NONCONTROLLING INTEREST RELATED TO DISCONTINUED OPERATION

12 Months Ended

Dec. 31, 2011

NONCONTROLLING INTEREST RELATED TO DISCONTINUED OPERATION [Abstract]

NONCONTROLLING INTEREST RELATED TO DISCONTINUED OPERATION

17. NONCONTROLLING INTEREST RELATED TO DISCONTINUED OPERATIONS

As of January 1, 2009, all earnings and losses of a subsidiary are attributed to both the parent and the noncontrolling interest, even if the losses attributable to the noncontrolling interest result in a deficit noncontrolling interest balance. Previously, any losses exceeding the noncontrolling interest's investment in the subsidiaries were attributed to the parent.

Effective September 30, 2010, the Company has terminated the operations of TC Digital and TC Websites due to their continued lack of profitability. As a consequence of the termination of their operations, TC Digital and TC Websites ceased supporting the Chaotic trading card game and website, effective October 1, 2010 (see Note 13, Discontinued Operations).

a) TC Digital Games LLC - TC Digital was formed in December 2006. 4Kids Digital has owned 55% of TC Digital's membership interests, and CUSA has owned the remaining 45% of TC Digital's membership interests, since December 2007. TC Digital is treated as a consolidated subsidiary of the Company as a result of its majority ownership and its right to break any dead-locks within the TC Digital Management Committee.

Noncontrolling interest of membership units in TC Digital represents the noncontrolling members' proportionate share of the equity in the entity. Income is allocated to the membership units noncontrolling interest based on the ownership percentage throughout the year. As of December 31, 2011, the noncontrolling member continued to hold 45% of the equity in the entity. The following table summarizes the noncontrolling interest's loss attributable to the noncontrolling equity interest in TC Digital:

	Year Ended December 31,
	2011			2010			2009
TC Digital net loss before common units noncontrolling interest	$	(4,181	)	$	(8,584	)	$	(19,107	)
Noncontrolling interest percentage		45	%		45	%		45	%
Noncontrolling interest loss allocation		(1,882	)		(3,863	)		(8,598	)
Less: Capital contribution from noncontrolling interest		-			-			-
Loss attributable to noncontrolling interest	$	(1,882	)	$	(3,863	)	$	(8,598	)

Included in the TC Digital net loss for the years ended December 31, 2011, 2010 and 2009 is interest expense of $4,137, $3,748 and $2,856, respectively, which has been eliminated in consolidation. Included in the TC Digital net loss for the year ended December 31, 2010, is $33 related to the operations of TDI, a joint venture owned 50% by TC Digital, 25% by the Company and 25% by Home Focus, see Note 19 for further details. As of December 31, 2011, Home Focus has not made a required capital contribution to TDI.

As of December 31, 2011, the loss in excess of noncontrolling interest for TC Digital absorbed by 4Kids Digital, in the aggregate, since the formation of such entity is $22,036.

b) TC Websites LLC - Under the terms of the TC Websites operating agreement, 4Kids Websites and CUSA are each entitled to elect two managers to TC Websites' Management Committee, with 4Kids Websites having the right to break any deadlocks on TC Websites' Management Committee with respect to operational matters. TC Websites is treated as a consolidated subsidiary of the Company as a result of its majority ownership and its right to break any deadlocks within the TC Websites Management Committee.

As of December 31, 2011, the noncontrolling member held 45% of the equity in the entity. The following table summarizes the noncontrolling interest's loss attributable to the noncontrolling equity interest in TC Websites:

	Year Ended December 31,
	2011			2010			2009
TC Websites net loss before common units noncontrolling interest	$	(4	)	$	(1,369	)	$	(3,959	)
Noncontrolling interest percentage		45	%		45	%		45	%
Noncontrolling interest loss allocation		(2	)		(616	)		(1,782	)
Less: Capital contribution from noncontrolling interest		-			10			132
Loss attributable to noncontrolling interest	$	(2	)	$	(606	)	$	(1,650	)

As of December 31, 2011, the loss in excess of noncontrolling interest for TC Websites absorbed by 4Kids Websites in the aggregate since the formation of such entity is $6,038.

- Definition

The entire disclosure for noncontrolling interest in consolidated subsidiaries, which could include the name of the subsidiary, the ownership percentage held by the parent, the ownership percentage held by the noncontrolling owners, the amount of the noncontrolling interest, the location of this amount on the balance sheet (when not reported separately), an explanation of the increase or decrease in the amount of the noncontrolling interest, the noncontrolling interest share of the net Income or Loss of the subsidiary, the location of this amount on the income statement (when not reported separately), the nature of the noncontrolling interest such as background information and terms, the amount of the noncontrolling interest represented by preferred stock, a description of the preferred stock, and the dividend requirements of the preferred stock.

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