Baskin Robbins 2011 Annual Report Download - page 92

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(6) Investments in joint ventures
The Company’s ownership interests in its joint ventures as of December 31, 2011 and December 25, 2010 were
as follows:
Ownership
Entity
December 31,
2011
December 25,
2010
BR Japan .................................. 43.3% 43.3%
BR Korea .................................. 33.3 33.3
Summary financial information for the joint venture operations on an aggregated basis was as follows
(in thousands):
December 31,
2011
December 25,
2010
Current assets ............................... $195,977 184,608
Current liabilities ............................ 92,758 86,969
Working capital ......................... 103,219 97,639
Property, plant, and equipment, net .............. 147,929 102,405
Other assets ................................ 156,061 141,574
Long-term liabilities ......................... 55,514 19,084
Joint venture equity ...................... $351,695 322,534
Fiscal year ended
December 31,
2011
December 25,
2010
December 26,
2009
Revenues .............................. $659,319 580,671 495,146
Net income ............................ 44,156 47,664 41,577
The comparison between the carrying value of our investments and the underlying equity in net assets of
investments is presented in the table below (in thousands):
BR Japan BR Korea
December 31,
2011
December 25,
2010
December 31,
2011
December 25,
2010
Carrying value of investment ...................... $103,830 94,326 60,806 74,950
Underlying equity in net assets of investment ......... 56,319 49,854 73,839 69,037
Carrying value in excess of (less than) the underlying
equity in net assets(a) ........................... $ 47,511 44,472 (13,033) 5,913
(a) The excess carrying values over the underlying equity in net assets of BR Japan as of December 31, 2011
and December 25, 2010 and BR Korea as of December 25, 2010 is primarily comprised of amortizable
franchise rights and related tax liabilities and nonamortizable goodwill, all of which were established in the
BCT Acquisition. The deficit of cost relative to the underlying equity in net assets of BR Korea as of
December 31, 2011 is primarily comprised of an impairment of long-lived assets, net of tax, recorded in
fiscal year 2011.
Equity in net income (loss) of joint ventures in the consolidated statements of operations for fiscal years 2011,
2010, and 2009 includes $868 thousand, $897 thousand, and $899 thousand, respectively, of net expense related
to the amortization of intangible franchise rights and related deferred tax liabilities noted above. As required
under the equity method of accounting, such net expense is recorded in the consolidated statements of operations
directly to equity in net income (loss) of joint ventures and not shown as a component of amortization expense.
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