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Investments In And Advances To Unconsolidated Joint Ventures And Entities | 12 Months Ended
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Dec. 31, 2012
Investments In Unconsolidated Joint Ventures And Entities [Abstract] |
Investments In And Advances To Unconsolidated Joint Ventures and Entities | Note 11 – Investments in and Advances to Unconsolidated Joint Ventures and Entities Investments in and advances to unconsolidated joint ventures and entities are accounted for under the equity method of accounting except for Rialto Distribution as described below. As of December 31, 2012 and 2011, these investments in and advances to unconsolidated joint ventures and entities include the following (dollars in thousands):
|  |  | December 31,
| Interest |  | 2012 |  | 2011
Rialto Distribution | 33.3% | $ | -- | $ | --
Rialto Cinemas | 50.0% |  | 1,561 |  | 1,586
205-209 East 57th Street Associates, LLC | 25.0% |  | 60 |  | 33
Mt. Gravatt | 33.3% |  | 6,094 |  | 6,220
Total investments |  | $ | 7,715 | $ | 7,839
For the years ended December 31, 2012, 2011, and 2010, we recorded our earnings (loss) from our unconsolidated joint ventures and entities as follows (dollars in thousands):
|  | Year Ended December 31,
|  | 2012 |  | 2011 |  | 2010
Rialto Distribution | $ | 199 | $ | 383 | $ | 286
Rialto Cinemas |  | 209 |  | (72) |  | 64
205-209 East 57th Street Associates, LLC |  | 27 |  | 33 |  | 89
Mt. Gravatt |  | 1,186 |  | 1,038 |  | 906
Total investor share of earnings |  | 1,621 |  | 1,382 |  | 1,345
Rialto Cinemas impairment recorded at investor level |  | -- |  | (2,934) |  | --
Total equity earnings | $ | 1,621 | $ | (1,552) | $ | 1,345
Rialto Distribution Effective October 1, 2005, we purchased for $694,000 (NZ$1.0 million) a 33.3% interest in Rialto Distribution. Rialto Distribution, an unconsolidated joint venture, is engaged in the business of distributing art film in New Zealand and Australia. We own an undivided 33.3% interest in the assets and liabilities of the joint venture. Prior to January 1, 2010, we treated our interest as an equity method interest in an unconsolidated joint venture. However, during 2009, the reporting company of Rialto Distribution reported a net loss of $2.2 million (NZ$3.2 million). Our share of this loss was $734,000 (NZ$1.1 million). Due to this significant loss, we determined that the goodwill associated with Rialto Distribution’s investment in the film distribution business was fully impaired. Therefore, we recorded our share of the impairment loss of $331,000 (NZ$434,000) as a part of our equity losses resulting in a net zero balance at December 31, 2009. As of January 1, 2010, we treat our interest as a cost method interest in an unconsolidated joint venture. For the years ended December 31, 2012 2011, and 2010 we received $199,000 (NZ$245,000), $383,000 (NZ$500,000), and $286,000 (NZ$400,000), respectively, in distributions from our interest in Rialto Distribution which we recorded as earnings at the time of receipt. Rialto Cinemas Effective October 1, 2005, we purchased, indirectly, a beneficial ownership of 100% of the stock of Rialto Entertainment for $4.8 million (NZ$6.9 million). Rialto Entertainment was at the time of purchase a 50% joint venture partner with Village and Sky in Rialto Cinemas, the largest art cinema circuit in New Zealand. The Village and Sky ownership interest have subsequently been sold to Greater Union, an Australian based cinema chain operator. We own an undivided 50% interest in the assets and liabilities of the joint venture and treat our interest as an equity method interest in an unconsolidated joint venture. Subsequent to the February 22, 2011 earthquake in Christchurch, the joint venture obtained a termination agreement with the landlord associated with the Christchurch cinema lease (see Note 26 – Casualty Loss). As of December 31, 2012, following the closure of three cinemas with 15 screens, the joint venture owned two cinemas with 13 screens in the New Zealand cities of Auckland and Dunedin. As part of our investment impairment analysis for 2011, we determined that the value of our investment was impaired. For this reason, we recorded an impairment charge to our investment in Rialto Cinemas of $2.9 million (NZ$3.8 million) during December 31, 2011 and included it in our equity loss from unconsolidated joint ventures and entities for the year ended December 31, 2011. 205-209 East 57th Street Associates, LLC We own a non-managing 25% membership interest in 205-209 East 57th Street Associates, LLC a limited liability company formed to redevelop our former cinema site at 205 East 57th Street in Manhattan. During the fourth quarter of 2010, the last residential condominium was sold for $900,000 from which we recorded earnings of $64,000 and received distributions totaling $293,000. During 2012, as a consequence of a purchaser’s dispute, a condominium which was previously sold was repurchased, renovated, and resold for a small gain resulting in additional earnings to us of $27,000. Mt. Gravatt We own an undivided 33.3% interest in Mt. Gravatt, an unincorporated joint venture that owns and operates a 16-screen multiplex cinema in Australia. The condensed balance sheets and statements of operations of Mt. Gravatt are as follows (dollars in thousands): Mt. Gravatt Condensed Balance Sheet Information
|  |  |  | December 31,
|  |  |  | 2012 |  | 2011
Current assets |  |  | $ | 1,318 | $ | 1,935
Noncurrent assets |  |  |  | 4,078 |  | 3,832
Current liabilities |  |  |  | 1,111 |  | 846
Noncurrent liabilities |  |  |  | 43 |  | 60
Members’ equity |  |  |  | 4,242 |  | 4,861
Mt. Gravatt Condensed Statements of Operations Information
|  | December 31,
|  | 2012 |  | 2011 |  | 2010
Total revenue | $ | 15,236 | $ | 14,097 | $ | 12,909
Net income |  | 3,513 |  | 3,045 |  | 2,711
Malulani Investments, Limited On June 26, 2006, we acquired for $1.8 million, an 18.4% interest in a private real estate company. On July 2, 2009, Magoon Acquisition and Development, LLC (“Magoon LLC”) and we entered into a settlement agreement (the “Settlement Terms”) with respect to a lawsuit against certain officers and directors of Malulani Investments, Limited (“MIL”). Under the Settlement Terms, Magoon LLC and we received $2.5 million in cash, a $6.8 million three-year 6.25% secured promissory note issued by The Malulani Group (“TMG”), and a ten-year “tail interest” in MIL and TMG in exchange for the transfer of all ownership interests in MIL and TMG held by both Magoon, LLC and RDI and for the release of all claims against the defendants in this matter. A gain on the transfer of our ownership interest in MIL of $268,000 was recognized during 2009 as a result of this transaction. The tail interest allows us to participate in certain distributions made or received by MIL, TMG, and in certain cases, the shareholders of TMG. The tail interest, however, continues only for a period of ten years and we cannot assure that we will receive any distributions from this tail interest. During 2011 and 2010, we received $191,000 and $635,000 in interest on the promissory note and, on June 14, 2011, we received $6.8 million with respect to the principal and interest owed on this note. We believe that further amounts are owed under the note and we have begun litigation to collect such amounts. Any further collections will be recognized when received. Berkeley Cinemas – Botany We previously had investments in three joint ventures with Everard Entertainment Ltd in New Zealand. On June 6, 2008, we sold our last investment in these joint ventures of the Botany Downs Cinema to our joint venture partner. During 2010, we finalized our claims regarding the sale of this cinema resulting in an additional gain on sale of $384,000 (NZ$554,000) for the year ended 2010 included in other income (expense) on our Consolidated Statement of Operations. Combined Condensed Financial Information The combined condensed financial information for all of the above unconsolidated joint ventures and entities accounted for under the equity method is as follows; therefore, these financials only exclude Rialto Distribution (dollars in thousands): Condensed Balance Sheet Information
|  |  |  | December 31,
|  |  |  | 2012 |  | 2011
Current assets |  |  | $ | 3,488 | $ | 5,245
Noncurrent assets |  |  |  | 6,621 |  | 6,611
Current liabilities |  |  |  | 2,197 |  | 3,031
Noncurrent liabilities |  |  |  | 751 |  | 723
Members’ equity |  |  |  | 7,161 |  | 8,102
Condensed Statements of Operations Information
|  | December 31,
|  | 2012 |  | 2011 |  | 2010
Total revenue | $ | 26,138 | $ | 28,017 | $ | 24,944
Net income |  | 4,590 |  | 4,021 |  | 4,779

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=7658923&loc=d3e32787-111569 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 18 -Paragraph 20 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.12) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6382943&loc=d3e33918-111571 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=7658923&loc=d3e32847-111569 + Details
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