggregate principal amount of up to $107.5 million due July 31, 2016 (the “Backstop Notes”) to be used by the Company to pay the remaining principal amount of the Convertible Senior Notes then outstanding. Each of the Rollover Notes and Backstop Notes will bear a blended interest rate of 6.00% over the term of each note.

The Company and Roust Trading Limited also entered into a governance agreement in support of this investment. In accordance with this governance agreement, Roust Trading Limited may nominate up to three directors to the Company’s Board of Directors depending on the amount of the Company’s common stock held by Roust Trading Limited. In addition, Roust Trading Limited received various minority protection rights.

18. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In May 2011, the FASB issued ASU 2011-04, “Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs” (“ASU 2011-04”), which is effective for annual reporting periods beginning after December 15, 2011. This guidance amends certain accounting and disclosure requirements related to fair value measurements. Additional disclosure requirements in the update include: (1) for Level 3 fair value measurements, quantitative information about unobservable inputs used, a description of the valuation processes used by the entity, and a qualitative discussion about the sensitivity of the measurements to changes in the unobservable inputs; (2) for an entity’s use of a nonfinancial asset that is different from the asset’s highest and best use, the reason for the difference; (3) for financial instruments not measured at fair value but for which disclosure of fair value is required, the fair value hierarchy level in which the fair value measurements were determined; and (4) the disclosure of all transfers between Level 1 and Level 2 of the fair value hierarchy. The Company adopted ASU 2011-04 during the first quarter of the current fiscal year. The adoption of ASU 2011-04 did not have a material impact on the Company’s consolidated financial statements other than disclosures related to fair value measurements.

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In June 2011, the FASB issued ASU 2011-05, “Presentation of Comprehensive Income” (“ASU 2011-05”), which was issued to enhance comparability between entities that report under U.S. GAAP and IFRS, and to provide a more consistent method of presenting non-owner transactions that affect an entity’s equity. ASU 2011-05 eliminates the option to report other comprehensive income and its components in the statement of changes in stockholders’ equity and requires an entity to present the total of comprehensive income, the components of net income and the components of other comprehensive income either in a single continuous statement or in two separate but consecutive statements. This pronouncement is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. However, in December 2011, the FASB issued ASU 2011-12, “Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05” (“ASU 2011-12”), which deferred the guidance on whether to require entities to present reclassification adjustments out of accumulated other comprehensive income by component in both the statement where net income is presented and the statement where other comprehensive income is presented for both interim and annual financial statements. ASU 2011-12 reinstated the requirements for the presentation of reclassifications that were in place prior to the issuance of ASU 2011-05 and did not change the effective date for ASU 2011-05. For public entities, the amendments in ASU 2011-05 and ASU2011-12 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011, and should be applied retrospectively. The Company adopted both ASU 2011-05 and ASU 2011-12 during the first quarter of the current fiscal year. The adoption of ASU 2011-05 and ASU 2011-12 did not have a material impact on the Company’s consolidated financial statements, other than presentation of comprehensive income.

In September 2011, the FASB issued ASU 2011-08, “Testing Goodwill for Impairment” (“ASU 2011-08”), which simplifies testing for impairment by allowing an entity to first assess qualitative factors and determine if it is more likely than not (defined as 50% or more) that the fair value of the reporting unit is less than its carrying amount. That determination can then be used to decide if it is necessary to perform the two-step goodwill impairment test. ASU 2011-08 is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011, which corresponds to the Company’s first quarter of current fiscal year. The Company will adopt ASU 2011-08 during the current fiscal year and this adoption is not expected to have a material impact on the Company’s consolidated financial statements.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following analysis should be read in conjunction with the Condensed Consolidated Financial Statements and the notes thereto appearing elsewhere in this report.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 Regarding Forward-Looking Information.

This report (and other oral and written statements we have made or make, including press releases containing information about our business, results of operations, financial condition, guidance and other business developments), contains forward-looking statements, which provide our current expectations or forecasts of future events. These forward-looking statements may be identified by the use of forward-looking terminology, including the terms “believes,” “estimates,” “anticipates,” “expects,” “intends,” “may,” “will” or “should” or, in each case, their negative, or other variations or comparable terminology, but the absence of these words does not necessarily mean that a statement is not forward-looking. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this report and include, without limitation:

• information concerning possible or assumed future results of operations, trends in financial results and business plans, including those relating to earnings growth and revenue growth, liquidity, prospects, strategies and the industry in which the Company and its affiliates operate, as well as the integration of recent acquisitions and other investments and the effect of such acquisitions and other investments on the Company;

• statements about the expected level of our costs and operating expenses, and about the expected composition of the Company’s revenues;

• information about the impact of governmental regulations on the Company’s businesses;

• statements about local and global credit markets, currency exchange rates and economic conditions;

• other statements about the Company’s plans, objectives, expectations and intentions including with respect to its credit facility and other outstanding indebtedness; and

• other statements that are not historical facts.

By their nature, forward-looking statements involve known and unknown risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. We caution you that forward-looking statements are not guarantees of future performance and that our actual results of operations, financial condition and liquidity, the development of the industries in which we operate, and the effects of acquisitions and other investments on us may differ materially from those anticipated in or suggested by the forward-looking statements contained in this report. In addition, even if our results of operations, financial condition and liquidity, and the development of the industry in which we operate, are consistent with the forward-looking statements contained in this report, those results or developments may not be indicative of results or developments in subsequent periods.

We urge you to read and carefully consider the items of this and other reports and documents that we have filed with or furnished to the SEC for a more complete discussion of the factors and risks that could affect our future performance and the industry in which we operate, including the risk factors described in this report and in the Company’s Annual Report on Form 10-K filed with the SEC on February 29, 2012. In light of these risks, uncertainties and assumptions, the forward-looking events described in this report may not occur as described, or at all.

You should not unduly rely on these forward-looking statements, because they reflect our views only as of the date of this report. The Company undertakes no obligation to publicly update or revise any forward-looking statement to reflect circumstances or events after the date of this report, or to reflect on the occurrence of unanticipated events. All subsequent written and oral forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by the cautionary statements referred to above and contained elsewhere in this report.

The following discussion and analysis should be read in conjunction with the Consolidated Financial Statements and the notes thereto found elsewhere in this report.

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Overview

The Company is one of the world’s largest vodka producers and Central and Eastern Europe’s largest integrated spirit beverages business with its primary operations in Poland, Russia and Hungary. During 2011, the Company continued its strategy of integrating the business in Russia following the buyout of the remaining stake in Whitehall in the first quarter of 2011 when the Company took full economic and controlling ownership of the business. During the first quarter of 2012, the Company continued to focus on developing sales volumes in its key markets of Poland and Russia as well as reorganizing the Russia operations. Both the Polish and Russian vodka markets continued to see an overall market decline. In Poland, however, the Company was able to see year on year domestic volume and value growth for the quarter ending March 31, 2012 primarily due to the continued success of Żubrówka Biała and the higher margin flavored segment including Soplica. Total Russian volumes were down which were driven mainly by lower domestic vodka volumes, as a result of wholesalers de-stocking to lower levels of inventory and reduced sales to key accounts, during our renegotiations in the first quarter of 2012, partially offset by higher export volumes. On the domestic vodka front, sales volumes for the first quarter 2012 in Russia were down by 15% as compared to 2011, however, sell out from wholesalers to the retail trade was only down 8%—9% reflecting the impact of continued de-stocking. Finally spirit, which is the main ingredient in vodka production showed signs of stabilizing in both Russia and Poland, however Russia is still impacted as compared to the same quarter in the prior year due to the rapid increases in spirit prices during 2011.

Restatement

The Company is restating its unaudited condensed consolidated financial statements for the three months ended March 31, 2012 and 2011. The Restatement corrects certain accounting errors primarily related to the accounting for retroactive rebates provided to customers during those periods, accounting for revenue transactions, asset write offs, cut off errors and income taxes. The Restatement also includes reclassifications of accounts payable for periods prior to 2011 to conform to the current presentation. All amounts in Management’s Discussion and Analysis of Financial Conditions and Results of Operations (Restated) have been adjusted, as appropriate, for the effects of the Restatement. For a more detailed description of the Restatement, see Note 2, “Restatement of unaudited condensed consolidated financial statements”, to the accompanying condensed consolidated financial statements.

Significant factors affecting our consolidated results of operations

Effect of Exchange Rate and Interest Rate Fluctuations

Substantially all of Company’s operating cash flows and assets are denominated in Polish zloty, Russian ruble and Hungarian forint. This means that the Company is exposed to translation movements both on its balance sheet and statement of operations. The impact on working capital items is demonstrated on the cash flow statement as the movement in exchange on cash and cash equivalents. The impact on the statement of operations is due to the movement of the average exchange rate used to restate the statements of operations from Polish zloty, Russian ruble and Hungarian forint to U.S. dollars. The amounts shown as exchange rate gains or losses on the face of the statements of operations relate only to realized gains or losses on transactions that are not denominated in Polish zloty, Russian ruble or Hungarian forint. The table below presents the exchange rates used for translation of our balance sheet and statement of operations balances as of and for the quarter ended March 31, 2012:

	Balance sheet rate as of March 31, 2012		Average rate for the three months ended March 31, 2012
PLN / US$		3.1191		3.2249
RUR / US$		29.3148		30.1674
HUF / US$		221.2128		225.5175

Because the Company’s reporting currency is the U.S. dollar, the translation effects of fluctuations in the exchange rate of our functional currencies have impacted the Company’s financial condition and results of operations and have affected the comparability of our results between financial periods.

The Company also has borrowings including its Convertible Notes due 2013 and Senior Secured Notes due 2016 that are denominated in U.S. dollars and euros, which have been lent to its operations where the functional currency is the Polish zloty and Russian ruble. The effect of having debt denominated in currencies other than the Company’s functional currencies is to increase or decrease the value of the Company’s liabilities on that debt in terms of the Company’s functional currencies when those functional currencies depreciate or appreciate in value, respectively. As a result of this, the Company is exposed to gains and losses on the re-measurement of these liabilities. The table below summarizes the pre-tax impact of a one percent movement in each of the exchange rate which could result in a significant impact in the results of the Company’s operations.

Exchange Rate	Value of notional amount	Pre-tax impact of a 1% movement in exchange rate
USD-Polish zloty	$426 million	$	4.3 million gain/loss
USD-Russian ruble	$264 million	$	2.6 million gain/loss
EUR-Polish zloty	€430 million or approximately $574 million	$	5.7 million gain/loss

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Results of Operations:

Three months ended March 31, 2012 compared to three months ended March 31, 2011

A summary of the Company’s operating performance (expressed in thousands except per share amounts) is presented below.

	Three months ended March 31,
	2012			2011
	(Restated)			(Restated)
Sales	$	321,756		$	318,081
Excise taxes		(175,767	)		(179,727	)
Net sales		145,989			138,354
Cost of goods sold		90,874			85,685
Gross profit		55,115			52,669
Selling, general and administrative expenses		58,934			55,370
Gain on remeasurement of previously held equity interests		0			(7,898	)
Operating income / (loss)		(3,819	)		5,197
Non operating income / (expense), net
Interest income / (expense), net		(26,302	)		(26,852	)
Other financial income / (expense), net		97,588			30,522
Other non operating income / (expense), net		(2,598	)		(976	)
Income before taxes and equity in net income from unconsolidated investments		64,869			7,891
Income tax expense		(4,685	)		(1,979	)
Equity in net losses of affiliates		0			(7,946	)
Net income attributable to the company		60,184			(2,034	)
Net income from operations per share of common stock, basic	$	0.83		$	(0.03	)
Net income from operations per share of common stock, diluted	$	0.82		$	(0.03	)
Other comprehensive loss, net of tax:
Foreign currency translation adjustments		22,524			134,173
Comprehensive income attributable to the company	$	82,708		$	132,139

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Net Sales

Net sales represent total sales net of all customer rebates, excise tax on production and imports, and value added tax. Total net sales increased by approximately 5.5%, or $7.6 million, from $138.4 million for the three months ended March 31, 2011 to $146.0 million for the three months ended March 31, 2012. The increase was driven by the consolidation of Whitehall only for two months in 2011 comparing to a full quarter in 2012 of $6.5 million and higher local currency sales value of $9.2 million. These increases were partially offset by the impact of foreign currency exchange translation of $8.1 million. In Russia although sales volumes were lower, this was offset by improved pricing and lower trade marketing spend in the quarter.

	Segment Net Sales Three months ended March 31,
	2012		2011
	(Restated)		(Restated)
Segment
Poland	$	47,135	$	46,617
Russia		93,426		86,579
Hungary		5,428		5,158
Total Net Sales	$	145,989	$	138,354

Sales for Poland increased by $0.5 million from $46.6 million for the three months ended March 31, 2011 to $47.1 million for the three months ended March 31, 2012. This increase was driven mainly by volume growth of domestic vodkas of 7% and export volume growth of 17%, resulting in a net sales value increase of $5.5 million, or 11.8% in local currency terms, offset by weaker Polish zloty against the U.S. dollar which accounted for approximately $5.0 million of sales in U.S. dollar terms. The Company continued to see strong demand for its Żubrówka Biała as well as higher margin flavored vodkas including Soplica.

Sales for Russia increased by $6.8 million from $86.6 million for the three months ended March 31, 2011 to $93.4 million for the three months ended March 31, 2012. Local currency sales value increased by $2.8 million, which was driven by overall lower sales volumes of 15% offset by improved pricing and lower trade marketing. Lower sales volumes in Russia were primarily due to an overall weak vodka market in Russia, with total sales volumes in the industry down during the quarter, as well as continued lower inventory levels in the wholesale trade and reduced sales to key accounts during our renegotiations in the first quarter of 2012. The 15% decline in domestic sales represents the decline in sales into the trade, whereas sales out of the trade to the end customer was only down 8%—9%, with the difference due to the impact of de-stocking. The sales value decrease of the Russian business was also driven by the weakening of the Russian ruble against the U.S. dollar which accounted for approximately $2.5 million of sales in U.S. dollar terms. This was partially offset by the effect of consolidation of Whitehall only for two months in 2011 comparing to full quarter in 2012, resulting in a year on year increase of $6.5 million.

Sales for Hungary increased by $0.2 million from $5.2 million for the three months ended March 31, 2011 to $5.4 million for the three months ended March 31, 2012 which resulted in a $0.9 million increase in volumes on local currency terms offset by a weaker Hungarian forint against the U.S. dollar which accounted for approximately $0.7 million of sales in U.S. dollar terms.

Gross Profit

Total gross profit increased by approximately 4.6%, or $2.4 million, to $55.1 million for the three months ended March 31, 2012, from $52.7 million for the three months ended March 31, 2011. The increase in margin was driven primarily by the higher sales value in Russia. Gross profit margins as a percentage of net sales decreased by 0.3 percentage points from 38.1% to 37.8 % for the three months ended March 31, 2012 as compared to the three months ended March 31, 2011. The change in gross margin percentage was driven by the year on year growth of spirit pricing which resulted in approximately $3.2 million of additional cost in the first quarter of 2012. The spirit prices in Russia have however recently begun to stabilize since January 2012, and in Poland spirit prices have been stable since February 2011 and into the beginning of 2012.

Operating Expenses

Operating expenses consist of selling, general and administrative, or “SG&A” expenses, advertising expenses, non-production depreciation and amortization, and provision for bad debts. Total operating expenses excluding fair value adjustments increased by $3.5 million, from $55.4 million for the three months ended March 31, 2011 to $58.9 million for the three months ended March 31, 2012. For comparability of costs between periods, operating expenses, after excluding the fair value adjustments, are shown separately in the table below. As a percent of net sales they increased from 40.0% for the three months ended March 31, 2011 to 40.4% for the three months ended March 31, 2012.

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The table below sets forth the items of operating expenses.

	Operating Expenses Three Months Ended March 31,
	2012 (Restated)		2011 (Restated)
SG&A	$	50,088	$	48,253
Marketing		6,490		4,266
Depreciation and amortization		2,356		2,851
Sub-Total		58,934		55,370
Fair value adjustments		0		(7,898	)
Total operating expense	$	58,934	$	47,472

SG&A consists of salaries, warehousing and transportation costs, administrative expenses and bad debt expense. SG&A expenses increased by $1.8 million, from $48.3 million for the three months ended March 31, 2011 to $50.1 million for the three months ended March 31, 2012. The increase in SG&A is primarily due to the inclusion of a full quarter of the Whitehall Group in 2012 of $4.0 million, redundancy costs in Russia of $2.2 million as well as over all inflationary increases including transport costs in Russia.

Marketing expenses increased by $2.2 million, from $4.3 million for the three months ended March 31, 2011, to $6.5 million for the three months ended March 31, 2012, mainly due to higher marketing spending primarily in Russia and Ukraine.

Depreciation and amortization decreased by $0.5 million, from $2.9 million for the three months ended March 31, 2011 to $2.4 million for the three months ended March 31, 2012.

Operating Income

Total operating income decreased by $9.0 million, from $5.2 million income for the three months ended March 31, 2011 to $3.8 million loss for the three months ended March 31, 2012, primarily driven by lower domestic sales and higher spirit costs in the Russian market. The table below summarizes the segmental split of operating profit.

	Operating Income/(Loss) Three months ended March 31,
	2012			2011
	(Restated)			(Restated)
Segment
Poland before fair value adjustments	$	6,480		$	4,793
Gain on remeasurement of previously held equity interests		0			7,898
Poland after fair value adjustments		6,480			12,691
Russia		(8,463	)		(6,220	)
Hungary		720			661
Corporate Overhead
General corporate overhead		(1,692	)		(1,242	)
Option Expense		(864	)		(693	)
Total Operating Profit/(Loss)	$	(3,819	)	$	5,197

Underlying operating income in Poland excluding fair value adjustments increased by approximately 35.4%, or $1.7 million, from $4.8 million for the three months ended March 31, 2011 to $6.5 million for the three months ended March 31, 2012. The operating loss in Russia increased by $2.3 million from 6.2 million loss for the three months ended March 31, 2011 to $8.5 million loss for the three months ended March 31, 2012. The changes in operating income in both of these segments were driven by all of the factors described above.

Non Operating Income and Expenses

Total interest expense decreased by approximately 2.2%, or $0.6 million, from $26.9 million for the three months ended March 31, 2011 to $26.3 million for the three months ended March 31, 2012. This decrease was primarily driven by the euro exchange rate as compared to the Polish zloty.

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The Company recognized $97.6 million of non-cash unrealized foreign exchange rate income in the three months ended March 31, 2012, primarily related to the impact of movements in exchange rates on our U.S. dollar and euro denominated liabilities, as compared to $30.5 million of gain in the three months ended March 31, 2011.

Total other non-operating expenses increased by $1.6 million, from a loss of $1.0 million for the three months ended March 31, 2011 to a loss of $2.6 million for the three months ended March 31, 2012.

	Three months ended March 31,
	2012			2011
Factoring costs and bank fees		(2,262	)		(671	)
Other gains / (losses)		(336	)		(305	)
Total other non operating income / (expense), net	$	(2,598	)	$	(976	)

Income Tax

Our effective tax rate for the three months ended March 31, 2012 was 7.2% as compared to an average blended statutory rate of 21%. The difference in effective tax rates was due primarily to permanent tax differences related to the treatment of unrealized foreign exchange rate gains in Poland.

Statement of Liquidity and Capital Resources

During the three months ended March 31, 2012, the Company’s primary sources of liquidity were cash flows generated from operations. The Company’s primary uses of cash were to fund its working capital requirements, service indebtedness and finance capital expenditures. The following table sets forth selected information concerning the Company’s consolidated cash flow during the periods indicated.

	Three months ended March 31, 2012			Three months ended March 31, 2011 (Restated)
Cash flow from operating activities	$	23,766		$	84,597
Cash flow from investing activities	$	(1,202	)	$	(41,453	)
Cash flow from financing activities	$	(18,188	)	$	(4,140	)

Management views and performs analysis of financial and non financial performance indicators of the business by segments that are split by countries. The extensive analysis of indicators such as sales value in local currencies, gross margin and operating expenses by segment is included in the MD&A section of this Form 10-Q/A.

Net cash flow from operating activities

Net cash flow from operating activities represents net cash from operations and interest. Overall cash flow from operating activities decreased from cash generation of $84.6 million for the three months ended March 31, 2011 to cash generation of $23.8 million for the three months ended March 31, 2012. The primary factors contributing to this lower cash generation in 2012 are due to the fact that in the first quarter of 2011, the Company entered into factoring arrangements in Poland for the first time which resulted in higher cash collection during this quarter. In 2011 the Polish operations received the cash inflow from the peak Q4 2010 sales as well as the cash from the factored receivables of the quarter, resulting in a one-off benefit in cash flow for the period. During the same period in 2012, the Polish operations only received the normal factored cash flow from the first quarter of 2012.

Overall working capital movements of accounts receivable, inventory and accounts payable provided approximately $54.2 million of cash during the three months ended March 31, 2012. Days sales outstanding (“DSO”) as of March 31, 2012 amounted to 48 days as compared to 56 days as of March 31, 2011. The number of days in inventory as of March 31, 2012 amounted to 121 days as compared to 154 days as of March 31, 2011. In addition, the ratio of our current assets to current liabilities, net of inventories, was 0.6 as of March 31, 2012.

Net cash flow used in investing activities

Net cash flows used in investing activities represent net cash used to acquire subsidiaries and fixed assets. Net cash outflow for the three months ended March 31, 2012 was $1.2 million.

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Net cash flow from financing activities

Net cash flow from financing activities represents cash used for servicing indebtedness, borrowings under credit facilities. Net cash used in financing activities was $18.2 million for the three months ended March 31, 2012 as compared to an outflow of $4.1 million for the three months ended March 31, 2011. The primary use in the three months ended March 31, 2012 was repayment of loans by the Company offset by certain loans drawn in Russia. For details see Note 6 to the Condensed Consolidated Financial Statements.

The Company’s Future Liquidity and Capital Resources

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. As discussed further in Note 6, our Convertible Senior Notes (the “Convertible Notes”) are due on March 15, 2013. Our current cash on hand, estimated cash from operations and available credit facilities will not be sufficient to make the repayment and the Company may default on the Convertible Notes, unless the transaction with Russian Standard Corporation is completed as scheduled. The Company’s cash flow forecasts include the assumption that certain credit and factoring facilities that are coming due in 2012 will be renewed to manage working capital needs. Moreover, the Company had a net loss and significant impairment charges in 2011 and current liabilities exceed current assets at March 31, 2012. These conditions raise substantial doubt about the Company’s ability to continue as a going concern unless the transaction with Russian Standard described below is completed as scheduled.

As discussed further in Note 17, on April 23, 2012, the Company announced that definitive agreements had been signed with Russian Standard Corporation (via Roust Trading Limited) for a strategic transaction. Pursuant to these agreements, on May 4, 2012 Roust Trading Limited and its affiliates invested $100 million in the Company by purchasing a combination of newly issued shares of the Company’s common stock and notes exchangeable into the Company’s common shares following shareholder approval. In addition, Roust Trading has agreed to purchase from the Company up to $210 million principal amount of newly issued, unsecured senior notes due July 31, 2016 at a blended interest rate of 6.00%. While we believe that this transaction would allow the Company to settle the Convertible Notes before March 15, 2013, the transaction is subject to certain risks, including shareholder approval which may not be obtained. The Company’s annual general meeting (AGM) is scheduled for June 29, 2012 at which time the final vote of the shareholders will be known. We believe that if the transaction is completed as scheduled, Convertible Notes will be repaid by their maturity date which would substantially reduce doubts about the Company’s ability to continue as a going concern. Under the terms of the Indenture for our Senior Secured Notes due 2016, we expect that any indebtedness we incur in exchange for, or to redeem or refinance, all or a portion of the Convertible Notes will be required to be incurred as permitted refinancing indebtedness (a term defined in the Indenture); as a result, the terms of the indenture may limit our ability to enter into agreements that contain limitations on dividends (and certain payments having similar effects) payable to the Company (or its subsidiaries) by its subsidiaries. Any failure to pay the Convertible Notes would also be an event of default under our Senior Secured Notes due 2016 and the terms of our other indebtedness. Such events would jeopardize our ability to continue as a going concern. Notwithstanding the foregoing, we believe that cash on hand, cash from operations and available credit facilities will be sufficient to fund our anticipated cash requirements for working capital purposes and normal capital expenditures, and that we will remain in compliance with the financial covenants contained in our debt agreements, for at least the next twelve months. The Company’s cash flow forecasts used in making this determination include the assumption that certain credit and factoring facilities that are coming due in 2012 will be renewed to manage the Company’s working capital needs.

For additional information, see also “Risk Factors—Risks Relating to Our Indebtedness”—included in Item 8 of our annual report on Form 10-K filed with the SEC on February 29, 2012.

Financing Arrangements

Bank Facilities

As of March 31, 2012, the Company has outstanding liability of €25.0 million ($33.4 million) from the term loans from Zenit Bank, Alfa Bank and Raiffeisen Bank drawn by Whitehall:

• The loan agreement with Zenit Bank dated March 29, 2011, matures on June 6, 2012. The credit limit under this loan agreement is €10.0 million ($13.3 million) and the loan is released in tranches maturing in 365 days, no later than June 6, 2012. The loan was released in four tranches between April 21, 2011, and September 13, 2011, repayable between April 20, 2012 and May 18, 2012. As of March 31, 2012, the Company has outstanding liability of €5.0 million ($6.7 million) from this term loan;

• The loan agreement with Alfa Bank dated July 22, 2008, matures on October 18, 2014. The credit limit under this agreement is €20.0 million ($26.7 million) and the loan is released in tranches maturing within three, six or nine months, depending if they are pledged on inventory. The loan was released in eight tranches between September 14, 2011, and March 30, 2012, repayable between April 28, 2012 and October 30, 2012. As of March 31, 2012 €15.1 million ($20.1 million) of this limit was granted to the Company;

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• The loan agreement with Raiffeisen Bank dated July 6, 2010, matures on July 6, 2012. The credit limit under this agreement is €10.0 million ($13.3 million) and the loan is released in tranches maturing within one to 12 months, not later than July 6, 2012 . The loan was released in five tranches between September 12, 2011, and October 26, 2011, repayable between May 18, 2012, and July 6, 2012. As of March 31, 2012, the Company has outstanding liability of €4.9 million ($6.5 million) from this term loan.

The aforementioned loans drawn by Whitehall have no financial covenants that need to be met and are guaranteed by Whitehall companies. The loans from Zenit Bank and Alfa Bank are also secured on the Company’s inventory.

As of March 31, 2012, the Company also has outstanding total liability of 879.6 million Russian rubles ($30.0 million) from term loans from Unicredit and JSC Grand Invest Bank, both drawn by Russian Alcohol, as well as, an overdraft facility from Sberbank drawn by Bravo Premium:

• The loan agreement with Unicredit dated May 24, 2011, matures on November 23, 2012. This loan has no financial covenants and is secured by goods up to 720 million Russian rubles ($24.6 million) and guarantees given by companies of Russian Alcohol. As of March 31, 2012, the Company has outstanding liability of 600.0 million Russian rubles ($20.5 million) from this term loan;

• The loan agreement with JSC Grand Invest Bank dated November 25, 2011, matures on November 23, 2012. This loan has no financial covenants that need to be met. As of March 31, 2012, the Company has outstanding liability of 279.6 million Russian rubles ($9.5 million) from this term loan;

• The overdraft agreement with Sberbank dated February 6, 2012, matures on February 5, 2013. The credit limit under this agreement is 60 million Russian rubles ($2.0 million). This loan has no financial covenants and is secured by fixed assets. As of March 31, 2012, the Company has outstanding liability of 52.5 million Russian rubles ($1.8 million) from this overdraft facility.

As of March 31, 2012, the Company had available to use under existing overdraft facility in Hungary 100.0 million Hungarian forints ($0.5 million).

Senior Secured Notes due 2016

On December 2, 2009, the Company issued and sold $380 million 9.125% Senior Secured Notes due 2016 and €380 million ($507 million) 8.875% Senior Secured Notes due 2016 (the “2016 Notes”) in an offering to institutional investors that was not required to be registered with the SEC. The Company used a portion of the net proceeds from the 2016 Notes to redeem the Company’s outstanding 2012 Notes, having an aggregate principal amount of €245.4 million ($327.4 million) on January 4, 2010. The remainder of the net proceeds from the 2016 Notes was used to (i) purchase Lion Capital’s remaining equity interest in Russian Alcohol by exercising the Lion Option and the Co-Investor Option, pursuant to the terms and conditions of the Lion Option Agreement and the Co-Investor Option Agreement, respectively (ii) repay all amounts outstanding under the Russian Alcohol credit facilities; and (iii) repay certain other indebtedness.

On December 9, 2010 the Company issued and sold additional €50 million ($66.7 million) 8.875% Senior Secured Notes due 2016 (the “2016 Notes”) in an offering to institutional investors that was not required to be registered with the SEC. The Company used the net proceeds from the additional 2016 Notes to repay its term loans and overdraft facilities with Bank Handlowy w Warszawie S.A and Bank Zachodni WBK S.A.

The 2016 Notes are guaranteed on a senior basis by certain of the Company’s subsidiaries. We are required to ensure that subsidiaries representing at least 85% of our consolidated EBITDA, as defined in the indenture, guarantee the notes. The notes are secured, directly or indirectly, by a variety of our and our subsidiary’s assets, including shares of the issuer of the notes and subsidiaries in Poland, Cyprus, Russia and Luxembourg, certain intercompany loans made by the issuer of the notes and our Russian finance company in connection with the issuance of the notes, trademarks related to the Soplica brand registered in Poland, European Union trademarks for the Parliament brand registered in Germany, and bank accounts over $5.0 million. We have also provided mortgages over our Polmos and Bols production plants and the Russian Alcohol Siberian and Topaz Distilleries. The indenture governing the 2016 Notes contains certain restrictive covenants, including covenants limiting the Company’s ability to: incur or guarantee additional debt; make certain restricted payments; transfer or sell assets; enter into transactions with affiliates; create certain liens; create restrictions on the ability of restricted subsidiaries to pay dividends or other payments; issue guarantees of indebtedness by restricted subsidiaries; enter into sale and leaseback transactions; merge, consolidate, amalgamate or combine with other entities; designate restricted subsidiaries as unrestricted subsidiaries; and engage in any business other than a permitted business. The indenture governing the 2016 Notes also contains a cross-acceleration covenant, which would apply in the event that we do not repay when due our Convertible Notes or any other indebtedness which equals or exceeds $30 million. In addition, in the event of a change of control (as that term is used in our indenture), we would be required to offer to repay the outstanding indebtedness under the 2016 Notes at a price equal to 101% of the aggregate principal amount thereof.

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Convertible Senior Notes

On March 7, 2008, the Company completed the issuance of $310 million aggregate principal amount of 3% Convertible Senior Notes due 2013 (the “Convertible Notes”). Interest is due semi-annually on the 15th of March and September, beginning on September 15, 2008. The Convertible Notes are convertible in certain circumstances into cash and, if applicable, shares of our common stock, based on an initial conversion rate of 14.7113 shares per $1,000 principal amount, subject to certain adjustments. Upon conversion of the notes, the Company will deliver cash up to the aggregate principal amount of the notes to be converted and, at the election of the Company, cash and/or shares of common stock in respect to the remainder, if any, of the conversion obligation. The proceeds from the Convertible Notes were used to fund the cash portions of the acquisitions of Copecresto Enterprises Limited and Whitehall. The indenture governing the Convertible Notes also contains a cross-acceleration covenant, which would apply in the event that we do not repay when due any indebtedness which equals or exceeds $30 million. In addition, in the event of a fundamental change (as that term is used in our indenture), we would be required to offer to repay the outstanding indebtedness under the Convertible Notes in cash at a price equal to 100% of the aggregate principal amount thereof.

Effects of Inflation and Foreign Currency Movements

Inflation in Poland is projected at 3.7% for 2012, compared to actual inflation of 4.6% in 2011. In Russia, Hungary and Ukraine, inflation for 2012 is projected at 6.0%, 4.9% and 6.5% respectively, compared to actual inflation of 6.1%, 4.1% and 8.0% in 2011.

Substantially all of the Company’s operating cash flows and assets are denominated in Polish zloty, Russian ruble and Hungarian forint. This means that the Company is exposed to translation movements both on its balance sheet and statement of operations. The impact on working capital items is demonstrated on the cash flow statement as the movement in exchange on cash and cash equivalents. The impact on the statement of operations is by the movement of the average exchange rate used to restate the statement of operations from Polish zloty, Russian ruble and Hungarian forint to U.S. dollars. The amounts shown as exchange rate gains or losses on the face of the statements of operations relate only to realized gains or losses on transactions that are not denominated in Polish zloty, Russian ruble or Hungarian forint. Table below presents the exchange rates used for translation of our balance sheet and statement of operations balances as of and for the quarter ended March 31, 2012:

	Balance sheet rate as of March 31, 2012		Average rate for the three months ended March 31, 2012
PLN / US$		3.1191		3.2249
RUR / US$		29.3148		30.1674
HUF / US$		221.2128		225.5175

Because the Company’s reporting currency is the U.S. dollar, the translation effects of fluctuations in the exchange rate of our functional currencies have impacted the Company’s financial condition and results of operations and have affected the comparability of our results between financial periods.

The Company has borrowings including its Convertible Notes due 2013 and Senior Secured Notes due 2016 that are denominated in U.S. dollars and euros, which have been lent to its operations where the functional currency is the Polish zloty and Russian ruble. The effect of having debt denominated in currencies other than the Company’s functional currencies is to increase or decrease the value of the Company’s liabilities on that debt in terms of the Company’s functional currencies when those functional currencies depreciate or appreciate in value respectively. As a result of this, the Company is exposed to gains and losses on the re-measurement of these liabilities. The table below summarizes the pre-tax impact of a one percent movement in each of the exchange rate which could result in a significant impact in the results of the Company’s operations.

Exchange Rate	Value of notional amount	Pre-tax impact of a 1% movement in exchange rate
USD-Polish zloty	$426 million	$	4.3 million gain/loss
USD-Russian ruble	$264 million	$	2.6 million gain/loss
EUR-Polish zloty	€430 million or approximately $574 million	$	5.7 million gain/loss

Significant Accounting Policies and Estimates

For a discussion of our critical accounting policies, see “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2011 Annual Report on Form 10-K.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Our operations are conducted primarily in Poland and Russia, and our functional currencies are primarily the Polish zloty, Hungarian forint and Russian ruble, and our reporting currency is the U.S. dollar. Our financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable, bank loans, overdraft facilities and long-term debt. All of the monetary assets represented by these financial instruments are located in Poland, Russia and Hungary. Consequently, they are subject to currency translation movements when reporting in U.S. dollars.

If the U.S. dollar increases in value against the Polish zloty, Russian ruble or Hungarian forint, the value in U.S. dollars of assets, liabilities, revenues and expenses originally recorded in Polish zloty, Russian ruble or Hungarian forint will decrease. Conversely, if the U.S. dollar decreases in value against the Polish zloty, Russian ruble or Hungarian forint, the value in U.S. dollars of assets, liabilities, revenues and expenses originally recorded in Polish zloty, Russian ruble or Hungarian forint will increase. Thus, increases and decreases in the value of the U.S. dollar can have a material impact on the value in U.S. dollars of our non-U.S. dollar assets, liabilities, revenues and expenses, even if the value of these items has not changed in their original currency.

The Company has borrowings including its Convertible Notes due 2013 and Senior Secured Notes 2016 that are denominated in U.S. dollars and euros, which have been lent to its operations where the functional currency is the Polish zloty and Russian ruble. The effect of having debt denominated in currencies other than the Company’s functional currencies is to increase or decrease the value of the Company’s liabilities on that debt in terms of the Company’s functional currencies when those functional currencies depreciate or appreciate in value respectively. As a result of this, the Company is exposed to gains and losses on the re-measurement of these liabilities. The table below summarizes the pre-tax impact of a one percent movement in each of the exchange rate which could result in a significant impact in the results of the Company’s operations.

Exchange Rate	Value of notional amount	Pre-tax impact of a 1% movement in exchange rate
USD-Polish zloty	$426 million	$	4.3 million gain/loss
USD-Russian ruble	$264 million	$	2.6 million gain/loss
EUR-Polish zloty	€430 million or approximately $574 million	$	5.7 million gain/loss

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures.

We have carried out an evaluation under the supervision of, and with the participation of, our management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of March 31, 2012. Since December 31, 2011, we have begun the restructuring of our corporate finance and reporting department in Poland and Russia to implement more effective internal controls over financial reporting. However, our evaluation has disclosed material weaknesses still exist in our internal control over financial reporting as noted in Management’s Assessment on Internal Control over Financial Reporting located in Item 9A, Financial Statements and Supplementary Data, of our restated 2011 Annual Report on Amendment No. 2 on Form 10-K/A.

Due to our material weaknesses, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures are not effective to provide reasonable assurance that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the applicable rules and forms, and that information required to be disclosed by us in reports filed or submitted under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and our Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

There are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error and the circumvention or overriding of the controls and procedures. Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their control objectives.

Changes in internal control over financial reporting.

There has been no material change in internal control over financial reporting in the quarter ended March 31, 2012, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings.

Please refer to Note 14 of the accompanying Condensed Consolidated Financial Statements attached herein for a discussion of certain legal proceedings.

Item 1A. Risk Factors.

For a discussion of the Company’s risk factors, see the information under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011, filed with the SEC on February 29, 2012.

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Item 6. Exhibits.

(a) Exhibits

Exhibit Number	Exhibit Description
3.1	Amended and Restated Certificate of Incorporation (filed as Exhibit 3.1 to the Quarterly Report on Form 10-Q filed with the SEC on May 5, 2010 and incorporated herein by reference).
3.2	Amended and Restated Bylaws (filed as Exhibit 3.2 to the Quarterly Report on Form10-Q filed with the SEC on November 9, 2011 and incorporated herein by reference).
10.63(a)	Securities Purchase Agreement, dated April 23, 2012 by and among Central European Distribution Corporation and Roust Trading Ltd. (filed as Exhibit 10.1 to the Periodic Report on Form 8-K filed with the SEC on April 24, 2012 and incorporated herein by reference).
10.63(b)	Governance Agreement, dated April 23, 2012 by and among Central European Distribution Corporation and Roust Trading Ltd. (filed as Exhibit 10.2 to the Periodic Report on Form 8-K filed with the SEC on April 24, 2012 and incorporated herein by reference).
10.63(c)	Registration Rights Agreement, dated April 23, 2012, by and among Central European Distribution Corporation and Roust Trading Ltd. (filed as Exhibit 10.3to the Periodic Report on Form 8-K filed with the SEC on April 24, 2012 and incorporated herein by reference).
10.63(d)	Voting Agreement, dated April 23, 2012, by and among Central European Distribution Corporation and Roust Trading Ltd. (filed as Exhibit 10.4 to the Periodic Report on Form 8-K filed with the SEC on April 24, 2012 and incorporated herein by reference).
31.1*	Certificate of the CEO pursuant to Rule 13a-15(e) or Rule 15d-15(e).
31.2*	Certificate of the CFO pursuant to Rule 13a-15(e) or Rule 15d-15(e).
32.1*	Certification of the CEO pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*	Certification of the CFO pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
99.1(a)	Voting Agreement, dated April 23, 2012, by and among Central European Distribution Corporation, Mr. David Bailey and Roust Trading Ltd. (filed as Exhibit 99.1 to the Periodic Report on Form 8-K filed with the SEC on April 24, 2012 and incorporated herein by reference).
99.1(b)	Voting Agreement, dated April 23, 2012, by and among Central European Distribution Corporation, Mr. N. Scott Fine and Roust Trading Ltd. (filed as Exhibit 99.2 to the Periodic Report on Form 8-K filed with the SEC on April 24, 2012 and incorporated herein by reference).
99.1(c)	Voting Agreement, dated April 23, 2012, by and among Central European Distribution Corporation, Mr. William Shanahan and Roust Trading Ltd. (filed as Exhibit 99.3 to the Periodic Report on Form 8-K filed with the SEC on April 24, 2012 and incorporated herein by reference).
99.1(d)	Voting Agreement, dated April 23, 2012, by and among Central European Distribution Corporation, Mr. Robert Koch and Roust Trading Ltd. (filed as Exhibit 99.4 to the Periodic Report on Form 8-K filed with the SEC on April 24, 2012 and incorporated herein by reference).
99.1(e)	Voting Agreement, dated April 23, 2012, by and among Central European Distribution Corporation, Mr. Markus Sieger and Roust Trading Ltd. (filed as Exhibit 99.5 to the Periodic Report on Form 8-K filed with the SEC on April 24, 2012 and incorporated herein by reference).
99.1(f)	Voting Agreement, dated April 23, 2012, by and among Central European Distribution Corporation, Mr. Marek Forysiak and Roust Trading Ltd. (filed as Exhibit 99.6 to the Periodic Report on Form 8-K filed with the SEC on April 24, 2012 and incorporated herein by reference).
99.1(g)	Voting Agreement, dated April 23, 2012, by and among Central European Distribution Corporation, Mr. William V. Carey and Roust Trading Ltd. (filed as Exhibit 99.7 to the Periodic Report on Form 8-K filed with the SEC on April 24, 2012 and incorporated herein by reference).
101*	The following financial statements from Central European Distribution Corporation’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2012, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Statements of Income, (ii) Consolidated Balance Sheets, (iii) Consolidated Statements of Cash Flows, (iv) Notes to Consolidated Financial Statements, tagged as blocks of text.

* Filed herewith.

34

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	CENTRAL EUROPEAN DISTRIBUTION CORPORATION
	(registrant)
Date: October 4, 2012	By:	/s/ David Bailey
		David Bailey
		Interim Chief Executive Officer
Date: October 4, 2012	By:	/s/ Bartosz Kołaciński
		Bartosz Kołaciński
		Interim Chief Financial Officer

35

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, David Bailey, certify that:

1. I have reviewed this report on Form 10-Q/A of Central European Distribution Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: October 4, 2012
By:	/s/ David Bailey
	David Bailey Interim Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Bartosz Kołaciński , certify that:

1. I have reviewed this report on Form 10-Q/A of Central European Distribution Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: October 4, 2012
By:	/s/ Bartosz Kołaciński
	Bartosz Kołaciński Interim Chief Financial Officer

EX-32.1

Exhibit 32.1

Written Statement of Chief Executive Officer

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

The undersigned, the Chief Executive Officer of Central European Distribution Corporation (the “Company”), hereby certifies that, to his knowledge on the date hereof:

(a) the Form 10-Q/A of the Company for the quarterly period ended March 31, 2012, filed on the date hereof with the Securities and Exchange Commission (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(b) information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: October 4, 2012

/s/ David Bailey

David Bailey

Interim Chief Executive

Officer

EX-32.2

Exhibit 32.2

Written Statement of Chief Financial Officer

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

The undersigned, the Chief Financial Officer of Central European Distribution Corporation (the “Company”), hereby certifies that, to his knowledge on the date hereof:

(a) the Form 10-Q/A of the Company for the quarterly period ended March 31, 2012, filed on the date hereof with the Securities and Exchange Commission (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(b) information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: October 4, 2012

/s/ Bartosz Kołaciński

Bartosz Kołaciński

Interim Chief Financial Officer

XML

Condensed Consolidated Balance Sheet (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011	Mar. 31, 2011	Dec. 31, 2010
Current Assets
Cash and cash equivalents		$ 94,410
Accounts receivable, net of allowance for doubtful accounts of $26,221 as reported and $26,889 as restated		410,866
Inventories		117,690	146,966
Prepaid expenses		16,538
Other current assets		23,020
Deferred income taxes		4,717
Debt issuance cost		2,962
Total Current Assets		670,203
Intangible assets, net		463,848
Goodwill		670,294
Property, plant and equipment, net		176,660
Deferred income taxes		21,488
Debt issuance costs		13,550
Non-current assets held for sale		675
Total Non-Current Assets		1,346,515
Total Assets		2,016,718
Current Liabilities
Trade accounts payable		144,797
Bank loans and overdraft facilities		85,762
Short-term obligations under Convertible Senior Notes		0
Income taxes payable		9,607
Taxes other than income taxes		189,515
Other accrued liabilities		48,208
Current portions of obligations under capital leases		1,109
Total Current Liabilities		478,998
Long-term obligations under capital leases		532
Long-term obligations under Senior Secured Notes		932,089
Long-term accruals		2,000
Deferred income taxes		91,128
Total Long Term Liabilities		1,330,394
Stockholders' Equity
Common Stock ($0.01 par value, 120,000,000 shares authorized, 72,716,235 shares issued and outstanding)		727
Preferred Stock ($0.01 par value, 1,000,000 shares authorized, none issued and outstanding)		0
Additional paid-in-capital		1,369,471
Accumulated deficit		(1,197,884)
Accumulated other comprehensive income		35,162
Less Treasury Stock at cost (246,037 shares)		(150)
Total Stockholder's Equity		207,326
Total Liabilities and Stockholders' Equity		2,016,718
As Reported [Member]
Current Assets
Cash and cash equivalents	107,798	94,410	168,112	122,324
Accounts receivable, net of allowance for doubtful accounts of $26,221 as reported and $26,889 as restated	280,761		296,513
Inventories	121,324		137,504
Prepaid expenses	23,594
Prepaid expenses and other current assets			70,415
Other current assets	19,341
Deferred income taxes	6,572		87,849
Debt issuance cost	2,959		2,739
Total Current Assets	562,349		763,132
Intangible assets, net	508,605		684,844
Goodwill	731,675		1,832,878
Property, plant and equipment, net	193,838		221,584
Deferred income taxes	22,811		43,805
Debt issuance costs	12,789		16,042
Non-current assets held for sale	675
Total Non-Current Assets	1,470,393		2,799,153
Total Assets	2,032,742		3,562,285
Current Liabilities
Trade accounts payable	69,868		80,018
Bank loans and overdraft facilities	66,708		72,496
Short-term obligations under Convertible Senior Notes	305,977
Income taxes payable	7,208		3,325
Taxes other than income taxes	99,863		98,525
Other accrued liabilities	70,715		105,405
Current portions of obligations under capital leases	1,159		838
Total Current Liabilities	621,498		360,607
Long-term obligations under capital leases	728		1,096
Long-term obligations under Senior Secured Notes	950,643
Long-term obligations under Senior Notes			1,288,564
Long-term accruals	2,221		2,321
Deferred income taxes	99,199		183,000
Total Long Term Liabilities	1,052,791		1,474,981
Stockholders' Equity
Common Stock ($0.01 par value, 120,000,000 shares authorized, 72,716,235 shares issued and outstanding)	731		727
Preferred Stock ($0.01 par value, 1,000,000 shares authorized, none issued and outstanding)	0
Additional paid-in-capital	1,370,335		1,367,509
Accumulated deficit	(1,069,070)		161,371
Accumulated other comprehensive income	56,607		197,240
Less Treasury Stock at cost (246,037 shares)	(150)		(150)
Total Stockholder's Equity	358,453		1,726,697
Total Liabilities and Stockholders' Equity	2,032,742		3,562,285
Adjustment [Member]
Current Assets
Cash and cash equivalents	0	0	0	(208)
Accounts receivable, net of allowance for doubtful accounts of $26,221 as reported and $26,889 as restated	(60,504)		(44,678)
Inventories	(539)		9,462
Prepaid expenses	(425)
Prepaid expenses and other current assets			(979)
Other current assets	2,381
Deferred income taxes	(3,926)		(677)
Debt issuance cost	0		9
Total Current Assets	(63,013)		(36,863)
Intangible assets, net	0		0
Goodwill	3,897		3,988
Property, plant and equipment, net	(3,096)		(3,202)
Deferred income taxes	0		0
Debt issuance costs	0		0
Non-current assets held for sale	0
Total Non-Current Assets	801		786
Total Assets	(62,212)		(36,077)
Current Liabilities
Trade accounts payable	0		10,076
Bank loans and overdraft facilities	0		0
Short-term obligations under Convertible Senior Notes	0
Income taxes payable	1,183		0
Taxes other than income taxes	1,460		(1,444)
Other accrued liabilities	2,726		(7,204)
Current portions of obligations under capital leases	0		0
Total Current Liabilities	5,369		1,428
Long-term obligations under capital leases	0		0
Long-term obligations under Senior Secured Notes	0
Long-term obligations under Senior Notes			0
Long-term accruals	(30)		(31)
Deferred income taxes	0		0
Total Long Term Liabilities	(30)		(31)
Stockholders' Equity
Common Stock ($0.01 par value, 120,000,000 shares authorized, 72,716,235 shares issued and outstanding)	0		0
Preferred Stock ($0.01 par value, 1,000,000 shares authorized, none issued and outstanding)	0
Additional paid-in-capital	0		0
Accumulated deficit	(68,630)		(37,905)
Accumulated other comprehensive income	1,079		431
Less Treasury Stock at cost (246,037 shares)	0		0
Total Stockholder's Equity	(67,551)		(37,474)
Total Liabilities and Stockholders' Equity	(62,212)		(36,077)
Restated [Member]
Current Assets
Cash and cash equivalents	107,798	94,410	168,112	122,116
Accounts receivable, net of allowance for doubtful accounts of $26,221 as reported and $26,889 as restated	220,257		251,835
Inventories	120,785		146,966
Prepaid expenses	23,169
Prepaid expenses and other current assets			69,436
Other current assets	21,722
Deferred income taxes	2,646		87,172
Debt issuance cost	2,959		2,748
Total Current Assets	499,336		726,269
Intangible assets, net	508,605		684,844
Goodwill	735,572		1,836,866
Property, plant and equipment, net	190,742		218,382
Deferred income taxes	22,811		43,805
Debt issuance costs	12,789		16,042
Non-current assets held for sale	675
Total Non-Current Assets	1,471,194		2,799,939
Total Assets	1,970,530		3,526,208
Current Liabilities
Trade accounts payable	69,868		90,094
Bank loans and overdraft facilities	66,708		72,496
Short-term obligations under Convertible Senior Notes	305,977
Income taxes payable	8,391		3,325
Taxes other than income taxes	101,323		97,081
Other accrued liabilities	73,441		98,201
Current portions of obligations under capital leases	1,159		838
Total Current Liabilities	626,867		362,035
Long-term obligations under capital leases	728		1,096
Long-term obligations under Senior Secured Notes	950,643
Long-term obligations under Senior Notes			1,288,564
Long-term accruals	2,191		2,290
Deferred income taxes	99,199		183,000
Total Long Term Liabilities	1,052,761		1,474,950
Stockholders' Equity
Common Stock ($0.01 par value, 120,000,000 shares authorized, 72,716,235 shares issued and outstanding)	731		727
Preferred Stock ($0.01 par value, 1,000,000 shares authorized, none issued and outstanding)	0
Additional paid-in-capital	1,370,335		1,367,509
Accumulated deficit	(1,137,700)		123,466
Accumulated other comprehensive income	57,686		197,671
Less Treasury Stock at cost (246,037 shares)	(150)		(150)
Total Stockholder's Equity	290,902		1,689,223
Total Liabilities and Stockholders' Equity	$ 1,970,530		$ 3,526,208

XML

Inventories (Narrative) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2012 Day	Mar. 31, 2011 Day	Dec. 31, 2011 Day
Inventory rotation days	121	154	81
Total balance of inventory		$ 146,966	$ 117,690

XML

Borrowings (Convertible Senior Notes Due 2013) (Detail) (Convertible Senior Notes Due 2013 [Member], USD $)	0 Months Ended	3 Months Ended
	Mar. 07, 2008	Mar. 31, 2012	Mar. 31, 2011	Dec. 31, 2011
Convertible Senior Notes Due 2013 [Member]
Debt Instrument [Line Items]
Debt instrument issuance amount	$ 310,000,000
Interest rate percentage on issued debt	3.00%
Year of maturity of debt	2013
Initial conversion rate shares	14.7113
Principal amount of initial conversion rate	1,000
Accrued interest		400,000		2,700,000
Pre tax non-cash interest expense recognized in consolidated statement of operations		1,100,000	1,100,000
Annual pre-tax increase in non-cash interest expense		3,200,000
Accumulated amortization related to debt discount		$ 16,500,000	$ 12,200,000

XML

Effects Of Foreign Currency Movements (Schedule Of Foreign Currency Exchange Rate Effect Before Tax) (Detail) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012 PLN / US$ [Member] USD ($)	Mar. 31, 2012 RUR / US$ [Member] USD ($)	Mar. 31, 2012 EUR-Polish Zloty [Member] USD ($)	Mar. 31, 2012 EUR-Polish Zloty [Member] EUR (€)
Effects Of Foreign Currency Movements [Line Items]
Value of notional amount	$ 426	$ 264	$ 574	€ 430
Pre-tax impact of a 1% movement in exchange rate	$ 4.3	$ 2.6	$ 5.7

XML

Income Taxes (Narrative) (Detail) (USD $)	3 Months Ended
	Mar. 31, 2012	Dec. 31, 2011
Income tax expense	$ 4,685,000
Effective income tax rate	7.20%
Uncertain income tax position balance	$ 7,000,000	$ 7,100,000
Poland [Member]
Underlying tax rate	19.00%
Russia [Member]
Underlying tax rate	20.00%
Ukraine [Member]
Underlying tax rate	21.00%
Hungary [Member]
Underlying tax rate	16.00%
United States [Member]
Underlying tax rate	35.00%

XML

Earnings Per Share (Computation Of Basic And Diluted Earnings Per Share) (Detail) (Restated [Member], USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Restated [Member]
Net income / (loss)	$ 60,184	$ (2,034)
Weighted average shares of common stock outstanding (used to calculate basic EPS)	72,885	71,208
Net effect of dilutive employee stock options based on the treasury stock method	217	147
Weighted average shares of common stock outstanding (used to calculate diluted EPS)	73,102	71,355
Net income / (loss) per common share-basic	$ 0.83	$ (0.03)
Net income / (loss) per common share-diluted	$ 0.82	$ (0.03)

XML

Stock Option Plans And Warrants (Tables)

3 Months Ended

Mar. 31, 2012

Schedule Of Weighted-Average Assumptions

	December 31, 2011
Fair Value	$	7.60
Dividend Yield		0	%
Expected Volatility		66.1	%
Weighted Average Volatility		66.1	%
Risk Free Interest Rate		3	%
Expected Life of Options from Grant		3.2

XML

Operating Segments (Segment Information On Operating Income / (Loss)) (Detail) (Restated [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Segment Reporting Information [Line Items]
Gain on remeasurement of previously held equity interests	$ 0	$ 7,898
Total Operating income / (loss)	(3,819)	5,197
Option Expense	(864)	(693)
Poland [Member]
Segment Reporting Information [Line Items]
Poland before fair value adjustments	6,480	4,793
Gain on remeasurement of previously held equity interests	0	7,898
Total Operating income / (loss)	6,480	12,691
Russia [Member]
Segment Reporting Information [Line Items]
Total Operating income / (loss)	(8,463)	(6,220)
Hungary [Member]
Segment Reporting Information [Line Items]
Total Operating income / (loss)	720	661
Corporate [Member]
Segment Reporting Information [Line Items]
General corporate overhead	(1,692)	(1,242)
Option Expense	$ (864)	$ (693)

XML

Subsequent Events (Detail) (USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended		1 Months Ended		0 Months Ended	1 Months Ended		1 Months Ended
	Mar. 31, 2012	Mar. 31, 2012 Roust Trading [Member] Forecasted Strategic Transaction [Member]	Apr. 23, 2012 Subsequent Event [Member] Senior Notes Due 2013 [Member]	Apr. 23, 2012 Subsequent Event [Member] Senior Notes Due 2013 [Member] Forecasted Strategic Transaction [Member]	May 04, 2012 Subsequent Event [Member] Roust Trading [Member] Forecasted Strategic Transaction [Member]	Apr. 23, 2012 Subsequent Event [Member] Roust Trading [Member] Senior Notes Due 2013 [Member] Forecasted Strategic Transaction [Member]	May 04, 2012 Subsequent Event [Member] Roust Trading [Member] Senior Notes Due 2013 [Member] Forecasted Strategic Transaction [Member]	Apr. 23, 2012 Subsequent Event [Member] Roust Trading [Member] Senior Rollover Notes Due 2016 [Member] Forecasted Strategic Transaction [Member]	Apr. 23, 2012 Subsequent Event [Member] Roust Trading [Member] Senior Backstop Notes Due 2016 [Member] Forecasted Strategic Transaction [Member]	Apr. 23, 2012 Subsequent Event [Member] Roust Trading [Member] Senior Rollover And Backstop Notes Due 2016 [Member] Forecasted Strategic Transaction [Member]
Subsequent Event [Line Items]
Company common stock to be purchased, shares				13,333,333	5,714,286
Company common stock to be purchased, value					$ 30
Company common stock to be purchased, price per share			$ 5.25		$ 5.25
Debt instrument issuance amount							$ 70.0	$ 102.6	$ 107.5
Debt instrument maturity date	Mar. 15, 2013	Jul. 31, 2016				Mar. 18, 2013		Jul. 31, 2016	Jul. 31, 2016
Interest rate percentage on issued debt		6.00%				3.00%				6.00%

XML

RESTATEMENT OF UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Tables)

3 Months Ended

Mar. 31, 2012

Condensed Consolidated Balance Sheet

Condensed Consolidated Balance Sheet – March 31, 2012 (unaudited)

	As at March 31, 2012 As reported			Adjustment			As at March 31,  2012 Restated
Current Assets
Cash and cash equivalents	$	107,798		$	0		$	107,798
Accounts receivable, net of allowance for doubtful accounts of $26,221 as reported and $26,889 as restated		280,761			(60,504	)		220,257
Inventories		121,324			(539	)		120,785
Prepaid expenses		23,594			(425	)		23,169
Other current assets		19,341			2,381			21,722
Deferred income taxes		6,572			(3,926	)		2,646
Debt issuance cost		2,959			0			2,959
Total Current Assets		562,349			(63,013	)		499,336
Intangible assets, net		508,605			0			508,605
Goodwill		731,675			3,897			735,572
Property, plant and equipment, net		193,838			(3,096	)		190,742
Deferred income taxes, net		22,811			0			22,811
Debt issuance costs		12,789			0			12,789
Non-current assets held for sale		675			0			675
Total Non-Current Assets		1,470,393			801			1,471,194
Total Assets		2,032,742			(62,212	)		1,970,530
Current Liabilities
Trade accounts payable		69,868			0			69,868
Bank loans and overdraft facilities		66,708			0			66,708
Short-term obligations under Convertible Senior Notes		305,977			0			305,977
Income taxes payable		7,208			1,183			8,391
Taxes other than income taxes		99,863			1,460			101,323
Other accrued liabilities		70,715			2,726			73,441
Current portions of obligations under capital leases		1,159			0			1,159
Total Current Liabilities		621,498			5,369			626,867
Long-term obligations under capital leases		728			0			728
Long-term obligations under Senior Secured Notes		950,643			0			950,643
Long-term accruals		2,221			(30	)		2,191
Deferred income taxes		99,199			0			99,199
Total Long-Term Liabilities		1,052,791			(30	)		1,052,761
Stockholders’ Equity
Common Stock ($0.01 par value, 120,000,000 shares authorized, 73,125,230 shares issued and outstanding)		731			0			731
Preferred Stock ($0.01 par value, 1,000,000 shares authorized, none issued and outstanding)		0			0			0
Additional paid-in-capital		1,370,335			0			1,370,335
Accumulated deficit		(1,069,070	)		(68,630	)		(1,137,700	)
Accumulated other comprehensive income		56,607			1,079			57,686
Less Treasury Stock at cost (246,037 shares)		(150	)		0			(150	)
Total Stockholder’s Equity		358,453			(67,551	)		290,902
Total Liabilities and Stockholders’ Equity	$	2,032,742		$	(62,212	)	$	1,970,530

Condensed Consolidated Balance Sheet - March 31, 2011 (unaudited)

	Balance as at March 31, 2011 As Reported			Adjustments			Balance as at March 31, 2011 Restated
Current Assets
Cash and cash equivalents	$	168,112		$	0		$	168,112
Accounts receivable, net of allowance for doubtful accounts of $34,056 as reported and $35,005 as restated		296,513			(44,678	)		251,835
Inventories		137,504			9,462			146,966
Prepaid expenses and other current assets		70,415			(979	)		69,436
Deferred income taxes		87,849			(677	)		87,172
Debt issuance cost		2,739			9			2,748
Total Current Assets		763,132			(36,863	)		726,269
Intangible assets, net		684,844			0			684,844
Goodwill, net		1,832,878			3,988			1,836,866
Property, plant and equipment, net		221,584			(3,202	)		218,382
Deferred income taxes		43,805			0			43,805
Debt issuance costs		16,042			0			16,042
Total Non-Current Assets		2,799,153			786			2,799,939
Total Assets	$	3,562,285		$	(36,077	)	$	3,526,208
Current Liabilities
Trade accounts payable	$	80,018		$	10,076		$	90,094
Bank loans and overdraft facilities		72,496			0			72,496
Income taxes payable		3,325			0			3,325
Taxes other than income taxes		98,525			(1,444	)		97,081
Other accrued liabilities		105,405			(7,204	)		98,201
Current portions of obligations under capital leases		838			0			838
Total Current Liabilities		360,607			1,428			362,035
Long-term obligations under capital leases		1,096			0			1,096
Long-term obligations under Senior Notes		1,288,564			0			1,288,564
Long-term accruals		2,321			(31	)		2,290
Deferred income taxes		183,000			0			183,000
Total Long Term Liabilities		1,474,981			(31	)		1,474,950
Stockholders’ Equity
Common Stock ($0.01 par value, 120,000,000 shares authorized, 72,716,235 shares issued and outstanding)		727			0			727
Additional paid-in-capital		1,367,509			0			1,367,509
Retained earnings		161,371			(37,905	)		123,466
Accumulated other comprehensive income		197,240			431			197,671
Less Treasury Stock at cost (246,037 shares)		(150	)		0			(150	)
Total Stockholder’s Equity		1,726,697			(37,474	)		1,689,223
Total Liabilities and Stockholders’ Equity	$	3,562,285		$	(36,077	)	$	3,526,208

Condensed Consolidated Statement of Operations

Condensed Consolidated Statement of Operations – 3 months ended March 31, 2012 (unaudited)

	Three months ended March 31, 2012 As reported			Adjustment			Three months ended March 31, 2012 Restated
Sales	$	323,975		$	(2,219	)	$	321,756
Excise taxes		(175,767	)		0			(175,767	)
Net sales		148,208			(2,219	)		145,989
Cost of goods sold		89,529			1,345			90,874
Gross profit		58,679			(3,564	)		55,115
Selling, general and administrative expenses		61,770			(2,836	)		58,934
Operating income / (loss)		(3,091	)		(728	)		(3,819	)
Non operating income / (expense), net
Interest income / (expense), net		(26,224	)		(78	)		(26,302	)
Other financial income / (expense), net		97,922			(334	)		97,588
Other non operating income / (expense), net		(2,598	)		0			(2,598	)
Income before income taxes and equity in net losses from unconsolidated investments		66,009			(1,140	)		64,869
Income tax expense		(3,513	)		(1,172	)		(4,685	)
Net income attributable to the company		62,496			(2,312	)		60,184
Net income from operations per share of common stock, basic		0.86			(0.03	)		0.83
Net income from operations per share of common stock, diluted		0.86			(0.04	)		0.82
Other comprehensive income, net of tax:
Foreign currency translation adjustments		28,719			(6,195	)		22,524
Comprehensive income attributable to the company	$	91,215		$	(8,507	)	$	82,708

Condensed Consolidated Statement of Operations – Three months ended March 31, 2011 (unaudited)

	Three months ended March 31, 2011 As reported			Adjustments			Three months ended March 31, 2011 Restated
Sales	$	336,139		$	(18,058	)	$	318,081
Excise taxes		(179,428	)		(299	)		(179,727	)
Net sales		156,711			(18,357	)		138,354
Cost of goods sold		97,374			(11,689	)		85,685
Gross profit		59,337			(6,668	)		52,669
Selling, general and administrative expenses		57,877			(2,507	)		55,370
Gain on remeasurement of previously held equity interests		(7,898	)		0			(7,898	)
Operating income		9,358			(4,161	)		5,197
Non operating income / (expense), net
Interest expense, net		(26,852	)		0			(26,852	)
Other financial income, net		31,046			(524	)		30,522
Other non operating expenses, net		(976	)		0			(976	)
Income before taxes and equity in net income from unconsolidated investments		12,576			(4,685	)		7,891
Income tax expense		(2,641	)		662			(1,979	)
Equity in net losses of affiliates		(8,814	)		868			(7,946	)
Net income / (loss)	$	1,121		$	(3,155	)	$	(2,034	)
Net income / (loss) from operations per share of common stock, basic	$	0.02		$	(0.05	)	$	(0.03	)
Net income / (loss) from operations per share of common stock, diluted	$	0.02		$	(0.05	)	$	(0.03	)
Other comprehensive income, net of tax
Foreign currency translation adjustments		137,016			(2,843	)		134,173
Comprehensive income attributable to the Company	$	138,137		$	(5,998	)	$	132,139

Condensed Consolidated Statements of Cash Flow

Condensed Consolidated Statements of Cash Flow – 3 months ended March 31, 2012 (unaudited)

	Three months ended March 31, 2012 As reported			Adjustment			Three months ended March 31, 2012 Restated
Cash flows from operating activities
Net income	$	62,496		$	(2,312	)	$	60,184
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		4,815			0			4,815
Deferred income taxes		121			1,367			1,488
Unrealized foreign exchange gains		(98,681	)		675			(98,006	)
Stock options fair value expense		864			0			864
Other non cash items		(26	)		247			221
Changes in operating assets and liabilities:
Accounts receivable		226,728			(658	)		226,070
Inventories		6,964			1,449			8,413
Prepaid expenses and other current assets		(3,114	)		796			(2,318	)
Trade accounts payable		(89,358	)		0			(89,358	)
Other accured liabilities and payables (including taxes)		(87,043	)		(1,564	)		(88,607	)
Net cash provided by operating activities		23,766			0			23,766
Cash flows from investing activities
Purchase of fixed assets		(1,329	)		0			(1,329	)
Proceeds from the disposal of fixed assets		127			0			127
Net cash used in investing activities		(1,202	)		0			(1,202	)
Cash flows from financing activities
Borrowings on bank loans and overdraft facility		8,594			0			8,594
Payment of bank loans, overdraft facility and other borrowings		(26,872	)		0			(26,872	)
Decrease in short term capital leases payable		90			0			90
Net cash used in financing activities		(18,188	)		0			(18,188	)
Currency effect on brought forward cash balances		9,012			0			9,012
Net increase in cash		13,388			0			13,388
Cash and cash equivalents at beginning of period		94,410			0			94,410
Cash and cash equivalents at end of period	$	107,798		$	0		$	107,798

Condensed Consolidated Statements of Cash Flow - Three months ended March 31, 2011 (unaudited)

	Three months ended March 31, 2011 As reported			Adjustments			Three months ended March 31, 2011 Restated
Cash flows from operating activities of continuing operations
Net income / (loss)	$	1,121		$	(3,155	)	$	(2,034	)
Adjustments to reconcile net income / (loss) to net cash provided by operating activities:
Depreciation and amortization		5,131			0			5,131
Deferred income taxes		725			(720	)		5
Unrealized foreign exchange gains		(31,651	)		(208	)		(31,859	)
Stock options fair value expense		693			0			693
Equity loss in affiliates		8,814			(868	)		7,946
Gain on fair value remeasurement of previously held equity interest, net of deferred tax		(6,397	)		0			(6,397	)
Other non cash items		1,780			(9	)		1,771
Changes in operating assets and liabilities:
Accounts receivable		268,051			(3,977	)		264,074
Inventories		(5,197	)		(11,389	)		(16,586	)
Prepayments and other current assets		(16,860	)		(660	)		(17,520	)
Trade accounts payable		(83,645	)		33,643			(50,002	)
Other accrued liabilities and payables		(58,176	)		(12,449	)		(70,625	)
Net cash provided by operating activities from continuing operations		84,389			208			84,597
Cash flows from investing activities of continuing operations
Purchase of fixed assets		(505	)		0			(505	)
Purchase of trademarks		(17,473	)		0			(17,473	)
Acquisitions of subsidiaries, net of cash acquired		(23,475	)		0			(23,475	)
Net cash (used in) / provided by investing activities from continuing operations		(41,453	)		0			(41,453	)
Cash flows from financing activities of continuing operations
Payment of bank loans, overdraft facility and other borrowings		(4,104	)		0			(4,104	)
Decrease in short term capital leases payable		(102	)		0			(102	)
Proceeds from options exercised		66			0			66
Net cash used in financing activities from continuing operations		(4,140	)		0			(4,140	)
Currency effect on brought forward cash balances		6,992			0			6,992
Net increase in cash		45,788			208			45,996
Cash and cash equivalents at beginning of period		122,324			(208	)		122,116
Cash and cash equivalents at end of period	$	168,112		$	0		$	168,112
Supplemental Schedule of Non-cash Investing Activities
Common stock issued in connection with investment in subsidiaries	$	23,131		$	0		$	23,131
Supplemental disclosures of cash flow information
Interest paid	$	6,329		$	0		$	6,329
Income tax paid	$	7,012		$	0		$	7,012

Condensed Consolidated Statements of Changes in Stockholders' Equity

Condensed Consolidated Statements of Changes in Stockholders’ Equity – March 31, 2011 (unaudited)

	Balance as at March 31, 2011 As Reported			Adjustments			Balance as at March 31, 2011 Restated
Common Stock	$	727		$	0		$	727
Additional Paid-in Capital		1,367,509			0			1,367,509
Retained Earnings		161,371			(37,905	)		123,466
Accumulated other comprehensive income of continuing operations		197,240			431			197,671
Accumulated other comprehensive income of discontinued operations		0			0			0
Less Treasury Stock at cost		(150	)		0			(150	)
Total	$	1,726,697		$	(37,474	)	$	1,689,223

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Borrowings (Senior Secured Notes Due 2016) (Detail) In Millions, unless otherwise specified	0 Months Ended
	Dec. 02, 2009 9.125% Senior Secured Notes Due 2016 [Member] USD ($)	Dec. 02, 2009 8.875% Senior Secured Notes Due 2016 [Member] USD ($)	Dec. 02, 2009 8.875% Senior Secured Notes Due 2016 [Member] EUR (€)	Dec. 09, 2010 8.875% Senior Secured Notes Due 2016 [Member] Additional Debt [Member] USD ($)	Dec. 09, 2010 8.875% Senior Secured Notes Due 2016 [Member] Additional Debt [Member] EUR (€)	Jan. 04, 2012 Senior Secured Notes Due 2016 [Member] USD ($)	Jan. 04, 2010 Senior Secured Notes Due 2016 [Member] EUR (€)	Mar. 31, 2012 Senior Secured Notes Due 2016 [Member] USD ($)	Dec. 31, 2011 Senior Secured Notes Due 2016 [Member] USD ($)
Debt Instrument [Line Items]
Face value of debt issued	$ 380.0	$ 507.0	€ 380.0	$ 66.7	€ 50.0
Interest rate percentage on issued debt	9.125%	8.875%	8.875%	8.875%	8.875%
Debt instrument maturity year	2016	2016	2016	2016	2016
Redemption of senior secured notes						327.4	245.4
Accrued interest								$ 28.5	$ 7.0

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Condensed Consolidated Statements of Cash Flow (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012 As Reported [Member]	Mar. 31, 2011 As Reported [Member]	Mar. 31, 2012 Adjustment [Member]	Mar. 31, 2011 Adjustment [Member]	Mar. 31, 2012 Restated [Member]	Mar. 31, 2011 Restated [Member]
Cash flows from operating activities
Net income / (loss)		$ 1,121		$ (3,155)	$ 60,184	$ (2,034)
Net income	62,496	1,121	(2,312)	(3,155)	60,184	(2,034)
Adjustments to reconcile net income / (loss) to net cash provided by operating activities:
Depreciation and amortization	4,815	5,131	0	0	4,815	5,131
Deferred income taxes	121	725	1,367	(720)	1,488	5
Unrealized foreign exchange gains	(98,681)	(31,651)	675	(208)	(98,006)	(31,859)
Stock options fair value expense	864	693	0	0	864	693
Equity loss in affiliates		8,814		(868)	0	7,946
Gain on fair value remeasurement of previously held equity interest, net of deferred tax		(6,397)		0	0	(6,397)
Other non cash items	(26)	1,780	247	(9)	221	1,771
Changes in operating assets and liabilities:
Accounts receivable	226,728	268,051	(658)	(3,977)	226,070	264,074
Inventories	6,964	(5,197)	1,449	(11,389)	8,413	(16,586)
Prepaid expenses and other current assets	(3,114)	(16,860)	796	(660)	(2,318)	(17,520)
Trade accounts payable	(89,358)	(83,645)	0	33,643	(89,358)	(50,002)
Other accrued liabilities and payables	(87,043)	(58,176)	(1,564)	(12,449)	(88,607)	(70,625)
Net cash provided by operating activities from continuing operations		84,389		208		84,597
Net cash provided by operating activities	23,766		0		23,766	84,597
Cash flows from investing activities
Purchase of fixed assets	(1,329)	(505)	0	0	(1,329)	(505)
Purchase of trademarks		(17,473)		0	0	(17,473)
Proceeds from the disposal of fixed assets	127		0		127	0
Acquisitions of subsidiaries, net of cash acquired		(23,475)		0	0	(23,475)
Net cash used in investing activities	(1,202)		0		(1,202)	(41,453)
Net cash (used in) / provided by investing activities from continuing operations		(41,453)		0		(41,453)
Cash flows from financing activities
Borrowings on bank loans and overdraft facility	8,594		0		8,594	0
Payment of bank loans, overdraft facility and other borrowings	(26,872)	(4,104)	0	0	(26,872)	(4,104)
Decrease in short term capital leases payable	90	(102)	0	0	90	(102)
Proceeds from options exercised		66		0	0	66
Net cash used in financing activities	(18,188)		0		(18,188)	(4,140)
Net cash used in financing activities from continuing operations		(4,140)		0		(4,140)
Currency effect on brought forward cash balances	9,012	6,992	0	0	9,012	6,992
Net increase in cash	13,388	45,788	0	208	13,388	45,996
Cash and cash equivalents at beginning of period	94,410	122,324	0	(208)	94,410	122,116
Cash and cash equivalents at end of period	107,798	168,112	0	0	107,798	168,112
Supplemental Schedule of Non-cash Investing Activities
Common stock issued in connection with investment in subsidiaries		23,131		0	0	23,131
Supplemental disclosures of cash flow information
Interest paid		6,329		0		6,329
Income tax paid		$ 7,012		$ 0		$ 7,012

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Organization And Significant Accounting Policies (Narrative) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2012	Dec. 31, 2011 Facility lit
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Number of cases produced and distributed (in liters)		33,200,000
Number of liters per case		9
Number of operational manufacturing facilities		6
Maturity of senior notes	Mar. 15, 2013
Credit and factoring facilities maturity, year	2012
Forecasted Strategic Transaction [Member] | Roust Trading [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Maturity of senior notes	Jul. 31, 2016
Debt instrument percentage	6.00%
Forecasted Strategic Transaction [Member] | Roust Trading [Member] | Maximum [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Debt instrument issuance amount	210.0
Forecasted Strategic Transaction [Member] | Russian Standard Corporation [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Investment from other companies	100

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Borrowings (Principal Repayments) (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012
Debt Instrument [Line Items]
2012	$ 43,215
2013	327,912
2014	0
2015	0
2016 and beyond	950,643
Total	$ 1,321,770

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Commitments And Contingent Liabilities (Future Minimum Lease Payments For Assets Under Capital Lease) (Detail) (USD $)	Mar. 31, 2012
Future Minimum Lease Payments Under Capital Leases And Operating Leases For Continuing Operations [Line Items]
2012	$ 1,194
2013	522
2014	171
Gross payments due	1,887
Less interest	(132)
Net payments due	$ 1,755

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Other Financial Income, Net (Components Of Other Financial Income, Net) (Detail) (Restated [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Restated [Member]
Foreign exchange impact related to foreign currency financing	$ 98,347	$ 31,127
Other gains / (losses)	(759)	(605)
Total other financial income / (expense), net	$ 97,588	$ 30,522

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Borrowings (Bank Facilities) (Detail) In Millions, unless otherwise specified	1 Months Ended		3 Months Ended		0 Months Ended	3 Months Ended		1 Months Ended			3 Months Ended		1 Months Ended	3 Months Ended	1 Months Ended	3 Months Ended			0 Months Ended		3 Months Ended							3 Months Ended				3 Months Ended
	Mar. 29, 2012 Zenit Bank [Member] Loan Agreement [Member] USD ($) Tranches	Mar. 29, 2012 Zenit Bank [Member] Loan Agreement [Member] EUR (€) Tranches	Mar. 31, 2012 Zenit Bank [Member] Loan Agreement [Member] USD ($)	Mar. 31, 2012 Zenit Bank [Member] Loan Agreement [Member] EUR (€)	Mar. 29, 2011 Zenit Bank [Member] Minimum [Member] Loan Agreement [Member]	Mar. 31, 2012 Zenit Bank [Member] Minimum [Member] Loan Agreement [Member]	Mar. 31, 2012 Zenit Bank [Member] Maximum [Member] Loan Agreement [Member]	Jul. 22, 2008 Alfa Bank [Member]	Jul. 22, 2008 Alfa Bank [Member] Loan Agreement [Member] USD ($) Tranches	Jul. 22, 2008 Alfa Bank [Member] Loan Agreement [Member] EUR (€) Tranches	Mar. 31, 2012 Alfa Bank [Member] Loan Agreement [Member] USD ($)	Mar. 31, 2012 Alfa Bank [Member] Loan Agreement [Member] EUR (€)	Jul. 22, 2008 Alfa Bank [Member] Minimum [Member] Loan Agreement [Member]	Mar. 31, 2012 Alfa Bank [Member] Minimum [Member] Loan Agreement [Member]	Jul. 22, 2008 Alfa Bank [Member] Maximum [Member] Loan Agreement [Member]	Mar. 31, 2012 Alfa Bank [Member] Maximum [Member] Loan Agreement [Member]	Mar. 31, 2012 Raiffeisen Bank [Member] USD ($)	Mar. 31, 2012 Raiffeisen Bank [Member] EUR (€)	Jul. 06, 2010 Raiffeisen Bank [Member] Loan Agreement [Member] USD ($) Tranches	Jul. 06, 2010 Raiffeisen Bank [Member] Loan Agreement [Member] EUR (€) Tranches	Mar. 31, 2012 Raiffeisen Bank [Member] Loan Agreement [Member]	Mar. 31, 2012 Raiffeisen Bank [Member] Minimum [Member]	Mar. 31, 2012 Raiffeisen Bank [Member] Minimum [Member] Loan Agreement [Member]	Mar. 31, 2012 Raiffeisen Bank [Member] Maximum [Member]	Mar. 31, 2012 Raiffeisen Bank [Member] Maximum [Member] Loan Agreement [Member]	Mar. 31, 2012 Unicredit And JSC Grand Invest Bank [Member] Loan Agreement [Member] USD ($)	Mar. 31, 2012 Unicredit And JSC Grand Invest Bank [Member] Loan Agreement [Member] RUB	Mar. 31, 2012 Unicredit [Member] Loan Agreement [Member] USD ($)	Mar. 31, 2012 Unicredit [Member] Loan Agreement [Member] RUB	May 24, 2011 Unicredit [Member] Loan Agreement [Member] USD ($)	May 24, 2011 Unicredit [Member] Loan Agreement [Member] RUB	Mar. 31, 2012 JSC Grand Invest Bank [Member] Loan Agreement [Member] USD ($)	Mar. 31, 2012 JSC Grand Invest Bank [Member] Loan Agreement [Member] RUB	Mar. 31, 2012 Sberbank [Member] Overdraft Agreement [Member] USD ($)	Mar. 31, 2012 Sberbank [Member] Overdraft Agreement [Member] RUB	Feb. 06, 2012 Sberbank [Member] Overdraft Agreement [Member] USD ($)	Feb. 06, 2012 Sberbank [Member] Overdraft Agreement [Member] RUB	Mar. 31, 2012 Zenit Bank, Alfa Bank And Raiffeisen Bank [Member] USD ($)	Mar. 31, 2012 Zenit Bank, Alfa Bank And Raiffeisen Bank [Member] EUR (€)	Mar. 31, 2012 Hungary [Member] Overdraft Agreement [Member] USD ($)	Mar. 31, 2012 Hungary [Member] Overdraft Agreement [Member] HUF
Line of Credit Facility [Line Items]
Outstanding liability			$ 6.7	€ 5.0							$ 20.1	€ 15.1					$ 6.5	€ 4.9								$ 30.0	879.6	$ 20.5	600.0			$ 9.5	279.6	$ 1.8	52.5			$ 33.4	€ 25.0
Maximum credit limit under line of credit facility	13.3	10.0							26.7	20.0									13.3	10.0																2.0	60.0
Release of tranches, maturity date					365 days			Six months					Three months		Nine months							One		12
Loan agreement, number of tranches	4	4							8	8									5	5
Initiation date			March 29, 2011	March 29, 2011							July 22, 2008	July 22, 2008									July 6, 2010							May 24, 2011	May 24, 2011			November 25, 2011	November 25, 2011	February 6, 2012	February 6, 2012
Maturity date			June 6, 2012	June 6, 2012							October 18, 2014	October 18, 2014									July 6, 2012							November 23, 2012	November 23, 2012			November 23, 2012	November 23, 2012	February 5, 2013	February 5, 2013
Date of tranches release, start date			April 21, 2011	April 21, 2011							September 14, 2011	September 14, 2011									September 12, 2011
Date of tranches release, end date			September 13, 2011	September 13, 2011							March 30, 2012	March 30, 2012									October 26, 2011
Repayable date						April 20, 2012	May 18, 2012							April 28, 2012		October 30, 2012							May 18, 2012		July 6, 2012
Amount of collateral on term loan																														24.6	720.0
Amount available under open credit facility																																								$ 0.5	100.0

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COMPREHENSIVE INCOME

3 Months Ended

Mar. 31, 2012

COMPREHENSIVE INCOME

4. COMPREHENSIVE INCOME

Comprehensive income is defined as all changes in equity during a period except those resulting from investments by owners and distributions to owners. Comprehensive income includes net income adjusted by foreign currency translation adjustments. The foreign translation losses/gains on the re-measurements from foreign currencies to U.S. dollars are classified separately as foreign currency translation adjustment within accumulated other comprehensive income included in stockholders’ equity.

As of March 31, 2012, our functional currencies (Polish zloty, Russian ruble and Hungarian forint) exchange rates used to translate the balance sheet strengthened against the U.S. dollar as compared to the exchange rates as of December 31, 2011, and as a result $22.5 million of foreign currency translation adjustment was recognized as part of total comprehensive income, which mainly related to an increase in goodwill and intangible assets.

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Other Non-Operating Expense (Components Of Other Non-Operating Expense) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Factoring costs and bank fees	$ (2,262)	$ (671)
Other gains / (losses)	(336)	(305)
Total other non operating income / (expense), net	$ (2,598)	$ (976)

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Condensed Consolidated Statement of Changes in Stockholders Equity (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Mar. 31, 2012 As Reported [Member]	Mar. 31, 2011 As Reported [Member]	Mar. 31, 2011 As Reported [Member] Common Stock [Member]	Mar. 31, 2011 As Reported [Member] Additional Paid In Capital [Member]	Mar. 31, 2011 As Reported [Member] Accumulated Deficit (Retained Earnings) [Member]	Mar. 31, 2011 As Reported [Member] Accumulated Other Comprehensive Income Of Continuing Operations [Member]	Mar. 31, 2011 As Reported [Member] Accumulated Other Comprehensive Income Of Discontinued Operations [Member]	Mar. 31, 2011 As Reported [Member] Treasury Stock [Member]	Mar. 31, 2012 Adjustment [Member]	Mar. 31, 2011 Adjustment [Member]	Mar. 31, 2011 Adjustment [Member] Common Stock [Member]	Mar. 31, 2011 Adjustment [Member] Additional Paid In Capital [Member]	Mar. 31, 2011 Adjustment [Member] Accumulated Deficit (Retained Earnings) [Member]	Mar. 31, 2011 Adjustment [Member] Accumulated Other Comprehensive Income Of Continuing Operations [Member]	Mar. 31, 2011 Adjustment [Member] Accumulated Other Comprehensive Income Of Discontinued Operations [Member]	Mar. 31, 2011 Adjustment [Member] Treasury Stock [Member]	Mar. 31, 2012 Restated [Member]	Mar. 31, 2011 Restated [Member]	Mar. 31, 2011 Restated [Member] Common Stock [Member]	Mar. 31, 2011 Restated [Member] Additional Paid In Capital [Member]	Mar. 31, 2011 Restated [Member] Accumulated Deficit (Retained Earnings) [Member]	Mar. 31, 2011 Restated [Member] Accumulated Other Comprehensive Income Of Continuing Operations [Member]	Mar. 31, 2011 Restated [Member] Accumulated Other Comprehensive Income Of Discontinued Operations [Member]	Mar. 31, 2011 Restated [Member] Treasury Stock [Member]
Changes In Equity And Comprehensive Income [Line Items]
Accumulated other comprehensive income of continuing operations	$ 207,326	$ 358,453	$ 1,726,697	$ 727	$ 1,367,509	$ 161,371	$ 197,240	$ 0	$ (150)	$ (67,551)	$ (37,474)	$ 0	$ 0	$ (37,905)	$ 431	$ 0	$ 0	$ 290,902	$ 1,689,223	$ 727	$ 1,367,509	$ 123,466	$ 197,671	$ 0	$ (150)

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OPERATING SEGMENTS (Tables)

3 Months Ended

Mar. 31, 2012

Segment Information On Net Sales

	Segment Net Sales Three months ended March 31,
	2012		2011
	(Restated, see Note 2)		(Restated, see Note 2)
Segment
Poland	$	47,135	$	46,617
Russia		93,426		86,579
Hungary		5,428		5,158
Total Net Sales	$	145,989	$	138,354

Segment Information On Operating Income / (Loss)

	Operating income / (loss) Three months ended March 31,
	2012			2011
	(Restated, see Note 2)			(Restated, see Note 2)
Segment
Poland before fair value adjustments	$	6,480		$	4,793
Gain on remeasurement of previously held equity interests		0			7,898
Poland after fair value adjustments		6,480			12,691
Russia		(8,463	)		(6,220	)
Hungary		720			661
Corporate Overhead
General corporate overhead		(1,692	)		(1,242	)
Option Expense		(864	)		(693	)
Total Operating income / (loss)	$	(3,819	)	$	5,197

Segment Information On Identifiable Assets

	Identifiable Operating Assets
	March 31, 2012		December 31, 2011
	(Restated, see Note 2)
Segment
Poland	$	599,163	$	600,940
Russia		1,319,980		1,369,744
Hungary		22,957		20,265
Corporate		28,430		25,769
Total Identifiable Assets	$	1,970,530	$	2,016,718

Segment Information On Goodwill

	Goodwill
	March  31, 2012 (Restated, see Note 2)		December 31, 2011
Segment
Poland	$	276,188	$	252,080
Russia		452,691		412,105
Hungary		6,693		6,109
Total Goodwill	$	735,572	$	670,294

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Inventories (Tables)

3 Months Ended

Mar. 31, 2012

Components Of Inventories

	March 31,		December 31,
	2012 (Restated, see Note 2)		2011
Raw materials and supplies	$	22,926	$	22,237
In-process inventories		8,046		2,655
Finished goods and goods for resale		89,813		92,798
Total	$	120,785	$	117,690

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Operating Segments (Segment Information On Net Sales) (Detail) (Restated [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Segment Reporting Information [Line Items]
Total Net Sales	$ 145,989	$ 138,354
Poland [Member]
Segment Reporting Information [Line Items]
Total Net Sales	47,135	46,617
Russia [Member]
Segment Reporting Information [Line Items]
Total Net Sales	93,426	86,579
Hungary [Member]
Segment Reporting Information [Line Items]
Total Net Sales	$ 5,428	$ 5,158

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Sale Of Accounts Receivable (Detail) In Millions, unless otherwise specified	3 Months Ended						3 Months Ended
	Mar. 31, 2012 USD ($)	Mar. 31, 2012 PLN	Mar. 01, 2012 USD ($)	Mar. 01, 2012 PLN	Jan. 02, 2012 USD ($)	Jan. 02, 2012 PLN	Mar. 31, 2012 ING Polska [Member] USD ($)	Mar. 31, 2012 ING Polska [Member] PLN	Feb. 24, 2011 ING Polska [Member] USD ($)	Feb. 24, 2011 ING Polska [Member] PLN
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maximum sale under factoring agreement								220.0	$ 93.0	290.0
Factoring agreements, reduced limit	64.1	200.0	70.5	220.0	80.2	250.0
Factoring agreements maturity date	Apr. 30, 2012	Apr. 30, 2012
Factoring agreements extended maturity date	Sep. 30, 2012	Sep. 30, 2012
Total balance of accounts receivable under factoring							56.8	177.3
Accounts receivable sold during the period							97.1	302.8
Non-recourse factoring loss							1.0	3.2
Liability for recourse from factored receivables	$ 1.4

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Interest Expense, Net (Tables)

3 Months Ended

Mar. 31, 2012

Components Of Interest Expense, Net

	Three months ended March 31,
	2012 (Restated, see Note 2)			2011
Interest income	$	245		$	525
Interest expense		(26,547	)		(27,377	)
Total interest expense, net	($	26,302	)	($	26,852	)

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Other Financial Income, Net (Tables)

3 Months Ended

Mar. 31, 2012

Components Of Other Financial Income, Net

	Three months ended March 31,
	2012			2011
	(Restated, see Note 2)			(Restated, see Note 2)
Foreign exchange impact related to foreign currency financing	$	98,347		$	31,127
Other gains / (losses)		(759	)		(605	)
Total other financial income / (expense), net	$	97,588		$	30,522

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Sale Of Accounts Receivable

3 Months Ended

Mar. 31, 2012

Sale Of Accounts Receivable

3. SALE OF ACCOUNTS RECEIVABLE

On February 24, 2011, two subsidiaries of the Company, namely CEDC International sp. z o.o. (“CEDC International”) and Polmos Białystok S.A. (“Polmos Bialystok”), entered into factoring arrangements (“Factoring Agreements”) with ING Commercial Finance Polska (“ING Polska”) for the sale up to 290.0 million Polish zlotys (approximately $93.0 million) of receivables. On January 1, 2012, the total limit under the Factoring Agreements was reduced from 290.0 million Polish zlotys ($93.0 million) to 250.0 million Polish zlotys ($80.2 million) and from March 1, 2012 it was further reduced to 220.0 million Polish zlotys ($70.5 million). The Factoring Agreements were to mature on April 30, 2012, however on April 25, 2012 the Company extended these agreements until September 30, 2012 with further decrease of the total limit from April 25, 2012 to 200.0 million Polish zlotys (approximately $64.1 million).

As of March 31, 2012, the total balance of receivables under factoring amounted to 177.3 million Polish zlotys (approximately $56.8 million) of the 220.0 million Polish zlotys limit available.

For the three months ended March 31, 2012, the Company sold receivables in the amount of 302.8 million Polish zlotys ($97.1 million) and recognized a loss on the sale in the statement of operations and comprehensive income in the amount of 3.2 million Polish zlotys ($1.0 million) in respect of the non-recourse factoring. The Company has no continuing involvement with the sold non-recourse receivables.

As of March 31, 2012, the liabilities from factoring with recourse amounted to $1.4 million and are included in the short term bank loans in the balance sheet. Corresponding receivables from factoring with recourse are presented under accounts receivable in the balance sheet.

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Other Non-Operating Expense (Tables)

3 Months Ended

Mar. 31, 2012

Components Of Other Non-Operating Expense

	Three months ended March 31,
	2012			2011
Factoring costs and bank fees		(2,262	)		(671	)
Other gains / (losses)		(336	)		(305	)
Total other non operating income / (expense), net	($	2,598	)	($	976	)

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Condensed Consolidated Balance Sheet (Parenthetical) (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	Dec. 31, 2011	Mar. 31, 2012 As Reported [Member]	Mar. 31, 2011 As Reported [Member]	Mar. 31, 2012 Adjustment [Member]	Mar. 31, 2011 Adjustment [Member]	Mar. 31, 2012 Restated [Member]	Mar. 31, 2011 Restated [Member]
Allowance for doubtful accounts	$ 24,510	$ 26,221	$ 34,056			$ 26,889	$ 35,005
Common Stock ,par value	$ 0.01	$ 0.01	$ 0.01	$ 0.01	$ 0.01	$ 0.01	$ 0.01
Common Stock ,shares authorized	120,000,000	120,000,000	120,000,000	120,000,000	120,000,000	120,000,000	120,000,000
Common Stock ,shares issued	72,740,302	73,125,230	72,716,235	73,125,230	72,716,235	73,125,230	72,716,235
Common Stock ,shares outstanding	72,740,302	73,125,230	72,716,235	73,125,230	72,716,235	73,125,230	72,716,235
Preferred Stock ,par value	$ 0.01	$ 0.01		$ 0.01		$ 0.01
Preferred Stock ,shares authorized	1,000,000	1,000,000		1,000,000		1,000,000
Preferred Stock , shares issued	0	0		0		0
Preferred Stock , shares outstanding	0	0		0		0
Treasury Stock,shares	246,037	246,037	246,037	246,037	246,037	246,037	246,037

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Inventories (Components Of Inventories) (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Mar. 31, 2011	Mar. 31, 2012 Restated [Member]	Mar. 31, 2011 Restated [Member]
Raw materials and supplies	$ 22,237		$ 22,926
In-process inventories	2,655		8,046
Finished goods and goods for resale	92,798		89,813
Total	$ 117,690	$ 146,966	$ 120,785	$ 146,966

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Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Current Assets
Cash and cash equivalents		$ 94,410
Accounts receivable, net of allowance for doubtful accounts at March 31, 2012 of $26,889 and at December 31, 2011 of $24,510		410,866
Inventories		117,690
Prepaid expenses		16,538
Other current assets		23,020
Deferred income taxes		4,717
Debt issuance costs		2,962
Total Current Assets		670,203
Intangible assets, net		463,848
Goodwill		670,294
Property, plant and equipment, net		176,660
Deferred income taxes, net		21,488
Debt issuance costs		13,550
Non-current assets held for sale		675
Total Non-Current Assets		1,346,515
Total Assets		2,016,718
Current Liabilities
Trade accounts payable		144,797
Bank loans and overdraft facilities		85,762
Short-term obligations under Convertible Senior Notes		0
Income taxes payable		9,607
Taxes other than income taxes		189,515
Other accrued liabilities		48,208
Current portions of obligations under capital leases		1,109
Total Current Liabilities		478,998
Long-term obligations under capital leases		532
Long-term obligations under Convertible Senior Notes		304,645
Long-term obligations under Senior Secured Notes		932,089
Long-term accruals		2,000
Deferred income taxes		91,128
Commitments and contingent liabilities (Note 14)
Total Long Term Liabilities		1,330,394
Stockholders' Equity
Common Stock ($0.01 par value, 120,000,000 shares authorized, 73,125,230 and 72,740,302 shares issued and outstanding at March 31, 2012 and December 31, 2011, respectively)		727
Preferred Stock ($0.01 par value, 1,000,000 shares authorized, none issued and outstanding)		0
Additional paid-in-capital		1,369,471
Accumulated deficit		(1,197,884)
Accumulated other comprehensive income		35,162
Less Treasury Stock at cost (246,037 shares at March 31, 2012 and December 31, 2011)		(150)
Total Stockholders' Equity		207,326
Total Liabilities and Stockholders' Equity		2,016,718
Restated [Member]
Current Assets
Cash and cash equivalents	107,798	94,410
Accounts receivable, net of allowance for doubtful accounts at March 31, 2012 of $26,889 and at December 31, 2011 of $24,510	220,257
Inventories	120,785
Prepaid expenses	23,169
Other current assets	21,722
Deferred income taxes	2,646
Debt issuance costs	2,959
Total Current Assets	499,336
Intangible assets, net	508,605
Goodwill	735,572
Property, plant and equipment, net	190,742
Deferred income taxes, net	22,811
Debt issuance costs	12,789
Non-current assets held for sale	675
Total Non-Current Assets	1,471,194
Total Assets	1,970,530
Current Liabilities
Trade accounts payable	69,868
Bank loans and overdraft facilities	66,708
Short-term obligations under Convertible Senior Notes	305,977
Income taxes payable	8,391
Taxes other than income taxes	101,323
Other accrued liabilities	73,441
Current portions of obligations under capital leases	1,159
Total Current Liabilities	626,867
Long-term obligations under capital leases	728
Long-term obligations under Convertible Senior Notes	0
Long-term obligations under Senior Secured Notes	950,643
Long-term accruals	2,191
Deferred income taxes	99,199
Commitments and contingent liabilities (Note 14)
Total Long Term Liabilities	1,052,761
Stockholders' Equity
Common Stock ($0.01 par value, 120,000,000 shares authorized, 73,125,230 and 72,740,302 shares issued and outstanding at March 31, 2012 and December 31, 2011, respectively)	731
Preferred Stock ($0.01 par value, 1,000,000 shares authorized, none issued and outstanding)	0
Additional paid-in-capital	1,370,335
Accumulated deficit	(1,137,700)
Accumulated other comprehensive income	57,686
Less Treasury Stock at cost (246,037 shares at March 31, 2012 and December 31, 2011)	(150)
Total Stockholders' Equity	290,902
Total Liabilities and Stockholders' Equity	$ 1,970,530

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Comprehensive Income (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012
Foreign currency translation adjustment	$ 22.5

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ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2012

ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Organization and description of business

Central European Distribution Corporation (“CEDC”) and its subsidiaries (collectively referred to as “we,” “us,” “our,” or the “Company”) operate primarily in the alcohol beverage industry. We are one of the largest producers of vodka in the world and are Central and Eastern Europe’s largest integrated spirit beverages business, measured by total volume, with approximately 33.2 million nine-liter cases produced and distributed in 2011. Our business primarily involves the production and sale of our own spirit brands (principally vodka), and the importation on an exclusive basis of a wide variety of spirits, wines and beers. Our primary operations are conducted in Poland, Russia, Ukraine and Hungary. We have six operational manufacturing facilities located in Poland and Russia.

In Poland, we are one of the largest vodka producers with a brand portfolio that includes Absolwent, Żubrówka, Żubrówka Biała, Bols, Palace and Soplica brands, each of which we produce at our Polish distilleries. We produce and sell vodkas primarily in three of four vodka sectors: premium, mainstream and economy. In Poland, we also own and produce Royal, the top-selling vodka in Hungary.

We are also the largest vodka producer in Russia, the world’s largest vodka market. Our Green Mark brand is the top-selling mainstream vodka in Russia and the second-largest vodka brand by volume in the world, and our Parliament and Zhuravli brands are two top-selling sub-premium vodkas in Russia.

As well as sales and distribution of its own branded spirits, the Company is a leading exclusive importer of wines and spirits in Poland, Russia and Hungary.

Liquidity

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. As discussed further in Note 6, certain credit and factoring facilities are coming due in 2012, which the Company expects to renew. Furthermore, our Convertible Senior Notes (the “Convertible Notes”) are due on March 15, 2013. Our current cash on hand, estimated cash from operations and available credit facilities will not be sufficient to make the repayment on Convertible Notes and, unless the transaction with Russian Standard Corporation is completed as scheduled, the Company may default on them. The Company’s cash flow forecasts include the assumption that certain credit and factoring facilities that are coming due in 2012 will be renewed to manage working capital needs. Moreover, the Company had a net loss and significant impairment charges in 2011 and current liabilities exceed current assets at March 31, 2012. These conditions raise substantial doubt about the Company’s ability to continue as a going concern unless the transaction with Russian Standard described below is completed as scheduled.

As discussed further in Note 17, on April 23, 2012, the Company announced that definitive agreements had been signed with Russian Standard Corporation (via Roust Trading Limited) for a strategic transaction. Pursuant to these agreements, on May 4, 2012 Roust Trading Limited and its affiliates invested $100 million in the Company by purchasing a combination of newly issued shares of the Company’s common stock and notes exchangeable into the Company’s common shares following shareholder approval. In addition, Roust Trading Limited has agreed to purchase from the Company up to $210 million principal amount of newly issued, Unsecured Senior Notes due July 31, 2016 at a blended interest rate of 6.00%. While we believe that this transaction would allow the Company to settle the Convertible Notes before March 15, 2013, the transaction is subject to certain risks, including shareholder approval which may not be obtained. The Company’s annual general meeting (AGM) is scheduled for June 29, 2012 at which time the final vote of the shareholders will be known. We believe that if the transaction is completed as scheduled, the Convertible Notes will be repaid by their maturity date which would substantially reduce doubts about the Company’s ability to continue as a going concern.

Basis of presentation

These unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

CEDC’s subsidiaries maintain their books of account and prepare their statutory financial statements in their respective local currencies. The subsidiaries’ financial statements have been adjusted to reflect U.S. GAAP for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary to fairly present our financial condition, results of operations and comprehensive income and cash flows for the interim periods presented have been included. Operating results for the three months ended March 31, 2012 are not necessarily indicative of the results that may be expected for the year ended December 31, 2012.

The balance sheet at December 31, 2011 has been derived from the audited restated financial statements at that date, but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements.

These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our annual report on Form 10-K/A for the year ended December 31, 2011, dated October 4, 2012.

The significant interim accounting policies include the recognition of a pro-rata share of certain estimated annual sales incentives, marketing, promotion and advertising costs, generally in proportion to sales, and the recognition of income taxes using an estimated annual effective tax rate adjusted for tax amendments related to prior years and changes in estimate.

On February 7, 2011, the Company acquired full voting and economic control over Whitehall Group and changed the accounting treatment for its interest in Whitehall from the equity method of accounting to consolidation beginning on February 7, 2011.

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Operating Segments (Segment Information On Goodwill) (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Mar. 31, 2012 Restated [Member]	Mar. 31, 2011 Restated [Member]	Dec. 31, 2011 Poland [Member]	Mar. 31, 2012 Poland [Member] Restated [Member]	Dec. 31, 2011 Russia [Member]	Mar. 31, 2012 Russia [Member] Restated [Member]	Dec. 31, 2011 Hungary [Member]	Mar. 31, 2012 Hungary [Member] Restated [Member]
Segment Reporting Information [Line Items]
Goodwill	$ 670,294	$ 735,572	$ 1,836,866	$ 252,080	$ 276,188	$ 412,105	$ 452,691	$ 6,109	$ 6,693

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2012

Fair Value Of Assets Measured On A Recurring And Nonrecurring Basis

			Assets at Fair Value Using
	Total		Quoted Prices  in Activated Markets for Identical Assets (Level 1)		Significant  Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
March 31, 2012
Recurring items
Cash and cash equivalents	$	107,798	$	107,798	$	0	$	0
Convertible Senior Notes	$	272,800	$	272,800	$	0	$	0
Secured Senior Notes	$	731,350	$	731,350	$	0	$	0
Nonrecurring items
Assets held for sale	$	675	$	0	$	0	$	675
December 31, 2011
Recurring items
Cash and cash equivalents	$	94,410	$	94,410	$	0	$	0
Convertible Senior Notes	$	248,000	$	248,000	$	0	$	0
Secured Senior Notes	$	702,700	$	702,700	$	0	$	0
Nonrecurring items
Assets held for sale	$	675	$	0	$	0	$	675

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Commitments And Contingent Liabilities (Narrative) (Detail) In Millions, unless otherwise specified			3 Months Ended				3 Months Ended
	Mar. 31, 2012 Russian Alcohol [Member] USD ($)	Mar. 31, 2012 Russian Alcohol [Member] RUB	Mar. 31, 2012 Russian Alcohol [Member] Minimum [Member]	Mar. 31, 2012 Russian Alcohol [Member] Maximum [Member]	Mar. 31, 2012 Bravo Premium [Member] USD ($)	Mar. 31, 2012 Bravo Premium [Member] RUB	Mar. 31, 2012 Bravo Premium [Member] Minimum [Member]	Mar. 31, 2012 Bravo Premium [Member] Maximum [Member]	Mar. 31, 2012 Whitehall [Member] USD ($)	Mar. 31, 2012 Whitehall [Member] RUB	Mar. 31, 2012 Poland [Member] USD ($)
Commitments And Contingent Liabilities [Line Items]
Amount under bank guarantee	$ 620.8	18,200.0			$ 20.5	600.0			$ 58.0	1,700.0	$ 2.0
Term of bank guarantee, years			1	4			1	2

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Subsequent Events

3 Months Ended

Mar. 31, 2012

Subsequent Events

17. SUBSEQUENT EVENTS

On April 23, 2012, the Company announced that definitive agreements had been signed with Russian Standard Corporation (via Roust Trading Limited) for a strategic transaction. Pursuant to a securities purchase agreement, Roust Trading Limited has agreed to make an investment in the Company in three stages, subject to typical closing conditions. First, on May 4, 2012 Roust Trading Limited acquired 5,714,286 newly issued shares of the Company’s common stock for an aggregate purchase price of $30 million, or $5.25 per share, and JSC “Russian Standard Bank,” an affiliate of Roust Trading Limited, purchased $70 million aggregate principal amount of senior notes due March 18, 2013, bearing an interest rate of 3.00% (the “New Debt”) issued by the Company. Subject to the consummation of the Second Closing (as defined in the securities purchase agreement), the Company (on or after January 30, 2013) or Roust Trading Limited (on or after the completion of the Second Closing) may cause the New Debt to effectively be exchanged for newly issued shares of the Company’s common stock equal to the then-outstanding principal amount of the New Debt, plus accrued and unpaid interest thereon as of the Second Closing, divided by $5.25. The total amount of shares of the Company’s common stock expected to be issued in relation to the New Debt is approximately 13,333,333 shares of the Company’s common stock plus any additional shares representing accrued and unpaid interest under the New Debt as of the Second Closing. Second, if shareholder approval is obtained, then (subject to typical closing conditions), Roust Trading Limited will purchase $102.6 million aggregate principal amount of senior rollover notes due July 31, 2016 (the “Rollover Notes”), from the Company. The Company must use the proceeds (net of fees and expenses) from the issuance of the Rollover Notes to repurchase the Convertible Senior Notes held by Roust Trading Limited or its affiliates, in the same principal amount as the Rollover Notes, at par. Third, the Company, at its option, may issue to Roust Trading Limited senior backstop notes in an aggregate principal amount of up to $107.5 million due July 31, 2016 (the “Backstop Notes”) to be used by the Company to pay the remaining principal amount of the Convertible Senior Notes then outstanding. Each of the Rollover Notes and Backstop Notes will bear a blended interest rate of 6.00% over the term of each note.

The Company and Roust Trading Limited also entered into a governance agreement in support of this investment. In accordance with this governance agreement, Roust Trading Limited may nominate up to three directors to the Company’s Board of Directors depending on the amount of the Company’s common stock held by Roust Trading Limited. In addition, Roust Trading Limited received various minority protection rights.

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Effects Of Foreign Currency Movements (Tables)

3 Months Ended

Mar. 31, 2012

Exchange Rates Used For Translation Of Balance Sheet And Statement Of Operations

	Balance sheet rate as of March 31, 2012		Balance sheet rate as of December 31, 2011		Average rate for the three months ended March 31, 2012		Average rate for the three months ended March 31, 2011
PLN / US$		3.1191		3.4174		3.2249		2.8800
RUR / US$		29.3148		32.2092		30.1674		29.2089
HUF / US$		221.2128		240.6620		225.5175		198.6207

Schedule Of Foreign Currency Exchange Rate Effect Before Tax

Exchange Rate	Value of notional amount	Pre-tax impact of a 1% movement in exchange rate
USD-Polish zloty	$426 million	$	4.3 million gain/loss
USD-Russian ruble	$264 million	$	2.6 million gain/loss
EUR-Polish zloty	€430 million or approximately $574 million	$	5.7 million gain/loss

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ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 31, 2012

Organization And Description Of Business

Organization and description of business

Central European Distribution Corporation (“CEDC”) and its subsidiaries (collectively referred to as “we,” “us,” “our,” or the “Company”) operate primarily in the alcohol beverage industry. We are one of the largest producers of vodka in the world and are Central and Eastern Europe’s largest integrated spirit beverages business, measured by total volume, with approximately 33.2 million nine-liter cases produced and distributed in 2011. Our business primarily involves the production and sale of our own spirit brands (principally vodka), and the importation on an exclusive basis of a wide variety of spirits, wines and beers. Our primary operations are conducted in Poland, Russia, Ukraine and Hungary. We have six operational manufacturing facilities located in Poland and Russia.

In Poland, we are one of the largest vodka producers with a brand portfolio that includes Absolwent, Żubrówka, Żubrówka Biała, Bols, Palace and Soplica brands, each of which we produce at our Polish distilleries. We produce and sell vodkas primarily in three of four vodka sectors: premium, mainstream and economy. In Poland, we also own and produce Royal, the top-selling vodka in Hungary.

We are also the largest vodka producer in Russia, the world’s largest vodka market. Our Green Mark brand is the top-selling mainstream vodka in Russia and the second-largest vodka brand by volume in the world, and our Parliament and Zhuravli brands are two top-selling sub-premium vodkas in Russia.

As well as sales and distribution of its own branded spirits, the Company is a leading exclusive importer of wines and spirits in Poland, Russia and Hungary.

Liquidity

Liquidity

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. As discussed further in Note 6, certain credit and factoring facilities are coming due in 2012, which the Company expects to renew. Furthermore, our Convertible Senior Notes (the “Convertible Notes”) are due on March 15, 2013. Our current cash on hand, estimated cash from operations and available credit facilities will not be sufficient to make the repayment on Convertible Notes and, unless the transaction with Russian Standard Corporation is completed as scheduled, the Company may default on them. The Company’s cash flow forecasts include the assumption that certain credit and factoring facilities that are coming due in 2012 will be renewed to manage working capital needs. Moreover, the Company had a net loss and significant impairment charges in 2011 and current liabilities exceed current assets at March 31, 2012. These conditions raise substantial doubt about the Company’s ability to continue as a going concern unless the transaction with Russian Standard described below is completed as scheduled.

As discussed further in Note 17, on April 23, 2012, the Company announced that definitive agreements had been signed with Russian Standard Corporation (via Roust Trading Limited) for a strategic transaction. Pursuant to these agreements, on May 4, 2012 Roust Trading Limited and its affiliates invested $100 million in the Company by purchasing a combination of newly issued shares of the Company’s common stock and notes exchangeable into the Company’s common shares following shareholder approval. In addition, Roust Trading Limited has agreed to purchase from the Company up to $210 million principal amount of newly issued, Unsecured Senior Notes due July 31, 2016 at a blended interest rate of 6.00%. While we believe that this transaction would allow the Company to settle the Convertible Notes before March 15, 2013, the transaction is subject to certain risks, including shareholder approval which may not be obtained. The Company’s annual general meeting (AGM) is scheduled for June 29, 2012 at which time the final vote of the shareholders will be known. We believe that if the transaction is completed as scheduled, the Convertible Notes will be repaid by their maturity date which would substantially reduce doubts about the Company’s ability to continue as a going concern.

Basis Of Presentation

Basis of presentation

These unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

CEDC’s subsidiaries maintain their books of account and prepare their statutory financial statements in their respective local currencies. The subsidiaries’ financial statements have been adjusted to reflect U.S. GAAP for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary to fairly present our financial condition, results of operations and comprehensive income and cash flows for the interim periods presented have been included. Operating results for the three months ended March 31, 2012 are not necessarily indicative of the results that may be expected for the year ended December 31, 2012.

The balance sheet at December 31, 2011 has been derived from the audited restated financial statements at that date, but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements.

These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our annual report on Form 10-K/A for the year ended December 31, 2011, dated October 4, 2012.

The significant interim accounting policies include the recognition of a pro-rata share of certain estimated annual sales incentives, marketing, promotion and advertising costs, generally in proportion to sales, and the recognition of income taxes using an estimated annual effective tax rate adjusted for tax amendments related to prior years and changes in estimate.

On February 7, 2011, the Company acquired full voting and economic control over Whitehall Group and changed the accounting treatment for its interest in Whitehall from the equity method of accounting to consolidation beginning on February 7, 2011.

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Fair Value Measurements (Fair Value Of Assets Measured On A Recurring And Nonrecurring Basis) (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Recurring Items [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Cash and cash equivalents	$ 107,798	$ 94,410
Recurring Items [Member] | Convertible Senior Notes [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Senior Notes	272,800	248,000
Recurring Items [Member] | Secured Senior Notes [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Senior Notes	731,350	702,700
Nonrecurring Items [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Assets held for sale	675	675
Quoted Prices In Activated Markets For Identical Assets (Level 1) [Member] | Recurring Items [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Cash and cash equivalents	107,798	94,410
Quoted Prices In Activated Markets For Identical Assets (Level 1) [Member] | Recurring Items [Member] | Convertible Senior Notes [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Senior Notes	272,800	248,000
Quoted Prices In Activated Markets For Identical Assets (Level 1) [Member] | Recurring Items [Member] | Secured Senior Notes [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Senior Notes	731,350	702,700
Quoted Prices In Activated Markets For Identical Assets (Level 1) [Member] | Nonrecurring Items [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Assets held for sale	0	0
Significant Other Observable Inputs (Level 2) [Member] | Recurring Items [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Cash and cash equivalents	0	0
Significant Other Observable Inputs (Level 2) [Member] | Recurring Items [Member] | Convertible Senior Notes [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Senior Notes	0	0
Significant Other Observable Inputs (Level 2) [Member] | Recurring Items [Member] | Secured Senior Notes [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Senior Notes	0	0
Significant Other Observable Inputs (Level 2) [Member] | Nonrecurring Items [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Assets held for sale	0	0
Unobservable Inputs (Level 3) [Member] | Recurring Items [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Cash and cash equivalents	0	0
Unobservable Inputs (Level 3) [Member] | Recurring Items [Member] | Convertible Senior Notes [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Senior Notes	0	0
Unobservable Inputs (Level 3) [Member] | Recurring Items [Member] | Secured Senior Notes [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Senior Notes	0	0
Unobservable Inputs (Level 3) [Member] | Nonrecurring Items [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Assets held for sale	$ 675	$ 675

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RESTATEMENT OF UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

3 Months Ended

Mar. 31, 2012

RESTATEMENT OF UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

2. RESTATEMENT OF UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

In April 2012, the Company changed its senior management at the Russian Alcohol Group (“RAG”), its main operating subsidiary in Russia. Following this change, the Company’s senior management requested that the new RAG senior management team review RAG’s business operations and internal controls, including an assessment of the resources and needs of the corporate finance and reporting departments, as identified in Item 9A of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011 initially filed with the Securities Exchange Commission (“SEC”) on February 29, 2012.

Based on the preliminary findings of that review, CEDC’s senior management concluded that the Company’s financial statements for the years ended December 31, 2010 and 2011 should no longer be relied upon because of a failure to reflect the timely reporting of the full amount of retroactive trade rebates and trade marketing refunds provided to RAG’s customers in Russia.

Thereafter, the Audit Committee of the Company’s Board of Directors initiated an internal investigation, with the assistance of outside counsel and forensic accountants engaged by outside counsel, regarding the Company’s retroactive trade rebates, trade marketing refunds and related accounting issues. The Audit Committee, through its counsel, voluntarily notified the SEC of the investigation and is cooperating with the SEC. The Audit Committee has completed its accounting investigation, and has identified accounting irregularities at RAG, which resulted in the understatement of retroactive trade rebates and trade marketing refunds, as well as certain other errors that were concealed from both the Company’s senior management and the independent auditors.

As a result of the investigation, the Company determined that certain retroactive trade rebates provided to RAG’s customers in Russia were not recorded, and therefore the consolidated sales for the years ended December 31, 2011 and 2010 were overstated by $29.6 and $11.3 million, respectively. The consolidated sales for the three months ended March 31, 2012 were not affected by this error and for the three months ended March 31, 2011 were overstated by $5.5 million. The accounts receivable as at March 31, 2012, December 31, 2011 and March 31, 2011 were overstated by $48.4, $44.5 and $20.7 million, respectively. Furthermore, the Company improperly accounted for promotional compensation granted to customers and as a result the accounts receivable as at March 31, 2012, December 31, 2011 and March 31, 2011 were overstated by $7.8, $8.1 and $7.7 million, respectively, and the consolidated sales for the three months ended March 31, 2012 and 2011 were additionally overstated by $1.6 and $2.8 million, respectively.

As of March 31, 2012 the Company:

- decreased accounts receivable by additional $4.3 million (in addition to the $48.4 million relating to unrecorded retroactive trade rebates and $7.8 million relating to promotional compensation granted to customers, described above) resulting from other individually immaterial adjustments;

- decreased current deferred income taxes by $3.9 million, the adjustment is mainly a result of additional valuation allowance of $14.2 million offset by additional deferred tax recognized in relation to retroactive rebates for customers of $8.6 million, and other individually immaterial adjustments;

- increased goodwill by $3.9 million, of which $2.7 million relates to unrecognized impairment of property, plant and equipment acquired in a business combinations in RAG in 2008 (adjusted also as of December 31, 2010).

In addition to the adjustments described above as of March 31, 2011 the Company:

- decreased accounts receivable by additional $16.3 million (in addition to the $20.7 million relating to unrecorded retroactive trade rebates and $7.7 million relating to promotional compensation granted to customers, described above); this adjustment resulted mainly from a cut-off error of $14.1 million, where revenue for the second quarter of 2011 was recognized in March 2011 and other individually immaterial adjustments;

- increased inventories by $9.5 million, resulting mainly from the cut-off error described above;

- increased goodwill by $4.0 million, of which $2.7 million relates to unrecognized impairment of property, plant and equipment on acquisition of RAG in 2008;

- increased trade payables by $10.1 million, of which $8.5 million relates to payables for marketing costs wrongly presented as other accrued liabilities;

- decreased other accrued liabilities by $7.2 million, mainly as a result of adjustment to accruals for marketing costs described above, offset by immaterial adjustments.

In the unaudited condensed consolidated statement of operations for the three months ended March 31, 2011 the Company:

- decreased sales by additional $9.8 million (in addition to the $5.5 million relating to unrecorded retroactive trade rebates and $2.8 million relating to promotional compensation granted to customers, described above) mainly due to sales cut-off error in the amount of $11.9 million offset by other individually immaterial adjustments;

- decreased cost of goods sold by $11.7 million mainly due to sales cut-off error in the amount of $10.3 million and other immaterial adjustments.

As a result, the Audit Committee of the Company’s Board of Directors concluded that the Company should restate its unaudited condensed consolidated balance sheets as of March 31, 2012 and 2011, and its unaudited condensed consolidated statements of operations and comprehensive income, changes in stockholders’ equity and cash flows for three months ended March 31, 2012 and 2011.

In addition to the errors and irregularities described above, the Company also included in the restated consolidated financial statements other adjustments, which are immaterial individually and in the aggregate, related primarily to previously unrecorded adjustments identified during the preparation of the unaudited condensed consolidated financial statements at March 31, 2012 and 2011, as well as, the write-off of non-recoverable VAT and prepayments, recording provisions for known obsolete inventory and accruing for certain other operating expenses. Furthermore, the Company has expanded certain disclosure items related to income and deferred taxes in Note 8.

The impact of the corrections of the errors discussed above on the consolidated balance sheets, consolidated statements of operations and comprehensive income, consolidated statements of cash flow and consolidated statements of changes in stockholders’ equity is shown in the accompanying tables (in thousands, except for per share data).

Condensed Consolidated Balance Sheet – March 31, 2012 (unaudited)

	As at March 31, 2012 As reported			Adjustment			As at March 31,  2012 Restated
Current Assets
Cash and cash equivalents	$	107,798		$	0		$	107,798
Accounts receivable, net of allowance for doubtful accounts of $26,221 as reported and $26,889 as restated		280,761			(60,504	)		220,257
Inventories		121,324			(539	)		120,785
Prepaid expenses		23,594			(425	)		23,169
Other current assets		19,341			2,381			21,722
Deferred income taxes		6,572			(3,926	)		2,646
Debt issuance cost		2,959			0			2,959
Total Current Assets		562,349			(63,013	)		499,336
Intangible assets, net		508,605			0			508,605
Goodwill		731,675			3,897			735,572
Property, plant and equipment, net		193,838			(3,096	)		190,742
Deferred income taxes, net		22,811			0			22,811
Debt issuance costs		12,789			0			12,789
Non-current assets held for sale		675			0			675
Total Non-Current Assets		1,470,393			801			1,471,194
Total Assets		2,032,742			(62,212	)		1,970,530
Current Liabilities
Trade accounts payable		69,868			0			69,868
Bank loans and overdraft facilities		66,708			0			66,708
Short-term obligations under Convertible Senior Notes		305,977			0			305,977
Income taxes payable		7,208			1,183			8,391
Taxes other than income taxes		99,863			1,460			101,323
Other accrued liabilities		70,715			2,726			73,441
Current portions of obligations under capital leases		1,159			0			1,159
Total Current Liabilities		621,498			5,369			626,867
Long-term obligations under capital leases		728			0			728
Long-term obligations under Senior Secured Notes		950,643			0			950,643
Long-term accruals		2,221			(30	)		2,191
Deferred income taxes		99,199			0			99,199
Total Long-Term Liabilities		1,052,791			(30	)		1,052,761
Stockholders’ Equity
Common Stock ($0.01 par value, 120,000,000 shares authorized, 73,125,230 shares issued and outstanding)		731			0			731
Preferred Stock ($0.01 par value, 1,000,000 shares authorized, none issued and outstanding)		0			0			0
Additional paid-in-capital		1,370,335			0			1,370,335
Accumulated deficit		(1,069,070	)		(68,630	)		(1,137,700	)
Accumulated other comprehensive income		56,607			1,079			57,686
Less Treasury Stock at cost (246,037 shares)		(150	)		0			(150	)
Total Stockholder’s Equity		358,453			(67,551	)		290,902
Total Liabilities and Stockholders’ Equity	$	2,032,742		$	(62,212	)	$	1,970,530

Condensed Consolidated Statement of Operations – 3 months ended March 31, 2012 (unaudited)

	Three months ended March 31, 2012 As reported			Adjustment			Three months ended March 31, 2012 Restated
Sales	$	323,975		$	(2,219	)	$	321,756
Excise taxes		(175,767	)		0			(175,767	)
Net sales		148,208			(2,219	)		145,989
Cost of goods sold		89,529			1,345			90,874
Gross profit		58,679			(3,564	)		55,115
Selling, general and administrative expenses		61,770			(2,836	)		58,934
Operating income / (loss)		(3,091	)		(728	)		(3,819	)
Non operating income / (expense), net
Interest income / (expense), net		(26,224	)		(78	)		(26,302	)
Other financial income / (expense), net		97,922			(334	)		97,588
Other non operating income / (expense), net		(2,598	)		0			(2,598	)
Income before income taxes and equity in net losses from unconsolidated investments		66,009			(1,140	)		64,869
Income tax expense		(3,513	)		(1,172	)		(4,685	)
Net income attributable to the company		62,496			(2,312	)		60,184
Net income from operations per share of common stock, basic		0.86			(0.03	)		0.83
Net income from operations per share of common stock, diluted		0.86			(0.04	)		0.82
Other comprehensive income, net of tax:
Foreign currency translation adjustments		28,719			(6,195	)		22,524
Comprehensive income attributable to the company	$	91,215		$	(8,507	)	$	82,708

Condensed Consolidated Statements of Cash Flow – 3 months ended March 31, 2012 (unaudited)

	Three months ended March 31, 2012 As reported			Adjustment			Three months ended March 31, 2012 Restated
Cash flows from operating activities
Net income	$	62,496		$	(2,312	)	$	60,184
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		4,815			0			4,815
Deferred income taxes		121			1,367			1,488
Unrealized foreign exchange gains		(98,681	)		675			(98,006	)
Stock options fair value expense		864			0			864
Other non cash items		(26	)		247			221
Changes in operating assets and liabilities:
Accounts receivable		226,728			(658	)		226,070
Inventories		6,964			1,449			8,413
Prepaid expenses and other current assets		(3,114	)		796			(2,318	)
Trade accounts payable		(89,358	)		0			(89,358	)
Other accured liabilities and payables (including taxes)		(87,043	)		(1,564	)		(88,607	)
Net cash provided by operating activities		23,766			0			23,766
Cash flows from investing activities
Purchase of fixed assets		(1,329	)		0			(1,329	)
Proceeds from the disposal of fixed assets		127			0			127
Net cash used in investing activities		(1,202	)		0			(1,202	)
Cash flows from financing activities
Borrowings on bank loans and overdraft facility		8,594			0			8,594
Payment of bank loans, overdraft facility and other borrowings		(26,872	)		0			(26,872	)
Decrease in short term capital leases payable		90			0			90
Net cash used in financing activities		(18,188	)		0			(18,188	)
Currency effect on brought forward cash balances		9,012			0			9,012
Net increase in cash		13,388			0			13,388
Cash and cash equivalents at beginning of period		94,410			0			94,410
Cash and cash equivalents at end of period	$	107,798		$	0		$	107,798

Condensed Consolidated Balance Sheet - March 31, 2011 (unaudited)

	Balance as at March 31, 2011 As Reported			Adjustments			Balance as at March 31, 2011 Restated
Current Assets
Cash and cash equivalents	$	168,112		$	0		$	168,112
Accounts receivable, net of allowance for doubtful accounts of $34,056 as reported and $35,005 as restated		296,513			(44,678	)		251,835
Inventories		137,504			9,462			146,966
Prepaid expenses and other current assets		70,415			(979	)		69,436
Deferred income taxes		87,849			(677	)		87,172
Debt issuance cost		2,739			9			2,748
Total Current Assets		763,132			(36,863	)		726,269
Intangible assets, net		684,844			0			684,844
Goodwill, net		1,832,878			3,988			1,836,866
Property, plant and equipment, net		221,584			(3,202	)		218,382
Deferred income taxes		43,805			0			43,805
Debt issuance costs		16,042			0			16,042
Total Non-Current Assets		2,799,153			786			2,799,939
Total Assets	$	3,562,285		$	(36,077	)	$	3,526,208
Current Liabilities
Trade accounts payable	$	80,018		$	10,076		$	90,094
Bank loans and overdraft facilities		72,496			0			72,496
Income taxes payable		3,325			0			3,325
Taxes other than income taxes		98,525			(1,444	)		97,081
Other accrued liabilities		105,405			(7,204	)		98,201
Current portions of obligations under capital leases		838			0			838
Total Current Liabilities		360,607			1,428			362,035
Long-term obligations under capital leases		1,096			0			1,096
Long-term obligations under Senior Notes		1,288,564			0			1,288,564
Long-term accruals		2,321			(31	)		2,290
Deferred income taxes		183,000			0			183,000
Total Long Term Liabilities		1,474,981			(31	)		1,474,950
Stockholders’ Equity
Common Stock ($0.01 par value, 120,000,000 shares authorized, 72,716,235 shares issued and outstanding)		727			0			727
Additional paid-in-capital		1,367,509			0			1,367,509
Retained earnings		161,371			(37,905	)		123,466
Accumulated other comprehensive income		197,240			431			197,671
Less Treasury Stock at cost (246,037 shares)		(150	)		0			(150	)
Total Stockholder’s Equity		1,726,697			(37,474	)		1,689,223
Total Liabilities and Stockholders’ Equity	$	3,562,285		$	(36,077	)	$	3,524,763

Condensed Consolidated Statement of Operations – Three months ended March 31, 2011 (unaudited)

	Three months ended March 31, 2011 As reported			Adjustments			Three months ended March 31, 2011 Restated
Sales	$	336,139		$	(18,058	)	$	318,081
Excise taxes		(179,428	)		(299	)		(179,727	)
Net sales		156,711			(18,357	)		138,354
Cost of goods sold		97,374			(11,689	)		85,685
Gross profit		59,337			(6,668	)		52,669
Selling, general and administrative expenses		57,877			(2,507	)		55,370
Gain on remeasurement of previously held equity interests		(7,898	)		0			(7,898	)
Operating income		9,358			(4,161	)		5,197
Non operating income / (expense), net
Interest expense, net		(26,852	)		0			(26,852	)
Other financial income, net		31,046			(524	)		30,522
Other non operating expenses, net		(976	)		0			(976	)
Income before taxes and equity in net income from unconsolidated investments		12,576			(4,685	)		7,891
Income tax expense		(2,641	)		662			(1,979	)
Equity in net losses of affiliates		(8,814	)		868			(7,946	)
Net income / (loss)	$	1,121		$	(3,155	)	$	(2,034	)
Net income / (loss) from operations per share of common stock, basic	$	0.02		$	(0.05	)	$	(0.03	)
Net income / (loss) from operations per share of common stock, diluted	$	0.02		$	(0.05	)	$	(0.03	)
Other comprehensive income, net of tax
Foreign currency translation adjustments		137,016			(2,843	)		134,173
Comprehensive income attributable to the Company	$	138,137		$	(5,998	)	$	132,139

Condensed Consolidated Statements of Cash Flow - Three months ended March 31, 2011 (unaudited)

	Three months ended March 31, 2011 As reported			Adjustments			Three months ended March 31, 2011 Restated
Cash flows from operating activities of continuing operations
Net income / (loss)	$	1,121		$	(3,155	)	$	(2,034	)
Adjustments to reconcile net income / (loss) to net cash provided by operating activities:
Depreciation and amortization		5,131			0			5,131
Deferred income taxes		725			(720	)		5
Unrealized foreign exchange gains		(31,651	)		(208	)		(31,859	)
Stock options fair value expense		693			0			693
Equity loss in affiliates		8,814			(868	)		7,946
Gain on fair value remeasurement of previously held equity interest, net of deferred tax		(6,397	)		0			(6,397	)
Other non cash items		1,780			(9	)		1,771
Changes in operating assets and liabilities:
Accounts receivable		268,051			(3,977	)		264,074
Inventories		(5,197	)		(11,389	)		(16,586	)
Prepayments and other current assets		(16,860	)		(660	)		(17,520	)
Trade accounts payable		(83,645	)		33,643			(50,002	)
Other accrued liabilities and payables		(58,176	)		(12,449	)		(70,625	)
Net cash provided by operating activities from continuing operations		84,389			208			84,597
Cash flows from investing activities of continuing operations
Purchase of fixed assets		(505	)		0			(505	)
Purchase of trademarks		(17,473	)		0			(17,473	)
Acquisitions of subsidiaries, net of cash acquired		(23,475	)		0			(23,475	)
Net cash (used in) / provided by investing activities from continuing operations		(41,453	)		0			(41,453	)
Cash flows from financing activities of continuing operations
Payment of bank loans, overdraft facility and other borrowings		(4,104	)		0			(4,104	)
Decrease in short term capital leases payable		(102	)		0			(102	)
Proceeds from options exercised		66			0			66
Net cash used in financing activities from continuing operations		(4,140	)		0			(4,140	)
Currency effect on brought forward cash balances		6,992			0			6,992
Net increase in cash		45,788			208			45,996
Cash and cash equivalents at beginning of period		122,324			(208	)		122,116
Cash and cash equivalents at end of period	$	168,112		$	0		$	168,112
Supplemental Schedule of Non-cash Investing Activities
Common stock issued in connection with investment in subsidiaries	$	23,131		$	0		$	23,131
Supplemental disclosures of cash flow information
Interest paid	$	6,329		$	0		$	6,329
Income tax paid	$	7,012		$	0		$	7,012

Condensed Consolidated Statements of Changes in Stockholders’ Equity – March 31, 2011 (unaudited)

	Balance as at March 31, 2011 As Reported			Adjustments			Balance as at March 31, 2011 Restated
Common Stock	$	727		$	0		$	727
Additional Paid-in Capital		1,367,509			0			1,367,509
Retained Earnings		161,371			(37,905	)		123,466
Accumulated other comprehensive income of continuing operations		197,240			431			197,671
Accumulated other comprehensive income of discontinued operations		0			0			0
Less Treasury Stock at cost		(150	)		0			(150	)
Total	$	1,726,697		$	(37,474	)	$	1,689,223

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Condensed Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Dec. 31, 2011	Mar. 31, 2012 Restated [Member]	Mar. 31, 2011 Restated [Member]
Accounts receivable, allowance for doubtful accounts	$ 24,510	$ 26,889	$ 35,005
Common Stock, par value	$ 0.01	$ 0.01	$ 0.01
Common Stock, shares authorized	120,000,000	120,000,000	120,000,000
Common Stock, shares issued	72,740,302	73,125,230	72,716,235
Common Stock, shares outstanding	72,740,302	73,125,230	72,716,235
Preferred Stock, par value	$ 0.01	$ 0.01
Preferred Stock, shares authorized	1,000,000	1,000,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Treasury Stock at cost, shares	246,037	246,037	246,037

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Other Non-Operating Expense

3 Months Ended

Mar. 31, 2012

Other Non-Operating Expense

12. OTHER NON-OPERATING EXPENSE

The following items are included in Other Non-Operating Expense:

	Three months ended March 31,
	2012			2011
Factoring costs and bank fees		(2,262	)		(671	)
Other gains / (losses)		(336	)		(305	)
Total other non operating income / (expense), net	($	2,598	)	($	976	)

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Document and Entity Information	3 Months Ended
	Mar. 31, 2012	May 08, 2012
Entity Information [Line Items]
Document Type	10-Q
Amendment Flag	true
Amendment Description	Central European Distribution Corporation (“we”, “us”, “our,” or the “Company”) is filing this Amendment No. 1 on Form 10-Q/A (this “Amendment”) to the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2012, initially filed with the SEC on May 10, 2012 (the “Original Filing”). This Form 10-Q/A amends the Original Filing to restate the Company’s unaudited condensed consolidated financial statements for the three months ended March 31, 2012 and 2011 (the “Restatement”). As previously disclosed, the Company changed its senior management at its principal operating subsidiary in Russia, the Russian Alcohol Group (“RAG”), during April 2012. Following this change, senior Company management requested that the new management team review RAG’s business operations and internal controls, including an assessment of the resources and needs of the corporate finance and reporting departments. Based on the preliminary findings of that review, senior management concluded that the Company’s financial statements for the years ended December 31, 2011 and 2010 should no longer be relied upon because of a failure to reflect the timely reporting of the full amount of retroactive trade rebates and trade marketing refunds provided to RAG’s customers in Russia.Thereafter, the Audit Committee of the Company’s Board of Directors initiated an internal investigation, with the assistance of outside counsel and forensic accountants engaged by outside counsel, regarding the Company’s retroactive trade rebates, trade marketing refunds and related accounting issues. The Audit Committee, through its counsel, voluntarily notified the SEC of the investigation and is cooperating with the SEC. The Audit Committee has completed its accounting investigation, and has identified accounting irregularities at RAG, which resulted in the understatement of retroactive trade rebates and trade marketing refunds, as well as certain other errors that were concealed from both the Company’s senior management and the independent auditors. Certain reclassifications have also been made to conform data for all periods presented with the current presentation. For a more detailed description of the Restatement, see Note 2, “Restatement of unaudited condensed consolidated financial statements”, to the accompanying unaudited condensed consolidated financial statements.As a result of the investigation, the Company has also determined that a control deficiency existed which contributed to the incorrect accounting for the Company’s retroactive trade rebates and trade marketing refunds for customers giving rise to the Restatement and that this deficiency constituted a material weakness in internal control over financial reporting. In connection with the investigation, the Company’s management also identified a material weakness in the Company’s internal control over financial reporting regarding the implementation of our policy on compliance with applicable laws as of December 31, 2011. Furthermore, the Company has expanded certain disclosure items related to income taxes in Note 8, as well as fair value measurement in Note 15.We are also filing a quarterly report on Form 10-Q for the three and six months ended June 30, 2012 which includes restated balances and results as of and for the three and six months ended June 30, 2011, an amendment on Form 10-K/A for the year ended December 31, 2011 which includes restated balances and results as of and for the year ended December 31, 2010, and an amendment on Form 10-Q/A to the Company’s quarterly report on Form 10-Q for the three and nine months ended September 30, 2011 to restate the Company’s consolidated balance sheets as of those dates, and the consolidated statements of operations, the consolidated statements of cash flows, and the consolidated statement of changes in stockholders’ equity and the notes related thereto for periods covered by such financial statements to reflect the effects of the Restatement on the Company’s respective annual and unaudited Interim financial information.This Amendment amends and restates only Items 1, 2, and 4 of Part I of the Original Filing, in each case, solely as a result of, and to reflect, the Restatement and no other information in the Original Filing is amended hereby. Except as required to reflect the effects of the Restatement, no additional modifications or updates in this Amendment have been made to the Original Filing. Information not affected by the Restatement remains unchanged and reflects the disclosures made at the time of the Original Filing. This Amendment does not describe other events occurring after the original filing, including exhibits, or modify or update those disclosures affected by subsequent events. Accordingly, this Amendment should be read in conjunction with our filings made with the SEC subsequent to the date of the Original Filing, including any amendments to those filings. In addition, pursuant to the rules of the SEC, Item 6 of Part II of the Original Filing has been amended to contain currently dated certifications from the Company’s Chief Executive Officer and Chief Financial Officer, as required by Sections 302 and 906 of the Sarbanes-Oxley Act of 2002. The certifications of the Company’s Chief Executive Officer and Chief Financial Officer are attached to this Amendment as Exhibits 31.1, 31.2, 32.1 and 32.2.
Document Period End Date	Mar. 31, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q1
Trading Symbol	cedc
Entity Registrant Name	CENTRAL EUROPEAN DISTRIBUTION CORP
Entity Central Index Key	0001046880
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		78,842,022

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Stock Option Plans And Warrants

3 Months Ended

Mar. 31, 2012

Stock Option Plans And Warrants

13. STOCK BASED COMPENSATION PLANS AND WARRANTS

During the three months ended March 31, 2012, the range of exercise prices for outstanding options was $2.00 to $60.92. During the three months ended March 31, 2012, the weighted average remaining contractual life of options outstanding is 4.9 years. Exercise prices for options exercisable as of March 31, 2012 ranged from $2.00 to $60.92. The Company has also granted 51,761 restricted stock units at an average price of $4.38 and 399,415 restricted stock at an average price of $4.38 during the first quarter of 2012.

The Company has issued stock options to employees under stock based compensation plans. Stock options are issued at the current market price, subject to a vesting period, which varies from one to three years. As of March 31, 2012, the Company has not changed the terms of any outstanding awards.

During the three months ended March 31, 2012, the Company recognized compensation cost of $0.86 million.

As of March 31, 2012, there was $3.4 million of total unrecognized compensation cost related to non-vested stock options, restricted stock units and restricted stock granted under the Company’s Stock Incentive Plan. The costs are expected to be recognized over period through 2012-2015.

The following weighted-average assumptions were used in the calculation of fair value for options granted during 2011. For the three months ended March 31, 2012 the Company did not grant any options to its employees.

	December 31, 2011
Fair Value	$	7.60
Dividend Yield		0	%
Expected Volatility		66.1	%
Weighted Average Volatility		66.1	%
Risk Free Interest Rate		3	%
Expected Life of Options from Grant		3.2

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Condensed Consolidated Statements of Operations (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Non operating income / (expense), net
Interest income / (expense), net		$ (26,852)
Other non operating income / (expense), net	(2,598)	(976)
Income tax expense	(4,685)
Restated [Member]
Sales	321,756	318,081
Excise taxes	(175,767)	(179,727)
Net sales	145,989	138,354
Cost of goods sold	90,874	85,685
Gross profit	55,115	52,669
Selling, general and administrative expenses	58,934	55,370
Gain on remeasurement of previously held equity interests	0	(7,898)
Operating income / (loss)	(3,819)	5,197
Non operating income / (expense), net
Interest income / (expense), net	(26,302)	(26,852)
Other financial income / (expense), net	97,588	30,522
Other non operating income / (expense), net	(2,598)	(976)
Income before income taxes and equity in net losses from unconsolidated investments	64,869	7,891
Income tax expense	(4,685)	(1,979)
Equity in net losses of affiliates	0	(7,946)
Net income (loss) attributable to the company	60,184	(2,034)
Net income from operations per share of common stock, basic	$ 0.83	$ (0.03)
Net income from operations per share of common stock, diluted	$ 0.82	$ (0.03)
Other comprehensive income, net of tax:
Foreign currency translation adjustments	22,524	134,173
Comprehensive income attributable to the Company	$ 82,708	$ 132,139

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Inventories

3 Months Ended

Mar. 31, 2012

Inventories

7. INVENTORIES

The following table summarizes our inventories:

	March 31,		December 31,
	2012 (Restated, see Note 2)		2011
Raw materials and supplies	$	22,926	$	22,237
In-process inventories		8,046		2,655
Finished goods and goods for resale		89,813		92,798
Total	$	120,785	$	117,690

Because of the nature of the products supplied by the Company, great attention is paid to inventory rotation. The number of days in inventory increased from at approximately 81 days as of December 31, 2011 to approximately 121 days as of March 31, 2012. As a comparison, the number of days in inventory as of March 31, 2011 amounted to 154 days with total balance of $147.0 million.

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Borrowings

3 Months Ended

Mar. 31, 2012

Borrowings

6. BORROWINGS

Bank Facilities

As of March 31, 2012, the Company has outstanding liability of €25.0 million ($33.4 million) from the term loans from Zenit Bank, Alfa Bank and Raiffeisen Bank drawn by Whitehall:

• The loan agreement with Zenit Bank, dated March 29, 2011, matures on June 6, 2012. The credit limit under this loan agreement is €10.0 million ($13.3 million) and the loan is released in tranches maturing in 365 days, no later than June 6, 2012. The loan was released in four tranches between April 21, 2011 and September 13, 2011, and is repayable between April 20, 2012 and May 18, 2012. As of March 31, 2012, the Company had outstanding liability of €5.0 million ($6.7 million) from this term loan;

• The loan agreement with Alfa Bank, dated July 22, 2008, matures on October 18, 2014. The credit limit under this agreement is €20.0 million ($26.7 million) and the loan is released in tranches maturing within three, six or nine months, depending if they are pledged by inventory. The loan was released in eight tranches between September 14, 2011 and March 30, 2012, and is repayable between April 28, 2012 and October 30, 2012. As of March 31, 2012, the Company had outstanding liability of €15.1 million ($20.1 million) from this term loan;

• The loan agreement with Raiffeisen Bank, dated July 6, 2010, matures on July 6, 2012. The credit limit under this agreement is €10.0 million ($13.3 million) and the loan is released in tranches maturing within one to 12 months, not later than July 6, 2012. The loan was released in five tranches between September 12, 2011 and October 26, 2011, and is repayable between May 18, 2012, and July 6, 2012. As of March 31, 2012, the Company had outstanding liability of €4.9 million ($6.5 million) from this term loan.

The aforementioned loans drawn by Whitehall are guaranteed by Whitehall companies. The loans from Zenit Bank and Alfa Bank are secured by the Company’s inventory.

As of March 31, 2012, the Company has outstanding term loans of 879.6 million Russian rubles ($30.0 million) from Unicredit and JSC Grand Invest Bank, both drawn by Russian Alcohol, as well as, an overdraft facility from Sberbank drawn by Bravo Premium:

• The loan agreement with Unicredit, dated May 24, 2011, matures on November 23, 2012. This loan has no financial covenants and is secured by inventory of up to 720 million Russian rubles ($24.6 million) and guarantees given by companies of Russian Alcohol. As of March 31, 2012, the Company has outstanding liability of 600.0 million Russian rubles ($20.5 million) from this term loan;

• The loan agreement with JSC Grand Invest Bank, dated November 25, 2011, matures on November 23, 2012. This loan has no financial covenants that need to be met. As of March 31, 2012, the Company has outstanding liability of 279.6 million Russian rubles ($9.5 million) from this term loan;

• The overdraft agreement with Sberbank, dated February 6, 2012, matures on February 5, 2013. The credit limit under this agreement is 60.0 million Russian rubles ($2.0 million). This loan is secured by fixed assets. As of March 31, 2012, the Company has outstanding liability of 52.5 million Russian rubles ($1.8 million) from this overdraft facility.

As of March 31, 2012, the Company had available to use under existing overdraft facility in Hungary 100.0 million Hungarian forints ($0.5 million).

Convertible Senior Notes due 2013

On March 7, 2008, the Company completed the issuance of $310 million aggregate principal amount of 3% Convertible Senior Notes due 2013 (the “Convertible Senior Notes”). Interest is due semi-annually on the 15^th of March and September, beginning on September 15, 2008. The Convertible Senior Notes are convertible in certain circumstances into cash and, if applicable, shares of our common stock, based on an initial conversion rate of 14.7113 shares per $1,000 principal amount, subject to certain adjustments. Upon conversion of the notes, the Company will deliver cash up to the aggregate principal amount of the notes to be converted and, at the election of the Company, cash and/or shares of common stock in respect to the remainder, if any, of the conversion obligation. The proceeds from the Convertible Senior Notes were used to fund the cash portions of the acquisition of Copecresto Enterprises Limited and Whitehall.

As of March 31, 2012 and December 31, 2011, the Company had accrued interest of $0.4 million and $2.7 million, respectively, related to the Convertible Senior Notes, with the next coupon due for payment on September 15, 2012. Total obligations under the Convertible Senior Notes are shown net of deferred finance costs, amortized over the life of the borrowings using the effective interest rate method as shown in the table below:

	March 31,			December 31,
	2012			2011
Convertible Senior Notes	$	310,000		$	310,000
Unamortized debt discount		(851	)		(1,070	)
Debt discount related to ASC 470-20		(3,172	)		(4,285	)
Total	$	305,977		$	304,645

For the three months ended March 31, 2012 and March 31, 2011, the additional pre-tax non-cash interest expense recognized in the consolidated statement of operations was $1.1 million each. Accumulated amortization related to the debt discount was $16.5 million and $12.2 million as of March 31, 2012 and March 3 1, 2011, respectively. Pre-tax increase in non-cash interest expense on our consolidated statements of operations and comprehensive income to be recognized until 2013, the maturity date of the CSNs, amounts to $3.2 million.

Senior Secured Notes due 2016

On December 2, 2009, the Company issued $380 million 9.125% Senior Secured Notes due 2016 and €380 million ($507.0 million) 8.875% Senior Secured Notes due 2016 (the “2016 Notes”) in an unregistered offering to institutional investors. The Company used a portion of the net proceeds from the 2016 Notes to redeem the Company’s outstanding 2012 Notes, having an aggregate principal amount of €245.4 million ($327.4 million) on January 4, 2010. The remainder of the net proceeds from the 2016 Notes was used to (i) purchase Lion Capital’s remaining equity interest in Russian Alcohol by exercising the Lion Option and the Co-Investor Option, pursuant to the terms and conditions of the Lion Option Agreement and the Co-Investor Option Agreement, respectively (ii) repay all amounts outstanding under Russian Alcohol credit facilities; and (iii) repay certain other indebtedness.

On December 9, 2010, the Company issued an additional €50.0 million ($66.7 million) 8.875% Senior Secured Notes due 2016 (the “2016 Notes”) in an unregistered offering to institutional investors. The Company used the net proceeds from the additional 2016 Notes to repay its term loans and overdraft facilities with Bank Handlowy w Warszawie S.A and Bank Zachodni WBK S.A.

As of March 31, 2012 and December 31, 2011 the Company had accrued interest of $28.5 million and $7.0 million respectively, related to the Senior Secured Notes due 2016, with the next coupon due for payment on June 1, 2012.

	March 31,			December 31,
	2012			2011
Senior Secured Notes due 2016	$	953,705		$	935,296
Unamortized debt discount		(3,062	)		(3,207	)
Total	$	950,643		$	932,089

	March 31,
	2012
Principal repayments for the following years
2012	$	43,215
2013		327,912
2014		0
2015		0
2016 and beyond		950,643
Total	$	1,321,770

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Recently Issued Accounting Pronouncements

3 Months Ended

Mar. 31, 2012

Recently Issued Accounting Pronouncements

18. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In May 2011, the FASB issued ASU 2011-04, “Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs” (“ASU 2011-04”), which is effective for annual reporting periods beginning after December 15, 2011. This guidance amends certain accounting and disclosure requirements related to fair value measurements. Additional disclosure requirements in the update include: (1) for Level 3 fair value measurements, quantitative information about unobservable inputs used, a description of the valuation processes used by the entity, and a qualitative discussion about the sensitivity of the measurements to changes in the unobservable inputs; (2) for an entity’s use of a nonfinancial asset that is different from the asset’s highest and best use, the reason for the difference; (3) for financial instruments not measured at fair value but for which disclosure of fair value is required, the fair value hierarchy level in which the fair value measurements were determined; and (4) the disclosure of all transfers between Level 1 and Level 2 of the fair value hierarchy. The Company adopted ASU 2011-04 during the first quarter of the current fiscal year. The adoption of ASU 2011-04 did not have a material impact on the Company’s consolidated financial statements other than disclosures related to fair value measurements.

In June 2011, the FASB issued ASU 2011-05, “Presentation of Comprehensive Income” (“ASU 2011-05”), which was issued to enhance comparability between entities that report under U.S. GAAP and IFRS, and to provide a more consistent method of presenting non-owner transactions that affect an entity’s equity. ASU 2011-05 eliminates the option to report other comprehensive income and its components in the statement of changes in stockholders’ equity and requires an entity to present the total of comprehensive income, the components of net income and the components of other comprehensive income either in a single continuous statement or in two separate but consecutive statements. This pronouncement is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. However, in December 2011, the FASB issued ASU 2011-12, “Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05” (“ASU 2011-12”), which deferred the guidance on whether to require entities to present reclassification adjustments out of accumulated other comprehensive income by component in both the statement where net income is presented and the statement where other comprehensive income is presented for both interim and annual financial statements. ASU 2011-12 reinstated the requirements for the presentation of reclassifications that were in place prior to the issuance of ASU 2011-05 and did not change the effective date for ASU 2011-05. For public entities, the amendments in ASU 2011-05 and ASU2011-12 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011, and should be applied retrospectively. The Company adopted both ASU 2011-05 and ASU 2011-12 during the first quarter of the current fiscal year. The adoption of ASU 2011-05 and ASU 2011-12 did not have a material impact on the Company’s consolidated financial statements, other than presentation of comprehensive income.

In September 2011, the FASB issued ASU 2011-08, “Testing Goodwill for Impairment” (“ASU 2011-08”), which simplifies testing for impairment by allowing an entity to first assess qualitative factors and determine if it is more likely than not (defined as 50% or more) that the fair value of the reporting unit is less than its carrying amount. That determination can then be used to decide if it is necessary to perform the two-step goodwill impairment test. ASU 2011-08 is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011, which corresponds to the Company’s first quarter of current fiscal year. The Company will adopt ASU 2011-08 during the current fiscal year and this adoption is not expected to have a material impact on the Company’s consolidated financial statements.

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Commitments And Contingent Liabilities

3 Months Ended

Mar. 31, 2012

Commitments And Contingent Liabilities

14. COMMITMENTS AND CONTINGENT LIABILITIES

Supply contracts

The Company has various agreements covering its sources of supply, which, in some cases, may be terminated by either party on relatively short notice. Thus, there is a risk that a portion of the Company’s supply of products could be curtailed at any time.

Bank Guarantees

In accordance with current legislation in Russia each producer of spirit beverages must acquire excise stamps and must pay excise tax in full before buying spirit for production purposes. For each lot of stamps purchased, the alcohol producer must provide the relevant body with a bank guarantee in the full amount of payment for the excise tax to secure the legality of usage of the excise stamps. This bank guarantee serves as insurance against the illegal usage of excise stamps by an alcohol producer.

In addition, under new legislation effective since August 1, 2011 the producer purchasing spirit alcohol must a) prepay the excise tax in full or b) provide the relevant tax body with a bank guarantee in the full amount of the excise tax before purchasing to secure payment of the excise tax. This bank guarantee serves as insurance that the excise tax is paid in time.

Russian Alcohol signed a guarantee line agreement with multiple banks pursuant to which it was provided with a guarantee limit of 18.2 billion Russian rubles (approximately $620.8 million) for a period from 1 to 4 years, Bravo Premium signed a guarantee line agreement with multiple banks pursuant to which it was provided with a guarantee limit of 600.0 million Russian rubles (approximately $20.5 million) for a period from 1 to 2 years and Whitehall signed a guarantee line agreement with multiple banks pursuant to which it was provided with a guarantee limit of 1.7 billion Russian rubles (approximately $58.0 million) as insurance against the illegal usage of excise stamps.

According to the agreements, companies have the right to obtain bank guarantees during the agreement term for each purchase of excise stamps and for the purchase of spirit. The guarantees for excise stamps are held by Rosalkoregulirovanie (the Federal Service for Alcohol Market Regulation), during the whole production period for which the excise stamps were purchased. The guarantee for excise tax is held by the beneficiary (the tax body) for 6 months after the end of month the spirit was purchased.

As of March 31, 2012, the Company has bank guarantees related to customs duties on imported goods in Poland of $2.0 million.

Operating Leases and Rent Commitments

The Company makes rental payments for real estate, vehicles, office, computer, and manufacturing equipment under operating leases. The following is a schedule by years of the future rental payments under the non-cancelable operating lease as of March 31, 2012:

2012	$	8,753
2013		9,130
2014		8,722
2015		8,148
2016		5,536
Thereafter		2,976
Total	$	43,265

During the first quarter of 2012, the Company continued its policy of renewing its transportation fleet by way of capital leases. The future minimum lease payments for the assets under capital lease as of March 31, 2012 are as follows:

2012	$	1,194
2013		522
2014		171
Gross payments due	$	1,887
Less interest		(132	)
Net payments due	$	1,755

Legal proceedings

From time to time we are involved in legal proceedings arising in the normal course of our business, including opposition and cancellation proceedings with respect to trademarks similar to some of our brands, and other proceedings, both in the United States and elsewhere. Except as set forth below, we are not currently involved in or aware of any pending or threatened proceedings that we reasonably expect, either individually or in the aggregate, will result in a material adverse effect on our consolidated financial statements.

On October 24, 2011, a class action complaint titled Steamfitters Local 449 Pension Fund vs. Central European Distribution Corporation, et al., was filed in the United States District Court, District of New Jersey on behalf of a putative class of all purchasers of our common stock from August 5, 2010 through February 28, 2011 against us and certain of our officers. The complaint seeks unspecified money damages and alleges violations of federal securities law in connection with alleged materially false and misleading statements and/or omissions regarding our business, financial results and prospects in our public statements and public filings with the U.S. Securities & Exchange Commission for the second and third quarters of 2010, relating to declines in our vodka portfolio, our need to take an impairment charge relating to the deterioration in fair value of certain of our brands in Poland and negative financial results from the launch of Żubrówka Biała. Subsequent to the above complaint, a second, substantially identical class action complaint titled Tim Schuler v. Central European Distribution Corporation, et al., was filed in the same court. Motions to consolidate the two cases and for the appointment of lead plaintiff and lead counsel have been filed and are awaiting decision. As a result, no response to the complaints has yet been filed. The Company intends to mount a vigorous defense to the claims asserted. As of March 31, 2012 the original plaintiffs, Steamfitters Pension Fund and Tim Schuler, no longer remain in the lawsuits and the current plaintiffs are now the Prosperity Group and the Arkansas Pension Fund, however the names of the lawsuits have remained unchanged.

On November 11, 2011, a purported shareholder derivative action, titled Ying Yeung v. William V. Carey, et al., was filed in the United States District Court, District of New Jersey against the current members of our board of directors (and against the Company as the nominal defendant), seeking unspecified damages on behalf of the Company. A second, substantially identical shareholder derivative complaint, titled Russell Partch v. William V. Carey, et al., was subsequently filed in the same court. Plaintiff alleges that our directors breached their fiduciary duties of care, good faith and loyalty to the Company by failing to establish and maintain adequate internal controls and by failing to exercise proper oversight over management, which would have prevented the Company from disseminating the allegedly false and misleading statements to shareholders that are the subject of the securities class action litigation described above. The derivative actions are at a very preliminary stage, and no response to the complaints has yet been filed.

Although we believe the allegations in the class and derivative complaints are without merit, these types of lawsuits can be protracted, time-consuming, distracting to management and expensive and, whether or not the claims are ultimately successful, could ultimately have an adverse effect on our business.

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Interest Expense, Net

3 Months Ended

Mar. 31, 2012

Interest Expense, Net

10. INTEREST EXPENSE, NET

The following items are included in Interest expense, net:

	Three months ended March 31,
	2012 (Restated, see Note 2)			2011
Interest income	$	245		$	525
Interest expense		(26,547	)		(27,377	)
Total interest expense, net	($	26,302	)	($	26,852	)

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Interest Expense, Net (Components Of Interest Expense, Net) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Interest income		$ 525
Interest expense		(27,377)
Total interest expense, net		(26,852)
Restated [Member]
Interest income	245
Interest expense	(26,547)
Total interest expense, net	$ (26,302)	$ (26,852)

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Income Taxes

3 Months Ended

Mar. 31, 2012

Income Taxes

8. INCOME TAXES

Our tax charge for the three months ended March 31, 2012 was $4.7 million which represents an effective tax rate for this period of 7.2%. The underlying tax rates in our key jurisdictions are 19% in Poland, 20% in Russia, 21% in Ukraine, 16% in Hungary and 35% in the United States. Changes in the Company’s uncertain income tax position, excluding the related accrual for interest and penalties, for the three-month period ended March 31, 2012 result from additions to accruals for current and prior year tax positions. There were no reductions for prior year tax positions, settlements or lapses in statutes of limitations. As of March 31, 2012 and December 31, 2011, the uncertain income tax position balance was $7.0 million and $7.1 million, respectively.

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OPERATING SEGMENTS

3 Months Ended

Mar. 31, 2012

OPERATING SEGMENTS

9. OPERATING SEGMENTS

The Company operates and manages its business based upon three primary geographic segments: Poland, Russia and Hungary. Selected financial data split based upon this segmentation assuming elimination of intercompany revenues and profits is shown below: Segment information represents only continuing operations.

	Segment Net Sales Three months ended March 31,
	2012		2011
	(Restated, see Note 2)		(Restated, see Note 2)
Segment
Poland	$	47,135	$	46,617
Russia		93,426		86,579
Hungary		5,428		5,158
Total Net Sales	$	145,989	$	138,354

	Operating income / (loss) Three months ended March 31,
	2012			2011
	(Restated, see Note 2)			(Restated, see Note 2)
Segment
Poland before fair value adjustments	$	6,480		$	4,793
Gain on remeasurement of previously held equity interests		0			7,898
Poland after fair value adjustments		6,480			12,691
Russia		(8,463	)		(6,220	)
Hungary		720			661
Corporate Overhead
General corporate overhead		(1,692	)		(1,242	)
Option Expense		(864	)		(693	)
Total Operating income / (loss)	$	(3,819	)	$	5,197

	Identifiable Operating Assets
	March 31, 2012		December 31, 2011
	(Restated, see Note 2)
Segment
Poland	$	599,163	$	600,940
Russia		1,319,980		1,369,744
Hungary		22,957		20,265
Corporate		28,430		25,769
Total Identifiable Assets	$	1,970,530	$	2,016,718

	Goodwill
	March  31, 2012 (Restated, see Note 2)		December 31, 2011
Segment
Poland	$	276,188	$	252,080
Russia		452,691		412,105
Hungary		6,693		6,109
Total Goodwill	$	735,572	$	670,294

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Other Financial Income, Net

3 Months Ended

Mar. 31, 2012

Other Financial Income, Net

11. OTHER FINANCIAL INCOME, NET

The following items are included in Other financial income, net:

	Three months ended March 31,
	2012			2011
	(Restated, see Note 2)			(Restated, see Note 2)
Foreign exchange impact related to foreign currency financing	$	98,347		$	31,127
Other gains / (losses)		(759	)		(605	)
Total other financial income / (expense), net	$	97,588		$	30,522

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Stock Option Plans And Warrants (Schedule Of Weighted-Average Assumptions) (Detail) (USD $)	12 Months Ended
	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair Value	$ 7.60
Dividend Yield	0.00%
Expected Volatility	66.10%
Weighted Average Volatility	66.10%
Risk Free Interest Rate	3.00%
Expected Life of Options from Grant	3 years 2 months 12 days

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Commitments And Contingent Liabilities (Future Rental Payments Under Non-Cancelable Operating Lease) (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012
2012	$ 8,753
2013	9,130
2014	8,722
2015	8,148
2016	5,536
Thereafter	2,976
Total	$ 43,265

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Stock Option Plans And Warrants (Narrative) (Detail) (USD $)	3 Months Ended
	Mar. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Minimum range of exercise prices for outstanding options	$ 2.00
Maximum range of exercise prices for outstanding options	$ 60.92
Weighted average remaining contractual life of options outstanding (years)	4 years 10 months 24 days
Minimum range of exercise prices for options exercisable	$ 2.00
Maximum range of exercise prices for options exercisable	$ 60.92
Recognized compensation cost	$ 860,000
Total unrecognized compensation cost related to non-vested stock options	3,400,000
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	1 year
Costs are expected to be recognized over period	2012
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Costs are expected to be recognized over period	2015
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted stock units issued to employees, net of forfeitures	51,761
Average price restricted stock units	4.38
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted stock units issued to employees, net of forfeitures	399,415
Average price restricted stock units	$ 4.38

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Commitments And Contingent Liabilities (Tables)

3 Months Ended

Mar. 31, 2012

Future Rental Payments Under Non-Cancelable Operating Lease

2012	$	8,753
2013		9,130
2014		8,722
2015		8,148
2016		5,536
Thereafter		2,976
Total	$	43,265

Future Minimum Lease Payments For Assets Under Capital Lease

2012	$	8,753
2013		9,130
2014		8,722
2015		8,148
2016		5,536
Thereafter		2,976
Total	$	43,265

During the first quarter of 2012, the Company continued its policy of renewing its transportation fleet by way of capital leases. The future minimum lease payments for the assets under capital lease as of March 31, 2012 are as follows:

2012	$	1,194
2013		522
2014		171
Gross payments due	$	1,887
Less interest		(132	)
Net payments due	$	1,755

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Borrowings (Total Obligations Under Senior Secured Notes) (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Debt Instrument [Line Items]
Convertible Senior Notes		$ 932,089
Secured Debt [Member]
Debt Instrument [Line Items]
Convertible Senior Notes	950,643	932,089
Secured Debt [Member] | Senior Secured Notes Due 2016 [Member]
Debt Instrument [Line Items]
Convertible Senior Notes	953,705	935,296
Unamortized debt discount	$ (3,062)	$ (3,207)

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Effects Of Foreign Currency Movements

3 Months Ended

Mar. 31, 2012

Effects Of Foreign Currency Movements

16. EFFECTS OF FOREIGN CURRENCY MOVEMENTS

Substantially all of the Company’s operating cash flows and assets are denominated in Polish zloty, Russian ruble and Hungarian forint. This means that the Company is exposed to translation movements both on its balance sheet and statement of operations and comprehensive income. The impact on working capital items is demonstrated on the cash flow statement as the movement in exchange on cash and cash equivalents. The impact on the statement of operations is by the movement of the average exchange rate used to restate the statement of operations from Polish zloty, Russian ruble and Hungarian forint to U.S. dollars. The amounts shown as exchange rate gains or losses on the face of the statements of operations relate only to realized gains or losses on transactions that are not denominated in Polish zloty, Russian ruble or Hungarian forint. Table below presents the exchange rates used for translation of our balance sheet and statement of operations and comprehensive income balances as of and for the three months ended March 31, 2012:

	Balance sheet rate as of March 31, 2012		Balance sheet rate as of December 31, 2011		Average rate for the three months ended March 31, 2012		Average rate for the three months ended March 31, 2011
PLN / US$		3.1191		3.4174		3.2249		2.8800
RUR / US$		29.3148		32.2092		30.1674		29.2089
HUF / US$		221.2128		240.6620		225.5175		198.6207

Because the Company’s reporting currency is the U.S. dollar, the translation effects of fluctuations in the exchange rate of our functional currencies have impacted the Company’s financial condition and results of operations and have affected the comparability of our results between financial periods.

The Company has borrowings including its Convertible Notes due 2013 and Senior Secured Notes due 2016 that are denominated in U.S. dollars and euros, which have been lent to its operations where the functional currency is the Polish zloty and Russian ruble. The effect of having debt denominated in currencies other than the Company’s functional currencies is to increase or decrease the value of the Company’s liabilities on that debt in terms of the Company’s functional currencies when those functional currencies depreciate or appreciate in value respectively. As a result of this, the Company is exposed to gains and losses on the re-measurement of these liabilities. The table below summarizes the pre-tax impact of a one percent movement in each of the exchange rate which could result in a significant impact in the results of the Company’s operations.

Exchange Rate	Value of notional amount	Pre-tax impact of a 1% movement in exchange rate
USD-Polish zloty	$426 million	$	4.3 million gain/loss
USD-Russian ruble	$264 million	$	2.6 million gain/loss
EUR-Polish zloty	€430 million or approximately $574 million	$	5.7 million gain/loss

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2012

Computation Of Basic And Diluted Earnings Per Share

	Three months ended March 31,
	2012		2011
	(Restated, see Note 2)		(Restated, see Note 2)
Net income / (loss)	$	60,184	$	(2,034	)
Weighted average shares of common stock outstanding (used to calculate basic EPS)		72,885		71,208
Net effect of dilutive employee stock options based on the treasury stock method		217		147
Weighted average shares of common stock outstanding (used to calculate diluted EPS)		73,102		71,355
Net income / (loss) per common share—basic	$	0.83	$	(0.03	)
Net income / (loss) per common share—diluted	$	0.82	$	(0.03	)

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Borrowings (Total Obligations Under Convertible Senior Notes) (Detail) (Convertible Senior Notes Due 2013 [Member], USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Debt Instrument [Line Items]
Debt discount related to ASC 470-20	$ (3,172)	$ (4,285)
Convertible Senior Notes	305,977	304,645
Secured Debt [Member]
Debt Instrument [Line Items]
Convertible Senior Notes	310,000	310,000
Unamortized debt discount	$ (851)	$ (1,070)

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Condensed Consolidated Statement of Operations (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Non operating income / (expense), net
Interest expense, net		$ (26,852)
Other non operating expenses, net	(2,598)	(976)
Income tax expense	(4,685)
Other comprehensive income, net of tax
Foreign currency translation adjustments	22,500
As Reported [Member]
Sales	323,975	336,139
Excise taxes	(175,767)	(179,428)
Net sales	148,208	156,711
Cost of goods sold	89,529	97,374
Gross profit	58,679	59,337
Selling, general and administrative expenses	61,770	57,877
Gain on remeasurement of previously held equity interests		(7,898)
Operating income	(3,091)	9,358
Non operating income / (expense), net
Interest expense, net	(26,224)	(26,852)
Other financial income / (expense), net	97,922	31,046
Other non operating expenses, net	(2,598)	(976)
Income before income taxes and equity in net losses from unconsolidated investments	66,009	12,576
Income tax expense	(3,513)	(2,641)
Equity in net losses of affiliates		(8,814)
Net income / (loss)	62,496	1,121
Net income / (loss) from operations per share of common stock, basic	$ 0.86	$ 0.02
Net income / (loss) from operations per share of common stock, diluted	$ 0.86	$ 0.02
Other comprehensive income, net of tax
Foreign currency translation adjustments	28,719	137,016
Comprehensive income attributable to the Company	91,215	138,137
Adjustment [Member]
Sales	(2,219)	(18,058)
Excise taxes	0	(299)
Net sales	(2,219)	(18,357)
Cost of goods sold	1,345	(11,689)
Gross profit	(3,564)	(6,668)
Selling, general and administrative expenses	(2,836)	(2,507)
Gain on remeasurement of previously held equity interests		0
Operating income	(728)	(4,161)
Non operating income / (expense), net
Interest expense, net	(78)	0
Other financial income / (expense), net	(334)	(524)
Other non operating expenses, net	0	0
Income before income taxes and equity in net losses from unconsolidated investments	(1,140)	(4,685)
Income tax expense	(1,172)	662
Equity in net losses of affiliates		868
Net income / (loss)	(2,312)	(3,155)
Net income / (loss) from operations per share of common stock, basic	$ (0.03)	$ (0.05)
Net income / (loss) from operations per share of common stock, diluted	$ (0.04)	$ (0.05)
Other comprehensive income, net of tax
Foreign currency translation adjustments	(6,195)	(2,843)
Comprehensive income attributable to the Company	(8,507)	(5,998)
Restated [Member]
Sales	321,756	318,081
Excise taxes	(175,767)	(179,727)
Net sales	145,989	138,354
Cost of goods sold	90,874	85,685
Gross profit	55,115	52,669
Selling, general and administrative expenses	58,934	55,370
Gain on remeasurement of previously held equity interests	0	(7,898)
Operating income	(3,819)	5,197
Non operating income / (expense), net
Interest expense, net	(26,302)	(26,852)
Other financial income / (expense), net	97,588	30,522
Other non operating expenses, net	(2,598)	(976)
Income before income taxes and equity in net losses from unconsolidated investments	64,869	7,891
Income tax expense	(4,685)	(1,979)
Equity in net losses of affiliates	0	(7,946)
Net income / (loss)	60,184	(2,034)
Net income / (loss) from operations per share of common stock, basic	$ 0.83	$ (0.03)
Net income / (loss) from operations per share of common stock, diluted	$ 0.82	$ (0.03)
Other comprehensive income, net of tax
Foreign currency translation adjustments	22,524	134,173
Comprehensive income attributable to the Company	$ 82,708	$ 132,139

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Condensed Consolidated Statements of Cash Flow (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012 Restated [Member]	Mar. 31, 2011 Restated [Member]
Cash flows from operating activities
Net income	$ 60,184	$ (2,034)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	4,815	5,131
Deferred income taxes	1,488	5
Unrealized foreign exchange gains	(98,006)	(31,859)
Stock options fair value expense	864	693
Equity loss in affiliates	0	7,946
Gain on fair value remeasurement of previously held equity interest	0	(6,397)
Other non cash items	221	1,771
Changes in operating assets and liabilities:
Accounts receivable	226,070	264,074
Inventories	8,413	(16,586)
Prepaid expenses and other current assets	(2,318)	(17,520)
Trade accounts payable	(89,358)	(50,002)
Other accrued liabilities and payables (including taxes)	(88,607)	(70,625)
Net cash provided by operating activities	23,766	84,597
Cash flows from investing activities
Purchase of fixed assets	(1,329)	(505)
Proceeds from the disposal of fixed assets	127	0
Purchase of trademarks	0	(17,473)
Acquisitions of subsidiaries, net of cash acquired	0	(23,475)
Net cash used in investing activities	(1,202)	(41,453)
Cash flows from financing activities
Borrowings on bank loans and overdraft facility	8,594	0
Payment of bank loans, overdraft facility and other borrowings	(26,872)	(4,104)
Decrease in short term capital leases payable	90	(102)
Proceeds from options exercised	0	66
Net cash used in financing activities	(18,188)	(4,140)
Currency effect on brought forward cash balances	9,012	6,992
Net increase in cash	13,388	45,996
Cash and cash equivalents at beginning of period	94,410	122,116
Cash and cash equivalents at end of period	107,798	168,112
Supplemental Schedule of Non-cash Investing Activities
Common stock issued in connection with investment in subsidiaries	$ 0	$ 23,131

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Earnings Per Share

3 Months Ended

Mar. 31, 2012

Earnings Per Share

5. EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share for the periods indicated.

	Three months ended March 31,
	2012		2011
	(Restated, see Note 2)		(Restated, see Note 2)
Net income / (loss)	$	60,184	$	(2,034	)
Weighted average shares of common stock outstanding (used to calculate basic EPS)		72,885		71,208
Net effect of dilutive employee stock options based on the treasury stock method		217		147
Weighted average shares of common stock outstanding (used to calculate diluted EPS)		73,102		71,355
Net income / (loss) per common share—basic	$	0.83	$	(0.03	)
Net income / (loss) per common share—diluted	$	0.82	$	(0.03	)

Employee stock options granted have been included in the above calculations of diluted earnings per share where the exercise price is less than the average market price of the common stock during the three months ended March 31, 2012 and 2011. In addition there is no adjustment to fully diluted shares related to the Convertible Senior Notes as the average market price was below the conversion price for the periods.

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Operating Segments (Segment Information On Identifiable Assets) (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Mar. 31, 2012 Restated [Member]	Mar. 31, 2011 Restated [Member]	Dec. 31, 2011 Poland [Member]	Mar. 31, 2012 Poland [Member] Restated [Member]	Dec. 31, 2011 Russia [Member]	Mar. 31, 2012 Russia [Member] Restated [Member]	Dec. 31, 2011 Hungary [Member]	Mar. 31, 2012 Hungary [Member] Restated [Member]	Dec. 31, 2011 Corporate [Member]	Mar. 31, 2012 Corporate [Member] Restated [Member]
Segment Reporting Information [Line Items]
Total Identifiable Assets	$ 2,016,718	$ 1,970,530	$ 3,526,208	$ 600,940	$ 599,163	$ 1,369,744	$ 1,319,980	$ 20,265	$ 22,957	$ 25,769	$ 28,430

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Effects Of Foreign Currency Movements (Exchange Rates Used For Translation Of Balance Sheet And Statement Of Operations) (Detail)	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011	Dec. 31, 2011
PLN / US$ [Member]
Effects Of Foreign Currency Movements [Line Items]
Balance sheet rate	3.1191		3.4174
Average rate	3.2249	2.8800
RUR / US$ [Member]
Effects Of Foreign Currency Movements [Line Items]
Balance sheet rate	29.3148		32.2092
Average rate	30.1674	29.2089
HUF / US$ [Member]
Effects Of Foreign Currency Movements [Line Items]
Balance sheet rate	221.2128		240.6620
Average rate	225.5175	198.6207

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Borrowings (Tables)

3 Months Ended

Mar. 31, 2012

Principal Repayments

	March 31,
	2012
Principal repayments for the following years
2012	$	43,215
2013		327,912
2014		0
2015		0
2016 and beyond		950,643
Total	$	1,321,770

Convertible Senior Notes Due 2013 [Member]

Total Obligations Under Senior Notes

	March 31,			December 31,
	2012			2011
Convertible Senior Notes	$	310,000		$	310,000
Unamortized debt discount		(851	)		(1,070	)
Debt discount related to ASC 470-20		(3,172	)		(4,285	)
Total	$	305,977		$	304,645

Senior Secured Notes Due 2016 [Member]

Principal Repayments

	March 31,			December 31,
	2012			2011
Senior Secured Notes due 2016	$	953,705		$	935,296
Unamortized debt discount		(3,062	)		(3,207	)
Total	$	950,643		$	932,089

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Restatement Of Condensed Consolidated Financial Statements (Narrative) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2012	Mar. 31, 2011	Dec. 31, 2011	Dec. 31, 2010
Overstatement of consolidated sales		$ 5.5
Overstatement of accounts receivable		16.3
Decrease in current deferred income taxes	3.9
Additional valuation allowance	14.2
Increase in goodwill	3.9	4.0
Unrecognized impairment of property, plant and equipment	2.7	2.7
Increase in inventories		9.5
Understatement of trade payable		10.1
Adjustments for marketing costs payable		8.5
Understatement of other accrued liabilities		7.2
Decrease in cost of goods sold		11.7
Retroactive Trade Rebates [Member]
Overstatement of consolidated sales		9.8	29.6	11.3
Overstatement of accounts receivable	48.4	20.7	44.5
Decrease in current deferred income taxes	8.6
Promotional Compensation [Member]
Overstatement of accounts receivable	7.8	7.7	8.1
Overstatement of consolidated sales, net	1.6	2.8
Accounts Receivable [Member]
Cut off error		14.1
Revenue [Member]
Cut off error		11.9
Cost of Sales [Member]
Cut off error		$ 10.3

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Fair Value Measurements

3 Months Ended

Mar. 31, 2012

Fair Value Measurements

15. FAIR VALUE MEASUREMENTS

The Company utilizes the accounting guidance for fair value measurements and disclosures for all financial assets and liabilities and nonfinancial assets and liabilities that are recognized or disclosed at fair value in the condensed financial statements on a recurring basis or on a nonrecurring basis during the reporting period. The fair value is an exit price, representing the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants based upon the best use of the asset or liability at the measurement date. The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability. The accounting guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The three levels of inputs used to measure fair value are as follows:

Level 1	—	Quoted prices in active markets for identical assets or liabilities.
Level 2	—	Observable inputs other than quoted prices included in Level 1. We value assets and liabilities included in this level using dealer and broker quotations, certain pricing models, bid prices, quoted prices for similar assets and liabilities in active markets, or other inputs that are observable or can be corroborated by observable market data.
Level 3	—	Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

As of March 31, 2012, the Company held certain financial assets that are measured at fair value on a recurring basis. These consisted of cash and cash equivalents. The monetary assets represented by these financial instruments are primarily located in Poland, Hungary and Russia. Consequently, they are subject to currency translation risk when reporting in U.S. Dollars. The fair values of the cash and cash equivalents, Convertible Senior Notes and Secured Senior Notes is determined based on quoted market prices in public markets and is categorized as Level 1. The Company does not have any financial assets measured at fair value on a recurring basis as Level 3 and there were no transfers in or out of Level 1, Level 2 or Level 3 during the three months ended March 31, 2012.

Non-financial assets and liabilities, such as goodwill and long-lived assets, are accounted for at fair value on a nonrecurring basis. These items are tested for impairment on the occurrence of a triggering event or in the case of goodwill, on at least an annual basis. Management reviews long-lived assets for potential impairment whenever significant events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment exists when the carrying amount of the long-lived asset is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the estimated undiscounted cash flows expected to result from the use and eventual depletion of the asset. If an impairment exists, the resulting write-down would be the difference between the fair market value of the long-lived asset and the related net book value. As of the balance sheet date, the carrying value of its long-lived assets are recoverable and no impairment existed.

The following table sets forth by level, within the fair value hierarchy, the Company’s financial assets accounted for at fair value on a recurring and nonrecurring basis (cash and cash equivalents as well as assets held for sale) and fair values of financial assets accounted for at their carrying value (Convertible Senior Notes and Secured Senior Notes) as of March 31, 2012 and December 31, 2011. 

			Assets at Fair Value Using
	Total		Quoted Prices  in Activated Markets for Identical Assets (Level 1)		Significant  Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
March 31, 2012
Recurring items
Cash and cash equivalents	$	107,798	$	107,798	$	0	$	0
Convertible Senior Notes	$	272,800	$	272,800	$	0	$	0
Secured Senior Notes	$	731,350	$	731,350	$	0	$	0
Nonrecurring items
Assets held for sale	$	675	$	0	$	0	$	675
December 31, 2011
Recurring items
Cash and cash equivalents	$	94,410	$	94,410	$	0	$	0
Convertible Senior Notes	$	248,000	$	248,000	$	0	$	0
Secured Senior Notes	$	702,700	$	702,700	$	0	$	0
Nonrecurring items
Assets held for sale	$	675	$	0	$	0	$	675

The Company has other financial instruments, such as receivables, accounts payable, overdrafts, short term bank loans and other liabilities which have been excluded from the tables above. Due to the short-term nature of these instruments, the carrying value approximate their fair values. The Company did not have any other financial instruments with the scope of the fair value disclosure requirements as of March 31, 2012.