11. 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 8, 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 Chaotic USA Entertainment Group, Inc. (“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 deadlocks 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 September 30, 2013, the noncontrolling member continued to hold 45% of the equity in the entity. The following table summarizes the noncontrolling interest’s income (loss) attributable to the noncontrolling equity interest in TC Digital:

		Three Months Ended						Nine months Ended
		September 30,						September 30,
		2013			2012			2013			2012
TC Digital net income (loss) before common units noncontrolling interest	$	444		$	—		$	886		$	(3	)
Noncontrolling interest percentage		45	%		45	%		45	%		45	%
Income (loss) attributable to noncontrolling interest	$	200		$	—		$	399		$	(1	)

As of September 30, 2013, the loss in excess of noncontrolling interest for TC Digital absorbed by 4Kids Digital, in the aggregate, since the formation of such entity is $21,638.

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 September 30, 2013, the noncontrolling member held 45% of the equity in the entity. The following table summarizes the noncontrolling interest’s income (loss) attributable to the noncontrolling equity interest in TC Websites:

		Three Months Ended						Nine months Ended
		September 30,						September 30,
		2013			2012			2013			2012
TC Websites net income (loss) before common units noncontrolling interest	$	—		$	—		$	—		$	—
Noncontrolling interest percentage		45	%		45	%		45	%		45	%
Income (loss) attributable to noncontrolling interest	$	—		$	—		$	—		$	—

As of September 30, 2013, 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.