| Operating segments |
The Company
operates and manages its business based upon three primary
geographic segments: Poland, Russia and Hungary. Selected financial
data split based upon this segmentation assuming elimination of
intercompany revenues and profits is shown below. Segment
information represents only continuing operations.
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Segment Net
Sales |
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Year ended December
31, |
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2012 |
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2011 |
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2010 |
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Segment
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Poland
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$ |
237,602 |
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$ |
226,411 |
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$ |
225,281 |
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Russia
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550,316 |
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572,148 |
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446,329 |
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Hungary
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27,755 |
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31,007 |
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30,521 |
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Total Net
Sales
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$ |
815,673 |
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$ |
829,566 |
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$ |
702,131 |
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Operating income /
(loss) |
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Year ended December
31, |
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2012 |
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2011 |
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2010 |
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Segment
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Poland before fair value
adjustments
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$ |
33,995 |
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$ |
27,334 |
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$ |
28,478 |
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Gain on remeasurement of
previously held equity interests
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0 |
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7,898 |
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0 |
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Impairment
charge
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(64,028 |
) |
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(213,687 |
) |
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(131,849 |
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Poland after fair value
adjustments
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(30,033 |
) |
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(178,455 |
) |
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(103,371 |
) |
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Russia before fair value
adjustments
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44,935 |
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10,982 |
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48,805 |
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Impairment
charge
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(308,871 |
) |
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(844,132 |
) |
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0 |
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Russia after fair value
adjustments
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(263,936 |
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(833,150 |
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48,805 |
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Hungary
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4,604 |
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5,448 |
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5,442 |
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Corporate
Overhead
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General corporate
overhead
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(36,036 |
) |
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(4,263 |
) |
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(5,261 |
) |
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Option Expense
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(2,954 |
) |
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(2,605 |
) |
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(3,206 |
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Total Operating
loss
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$ |
(328,355 |
) |
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$ |
(1,013,025 |
) |
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$ |
(57,591 |
) |
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Equity in the net
income/(loss) of investees
accounted for by the equity method
Year ended December 31, |
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2012 |
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2011 |
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2010 |
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Segment
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Poland
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$ |
0 |
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$ |
0 |
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$ |
0 |
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Russia
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0 |
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(7,946 |
) |
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13,386 |
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Hungary
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0 |
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0 |
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0 |
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Total equity in the net
income / (losses) of investees accounted for by the equity
method
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$ |
0 |
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$ |
(7,946 |
) |
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$ |
13,386 |
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Depreciation /
amortization and depletion
expense Year ended December 31, |
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2012 |
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2011 |
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2010 |
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Segment
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Poland
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$ |
2,264 |
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$ |
2,276 |
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$ |
2,123 |
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Russia
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6,499 |
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8,187 |
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5,467 |
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Hungary
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|
229 |
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|
361 |
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|
406 |
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General corporate
overhead
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2 |
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|
13 |
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6 |
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Total
depreciation
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$ |
8,994 |
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$ |
10,837 |
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$ |
8,002 |
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Income tax |
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Year ended December 31, |
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2012 |
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2011
(Restated,
see Note 2) |
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(Restated,
see Note 2)
2010 |
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Segment
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Poland
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$ |
(1,113 |
) |
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$ |
(593 |
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$ |
35,098 |
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Russia
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(10,566 |
) |
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(27,607 |
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(17,570 |
) |
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Hungary
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(1,082 |
) |
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(606 |
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(785 |
) |
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General corporate
overhead
|
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1,064 |
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(8,706 |
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(2,882 |
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Total income tax
(expense)/benefit
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$ |
(11,697 |
) |
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$ |
(37,512 |
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$ |
13,861 |
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Identifiable Operating
Assets |
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December 31,
2012 |
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December 31,
2011 |
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Segment
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Poland
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$ |
532,038 |
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$ |
579,452 |
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Russia
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1,131,009 |
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1,369,744 |
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Hungary
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28,832 |
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20,265 |
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Corporate
|
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75,673 |
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25,769 |
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Total Identifiable
Assets
|
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$ |
1,767,552 |
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$ |
1,995,230 |
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Goodwill |
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December 31,
2012 |
|
|
December 31,
2011 |
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Segment
|
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Poland
|
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$ |
213,897 |
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$ |
252,080 |
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Russia
|
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167,848 |
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412,105 |
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Hungary
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6,640 |
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6,109 |
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Total Goodwill
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$ |
388,385 |
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$ |
670,294 |
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