Equity Investment

12 Months Ended

Dec. 31, 2012

Equity Investment [Abstract]

Equity Investment

3.EQUITY INVESTMENT

Following is the summarized financial information of CPL as of December 31, 2012 and 2011:

	December 31,
Amounts in thousands (in USD):	2012	2011
Balance Sheet:
Current assets	$ 4,716	$ 4,061
Noncurrent assets	$ 14,876	$ 9,523
Current liabilities	$ 9,697	$ 4,393
Noncurrent liabilities	$ 2,255	$ 3,230

	For the year ended December 31,
	2012	2011
Operating Results
Net operating revenue	$ 44,015	$ 49,836
Net earnings	$ 1,279	$ 1,768

The Company’s maximum exposure to losses at December 31, 2012 was $3.3 million, the value of its equity investment in CPL.

Changes in the carrying amount of the investment in CPL for the years ended December 31, 2012 and 2011 are as follows:

Amounts in thousands	Total
Balance – January 1, 2011	$ 2,806
Equity Earnings	589
Dividend	(163)
Effect of foreign currency translation	(476)
Balance – December 31, 2011	$ 2,756
Equity Earnings	426
Effect of foreign currency translation	164
Balance – December 31, 2012	$ 3,346

On October 11, 2012, CCE signed an agreement with LOT Polish Airlines to acquire an additional 33.3% ownership interest in CPL. Upon closing of the transaction, CCE will own a 66.6% ownership interest in CPL. The purchase price is approximately $6.9 million. On February 21, 2013, the Company borrowed CAD 7.3 million (approximately $7.2 million based on the exchange rate in effect on February 21, 2013) from the BMO Credit Agreement to pay for the investment. CCE has obtained required approval from the co-shareholder in CPL, Polish Airports and from the Polish Minister of Finance. The Company anticipates closing the transaction in early April 2013. Once the transaction is final, the Company anticipates consolidating CPL as a majority-owned subsidiary for which the Company would have a controlling financial interest. The Company would account for and report the 33.3% Polish Airports ownership interest as a non-controlling financial interest.