Equity Investments

12 Months Ended

Dec. 31, 2011

Equity Investments [Abstract]

Equity Investments

NOTE 10. EQUITY INVESTMENTS

Investment in joint venture at December 31, 2011 reflected the equity interest in our 50% investment in our Worthington Armstrong Venture ("WAVE") joint venture.

We use the equity in earnings method to determine the appropriate classification of distributions from WAVE within our cash flow statement. During 2011, 2010 and 2009, WAVE distributed amounts in excess of our capital contributions and proportionate share of retained earnings. Accordingly, the distributions in these years were reflected as a return of investment in cash flows from investing activity in our Consolidated Statement of Cash Flows. Distributions from WAVE in 2011, 2010 and 2009 were $102.4 million (including a special distribution of $50.1 million in December 2011), $51.0 million, and $53.5 million, respectively.

We account for our WAVE joint venture using the equity method of accounting. Our recorded investment in WAVE was higher than our 50% share of the carrying values reported in WAVE's consolidated financial statements by $194.7 million as of December 31, 2011 and $200.6 million as of December 31, 2010. These differences are due to our adoption of fresh-start reporting upon emergence from Chapter 11, while WAVE's consolidated financial statements do not reflect fresh-start reporting. The differences are comprised of the following fair value adjustments to assets:

	December 31, 2011		December 31, 2010
Property, plant and equipment	$	1.0	$	1.4
Other intangibles		163.3		168.7
Goodwill		30.4		30.5
Total	$	194.7	$	200.6

Other intangibles include customer relationships, trademarks and developed technology. Customer relationships are amortized over 20 years and developed technology is amortized over 15 years. Trademarks have an indefinite life.

See Exhibit 99.1 for WAVE's consolidated financial statements. Condensed financial data for WAVE is summarized below:

	December 31, 2011		December 31, 2010
Current assets	$	115.0	$	112.5
Non-current assets		36.2		35.7
Current liabilities		23.8		22.1
Other non-current liabilities		242.0		154.6

	2011		2010		2009
Net sales	$	367.2	$	332.2	$	307.9
Gross profit		155.7		137.5		118.9
Net earnings		123.7		105.8		92.8

See discussion in Note 29 to the Consolidated Financial Statements for additional information on this related party.