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These properties were sold on February 21, 2012 for the agreed upon amount. See Note 28 – Subsequent Events to our 2011 Consolidated Financial Statements. Because the net carrying amounts of these properties were greater than the total sale price, we recorded an impairment expense for these properties of $369,000 (AUS$365,000) for the year ended December 31, 2011. Cal Oaks Cinema - Acquisition      On August 25, 2011, we purchased a 17-screen multiplex in Murrieta, California (the "CalOaks Cinema") for $4.2 million made up of $3.9 million of cash and a $250,000 holdback note for certain offset charges to the purchase price (see Note 11 – Notes Payable and Subordinated Debt (Trust Preferred Securities). Pursuant to ASC 805-10-25, we finalized the purchase accounting for this acquisition during 2011. <div> </div>      On May 15, 2011, in conjunction with a potential purchase of the CalOaks cinema, we lent $2.3 million to the owner of the CalOaks cinema in exchange for a 90-day note receivable. The note was securitized by three cinemas' leases and had an annualized interest of 9.9%. On August 25, 2011, as part of the CalOaks cinema acquisition, this note was repaid. Elsternwick Classic Cinema - Sale      On April 14, 2011, we sold our 66.7% share of the 5-screen Elsternwick Classic cinema located in Melbourne, Australia to our joint venture partner for $1.9 million (AUS$1.8 million) and recognized a gain on sale of a discontinued operation of $1.7 million (AUS$1.6 million). 2010 Transactions Manukau Land - Acquisition      On April 30, 2009, we entered into an agreement to purchase for $3.6 million (NZ$5.2 million) a property adjacent to our Manukau property. An initial deposit of $26,000 (NZ$50,000) was paid upon signing of the agreement, a second deposit of $175,000 (NZ$258,000) was paid in the second quarter of 2009 and a third deposit of $531,000 (NZ$773,000) was paid in August 2009. The fourth and final purchase payment of $2.9 million (NZ$4.1 million) was made on March 31, 2010 completing our acquisition of this land parcel. 2009 Transactions We did not have acquisitions or asset sales in 2009. </div> 772000 924000 427000 <div> Note 27 – Casualty Loss Our 8-screen complex in Christchurch, New Zealand, was damaged as a result of the devastating earthquake suffered by that city on February 22, 2011. We have earthquake and lost profits insurance on that facility for which we have received to date $1.0 million (NZ1.3 million) which is included in our other income (expense). We are awaiting a final settlement payment on this claim for a nominally estimated amount to be received in 2012. This cinema was reopened on November 17, 2011, but, as a result of a December 23, 2011 earthquake, the cinema was again temporarily closed for approximately two weeks.      Additionally, the 3-screen complex in Christchurch, New Zealand owned by our Rialto Cinemas joint venture entity ("Rialto Cinemas"), was damaged as a result of the devastating earthquake suffered by that city on February 22, 2011, and has been closed since that date. Pursuant to the lease on the property, in May 2011, Rialto Cinemas gave notice to the landlord that Rialto Cinemas would be terminating the cinema lease. Rialto Cinemas and the landlord are currently discussing a settlement for the release of obligations under the lease agreement. We do not believe that the settlement will result in a significant reduction to the value of our investment in the Rialto Cinemas joint venture relative to the current carrying value. </div> 1867000 146000 239000 174000 13000 13000 13000 249000 249000 1000 248000 1092000 877000 877000 877000 877000 -11463000 5757000 6162000 1984000 <div> Note 25 - Future Minimum Rental Income      Real estate revenue amounted to $20.0 million, $19.0 million, and $15.6 million, for the years ended December 31, 2011, 2010, and 2009, respectively. Future minimum rental income under all contractual operating leases is summarized as follows (dollars in thousands): <div> <table border="0" cellspacing="0"> <tr><td width="84%"> </td> <td width="2%"> </td> <td width="11%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 1px;" width="84%" align="left">Year Ending December 31,</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="left"> </td></tr> <tr valign="bottom"><td width="84%" align="left">2012</td> <td width="2%" align="left">$</td> <td width="11%" align="right">13,481</td></tr> <tr valign="bottom"><td width="84%" align="left">2013</td> <td width="2%" align="left"> </td> <td width="11%" align="right">8,497</td></tr> <tr valign="bottom"><td width="84%" align="left">2014</td> <td width="2%" align="left"> </td> <td width="11%" align="right">6,129</td></tr> <tr valign="bottom"><td width="84%" align="left">2015</td> <td width="2%" align="left"> </td> <td width="11%" align="right">5,723</td></tr> <tr valign="bottom"><td width="84%" align="left">2016</td> <td width="2%" align="left"> </td> <td width="11%" align="right">4,716</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="84%" align="left">Thereafter</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">28,954</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="84%" align="left">Total future minimum rental income</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">67,500</td></tr></table></div> </div> -549000 352000 1589000 1530000 6482000 -12034000 9240000 6097000 -13379000 10792000 305000 -1581000 5100000 -942000 -1841000 361000 838000 838000 549000 160467000 171795000 182215000 7591000 9221000 10419000 35702000 91698000 709000 11463000 3336000 229000 201388000 211073000 225849000 15626000 19046000 19956000 <div> Note 9 – Transfer of Held for Sale Real Estate to Continuing Operations and Related Items 2011 Transactions Lake Taupo Motel      During the fourth quarter of 2010, we listed for sale the residential units of our Lake Taupo property and the adjoining 1.0-acre parcel located in Lake Taupo, New Zealand. A portion of this property was previously improved with a motel in which we recently renovated the property's units to be condominiums and have enhanced the property value with residential apartment entitlements for the adjoining vacant land. At December 31, 2011, we had not yet sold the property. Pursuant to ASC 360-10-45, as twelve months had passed since this announcement and we did not meet the criteria to classify this property as held for sale, we reclassified $5,000 and $58,000 of income from discontinued operations to the components of income from continuing operations for the years ended December 31, 2010 and 2009, respectively. As a result of the transfer of the asset from held for sale to continuing operations, we recorded a loss for 2011 of $37,000 (NZ$48,000) to measure the property at the lower of its carrying amount, adjusted for depreciation and amortization expense that would have been recognized had the asset been continuously classified as a continuing operational asset, or its fair value at the date of the decision not to sell. Burwood Development Property      In May 2010, we announced our intent to sell and began actively marketing our 50.6-acre Burwood development site in suburban Melbourne. At June 30, 2011, we had not yet achieved that aim. Pursuant to ASC 360-10-45, as twelve months had passed since this announcement and we did not meet the criteria to classify this property as held for sale, we reclassified the current carrying value of this property of $53.4 million (AUS$52.1 million) from assets held for sale to property held for development on our December 31, 2011 consolidated balance sheet. Nevertheless, discussions with qualified buyers continue, and it remains our plan to monetize at least the residential portions of this property. Based on recent valuations, we continue to believe that the fair market value of the property less costs to sell is greater than the current carrying value; therefore, no asset impairment loss was recorded at the time of the reclassification. <div> </div> 2010 Transactions There were no transfers of held for sale real estate continuing operations or related items in 2010. 2009 Transactions      On September 16, 2008, we entered into a sale option agreement to sell our Auburn property for $28.5 million (AUS$36.0 million). During 2009, we received notice from the buyer that they intended to withdraw from the option agreement. Because of the termination of the option agreement, we recorded a gain on option termination of $1.5 million (AUS$2.0 million). As of December 31, 2008, we classified our Auburn property as held for sale, and, because of the buyer's withdrawal from the option agreement, we transferred this property to continuing operations during June 2009. As a result of the transfer of the asset from held for sale to continuing operations, we recorded a loss for 2009 of $549,000 (AUS$685,000) to measure the property at the lower of its carrying amount, adjusted for depreciation and amortization expense that would have been recognized had the asset been continuously classified as a continuing operational asset, or its fair value at the date of the decision not to sell.      The real estate held for sale assets were reclassified from assets held for sale to real estate assets and then adjusted for the loss on transfer during 2009 as follows (in thousands): <div> <table border="0" cellspacing="0"> <tr><td width="52%"> </td> <td width="2%"> </td> <td width="13%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="13%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td width="52%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" rowspan="2" width="17%" colspan="3" align="center">December 31, 2008</td> <td style="border-bottom: #000000 1px solid;" rowspan="2" width="15%" colspan="2" align="center">Loss Adjustment</td> <td style="border-bottom: #000000 1px solid;" rowspan="2" width="16%" colspan="3" align="center">December 31, 2009</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="52%" align="left"> </td></tr> <tr valign="bottom"><td width="52%" align="left">Assets</td> <td width="2%" align="left"> </td> <td width="13%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="13%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="left"> </td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="52%" align="left">Land</td> <td width="2%" align="left">$</td> <td width="13%" align="right">7,395</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="13%" align="right">- </td> <td width="2%" align="left"> $</td> <td width="12%" align="right">7,395</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="52%" align="left">Building</td> <td width="2%" align="left"> </td> <td width="13%" align="right">13,131</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="13%" align="right">(286</td> <td width="2%" align="left">)</td> <td width="12%" align="right">12,845</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="52%" align="left">Equipment and fixtures</td> <td width="2%" align="left"> </td> <td width="13%" align="right">7,364</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="13%" align="right">(263</td> <td width="2%" align="left">)</td> <td width="12%" align="right">7,101</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="52%" align="left">Less: Accumulated depreciation</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">(7,771</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">-</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">(7,771</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="52%" align="left">Total assets held for sale transferred to continuing operations</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">20,119</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">(549</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">) $</td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">19,570</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td></tr></table></div> </div>

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16905000

5470000

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57120000

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135171000

916000

821000

939000

4000

935000

775000

1402000

1276000

430349000

430764000

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52472000

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1848000

5573000

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34568000

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<div> Note 19 - Commitments and Contingencies Unconsolidated Joint Venture Loans      The following section describes any loans associated with our investments in unconsolidated joint ventures. As these investments are unconsolidated, any associated bank loans are not reflected in our Consolidated Balance Sheet at December 31, 2011. Each loan is without recourse to any assets other than our interests in the individual joint venture. Rialto Distribution. We are the 33.3% co-owners of the assets of Rialto Distribution. At December 31, 2011 and 2010, the total line of credit was $1.6 million (NZ$2.0 million) and $1.5 million (NZ$2.0 million), respectively, and had an outstanding balance of $663,000 (NZ$850,000) and $653,000 (NZ$850,000), respectively. This loan is guaranteed by one of our subsidiaries to the extent of our ownership percentage. Tax Audit/Litigation      The Internal Revenue Service (the "IRS") has examined the tax return of Reading Entertainment Inc. ("RDGE") for its tax years ended December 31, 1996 through December 31, 1999 and the tax return of Craig Corporation ("CRG") for its tax year ended June 30, 1997. These companies are both now wholly owned subsidiaries of the Company, but for the time periods under audit, were not consolidated with the Company for tax purposes.      CRG and the IRS agreed to compromise the claims made by the IRS against CRG and the Tax Court's order was entered on January 6, 2011. In the settlement, the IRS conceded 70% of its claimed adjustment to income. Instead of a claim for unpaid taxes of $20.9 million plus interest, the effect of settlement on the Reading consolidated group was to require a total federal income tax obligation of $5.4 million, reduced by a federal tax refund of $800,000 and increased by interest of $9.3 million, for a net federal tax liability of $13.9 million as of January 6, 2011. On October 26, 2011, CRG reached an agreement with the IRS for an installment plan to pay off this federal tax liability, including additional interest accruals at the prescribed IRS floating rate. The agreement requires monthly payments of $290,000 over a period of approximately five years. As of December 31, 2011, after the payments made during 2011, the remaining federal tax obligation was $4.3 million in tax plus $9.2 million in interest. Of the $13.5 million owed under the installment agreement as of December 31, 2011, $3.5 million was recorded as current taxes payable, with the remaining balance being recorded as non-current tax liability.      The impact of the settlement upon the state taxes of the Reading consolidated group, if the adjustment to income agreed with the IRS were reflected on state returns, would be an obligation of approximately $1.4 million in tax plus interest and potential penalty. CRG's 1997 tax year remains open with respect to CRG's potential tax liability to the State of California. As of December 31, 2011, no deficiency has been asserted by the State of California, and we have made no final decision as to the course of action to be followed when a deficiency is asserted. <div> </div>      In 2011, the Company claimed federal and state tax deductions for interest owed to the IRS and to state tax agencies, plus an additional federal deduction for taxes owed to state tax agencies.      The decision to settle was based on various business considerations, the most prominent of which was the potential size of an adverse judgment (some $63.0 million net federal tax liability, including interest, if the case had remained unsettled as of December 31 2011), plus state liabilities and the direct costs of trial.      Prior to the settlement, we had accrued $6.6 million in accordance with the cumulative probability approach prescribed in Financial Accounting Standards Board Accounting Standards Codification ("ASC") 740-10-25 – Income Taxes. As a result of the settlement, we recorded an additional federal and state tax expense of $12.1 million for the year ended December 31, 2010 to increase our reserve for uncertain tax positions. Environmental and Asbestos Claims      Certain of our subsidiaries were historically involved in railroad operations, coal mining, and manufacturing. Also, certain of these subsidiaries appear in the chain of title of properties that may suffer from pollution. Accordingly, certain of these subsidiaries have, from time to time, been named in and may in the future be named in various actions brought under applicable environmental laws. Also, we are in the real estate development business and may encounter from time to time unanticipated environmental conditions at properties that we have acquired for development. These environmental conditions can increase the cost of such projects, and adversely affect the value and potential for profit of such projects. We do not currently believe that our exposure under applicable environmental laws is material in amount.      From time to time, we have claims brought against us relating to the exposure of former employees of our railroad operations to asbestos and coal dust. These are generally covered by an insurance settlement reached in September 1990 with our insurance carriers. However, this insurance settlement does not cover litigation by people who were not our employees and who may claim second hand exposure to asbestos, coal dust and/or other chemicals or elements now recognized as potentially causing cancer in humans. Our known exposure to these types of claims, asserted or probable of being asserted, is not material.      In connection with the development of our 50.6 acre Burwood site, it will be necessary to address certain environmental issues. That property was at one time used as a brickworks and we have discovered petroleum and asbestos at the site. During 2007, we developed a plan for the remediation of these materials, in some cases through removal and in other cases through encapsulation. As of December 31, 2011, we estimate that the total site preparation costs associated with the removal of this contaminated soil will be $12.5 million (AUS$12.2 million) and as of that date we had incurred a total of $8.5 million (AUS$8.3 million) of these costs. We do not believe that this has added materially to the overall development cost of the site, as it is anticipated that much of the work will be done in connection with the excavation and other development activity already contemplated for the property. </div>

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220000

135171000

15000

40859000

529000

40330000

3615000

659000

2956000

12724000

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<div> Note 24 - Comprehensive Income (Loss)      US GAAP requires us to classify unrealized gains and losses on equity securities as well as our foreign currency adjustments as comprehensive income. The following table sets forth our comprehensive income for the periods indicated (in thousands): <div> <table border="0" cellspacing="0"> <tr><td width="51%"> </td> <td width="2%"> </td> <td width="13%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="13%"> </td> <td width="3%"> </td></tr> <tr valign="bottom"><td width="51%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="51%" colspan="9" align="center">Years Ended December 31,</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="51%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="center">2009</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="51%" align="left">Net unrealized gains/(losses) on investments</td> <td width="2%" align="right"> </td> <td width="13%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="13%" align="left"> </td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="51%" align="left">Reclassification of realized gain on available for sale investments</td> <td width="2%" align="right"> </td> <td width="13%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="13%" align="left"> </td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="51%" align="left">included in net income (loss)</td> <td width="2%" align="right">$</td> <td width="13%" align="right">(25</td> <td width="2%" align="left">)</td> <td width="2%" align="left">$</td> <td width="12%" align="right">-</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="13%" align="right">1,047</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="51%" align="left">Unrealized loss on available for sale investments</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">(7</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">(478</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">(523</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left">)</td></tr> <tr valign="bottom"><td width="51%" align="left">Net unrealized gains/(losses) on investments</td> <td width="2%" align="right"> </td> <td width="13%" align="right">(32</td> <td width="2%" align="left">)</td> <td width="2%" align="left"> </td> <td width="12%" align="right">(478</td> <td width="2%" align="left">)</td> <td width="2%" align="left"> </td> <td width="13%" align="right">524</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="51%" align="left">Net income (loss)</td> <td width="2%" align="right"> </td> <td width="13%" align="right">10,896</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="right">(12,034</td> <td width="2%" align="left">)</td> <td width="2%" align="left"> </td> <td width="13%" align="right">6,482</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="51%" align="left">Cumulative foreign currency adjustment</td> <td width="2%" align="right"> </td> <td width="13%" align="right">1,028</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="right">16,015</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="13%" align="right">34,271</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="51%" align="left">Accrued pension service (benefit) costs</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">832</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">112</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">(418</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left">)</td></tr> <tr valign="bottom"><td width="51%" align="left">Comprehensive income</td> <td width="2%" align="right">$</td> <td width="13%" align="right">12,724</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="12%" align="right">3,615</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="13%" align="right">40,859</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="51%" align="left">Net income attributable to noncontrolling interests</td> <td width="2%" align="right"> </td> <td width="13%" align="right">(940</td> <td width="2%" align="left">)</td> <td width="2%" align="left"> </td> <td width="12%" align="right">(616</td> <td width="2%" align="left">)</td> <td width="2%" align="left"> </td> <td width="13%" align="right">(388</td> <td width="3%" align="left">)</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="51%" align="left">Comprehensive income attributable to noncontrolling interests</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">(11</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">(43</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">(141</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left">)</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="51%" align="left">Comprehensive income attributable to Reading International, Inc.</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">11,773</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">2,956</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">40,330</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"> </td></tr></table></div> </div>

<div> Note 12 - Notes Payable Notes payable are summarized as follows (dollars in thousands): <div> <table style="width: 958px; height: 458px;" border="0" cellspacing="0"> <tr><td width="34%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="17%"> </td> <td width="2%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="10%"> </td></tr> <tr valign="bottom"><td width="34%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="26%" colspan="4" align="center">December 31,</td> <td width="17%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="24%" colspan="4" align="center">December 31,</td></tr> <tr valign="bottom"><td width="34%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" rowspan="3" width="13%" colspan="2" align="center">2011 Interest Rate</td> <td style="border-bottom: #000000 1px solid;" rowspan="3" width="13%" colspan="2" align="center">2010 Interest Rate</td> <td style="border-bottom: #000000 1px solid;" rowspan="3" width="17%" align="center">Maturity Date</td> <td style="border-bottom: #000000 1px solid;" rowspan="3" width="12%" colspan="2" align="center">2011 Balance</td> <td style="border-bottom: #000000 1px solid;" rowspan="3" width="12%" colspan="2" align="center">2010 Balance</td></tr> <tr valign="bottom"><td width="34%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 8px;" width="34%" align="left">Name of Note Payable or Security</td></tr> <tr valign="bottom"><td width="34%" align="left">BOS Australian Corporate Credit Facility</td> <td width="11%" align="right">-</td> <td width="2%" align="left"> </td> <td width="11%" align="right">6.31</td> <td width="2%" align="left">%</td> <td width="17%" align="center">June 30, 2011</td> <td width="2%" align="right">$</td> <td width="10%" align="right">-</td> <td width="2%" align="right">$</td> <td width="10%" align="right">101,726</td></tr> <tr valign="bottom"><td width="34%" align="left">NAB Australian Corporate Term Loan</td> <td width="11%" align="right">7.20</td> <td width="2%" align="left">%</td> <td width="11%" align="right">-</td> <td width="2%" align="left"> </td> <td width="17%" align="center">June 30, 2014</td> <td width="2%" align="right"> </td> <td width="10%" align="right">88,671</td> <td width="2%" align="right"> </td> <td width="10%" align="right">-</td></tr> <tr valign="bottom"><td width="34%" align="left">NAB Australian Corporate Revolver</td> <td width="11%" align="right">7.20</td> <td width="2%" align="left">%</td> <td width="11%" align="right">-</td> <td width="2%" align="left"> </td> <td width="17%" align="center">June 30, 2014</td> <td width="2%" align="right"> </td> <td width="10%" align="right">-</td> <td width="2%" align="right"> </td> <td width="10%" align="right">-</td></tr> <tr valign="bottom"><td width="34%" align="left">Australian Shopping Center Loans</td> <td width="11%" align="right">-</td> <td width="2%" align="left"> </td> <td width="11%" align="right">-</td> <td width="2%" align="left"> </td> <td width="17%" align="center">2011-2014</td> <td width="2%" align="right"> </td> <td width="10%" align="right">384</td> <td width="2%" align="right"> </td> <td width="10%" align="right">633</td></tr> <tr valign="bottom"><td width="34%" align="left">New Zealand Corporate Credit Facility</td> <td width="11%" align="right">4.15</td> <td width="2%" align="left">%</td> <td width="11%" align="right">4.75</td> <td width="2%" align="left">%</td> <td width="17%" align="center">March 31, 2015</td> <td width="2%" align="right"> </td> <td width="10%" align="right">21,854</td> <td width="2%" align="right"> </td> <td width="10%" align="right">20,370</td></tr> <tr valign="bottom"><td width="34%" align="left">Trust Preferred Securities</td> <td width="11%" align="right">9.22</td> <td width="2%" align="left">%</td> <td width="11%" align="right">9.22</td> <td width="2%" align="left">%</td> <td width="17%" align="center">April 30, 2027</td> <td width="2%" align="right"> </td> <td width="10%" align="right">27,913</td> <td width="2%" align="right"> </td> <td width="10%" align="right">27,913</td></tr> <tr valign="bottom"><td width="34%" align="left">US Cinema 1, 2, 3 Term Loan</td> <td width="11%" align="right">6.73</td> <td width="2%" align="left">%</td> <td width="11%" align="right">6.73</td> <td width="2%" align="left">%</td> <td width="17%" align="center">July 01, 2012</td> <td width="2%" align="right"> </td> <td width="10%" align="right">15,000</td> <td width="2%" align="right"> </td> <td width="10%" align="right">15,000</td></tr> <tr valign="bottom"><td width="34%" align="left">US GE Capital Term Loan</td> <td width="11%" align="right">5.50</td> <td width="2%" align="left">%</td> <td width="11%" align="right">5.50</td> <td width="2%" align="left">%</td> <td width="17%" align="center">December 01, 2015</td> <td width="2%" align="right"> </td> <td width="10%" align="right">32,188</td> <td width="2%" align="right"> </td> <td width="10%" align="right">37,500</td></tr> <tr valign="bottom"><td width="34%" align="left">US Liberty Theaters Term Loans</td> <td width="11%" align="right">6.20</td> <td width="2%" align="left">%</td> <td width="11%" align="right">6.20</td> <td width="2%" align="left">%</td> <td width="17%" align="center">April 01, 2013</td> <td width="2%" align="right"> </td> <td width="10%" align="right">6,583</td> <td width="2%" align="right"> </td> <td width="10%" align="right">6,727</td></tr> <tr valign="bottom"><td width="34%" align="left">US Nationwide Loan 1</td> <td width="11%" align="right">8.50</td> <td width="2%" align="left">%</td> <td width="11%" align="right">8.50</td> <td width="2%" align="left">%</td> <td width="17%" align="center">February 21, 2013</td> <td width="2%" align="right"> </td> <td width="10%" align="right">597</td> <td width="2%" align="right"> </td> <td width="10%" align="right">730</td></tr> <tr valign="bottom"><td width="34%" align="left">US Nationwide Loan 2</td> <td width="11%" align="right">-</td> <td width="2%" align="left"> </td> <td width="11%" align="right">8.50</td> <td width="2%" align="left">%</td> <td width="17%" align="center">February 21, 2011</td> <td width="2%" align="right"> </td> <td width="10%" align="right">-</td> <td width="2%" align="right"> </td> <td width="10%" align="right">1,839</td></tr> <tr valign="bottom"><td width="34%" align="left">US Sanborn Note</td> <td width="11%" align="right">7.00</td> <td width="2%" align="left">%</td> <td width="11%" align="right">-</td> <td width="2%" align="left"> </td> <td width="17%" align="center">January 31, 2012</td> <td width="2%" align="right"> </td> <td width="10%" align="right">250</td> <td width="2%" align="right"> </td> <td width="10%" align="right">-</td></tr> <tr valign="bottom"><td width="34%" align="left">US Sutton Hill Capital Note – Related Party</td> <td width="11%" align="right">8.25</td> <td width="2%" align="left">%</td> <td width="11%" align="right">8.25</td> <td width="2%" align="left">%</td> <td width="17%" align="center">December 31, 2013</td> <td width="2%" align="right"> </td> <td width="10%" align="right">9,000</td> <td width="2%" align="right"> </td> <td width="10%" align="right">9,000</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="34%" align="left">US Union Square Theatre Term Loan</td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">5.92</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">%</td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">5.92</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">%</td> <td style="border-bottom: #000000 1px solid;" width="17%" align="center">May 01, 2015</td> <td width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right">7,174</td> <td width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right">7,383</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="34%" align="center">Total</td> <td style="border-bottom: #000000 1px solid; border-top: #000000 1px solid;" width="11%" align="left"> </td> <td style="border-bottom: #000000 1px solid; border-top: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid; border-top: #000000 1px solid;" width="11%" align="left"> </td> <td style="border-bottom: #000000 1px solid; border-top: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid; border-top: #000000 1px solid;" width="17%" align="left"> </td> <td style="border-bottom: #000000 1px solid; border-top: #000000 1px solid;" width="2%" align="right">$</td> <td style="border-bottom: #000000 1px solid; border-top: #000000 1px solid;" width="10%" align="right">209,614</td> <td style="border-bottom: #000000 1px solid; border-top: #000000 1px solid;" width="2%" align="right">$</td> <td style="border-bottom: #000000 1px solid; border-top: #000000 1px solid;" width="10%" align="right">228,821</td></tr></table></div>   Australia NAB Australian Corporate Term Loan      On June 24, 2011, we replaced our Australian Corporate Credit Facility of $115.8 million (AUS$110.0 million) with BOS International ("BOSI") with a new credit facility from National Australia Bank ("NAB") of $110.5 million (AUS$105.0 million). NAB provided us term debt of $94.7 million (AUS$90.0 million) and $9.5 million (AUS$9.0 million) in line of credit which we used combined with our cash of $1.6 million (AUS$1.5 million) to pay down our $105.8 million (AUS$100.5 million) of outstanding BOSI debt.      The new three-tiered credit facility from NAB (the "NAB Credit Facility") has a term of three years, due and payable June 30, 2014, and comprised of a term loan with a December 31, 2011 balance of $88.7 million (AUS$86.5 million); a $10.3 million (AUS$10.0 million) revolving facility for which we do not have a balance at December 31, 2011; and a $5.1 million (AUS$5.0 million) guarantee facility. This loan to Reading Entertainment Australia commenced on June 24, 2011 with an interest rate of between 2.90% and 2.15% above the BBSY bid rate. This credit facility is secured by substantially all of our cinema assets in Australia and is only guaranteed by several of our wholly owned Australian subsidiaries. The NAB Credit Facility requires annual principal payments of between $7.2 million (AUS$7.0 million) and $9.2 million (AUS$9.0 million) which we anticipate will be paid from Reading Entertainment Australia operating cash flows. The covenants of the NAB Credit Facility include a fixed charge coverage ratio, a debt service cover ratio, an operating leverage ratio, a loan to value ratio, and other financial covenants. Additionally, the NAB Credit Facility allows us to transfer only $4.1 million (AUS$4.0 million) per year outside of Australia. On August 2, 2011, we paid down our NAB revolver by $9.7 million (AUS$9.0 million) resulting in a zero balance on that date. <div> </div>      In conjunction with this NAB Credit Facility, we entered into a five-year interest swap agreement which swaps 100% of our $88.7 million (AUS$86.5 million) variable rate term loan (decreasing in line with scheduled principal repayments) based on BBSY, for a 5.50% fixed rate. For further information regarding our swap agreements, see Note 13 – Derivative Instruments. Australian Shopping Center Loans      As part of the acquisition of the Anderson Circuit, in July 2004, we assumed the three loans on the properties of Epping, Rhodes, and West Lakes. The total amount assumed on the transaction date was $1.5 million (AUS$2.1 million) and the loans carry no interest as long as we make timely principal payments of approximately $256,000 (AUS$250,000) per year. The balance of these loans at December 31, 2011 and 2010 was $384,000 (AUS$375,000) and $633,000 (AUS$625,000), respectively. Early repayment is possible without penalty. The only recourse on default of these loans is the security on the properties. In 2009, we did not pay $22,000 (AUS$25,000) of principal payments on the West Lakes loan due to a dispute that we had with the landlord. During 2010, we resolved the dispute and paid $51,000 (AUS$51,000) in principal payments on this loan. During 2011, we paid $256,000 (AUS$200,000) in principal payments on this loan. New Zealand New Zealand Corporate Credit Facility      During May 2009, we extended the term of our New Zealand facility to March 31, 2012 and reduced the available borrowing amount to $35.6 million (NZ$45.0 million). The drawn balance of this loan was $21.9 million (NZ$28.0 million) at December 31, 2011. We recorded $33,000 (NZ$45,000) in deferred financing costs associated with this term extension which we amortize over the remaining life of the loan. The margin on the facility was increased to 1.45% from 1.00% and the line of credit charge increased to 0.30% from 0.20%. The loan comes due on March 31, 2012. The facility is secured by substantially all of our New Zealand assets, but has not been guaranteed by any entity other than several of our New Zealand subsidiaries. The facility includes various affirmative and negative financial covenants designed to protect the bank's security regarding capital expenditures and the repatriation of funds out of New Zealand. Also included in the restrictive covenants of the facility is the restriction of transferring funds from subsidiary to parent.      As indicated above, the term of this facility with Westpac Bank was due to mature on March 31, 2012. On February 8, 2012, we received an approved amendment from Westpac renewing our existing $35.1 million (NZ$45.0 million) New Zealand credit facility with a 3-year credit facility. The renewed facility calls for a decrease in the overall facility by $3.9 million ($5.0 million) to $31.2 million (NZ$40.0 million), an increase in the facility margin of 0.55% to 2.0%, and the line of credit charge increase from 0.30% to 0.40%. No other significant changes to the facility were made (see Note 28 – Subsequent Events). Accordingly, the December 31, 2011 outstanding balance of this debt of $21.9 million (NZ$28.0 million) is classified as long-term on our balance sheet. Domestic Trust Preferred Securities      On February 5, 2007, we issued $51.5 million in 20-year fully subordinated notes to a trust that we control, which in turn issued $51.5 million in securities. Of the $51.5 million, $50.0 million in TPS were issued to unrelated investors in a private placement and $1.5 million of common trust securities were issued by the trust to Reading called "Investment in Reading International Trust I" on our balance sheet. The interest on the notes and preferred dividends on the trust securities carry a fixed rate for five years of 9.22% after which the interest will be based on an adjustable rate of LIBOR plus 4.00% unless we exercise our right to refix the rate at the current market rate at that time. There are no principal payments due until maturity in 2027 when the notes and the trust securities are scheduled to be paid in full. We may pay off the debt after the first five years at 100.0% of the principal amount without any penalty. The trust is essentially a pass through, and the transaction is accounted for on our books as the issuance of fully subordinated notes. <div> </div> The credit facility includes a number of affirmative and negative covenants designed to monitor our ability to service the debt. The most restrictive covenant of the facility requires that we must maintain a fixed charge coverage ratio at a certain level. However, on December 31, 2008, we secured a waiver of all financial covenants with respect to our TPS for a period of nine years (through December 2017), in consideration of the payment of $1.6 million, consisting of an initial payment of $1.1 million, a payment of $270,000 made in December 2011, and a contractual obligation to pay $270,000 in December 2014.      The private placement generated $49.9 million in net proceeds, which were used principally to make our investment in the common trust securities of $1.5 million, to retire all of our bank indebtedness in New Zealand of $34.4 million (NZ$50.0 million) and to retire a portion of our bank indebtedness in Australia of $5.8 million (AUS$7.4 million). During the years ended December 31, 2011, 2010, and 2009, we paid $2.5 million, $2.5 million, and $3.6 million, respectively, in preferred dividends to the unrelated investors that are included in interest expense. At December 31, 2011 and 2010, we had preferred dividends payable of $416,000 in each of the two years. Interest payments for this loan are required every three months.      During the first quarter of 2009, we took advantage of the then current market illiquidity for securities such as our TPS to repurchase $22.9 million in face value of those securities through an exchange of $11.5 million worth of marketable securities purchased during the period for the express purpose of executing this exchange transaction with the third party holder of these TPS. During the twelve months ended 2009, we amortized $106,000 of discount to interest income associated with the holding of these securities prior to their extinguishment. On April 30, 2009, we extinguished $22.9 million of these TPS, which resulted in a gain on retirement of subordinated debt (TPS) of $10.7 million net of loss on the associated write-off of deferred loan costs of $749,000 and a reduction in our Investment in Reading International Trust I from $1.5 million to $838,000. Cinemas 1, 2, 3 Term Loan      On June 28, 2007, Sutton Hill Properties LLC ("SHP"), one of our consolidated subsidiaries, entered into a $15.0 million loan that is secured by SHP's interest in the Cinemas 1, 2 & 3 land and building. SHP is owned 75% by Reading and 25% by Sutton Hill Capital, LLC ("SHC"), a joint venture indirectly wholly owned by Mr. James J. Cotter, our Chairman and Chief Executive Officer, and Mr. Michael Forman. Under the terms of the credit agreement, this loan bears a fixed interest rate of 6.73% per annum payable monthly. The loan matures on July 1, 2012. No principal payments are due until maturity. SHP distributed the proceeds of the loan to Reading and to SHC in the amount of $10.6 million and $3.5 million, respectively. Because the cash flows from SHP are currently insufficient to cover its obligations, Reading and Sutton Hill Capital, LLC, have agreed to contribute the capital required to service the debt. Reading will be responsible for 75% and SHC will be responsible for 25% of such capital payments. Interest payments for this loan are required on a monthly basis.      As the loan is due to mature on July 1, 2012, the December 31, 2011 outstanding balance of this debt of $15.0 million is classified as current on our balance sheet. We intend to either refinance the property's debt with similar financing or sell the property and use the proceeds to pay off the loan. GE Capital Term Loan      In connection with the Consolidated Entertainment acquisition, on February 21, 2008, our wholly-owned subsidiary, Consolidated Amusement Theatres, Inc., (now renamed Consolidated Entertainment, Inc.) as borrower ("Borrower"), and Consolidated Amusement Holdings, Inc. ("Holdings") entered into a Credit Agreement with General Electric Capital Corporation ("GE") as lender and administrative agent, and GE Capital Markets, Inc. as lead arranger, which provides Borrower with a senior secured credit facility of up to $55.0 million in the aggregate, including a revolving credit facility of up to $5.0 million including a $1.0 million sub-limit for letters of credit (the "Credit Facility"). The initial borrowings under the Credit Facility were used to finance, in part, our acquisition of the theaters and other assets. We were able to borrow additional amounts under the Credit Facility for other acquisitions as permitted under the Credit Facility (and to pay any related transaction expenses), and for ordinary working capital and general corporate needs of Borrower, subject to the terms of the Credit Facility. At that time, we incurred deferred financing costs of $2.6 million related to our borrowings under this Credit Facility. The Credit Facility was due to expire on February 21, 2013 and was secured by substantially all the assets of Borrower and Holdings. During 2010 and 2009, Borrower voluntarily paid down on the loan balance by $3.2 million and $8.3 million, respectively. <div> </div> On December 1, 2010, GE Capital amended and restated our GE Capital Term Loan agreement (the "revised Credit Facility"), lending to Borrower an additional $8.0 million and extending the loan expiration date to December 1, 2015. We incurred deferred financing costs of $1.1 million related to our additional borrowings under the revised Credit Facility.      Borrowings under the revised Credit Facility bear interest at a rate equal to either (i) the Index Rate (defined as the higher of the Wall Street Journal prime rate and the federal funds rate plus 50 basis points), or (ii) LIBOR (as defined in the Credit Facility) with a 1.00% floor, at the election of Borrower, plus, in each case, a margin determined by reference to Borrower's Leverage Ratio (as defined in the Credit Facility) that ranges between prime rate plus 3.00% and prime rate plus 3.50%, and between LIBOR plus 4.00% and LIBOR plus 4.50%, respectively. At present, Borrower has elected to use the LIBOR plus 4.50% as our interest-borrowing rate. Borrower is required to swap no less than 50% of the original loan balance of $37.5 million for the first three years of the revised Credit Facility. Borrower elected to swap 100% of the original loan balance and contracted for swap balance step-downs that correspond with the loan's principal payments through December 31, 2013. For further information regarding our swap agreements, see Note 13 – Derivative Instruments.      Borrowings under the revised Credit Facility are to be repaid in twenty consecutive installments at the end of each calendar quarter in total annual amounts ranging from 10.0% to 17.5% of the original loan balance of $37.5 million at December 1, 2010. Additionally, borrowings under the revised Credit Facility may be prepaid at any time without penalty, subject to certain minimums and payment of any LIBOR funding breakage costs. Borrower is required to pay an unused commitment fee equal to 0.75% per annum on the actual daily-unused portion of the $5.0 million revolving loan facility, payable quarterly in arrears. Outstanding letters of credit under the revised Credit Facility are subject to a fee of the applicable LIBOR rate in effect per annum on the face amount of such letters of credit, payable quarterly in arrears. Borrower is required to pay standard fees with respect to the issuance, negotiation, and amendment of letters of credit issued under the letter of credit facility.      The revised Credit Facility contains other customary terms and conditions, including representations and warranties, affirmative and negative covenants, events of default and indemnity provisions. Such covenants, among other things, limit Borrower's ability to incur indebtedness, incur liens or other encumbrances, make capital expenditures, enter into mergers, consolidations and asset sales, engage in transactions with affiliates, pay dividends or other distributions and change the nature of the business conducted by Borrower. Additionally, the Credit Facility limits the use of our cash outside of the subsidiary without the prior approval of GE.      The revised Credit Agreement contains financial covenants requiring the Borrower to maintain minimum fixed charge and interest coverage ratios and not to exceed specified maximum leverage ratios. The revised levels for the maximum leverage and minimum interest coverage covenants become stricter over the term of the Credit Facility.      The revised Credit Facility provides for customary events of default, including payment defaults, covenant defaults, cross-defaults to certain other indebtedness, certain bankruptcy events, judgment defaults, invalidity of any loan documents or liens created under the Credit Agreement, change of control of Borrower, termination of certain theater leases and material inaccuracies in representations and warranties. Liberty Theaters Term Loan      On March 17, 2008, we entered into a $7.1 million loan agreement with a financial institution, secured by our Royal George Theatre in Chicago, Illinois and our Minetta Lane Theatre and Orpheum Theatre in New York. The loan has a 5-year term loan that accrues a 6.20% interest rate payable monthly in arrears. We incurred deferred financing costs of $527,000 related to our borrowings of this loan. The loan agreement requires only monthly principal and interest payments along with self-reported annual financial statements. US Nationwide Loan 1      On February 22, 2008, we acquired 15 motion picture theaters and theater-related assets from Pacific Theatres Exhibition Corp. and its affiliates (collectively, the "Sellers") for $70.2 million a transaction referred to as the "Pacific Theaters Acquisition." The Seller's affiliate, Nationwide Theatres Corp ("Nationwide"), provided $21.0 million of acquisition financing evidenced by a five-year promissory note (the "Nationwide Note 1") of Reading Consolidated Holdings, Inc., our wholly owned subsidiary ("RCHI"), maturing on February 21, 2013. <div> </div>      The Nationwide Note 1 bears interest (i) as to $4.5 million of principal at the annual rates of 7.50% for the first three years and 8.50% thereafter and (ii) as to $13.0 million of principal at the annual rates of 6.50% through July 31, 2009 and 8.50% thereafter. Accrued interest is due and payable on February 21, 2011 and thereafter on the last day of each calendar quarter, commencing on June 30, 2011. The entire principal amount is due and payable upon maturity, subject to our right to prepay at any time without premium or penalty and to the requirement that, under certain circumstances, we make mandatory prepayments equal to a portion of free cash flow generated by the acquired theaters. The loan is recourse only to RCHI and its assets, which include all of the Hawaii theaters and certain of the California theaters acquired from the Sellers and our Manville and Dallas Angelika Theaters.      The Nationwide Note 1 was subject to certain purchase price related adjustments. At December 31, 2011, these adjustments have resulted in a net reduction in principal of $20.4 million comprised of a reduction in the amount of $6.3 million in 2008, a further reduction of $226,000 during the first quarter of 2009, an additional advance of $3.0 million in 2009 (such advance was used to pay down a portion of the GE Capital Term Loan discussed above), a $4.4 million reduction during the first quarter of 2010 in which Nationwide Theaters Corp. and Reading agreed to reduce the seller's note, and finally a $12.5 million reduction in September 2010. As a result of these reductions, the principal balance of the notes at December 31, 2011 was $597,000. US Nationwide Loan 2      In connection with the Pacific Theaters Acquisition, the Sellers also committed to loan to RDI up to $3.0 million in two draws of $1.5 million each, one of which was drawn on July 21, 2008 and the other of which may have been drawn on or before July 31, 2009. During 2010, as part of the $4.4 million note reduction of the US Nationwide Loan 1, we waived our right to draw on the second $1.5 million. The existing $1.5 million loan bore an interest rate of 8.50%, compounded annually. The loan and accrued interest were due and payable, in full, on February 21, 2011, subject to our right to prepay the loan without premium or penalty. Pursuant to the terms of this note, we paid off this loan of $1.5 million with its $359,000 of accrued interest on February 21, 2011. Sutton Hill Capital Notes 1 & 2      As part of the negotiation of the Village East Lease (see Note 26 – Related Parties and Transactions), we paid off the Sutton Hill Capital ("SHC") Note 1 of $5.0 million on June 30, 2010 and renegotiated the SHC Note 2 for $9.0 million. Under the new terms of the SHC Note 2, the loan has a variable annual rate equal to a Five-Year Constant Maturity United States Treasury Note rate plus 575 basis points, subject to a minimum rate of 8.25% and a maximum rate of 10% and the note matures on December 31, 2013. No interim principal payments are required and the balance of the note is payable upon maturity. No other covenants are required for this loan. This loan is unsecured. Union Square Theatre Term Loan      On April 30, 2010, we refinanced the loan secured by our Union Square property with another lender. The new loan for $7.5 million has a five-year term with a fixed interest rate of 5.92% per annum and an amortization payment schedule of 20 years with a balloon payment of approximately $6.4 million at the end of the loan term. Bank of America Line of Credit      On August 18, 2011, Bank of America renewed its $3.0 million line of credit ("LOC") to RDI. The agreement is in effect till August 31, 2012 and is potentially renewable at that date. The LOC carries an interest rate equal to BBA LIBOR floating plus 350 basis points margin. During 2011, we used $2.5 million of this LOC as a construction loan guarantee for our Mosaic cinema project in the greater Washington D.C. metropolitan area. The remaining balance of $500,000 is undrawn at December 31, 2011. <div> </div> Summary of Notes Payable Our aggregate future principal loan payments are as follows (dollars in thousands): <div> <table border="0" cellspacing="0"> <tr><td width="83%"> </td> <td width="2%"> </td> <td width="14%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="83%" align="left">Year Ending December 31,</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="left"> </td></tr> <tr valign="bottom"><td width="83%" align="left">2012</td> <td width="2%" align="left">$</td> <td width="14%" align="right">29,630</td></tr> <tr valign="bottom"><td width="83%" align="left">2013</td> <td width="2%" align="left"> </td> <td width="14%" align="right">40,216</td></tr> <tr valign="bottom"><td width="83%" align="left">2014</td> <td width="2%" align="left"> </td> <td width="14%" align="right">69,159</td></tr> <tr valign="bottom"><td width="83%" align="left">2015</td> <td width="2%" align="left"> </td> <td width="14%" align="right">42,696</td></tr> <tr valign="bottom"><td width="83%" align="left">2016</td> <td width="2%" align="left"> </td> <td width="14%" align="right">-</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="83%" align="left">Thereafter</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">27,913</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="83%" align="left">Total future principal loan payments</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">209,614</td></tr></table></div>        Since approximately $110.9 million of our total debt of $209.6 million at December 31, 2011 consisted of debt denominated in Australian and New Zealand dollars, the U.S dollar amounts of these repayments will fluctuate in accordance with the relative values of these currencies. </div>

-15028000

8727000

10271000

1985000

12399000

2267000

12191000

15168000

15914000

16960000

<div> Note 3 – Stock Based Compensation and Employee Stock Option Plan   Stock Based Compensation   As part of his compensation package, Mr. James J. Cotter, our Chairman of the Board and Chief Executive Officer, was granted $750,000, $750,000, and $500,000, respectively, of restricted class A non-voting common stock ("Class A Stock") for each of the years ending December 31, 2011, 2010, and 2009. The 2011, 2010, and 2009 stock grants of 155,925, 174,825, and 125,945 shares, respectively, were granted fully vested with a stock grant prices of $4.81, $4.29, and $3.97, respectively. Mr. Cotter's stock compensation is granted fully vested with a five-year restriction on sale. As of December 31, 2011, the 2011 stock grant had not yet been issued to Mr. Cotter. During 2011, we issued to Mr. Cotter 174,825 of Class A Stock for his 2010 vested stock grants which had a stock grant price of $4.29 and a grant date fair value of $750,000.   On August 21, 2008, as part of their executive compensation, 37,388 shares of fully vested restricted Class A Stock were granted to three of our executives as stock bonuses having a grant date fair value of $340,000. During 2009, these shares were issued to these executives.   On February 11, 2010, $100,000 of restricted Class A Stock vested, related to Mr. Hunter's 2009 and 2008 stock grants. During 2010, we issued to Mr. Hunter 5,154 shares related to his 2009 vested stock compensation. In July 2008, Mr. Jay Laifman started with the Company as our Corporate General Counsel. As part of his compensation package, Mr. Laifman was granted $100,000 of Class A Stock or 10,638 shares with stock grant price of $9.40 upon acceptance of his employment agreement. This stock grant had an employment-vesting period of two years. Upon his departure from our company during 2009, Mr. Laifman forfeited the unvested portion of this grant in the amount of 5,319 shares.   During the years ended December 31, 2011, 2010, and 2009, we recorded compensation expense of $750,000, $754,000, and $725,000, respectively, for the vesting of all our restricted stock grants. The following table details the grants and vesting of restricted stock to our employees (dollars in thousands):   <table style="font-family: 'Times New Roman';" border="0" cellspacing="0"> <tr valign="bottom"><td width="44%" align="center"> </td> <td width="27%" align="center"> </td> <td width="3%" align="center"> </td> <td width="3%" align="center"> </td> <td width="19%" align="center">Weighted</td> <td width="4%" align="center"> </td></tr> <tr valign="bottom"><td width="44%" align="center"> </td> <td width="27%" align="center"> </td> <td width="3%" align="center"> </td> <td width="3%" align="center"> </td> <td width="19%" align="center">Average Fair</td> <td width="4%" align="center"> </td></tr> <tr valign="bottom"><td width="44%" align="center"> </td> <td width="27%" align="center">Non-Vested</td> <td width="3%" align="center"> </td> <td width="3%" align="center"> </td> <td width="19%" align="center">Value at Grant</td> <td width="4%" align="center"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="44%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="27%" align="center">Restricted Stock</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="3%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="19%" align="center">Date</td> <td style="border-bottom: #000000 1px solid;" width="4%" align="center"> </td></tr> <tr valign="bottom"><td width="44%" align="left">Outstanding – January 1, 2009</td> <td width="27%" align="right">33,621</td> <td width="3%" align="left"> </td> <td width="3%" align="left">$</td> <td width="19%" align="right">574</td> <td width="4%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="44%" align="left">Granted</td> <td width="27%" align="right">125,945</td> <td width="3%" align="left"> </td> <td width="3%" align="left"> </td> <td width="19%" align="right">500</td> <td width="4%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="44%" align="left">Vested</td> <td style="border-bottom: #000000 1px solid;" width="27%" align="right">(159,566</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="19%" align="right">(1,074</td> <td style="border-bottom: #000000 1px solid;" width="4%" align="left">)</td></tr> <tr valign="bottom"><td width="44%" align="left">Outstanding – December 31, 2009</td> <td width="27%" align="right">--</td> <td width="3%" align="left"> </td> <td width="3%" align="left">$</td> <td width="19%" align="right">--</td> <td width="4%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="44%" align="left">Granted</td> <td width="27%" align="right">174,825</td> <td width="3%" align="left"> </td> <td width="3%" align="left"> </td> <td width="19%" align="right">750</td> <td width="4%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="44%" align="left">Vested</td> <td style="border-bottom: #000000 1px solid;" width="27%" align="right">(174,825</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="19%" align="right">(750</td> <td style="border-bottom: #000000 1px solid;" width="4%" align="left">)</td></tr> <tr valign="bottom"><td width="44%" align="left">Outstanding – December 31, 2010</td> <td width="27%" align="right">--</td> <td width="3%" align="left"> </td> <td width="3%" align="left">$</td> <td width="19%" align="right">-</td> <td width="4%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="44%" align="left">Granted</td> <td width="27%" align="right">155,925</td> <td width="3%" align="left"> </td> <td width="3%" align="left"> </td> <td width="19%" align="right">750</td> <td width="4%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="44%" align="left">Vested</td> <td style="border-bottom: #000000 1px solid;" width="27%" align="right">(155,925</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="19%" align="right">(750</td> <td style="border-bottom: #000000 1px solid;" width="4%" align="left">)</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="44%" align="left">Outstanding – December 31, 2011</td> <td style="border-bottom: #000000 1px solid;" width="27%" align="right">--</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="19%" align="right">--</td> <td style="border-bottom: #000000 1px solid;" width="4%" align="left"> </td></tr></table>   On April 1, 2010, we terminated our then existing contractual relationship with Doug Osborne, at that time the chief executive officer of our Landplan real estate operations. Mr. Osborne's incentive interest in our various Landplan projects, which was valued at $0, was revoked at that time. Mr. Osborne continues to provide services to us on a non-exclusive independent contractor basis. During the year ended December 31, 2009, we expensed $157,000 associated with Mr. Osborne's previous contractual interest in the properties associated with Landplan Property Partners, Pty Ltd.   Employee Stock Option Plan   We have a long-term incentive stock option plan that provides for the grant to eligible employees, directors, and consultants of incentive or nonstatutory options to purchase shares of our Class A Nonvoting Common Stock. Our 1999 Stock Option Plan expired in November 2009, and was replaced by our new 2010 Stock Incentive Plan, which was approved by the holders of our Class B Voting Common Stock in May 2010. For the stock options exercised during the years ended December 31, 2010 and 2009, we issued 90,000 and 3,000 shares of Class A Stock for cash to employees of the corporation under this stock based compensation plan at exercise prices of $2.76 and $3.80, respectively. During the year ended December 31, 2011, we did not issue any shares under this stock based compensation plan.   Effective January 1, 2006, we adopted FASB ASC 718-10 – Stock Compensation ("ASC 718-10"). ASC 718-10 requires that all stock-based compensation be recognized as an expense in the financial statements and that such costs be measured at the fair value of the award. This statement was adopted using the modified prospective method, which requires that we recognize compensation expense on a prospective basis for all newly granted options and any modifications or cancellations of previously granted awards. Therefore, prior period consolidated financial statements have not been restated. Under this method, in addition to reflecting compensation expense for new share-based payment awards, modifications to awards, and cancellations of awards, expense is also recognized to reflect the remaining vesting period of awards that had been included in pro-forma disclosures in prior periods. We estimate the valuation of stock based compensation using a Black-Scholes option-pricing model.   When our tax deduction from an option exercise exceeds the compensation cost resulting from the option, a tax benefit is created. ASC 718-10 requires that excess tax benefits related to stock option exercises be reflected as financing cash inflows instead of operating cash inflows. For the years ended December 31, 2011, 2010, and 2009, there was also no impact to the consolidated statements of cash flows because there were no recognized tax benefits during these periods.   ASC 718-10 requires companies to estimate forfeitures. Based on our historical experience, we did not estimate any forfeitures for the granted options during the years ended December 31, 2011, 2010, and 2009.   In accordance with ASC 718-10, we estimate the fair value of our options using the Black-Scholes option-pricing model, which takes into account assumptions such as the dividend yield, the risk-free interest rate, the expected stock price volatility, and the expected life of the options. The dividend yield is excluded from the calculation, as it is our present intention to retain all earnings. We estimated the expected stock price volatility based on our historical price volatility measured using daily share prices back to the inception of the Company in its current form beginning on December 31, 2001. We estimate the expected option life based on our historical share option exercise experience during this same period. We expense the estimated grant date fair values of options issued on a straight-line basis over their vesting periods.   No options were granted during 2011. For the 157,700 and 50,000 options granted during 2010 and 2009, respectively, we estimated the fair value of these options at the date of grant using a Black-Scholes option-pricing model with the following weighted average assumptions:   <table style="border-collapse: collapse; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0"> <tr style="height: 12.75pt;"><td style="padding-bottom: 0in; padding-left: 0in; width: 41.25pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="55">  </td> <td style="border-bottom: black 1.5pt solid; padding-bottom: 0in; padding-left: 0in; width: 248.25pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="top" width="331">  </td> <td style="border-bottom: black 1.5pt solid; padding-bottom: 0in; padding-left: 0in; width: 9pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="top" width="12" colspan="2"> 2010 </td> <td style="border-bottom: black 1.5pt solid; padding-bottom: 0in; padding-left: 0in; width: 9pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="top" width="12" colspan="2"> 2009 </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 41.25pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="top" width="55">  </td></tr> <tr style="height: 12.75pt;"><td style="padding-bottom: 0in; padding-left: 0in; width: 41.25pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="55">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 248.25pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="top" width="331"> Stock option exercise price </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 9pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="top" width="12"> $</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 60pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="top" width="80"> 5.07 </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 9pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="top" width="12"> $</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 60pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="top" width="80"> 4.01 </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 41.25pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="top" width="55">  </td></tr> <tr style="height: 12.75pt;"><td style="padding-bottom: 0in; padding-left: 0in; width: 41.25pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="55">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 248.25pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="top" width="331"> Risk-free interest rate </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 9pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="top" width="12">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 60pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="top" width="80"> 2.736%</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 9pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="top" width="12">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 60pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="top" width="80"> 3.309%</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 41.25pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="top" width="55">  </td></tr> <tr style="height: 12.75pt;"><td style="padding-bottom: 0in; padding-left: 0in; width: 41.25pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="55">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 248.25pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="top" width="331"> Expected dividend yield </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 9pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="top" width="12">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 60pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="top" width="80"> --</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 9pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="top" width="12">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 60pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="top" width="80"> --</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 41.25pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="top" width="55">  </td></tr> <tr style="height: 12.75pt;"><td style="padding-bottom: 0in; padding-left: 0in; width: 41.25pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="55">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 248.25pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="top" width="331"> Expected option life </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 9pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="top" width="12">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 60pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="top" width="80"> 7.23 yrs</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 9pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="top" width="12">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 60pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="top" width="80"> 9.60 yrs</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 41.25pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="top" width="55">  </td></tr> <tr style="height: 12.75pt;"><td style="padding-bottom: 0in; padding-left: 0in; width: 41.25pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="55">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 248.25pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="top" width="331"> Expected volatility </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 9pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="top" width="12">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 60pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="top" width="80"> 33.01%</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 9pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="top" width="12">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 60pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="top" width="80"> 33.74%</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 41.25pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="top" width="55">  </td></tr> <tr style="height: 12.75pt;"><td style="padding-bottom: 0in; padding-left: 0in; width: 41.25pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="55">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 248.25pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="top" width="331"> Weighted average fair value </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 9pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="top" width="12"> $</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 60pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="top" width="80"> 1.88 </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 9pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="top" width="12"> $</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 60pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="top" width="80"> 1.98 </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 41.25pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="top" width="55">  </td></tr></table>   Using the above assumptions and based on our use of the modified prospective method, we recorded $189,000, $67,000, and $241,000 in compensation expense for the total estimated grant date fair value of stock options that vested during the years ended December 31, 2011, 2010, and 2009, respectively. The effect on earnings per share of the compensation charge was $0.01, $0.00, and $0.01 per share for the years ended December 31, 2011, 2010, and 2009, respectively. At December 31, 2011 and 2010, the total unrecognized estimated compensation cost related to non-vested stock options granted was $109,000 and $247,000, respectively, which is expected to be recognized over a weighted average vesting period of 0.67 and 1.37 years, respectively. No options were exercised in 2011. The total realized value of stock options exercised during the years ended December 31, 2010 and 2009 was $138,000 and $1,000, respectively. The grant date fair value of options that vested during the years ending December 31, 2011, 2010, and 2009 was $189,000, $67,000, and $241,000, respectively. We recorded cash received from stock options exercised of $248,000 and $11,000 during the years ended December 31, 2010 and 2009, respectively. The intrinsic, unrealized value of all options outstanding, vested and expected to vest, at December 31, 2011 and 2010 was $175,000 and $280,000, respectively, of which 88.6% and 70.1%, respectively, were currently exercisable.   Pursuant to both our 1999 Stock Option Plan and our 2010 Stock Incentive Plan, all stock options expire within ten years of their grant date. The aggregate total number of shares of Class A Stock and class B voting common stock authorized for issuance under our 2010 Stock Option Plan is 1,250,000. At the time that options are exercised, at the discretion of management, we will either issue treasury shares or make a new issuance of shares to the employee or board member. Dependent on the grant letter to the employee or board member, the required service period for option vesting is between zero and four years.   We had the following stock options outstanding and exercisable:   <table style="border-collapse: collapse; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0"> <tr style="height: 12.75pt;"><td style="padding-bottom: 0in; padding-left: 0in; width: 7.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="10">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 111pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="148">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 42pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="56">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 42pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="56">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50" colspan="3"> Weighted </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 39.75pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="53">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 39.75pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="53">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50" colspan="3"> Weighted Average </td></tr> <tr style="height: 12.75pt;"><td style="padding-bottom: 0in; padding-left: 0in; width: 7.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="10">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 111pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="148">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 42pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="56" colspan="2"> Common Stock </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50" colspan="3">  Average Exercise</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 39.75pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="53" colspan="2"> Common Stock </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50" colspan="3"> Price of </td></tr> <tr style="height: 12.75pt;"><td style="padding-bottom: 0in; padding-left: 0in; width: 7.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="10">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 111pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="148">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 42pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="56" colspan="2"> Options </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50" colspan="3"> Price of Options </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 39.75pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="53" colspan="2"> Exercisable</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50" colspan="3"> Exercisable</td></tr> <tr style="height: 12.75pt;"><td style="padding-bottom: 0in; padding-left: 0in; width: 7.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="10">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 111pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="148">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 42pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="56" colspan="2"> Outstanding </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50" colspan="3"> Outstanding</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 39.75pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="53" colspan="2"> Options</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50" colspan="3"> Options</td></tr> <tr style="height: 12.75pt;"><td style="border-bottom: black 1.5pt solid; padding-bottom: 0in; padding-left: 0in; width: 7.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="10">  </td> <td style="border-bottom: black 1.5pt solid; padding-bottom: 0in; padding-left: 0in; width: 111pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="148">  </td> <td style="border-bottom: black 1.5pt solid; padding-bottom: 0in; padding-left: 0in; width: 42pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="56"> Class A </td> <td style="border-bottom: black 1.5pt solid; padding-bottom: 0in; padding-left: 0in; width: 42pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="56"> Class B</td> <td style="border-bottom: black 1.5pt solid; padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14" colspan="2"> Class A</td> <td style="border-bottom: black 1.5pt solid; padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14" colspan="2"> Class B</td> <td style="border-bottom: black 1.5pt solid; padding-bottom: 0in; padding-left: 0in; width: 39.75pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="53"> Class A</td> <td style="border-bottom: black 1.5pt solid; padding-bottom: 0in; padding-left: 0in; width: 39.75pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="53"> Class B</td> <td style="border-bottom: black 1.5pt solid; padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14" colspan="2"> Class A</td> <td style="border-bottom: black 1.5pt solid; padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14" colspan="2"> Class B</td></tr> <tr style="height: 12.75pt;"><td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 7.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="10" colspan="2"> Outstanding- January 1, 2009 </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 42pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="56">  577,850 </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 42pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="56">  185,100 </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14"> $</td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50">  5.60 </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14"> $</td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50">  9.90 </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 39.75pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="53">  525,350 </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 39.75pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="53">  110,100 </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14"> $</td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50">  5.19 </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14"> $</td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50">  9.67 </td></tr> <tr style="height: 12.75pt;"><td style="padding-bottom: 0in; padding-left: 0in; width: 7.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="10">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 111pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="148"> Granted </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 42pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="56">  50,000 </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 42pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="56">  -- </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14"> $</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50">  4.01 </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14"> $</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50">  -- </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 39.75pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="53">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 39.75pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="53">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50">  </td></tr> <tr style="height: 12.75pt;"><td style="padding-bottom: 0in; padding-left: 0in; width: 7.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="10">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 111pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="148"> Exercised </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 42pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="56">  (3,000)</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 42pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="56">  -- </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14"> $</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50">  3.80 </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14"> $</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50">  -- </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 39.75pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="53">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 39.75pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="53">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50">  </td></tr> <tr style="height: 12.75pt;"><td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 7.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="10">  </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 111pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="148"> Expired </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 42pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="56">  (35,100)</td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 42pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="56">  (35,100)</td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14"> $</td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50">  5.13 </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14"> $</td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50">  8.47 </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 39.75pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="53">  </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 39.75pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="53">  </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14">  </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50">  </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14">  </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50">  </td></tr> <tr style="height: 12.75pt;"><td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 7.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="10" colspan="2"> Outstanding- December 31, 2009</td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 42pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="56">  589,750 </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 42pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="56">  150,000 </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14"> $</td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50">  5.51 </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14"> $</td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50">  10.24 </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 39.75pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="53">  534,750 </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 39.75pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="53">  150,000 </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14"> $</td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50">  5.62 </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14"> $</td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50">  10.24 </td></tr> <tr style="height: 12.75pt;"><td style="padding-bottom: 0in; padding-left: 0in; width: 7.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="10">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 111pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="148"> Granted </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 42pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="56">  122,600 </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 42pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="56">  35,100 </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14"> $</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50">  4.23 </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14"> $</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50">  8.47 </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 39.75pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="53">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 39.75pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="53">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50">  </td></tr> <tr style="height: 12.75pt;"><td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 7.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="10">  </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 111pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="148"> Exercised </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 42pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="56">  (90,000)</td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 42pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="56">  -- </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14"> $</td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50">  2.76 </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14"> $</td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50">  -- </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 39.75pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="53">  </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 39.75pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="53">  </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14">  </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50">  </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14">  </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50">  </td></tr> <tr style="height: 12.75pt;"><td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 7.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="10" colspan="2"> Outstanding-December 31, 2010</td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 42pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="56">  622,350 </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 42pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="56">  185,100 </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14"> $</td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50">  5.65 </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14"> $</td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50">  9.90 </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 39.75pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="53">  449,750 </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 39.75pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="53">  150,000 </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14"> $</td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50">  6.22 </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14"> $</td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50">  10.24 </td></tr> <tr style="height: 12.75pt;"><td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 7.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="10">  </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 111pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="148"> No activity during the period </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 42pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="56">  -- </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 42pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="56">  -- </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14"> $</td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50">  -- </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14"> $</td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50">  -- </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 39.75pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="53">  </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 39.75pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="53">  </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14">  </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50">  </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14">  </td> <td style="border-bottom: black 1pt solid; padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50">  </td></tr> <tr style="height: 12.75pt;"><td style="border-bottom: black 1.5pt solid; padding-bottom: 0in; padding-left: 0in; width: 7.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="10" colspan="2"> Outstanding-December 31, 2011</td> <td style="border-bottom: black 1.5pt solid; padding-bottom: 0in; padding-left: 0in; width: 42pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="56">  622,350 </td> <td style="border-bottom: black 1.5pt solid; padding-bottom: 0in; padding-left: 0in; width: 42pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="56">  185,100 </td> <td style="border-bottom: black 1.5pt solid; padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14"> $</td> <td style="border-bottom: black 1.5pt solid; padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50">  5.65 </td> <td style="border-bottom: black 1.5pt solid; padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14"> $</td> <td style="border-bottom: black 1.5pt solid; padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50">  9.90 </td> <td style="border-bottom: black 1.5pt solid; padding-bottom: 0in; padding-left: 0in; width: 39.75pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="53">  544,383 </td> <td style="border-bottom: black 1.5pt solid; padding-bottom: 0in; padding-left: 0in; width: 39.75pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="53">  167,550 </td> <td style="border-bottom: black 1.5pt solid; padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14"> $</td> <td style="border-bottom: black 1.5pt solid; padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50">  5.86 </td> <td style="border-bottom: black 1.5pt solid; padding-bottom: 0in; padding-left: 0in; width: 10.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="14"> $</td> <td style="border-bottom: black 1.5pt solid; padding-bottom: 0in; padding-left: 0in; width: 37.5pt; padding-right: 0in; background: white; height: 12.75pt; padding-top: 0in;" valign="bottom" width="50">  10.05 </td></tr></table>   The weighted average remaining contractual life of all options outstanding, vested and expected to vest, at December 31, 2011 and 2010 were approximately 4.13 and 5.13 years, respectively. The weighted average remaining contractual life of the exercisable options outstanding at December 31, 2011 and 2010 was approximately 3.85 and 4.38 years, respectively. </div>

1656000

0.27

-0.56

0.44

0.27

-0.56

0.43

<div> Note 4 – Earnings (Loss) Per Share      For the three years ended December 31, 2011, we calculated the following earnings (loss) per share (dollars in thousands, except per share amounts): <div> <table border="0" cellspacing="0"> <tr><td width="59%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="10%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="59%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" colspan="2" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" width="13%" colspan="2" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" width="12%" colspan="2" align="center">2009</td></tr> <tr valign="bottom"><td width="59%" align="left">Income (loss) from continuing operations</td> <td width="2%" align="left">$</td> <td width="11%" align="right">8,300</td> <td width="2%" align="left">$</td> <td width="11%" align="right">(12,650</td> <td width="2%" align="left">) $</td> <td width="10%" align="right">6,094</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="59%" align="left">Income from discontinued operations</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">1,656</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">-</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right">-</td></tr> <tr valign="bottom"><td width="59%" align="left">Net income (loss) attributable to Reading International, Inc.</td> <td width="2%" align="left"> </td> <td width="11%" align="left"> </td> <td width="2%" align="left"> </td> <td width="11%" align="left"> </td> <td width="2%" align="left"> </td> <td width="10%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="59%" align="left">common shareholders</td> <td width="2%" align="left"> </td> <td width="11%" align="right">9,956</td> <td width="2%" align="left"> </td> <td width="11%" align="right">(12,650</td> <td width="2%" align="left">)</td> <td width="10%" align="right">6,094</td></tr> <tr><td width="97%" colspan="7"> </td></tr> <tr valign="bottom"><td width="59%" align="left">Weighted average shares of common stock – basic</td> <td width="2%" align="left"> </td> <td width="11%" align="right">22,764,666</td> <td width="2%" align="left"> </td> <td width="11%" align="right">22,781,392</td> <td width="2%" align="left"> </td> <td width="10%" align="right">22,580,942</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="59%" align="left">Weighted average shares of common stock – diluted</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">22,993,135</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">22,781,392</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right">22,767,735</td></tr> <tr><td width="97%" colspan="7"> </td></tr> <tr valign="bottom"><td width="59%" align="left">Basic earnings (loss) per share:</td> <td width="2%" align="left"> </td> <td width="11%" align="left"> </td> <td width="2%" align="left"> </td> <td width="11%" align="left"> </td> <td width="2%" align="left"> </td> <td width="10%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="59%" align="left">Earnings (loss) from continuing operations</td> <td width="2%" align="left">$</td> <td width="11%" align="right">0.37</td> <td width="2%" align="left">$</td> <td width="11%" align="right">(0.56</td> <td width="2%" align="left">) $</td> <td width="10%" align="right">0.27</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="59%" align="left">Earnings from discontinued operations</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">0.07</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">-</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right">-</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="59%" align="left">Basic earnings (loss) per share</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">0.44</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">(0.56</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">) $</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right">0.27</td></tr> <tr><td width="97%" colspan="7"> </td></tr> <tr valign="bottom"><td width="59%" align="left">Diluted earnings (loss) per share:</td> <td width="2%" align="left"> </td> <td width="11%" align="left"> </td> <td width="2%" align="left"> </td> <td width="11%" align="left"> </td> <td width="2%" align="left"> </td> <td width="10%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="59%" align="left">Earnings (loss) from continuing operations</td> <td width="2%" align="left">$</td> <td width="11%" align="right">0.36</td> <td width="2%" align="left">$</td> <td width="11%" align="right">(0.56</td> <td width="2%" align="left">) $</td> <td width="10%" align="right">0.27</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="59%" align="left">Earnings from discontinued operations</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">0.07</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">-</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right">-</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="59%" align="left">Diluted earnings (loss) per share</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">0.43</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">(0.56</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">) $</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right">0.27</td></tr></table></div>        For the year ended December 31, 2011 and 2009, the weighted average common stock – dilutive only included 228,469 and 186,793, respectively, incremental shares of exercisable in-the-money stock options and unissued restricted Class A Stock. For the year ended December 31, 2010, we recorded a loss from continuing operations. As such, the incremental shares of 174,825 shares of restricted Class A Stock and the 60,692 of exercisable in-the-money stock options in 2010 were excluded from the computation of diluted loss per share because they were anti-dilutive in those periods. In addition, 734,906, 746,758, and 696,419 of out-of-the-money stock options were excluded from the computation of diluted earnings (loss) per share for the years ended December 31, 2011, 2010, and 2009, respectively. The total number of in-the-money stock options, out-of-the-money stock options, and unissued restricted Class A Stock that could potentially dilute basic earnings per share was 963,375, 982,275, and 883,212 for the years ended December 31, 2011, 2010, and 2009, respectively. </div>

3053000

2620000

-45000

1167000

1352000

1119000

10415000

7839000

<div> 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 Malulani Investments, Limited and Rialto Distribution as described below. As of December 31, 2011 and 2010, these investments in and advances to unconsolidated joint ventures and entities include the following (dollars in thousands): <div> <table border="0" cellspacing="0"> <tr><td width="47%"> </td> <td width="19%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="2%"> </td> <td width="12%"> </td></tr> <tr valign="bottom"><td width="47%" align="left"> </td> <td width="19%" align="left"> </td> <td width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="28%" colspan="4" align="center">December 31,</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="47%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="21%" colspan="2" align="center">Interest</td> <td style="border-bottom: #000000 1px solid;" width="14%" colspan="2" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" width="14%" colspan="2" align="center">2010</td></tr> <tr valign="bottom"><td width="47%" align="left">Rialto Distribution</td> <td width="19%" align="right">33.3</td> <td width="2%" align="left">%</td> <td width="2%" align="left">$</td> <td width="12%" align="right">-</td> <td width="2%" align="left">$</td> <td width="12%" align="right">-</td></tr> <tr valign="bottom"><td width="47%" align="left">Rialto Cinemas</td> <td width="19%" align="right">50.0</td> <td width="2%" align="left">%</td> <td width="2%" align="left"> </td> <td width="12%" align="right">1,586</td> <td width="2%" align="left"> </td> <td width="12%" align="right">4,580</td></tr> <tr valign="bottom"><td width="47%" align="left">205-209 East 57th Street Associates, LLC</td> <td width="19%" align="right">25.0</td> <td width="2%" align="left">%</td> <td width="2%" align="left"> </td> <td width="12%" align="right">33</td> <td width="2%" align="left"> </td> <td width="12%" align="right">-</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="47%" align="left">Mt. Gravatt</td> <td style="border-bottom: #000000 1px solid;" width="19%" align="right">33.3</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">%</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">6,220</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">5,835</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="47%" align="left">Total</td> <td style="border-bottom: #000000 1px solid;" width="19%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">7,839</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">10,415</td></tr></table></div>        For the years ending December 31, 2011, 2010, and 2009, we recorded our earnings (loss) from our unconsolidated joint ventures and entities as follows (dollars in thousands): <div> <table border="0" cellspacing="0"> <tr><td width="47%"> </td> <td width="2%"> </td> <td width="13%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="14%"> </td> <td width="2%"> </td> <td width="15%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td width="47%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="52%" colspan="8" align="center">December 31,</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="47%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="center">2009</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="47%" align="left">Rialto Distribution</td> <td width="2%" align="left">$</td> <td width="13%" align="right">383</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="14%" align="right">286</td> <td width="2%" align="left">$</td> <td width="15%" align="right">(1,065</td> <td width="2%" align="left">)</td></tr> <tr valign="bottom"><td width="47%" align="left">Rialto Cinemas</td> <td width="2%" align="left"> </td> <td width="13%" align="right">(72</td> <td width="2%" align="left">)</td> <td width="2%" align="left"> </td> <td width="14%" align="right">64</td> <td width="2%" align="left"> </td> <td width="15%" align="right">138</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="47%" align="left">205-209 East 57th Street Associates, LLC</td> <td width="2%" align="left"> </td> <td width="13%" align="right">33</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="14%" align="right">89</td> <td width="2%" align="left"> </td> <td width="15%" align="right">153</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="47%" align="left">Mt. Gravatt</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">1,038</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">906</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right">891</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="47%" align="left">Total investor share of earnings</td> <td width="2%" align="left"> </td> <td width="13%" align="right">1,382</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="14%" align="right">1,345</td> <td width="2%" align="left"> </td> <td width="15%" align="right">117</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="47%" align="left">Rialto Cinemas impairment recorded at investor level</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">(2,934</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">-</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right">-</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="47%" align="left">Total equity earnings (loss)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">(1,552</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">1,345</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right">117</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td></tr></table></div>   <div> </div> 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 $6.75 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. Rialto Distribution      Effective October 1, 2005, we purchased for $694,000 (NZ$1.0 million) a 1/3 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 1/3 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, 2011 and 2010, we received $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, 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 determined they would seek to terminate the Christchurch cinema lease (see Note 27 – Casualty Loss). As of December 31, 2011, 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.      The only retail condominium was sold in February 2009 for approximately $3.8 million. Based on the closing statements of the sale, our share of the sales proceeds was approximately $900,000 and earnings of $304,000. On April 11, 2009, we received $1.2 million relating to our investment in the Place 57 joint venture representing a return of substantially all of our initial investment. 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 $293,000. No further significant income activity is expected from this investment. <div> </div> Mt. Gravatt      We own an undivided 1/3 interest in Mt. Gravatt, an unincorporated joint venture that owns and operates a 16-screen multiplex cinema in Australia. The condensed balance sheets and statements of operations of Mt. Gravatt are as follows (dollars in thousands): <div> <table style="width: 750px; height: 205px;" border="0" cellspacing="0"> <tr><td width="65%"> </td> <td width="2%"> </td> <td width="13%"> </td> <td width="2%"> </td> <td width="15%"> </td></tr> <tr valign="bottom"><td width="65%" align="left">Mt. Gravatt Condensed Balance Sheet Information</td> <td width="2%" align="left"> </td> <td width="13%" align="left"> </td> <td width="2%" align="left"> </td> <td width="15%" align="left"> </td></tr> <tr valign="bottom"><td width="65%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="32%" colspan="4" align="center">December 31,</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="65%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="center">2010</td></tr> <tr valign="bottom"><td width="65%" align="left">Current assets</td> <td width="2%" align="left">$</td> <td width="13%" align="right">1,935</td> <td width="2%" align="center">$</td> <td width="15%" align="right">1,850</td></tr> <tr valign="bottom"><td width="65%" align="left">Noncurrent assets</td> <td width="2%" align="left"> </td> <td width="13%" align="right">3,832</td> <td width="2%" align="left"> </td> <td width="15%" align="right">3,021</td></tr> <tr valign="bottom"><td width="65%" align="left">Current liabilities</td> <td width="2%" align="left"> </td> <td width="13%" align="right">846</td> <td width="2%" align="left"> </td> <td width="15%" align="right">855</td></tr> <tr valign="bottom"><td width="65%" align="left">Noncurrent liabilities</td> <td width="2%" align="left"> </td> <td width="13%" align="right">60</td> <td width="2%" align="left"> </td> <td width="15%" align="right">74</td></tr> <tr valign="bottom"><td width="65%" align="left">Members' equity</td> <td width="2%" align="left"> </td> <td width="13%" align="right">4,861</td> <td width="2%" align="left"> </td> <td width="15%" align="right">3,942</td></tr></table></div>   <div> <table style="width: 750px; height: 136px;" border="0" cellspacing="0"> <tr><td width="43%"> </td> <td width="2%"> </td> <td width="15%"> </td> <td width="2%"> </td> <td width="16%"> </td> <td width="2%"> </td> <td width="15%"> </td></tr> <tr valign="bottom"><td width="60%" colspan="3" align="left">Mt. Gravatt Condensed Statements of Operations Information</td> <td width="2%" align="left"> </td> <td width="16%" align="left"> </td> <td width="2%" align="left"> </td> <td width="15%" align="left"> </td></tr> <tr valign="bottom"><td width="43%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="52%" colspan="6" align="center">December 31,</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="43%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="16%" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="center">2009</td></tr> <tr valign="bottom"><td width="43%" align="left">Total revenue</td> <td width="2%" align="left">$</td> <td width="15%" align="right">14,097</td> <td width="2%" align="left">$</td> <td width="16%" align="right">12,909</td> <td width="2%" align="left">$</td> <td width="15%" align="right">11,244</td></tr> <tr valign="bottom"><td width="43%" align="left">Net income</td> <td width="2%" align="left"> </td> <td width="15%" align="right">3,045</td> <td width="2%" align="left"> </td> <td width="16%" align="right">2,711</td> <td width="2%" align="left"> </td> <td width="15%" align="right">2,629</td></tr></table></div>   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 for $3.3 million (NZ$4.3 million) resulting in a net gain on sale of an unconsolidated entity of $2.5 million (NZ$3.2 million). With the sale of the cinema, our unconsolidated joint venture debt decreased by $3.2 million (NZ$4.2 million). During 2010, we finalized our claims regarding the sale of this cinema resulting in an additional gain on sale of $384,000 (NZ$554,000) for the year ended 2010 included in other income on our Consolidated Statement of Operations. Combined Condensed Financial Information      The combined condensed financial information for all of the above unconsolidated joint ventures and entities accounted for under the equity method is as follows; therefore, these financials only exclude Rialto Distribution (dollars in thousands): <div> <table style="width: 775px; height: 205px;" border="0" cellspacing="0"> <tr><td width="64%"> </td> <td width="2%"> </td> <td width="15%"> </td> <td width="2%"> </td> <td width="15%"> </td></tr> <tr valign="bottom"><td width="64%" align="left">Condensed Balance Sheet Information</td> <td width="2%" align="left"> </td> <td width="15%" align="left"> </td> <td width="2%" align="left"> </td> <td width="15%" align="left"> </td></tr> <tr valign="bottom"><td width="64%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="34%" colspan="4" align="center">December 31,</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="64%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="center">2010</td></tr> <tr valign="bottom"><td width="64%" align="left">Current assets</td> <td width="2%" align="left">$</td> <td width="15%" align="right">5,245</td> <td width="2%" align="center">$</td> <td width="15%" align="right">5,081</td></tr> <tr valign="bottom"><td width="64%" align="left">Noncurrent assets</td> <td width="2%" align="left"> </td> <td width="15%" align="right">6,611</td> <td width="2%" align="left"> </td> <td width="15%" align="right">6,067</td></tr> <tr valign="bottom"><td width="64%" align="left">Current liabilities</td> <td width="2%" align="left"> </td> <td width="15%" align="right">3,031</td> <td width="2%" align="left"> </td> <td width="15%" align="right">2,826</td></tr> <tr valign="bottom"><td width="64%" align="left">Noncurrent liabilities</td> <td width="2%" align="left"> </td> <td width="15%" align="right">723</td> <td width="2%" align="left"> </td> <td width="15%" align="right">727</td></tr> <tr valign="bottom"><td width="64%" align="left">Members' equity</td> <td width="2%" align="left"> </td> <td width="15%" align="right">8,102</td> <td width="2%" align="left"> </td> <td width="15%" align="right">7,595</td></tr></table></div>   <div> </div> <div> <table style="width: 762px; height: 136px;" border="0" cellspacing="0"> <tr><td width="46%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="3%"> </td> <td width="14%"> </td> <td width="3%"> </td> <td width="15%"> </td></tr> <tr valign="bottom"><td width="46%" align="left">Condensed Statements of Operations Information</td> <td width="2%" align="left"> </td> <td width="12%" align="left"> </td> <td width="3%" align="left"> </td> <td width="14%" align="left"> </td> <td width="3%" align="left"> </td> <td width="15%" align="left"> </td></tr> <tr valign="bottom"><td width="46%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="49%" colspan="6" align="center">December 31,</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="46%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="center">2009</td></tr> <tr valign="bottom"><td width="46%" align="left">Total revenue</td> <td width="2%" align="left">$</td> <td width="12%" align="right">28,017</td> <td width="3%" align="left">$</td> <td width="14%" align="right">24,944</td> <td width="3%" align="left">$</td> <td width="15%" align="right">23,512</td></tr> <tr valign="bottom"><td width="46%" align="left">Net income</td> <td width="2%" align="left"> </td> <td width="12%" align="right">4,021</td> <td width="3%" align="left"> </td> <td width="14%" align="right">4,779</td> <td width="3%" align="left"> </td> <td width="15%" align="right">3,726</td></tr></table></div> </div>

10714000

<div> Note 16 – Fair Value of Financial Instruments      In September 2006, FASB issued ASC 820-10. ASC 820-10 does not establish requirements for any new fair value measurements, but it does apply to existing accounting pronouncements in which fair value measurements are already required. ASC 820-10 defines fair value, establishes a framework for measuring fair value in accordance with accounting principles generally accepted in the United States, and expands disclosures about fair value measurements. We adopted the provisions of ASC 820-10 as of January 1, 2008, for financial instruments. Although the adoption of ASC 820-10 has not materially impacted our financial condition, results of operations, or cash flow, we are now required to provide additional disclosures as part of our financial statements.      ASC 820-10 (see Note 2 –Summary of Significant Accounting Policies) establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The statement requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. <div> </div> Level 3: Unobservable inputs that are not corroborated by market data.      We use appropriate valuation techniques based on the available inputs to measure the fair values of our assets and liabilities. When available, we measure fair value using Level 1 inputs because they generally provide the most reliable evidence of fair value.      We used the following methods and assumptions to estimate the fair values of the assets and liabilities in the table above. Level 1 Fair Value Measurements – are based on market quotes of our marketable securities. Level 2 Fair Value Measurements – Interest Rate Swaps – The fair value of interest rate swaps and cap are estimated using internal discounted cash flow calculations based upon forward interest rate curves, which are corroborated by market data, and quotes obtained from counterparties to the agreements. Level 3 Fair Value Measurements – Impaired Property – For assets measured on a non-recurring basis, such as real estate assets that are required to be recorded at fair value as a result of an impairment, our estimates of fair value are based on management's best estimate derived from evaluating market sales data for comparable properties developed by a third party appraiser and arriving at management's estimate of fair value based on such comparable data primarily based on properties with similar characteristics. For the years ended December 31, 2011, 2010, and 2009, the fair value of our impaired properties was estimated to be $1.9 million, $1.8 million, and $4.5 million, respectively, which we used to record our impairment expense and was based on level 3 inputs in developing management's estimate of fair value. For the year ended December 31, 2011, the fair value of our Rialto Cinemas investment was $1.6 million (NZ$2.0 million) resulting in an impairment charge of $2.9 million (NZ$3.8 million).      As of December 31, 2011, we held certain items that are required to be measured at fair value on a recurring basis. These included cash equivalents, available for sale securities, and interest rate derivative contracts. Cash equivalents consist of short-term, highly liquid, income-producing investments, all of which have maturities of 90 days or less where the carrying value approximates fair value. Derivative instruments are related to our economic hedge of interest rates. Our available-for-sale securities primarily consist of investments associated with the ownership of marketable securities in Australia.      The fair values of the interest rate swap agreements are determined using the market standard methodology of discounting the future expected cash receipts or payments that would occur if variable interest rate fell above or below the strike rate of the interest rate swap agreement. The variable interest rates used in the calculation of projected receipts or payments on the interest rate swap and cap agreements are based on an expectation of future interest rates derived from observable market interest rate curves and volatilities. To comply with the provisions of ASC 820-10, we incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparty's nonperformance risk in the fair value measurements. Although we have determined that the majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by us and our counterparties. However, as of December 31, 2011, we have assessed the significance of the impact of the credit valuation adjustments on the overall valuation and determined that the credit valuation adjustments are not significant to the overall valuation of our derivatives. As a result, we have determined that our derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. We have consistently applied these valuation techniques in all periods presented and believe we have obtained the most accurate information available for the types of derivative contracts we hold. <div> </div>      The following items are measured at fair value on a recurring basis subject to the disclosure requirements of ASC 820-10 at December 31, 2011 and 2010, respectively (dollars in thousands): <div> <table border="0" cellspacing="0"> <tr><td width="27%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="15%"> </td> <td width="2%"> </td> <td width="13%"> </td> <td width="2%"> </td> <td width="13%"> </td> <td width="2%"> </td> <td width="14%"> </td></tr> <tr valign="bottom"><td width="27%" align="left"> </td> <td width="11%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="32%" colspan="4" align="center">Book Value</td> <td style="border-bottom: #000000 1px solid;" width="31%" colspan="4" align="center">Fair Value</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="27%" align="left">Financial Instrument</td> <td style="border-bottom: #000000 1px solid;" width="11%" align="center">Level</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="center">2010</td></tr> <tr valign="bottom"><td width="27%" align="left">Investment in marketable securities</td> <td width="11%" align="center">1</td> <td width="2%" align="left">$</td> <td width="15%" align="right">2,874</td> <td width="2%" align="center">$</td> <td width="13%" align="right">2,985</td> <td width="2%" align="left">$</td> <td width="13%" align="right">2,874</td> <td width="2%" align="center">$</td> <td width="14%" align="right">2,985</td></tr> <tr valign="bottom"><td width="27%" align="left">Interest rate swaps asset</td> <td width="11%" align="center">2</td> <td width="2%" align="left">$</td> <td width="15%" align="right">-</td> <td width="2%" align="center">$</td> <td width="13%" align="right">446</td> <td width="2%" align="left">$</td> <td width="13%" align="right">-</td> <td width="2%" align="center">$</td> <td width="14%" align="right">446</td></tr> <tr valign="bottom"><td width="27%" align="left">Interest rate swaps liability</td> <td width="11%" align="center">2</td> <td width="2%" align="left">$</td> <td width="15%" align="right">4,722</td> <td width="2%" align="center">$</td> <td width="13%" align="right">181</td> <td width="2%" align="left">$</td> <td width="13%" align="right">4,722</td> <td width="2%" align="center">$</td> <td width="14%" align="right">181</td></tr></table></div>   Financial Instruments Disclosed at Fair Value      The following table sets forth the carrying value and the fair value of our financial assets and liabilities at December 31, 2011and 2010 (dollars in thousands): <div> <table style="width: 696px; height: 261px;" border="0" cellspacing="0"> <tr><td width="44%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="11%"> </td></tr> <tr valign="bottom"><td width="44%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="27%" colspan="4" align="center">Book Value</td> <td style="border-bottom: #000000 1px solid;" width="25%" colspan="4" align="center">Fair Value</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="44%" align="left">Financial Instrument</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="10%" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="center">2010</td></tr> <tr valign="bottom"><td width="44%" align="left">Cash</td> <td width="2%" align="left">$</td> <td width="12%" align="right">31,597</td> <td width="2%" align="left">$</td> <td width="11%" align="right">34,568</td> <td width="2%" align="left">$</td> <td width="10%" align="right">31,597</td> <td width="2%" align="right">$</td> <td width="11%" align="right">34,568</td></tr> <tr valign="bottom"><td width="44%" align="left">Accounts receivable</td> <td width="2%" align="left">$</td> <td width="12%" align="right">6,973</td> <td width="2%" align="left">$</td> <td width="11%" align="right">5,470</td> <td width="2%" align="left">$</td> <td width="10%" align="right">6,973</td> <td width="2%" align="right">$</td> <td width="11%" align="right">5,470</td></tr> <tr valign="bottom"><td width="44%" align="left">Restricted cash</td> <td width="2%" align="left">$</td> <td width="12%" align="right">2,379</td> <td width="2%" align="left">$</td> <td width="11%" align="right">2,159</td> <td width="2%" align="left">$</td> <td width="10%" align="right">2,379</td> <td width="2%" align="right">$</td> <td width="11%" align="right">2,159</td></tr> <tr valign="bottom"><td width="44%" align="left">Accounts and film rent payable</td> <td width="2%" align="left">$</td> <td width="12%" align="right">23,067</td> <td width="2%" align="left">$</td> <td width="11%" align="right">21,687</td> <td width="2%" align="left">$</td> <td width="10%" align="right">23,067</td> <td width="2%" align="right">$</td> <td width="11%" align="right">21,687</td></tr> <tr valign="bottom"><td width="44%" align="left">Notes payable</td> <td width="2%" align="left">$</td> <td width="12%" align="right">172,701</td> <td width="2%" align="left">$</td> <td width="11%" align="right">191,908</td> <td width="2%" align="left">$</td> <td width="10%" align="right">166,152</td> <td width="2%" align="right">$</td> <td width="11%" align="right">173,142</td></tr> <tr valign="bottom"><td width="44%" align="left">Notes payable to related party</td> <td width="2%" align="left">$</td> <td width="12%" align="right">9,000</td> <td width="2%" align="left">$</td> <td width="11%" align="right">9,000</td> <td width="2%" align="left">$</td> <td width="10%" align="right">N/A</td> <td width="2%" align="right">$</td> <td width="11%" align="right">N/A</td></tr> <tr valign="bottom"><td width="44%" align="left">Subordinated debt</td> <td width="2%" align="left">$</td> <td width="12%" align="right">27,913</td> <td width="2%" align="left">$</td> <td width="11%" align="right">27,913</td> <td width="2%" align="left">$</td> <td width="10%" align="right">20,544</td> <td width="2%" align="right">$</td> <td width="11%" align="right">18,241</td></tr> <tr valign="bottom"><td width="44%" align="left">Investment in Marketable Securities</td> <td width="2%" align="left">$</td> <td width="12%" align="right">2,874</td> <td width="2%" align="left">$</td> <td width="11%" align="right">2,985</td> <td width="2%" align="left">$</td> <td width="10%" align="right">2,874</td> <td width="2%" align="right">$</td> <td width="11%" align="right">2,985</td></tr> <tr valign="bottom"><td width="44%" align="left">Interest rate swaps asset</td> <td width="2%" align="left">$</td> <td width="12%" align="right">-</td> <td width="2%" align="left">$</td> <td width="11%" align="right">446</td> <td width="2%" align="left">$</td> <td width="10%" align="right">-</td> <td width="2%" align="right">$</td> <td width="11%" align="right">446</td></tr> <tr valign="bottom"><td width="44%" align="left">Interest rate swaps liability</td> <td width="2%" align="left">$</td> <td width="12%" align="right">4,722</td> <td width="2%" align="left">$</td> <td width="11%" align="right">181</td> <td width="2%" align="left">$</td> <td width="10%" align="right">4,722</td> <td width="2%" align="right">$</td> <td width="11%" align="right">181</td></tr></table></div>        For purposes of this fair value disclosure, we based our fair value estimate for notes payable and subordinated debt on our internal valuation whereby we apply the discounted cash flow method to our expected cash flow payments due under our existing debt agreements based on a representative sample of our lenders' market interest rate quotes as of December 31, 2011 and 2011, respectively, for debt with similar risk characteristics and maturities. </div>

4697000

-2257000

59000

-16000

-2000

352000

-67000

268000

10714000

17559000

17784000

17432000

21535000

22277000

<div> Note 10 – Goodwill and Intangible Assets      Goodwill associated with our business combinations is tested for impairment at the beginning of the fourth quarter with continued evaluation through the end of the fourth quarter of every year. The fair value estimates of each of our reporting units is based on the projected profits and cash flows of the related assets using each reporting unit's weighted average cost of capital as a discount rate. As a result of this test, whereby the Step 1 Test was passed for all reporting units, it was determined that there is no impairment to our goodwill as of December 31, 2011 or 2010. At December 31, 2011 or 2010, our goodwill consisted of the following (dollars in thousands): <div> </div> <div> <table border="0" cellspacing="0"> <tr><td width="47%"> </td> <td width="2%"> </td> <td width="15%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="14%"> </td> <td width="2%"> </td> <td width="15%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td width="47%" align="left"> </td> <td width="2%" align="left"> </td> <td width="15%" align="center"> </td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="14%" align="center">Real</td> <td width="2%" align="center"> </td> <td width="15%" align="center"> </td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="47%" align="left">2011</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="center">Cinema</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="center">Estate</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="center">Total</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="47%" align="left">Balance as of January 1, 2011</td> <td width="2%" align="left">$</td> <td width="15%" align="right">16,311</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="14%" align="right">5,224</td> <td width="2%" align="left">$</td> <td width="15%" align="right">21,535</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="47%" align="left">Goodwill acquired during 2011</td> <td width="2%" align="left"> </td> <td width="15%" align="right">539</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="14%" align="right">-</td> <td width="2%" align="left"> </td> <td width="15%" align="right">539</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="47%" align="left">Foreign currency translation adjustment</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right">203</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">-</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right">203</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="47%" align="left">Balance at December 31, 2011</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right">17,053</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">5,224</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right">22,277</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td></tr> <tr><td width="101%" colspan="9"> </td></tr> <tr valign="bottom"><td width="47%" align="left"> </td> <td width="2%" align="left"> </td> <td width="15%" align="center"> </td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="14%" align="center">Real</td> <td width="2%" align="center"> </td> <td width="15%" align="center"> </td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="47%" align="left">2010</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="center">Cinema</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="center">Estate</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="center">Total</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="47%" align="left">Balance as of January 1, 2010</td> <td width="2%" align="left">$</td> <td width="15%" align="right">32,187</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="14%" align="right">5,224</td> <td width="2%" align="left">$</td> <td width="15%" align="right">37,411</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="47%" align="left">Change in goodwill due to a purchase price adjustment</td> <td width="2%" align="left"> </td> <td width="15%" align="right">(16,936</td> <td width="2%" align="left">)</td> <td width="2%" align="left"> </td> <td width="14%" align="right">-</td> <td width="2%" align="left"> </td> <td width="15%" align="right">(16,936</td> <td width="2%" align="left">)</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="47%" align="left">Foreign currency translation adjustment</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right">1,060</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">-</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right">1,060</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="47%" align="left">Balance at December 31, 2010</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right">16,311</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">5,224</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right">21,535</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td></tr></table></div>        For the years ended December 31, 2010 and 2009, in accordance with the sale agreement of Consolidated Entertainment, the initial aggregate purchase price of the cinemas was adjusted down by $16.9 million and $226,000, respectively, resulting in a corresponding decrease in goodwill associated with the purchased cinemas. We do not anticipate any further purchase price adjustments associated with this transaction.      Goodwill is tested for impairment annually or more frequently whenever events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Historically, we have performed our annual goodwill impairment test at the beginning of the fourth quarter for all of our reporting units except for the US Cinemas reporting unit. The goodwill included in the US Cinemas reporting unit, which was created in the first quarter of 2008 as part of the Pacific Theater cinemas acquisition, was tested as of the anniversary date of such acquisition, February 22, 2009, and no impairment was indicated. During the fourth quarter of 2009, we changed the date on which we perform our annual goodwill impairment test for the US Cinemas reporting unit from February 22 to the first day of the fourth quarter to better align the annual goodwill impairment tests for our US Cinemas reporting unit with our other reporting units and our budgeting and forecasting process. We believe this change in accounting principle is to an alternative accounting principle that is preferable under the circumstances. The change in our annual goodwill impairment test date for the US Cinemas reporting unit is not intended to nor does it delay, accelerate or avoid an impairment charge nor does the change have any impact on our financial position, results of operations, or cash flows for any prior periods when applied retrospectively. We have intangible assets subject to amortization consisting of the following (dollars in thousands): <div> <table style="width: 740px; height: 308px;" border="0" cellspacing="0"> <tr><td width="35%"> </td> <td width="2%"> </td> <td width="13%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="13%"> </td> <td width="2%"> </td> <td width="12%"> </td></tr> <tr valign="bottom"><td width="35%" align="left"> </td> <td width="2%" align="left"> </td> <td width="13%" align="center"> </td> <td width="2%" align="center"> </td> <td width="11%" align="center"> </td> <td width="2%" align="center"> </td> <td style="text-indent: 2px;" width="13%" align="center">Other</td> <td width="2%" align="center"> </td> <td width="12%" align="center"> </td></tr> <tr valign="bottom"><td width="35%" align="left"> </td> <td width="2%" align="left"> </td> <td width="13%" align="center">Beneficial</td> <td width="2%" align="center"> </td> <td width="11%" align="center">Trade</td> <td width="2%" align="center"> </td> <td width="13%" align="center">Intangible</td> <td width="2%" align="center"> </td> <td width="12%" align="center"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="35%" align="left">2011</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="center">Leases</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="center">Name</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="13%" align="center">Assets</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="center">Total</td></tr> <tr valign="bottom"><td width="35%" align="left">Gross carrying amount</td> <td width="2%" align="left">$</td> <td width="13%" align="right">24,471</td> <td width="2%" align="right">$</td> <td style="text-indent: 4px;" width="11%" align="right">7,220</td> <td width="2%" align="right">$</td> <td width="13%" align="right">456</td> <td width="2%" align="right">$</td> <td style="text-indent: 2px;" width="12%" align="right">32,147</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="35%" align="left">Less: Accumulated amortization</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">11,238</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 4px;" width="11%" align="right">2,553</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">357</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="12%" align="right">14,148</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="35%" align="left">Total, net</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">13,233</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">$</td> <td style="border-bottom: #000000 1px solid; text-indent: 4px;" width="11%" align="right">4,667</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">99</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">$</td> <td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="12%" align="right">17,999</td></tr> <tr><td width="92%" colspan="9"> </td></tr> <tr valign="bottom"><td width="35%" align="left"> </td> <td width="2%" align="left"> </td> <td width="13%" align="center"> </td> <td width="2%" align="center"> </td> <td width="11%" align="center"> </td> <td width="2%" align="center"> </td> <td style="text-indent: 2px;" width="13%" align="center">Other</td> <td width="2%" align="center"> </td> <td width="12%" align="center"> </td></tr> <tr valign="bottom"><td width="35%" align="left"> </td> <td width="2%" align="left"> </td> <td width="13%" align="center">Beneficial</td> <td width="2%" align="center"> </td> <td width="11%" align="center">Trade</td> <td width="2%" align="center"> </td> <td width="13%" align="center">Intangible</td> <td width="2%" align="center"> </td> <td width="12%" align="center"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="35%" align="left">2010</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="center">Leases</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="center">Name</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="13%" align="center">Assets</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="center">Total</td></tr> <tr valign="bottom"><td width="35%" align="left">Gross carrying amount</td> <td width="2%" align="left">$</td> <td width="13%" align="right">24,180</td> <td width="2%" align="right">$</td> <td style="text-indent: 4px;" width="11%" align="right">7,220</td> <td width="2%" align="right">$</td> <td width="13%" align="right">456</td> <td width="2%" align="right">$</td> <td style="text-indent: 2px;" width="12%" align="right">31,856</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="35%" align="left">Less: Accumulated amortization</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">9,435</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 4px;" width="11%" align="right">1,993</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">272</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="12%" align="right">11,700</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="35%" align="left">Total, net</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">14,745</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">$</td> <td style="border-bottom: #000000 1px solid; text-indent: 4px;" width="11%" align="right">5,227</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">184</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">$</td> <td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="12%" align="right">20,156</td></tr></table></div>        After the issuance of the 2010 financial statements, management identified a misclassification of $10.5 million of gross intangible asset value and $1.2 million in accumulated amortization between the trade name and beneficial leases columns within the presentation of the 2010 table of intangible assets subject to amortization. The presentation of the 2010 table of intangible assets subject to amortization presented above has been adjusted to reflect this correction. This correction only affects the presentation of the above table and does not have any effect to the balances or activity presented on our consolidated balance sheets or consolidated statements of operations, respectively. <div> </div>      We have intangible assets other than goodwill that are subject to amortization which are being amortized over various periods. We amortize our beneficial leases over the lease period, the longest of which is approximately 30 years; our trade name using an accelerated amortization method over its estimated useful life of 45 years; and our option fee and other intangible assets over 10 years. For the years ended December 31, 2011, 2010, and 2009, our amortization expense was $2.4 million, $2.6 million, and $2.7 million, respectively. The estimated amortization expense in the five succeeding years and thereafter is as follows (dollars in thousands): <div> <table border="0" cellspacing="0"> <tr><td width="85%"> </td> <td width="2%"> </td> <td width="11%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="85%" align="left">Year Ending December 31,</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="85%" align="left">2012</td> <td width="2%" align="left">$</td> <td width="11%" align="right">2,433</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="85%" align="left">2013</td> <td width="2%" align="left"> </td> <td width="11%" align="right">2,258</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="85%" align="left">2014</td> <td width="2%" align="left"> </td> <td width="11%" align="right">2,000</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="85%" align="left">2015</td> <td width="2%" align="left"> </td> <td width="11%" align="right">1,882</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="85%" align="left">2016</td> <td width="2%" align="left"> </td> <td width="11%" align="right">1,624</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="85%" align="left">Thereafter</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">7,802</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="85%" align="left">Total future amortization expense</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">17,999</td></tr></table></div> </div>

3217000

2239000

369000

8049000

885000

-1538000

0.27

-0.56

0.37

0.27

-0.56

0.36

0.07

117000

1345000

-1552000

<div> <div style="padding-left: 0%; padding-right: 0%;"> Note 14 - Income Taxes <div align="left"> Income (loss) before income tax expense includes the following (dollars in thousands): <table style="font-family: 'Times New Roman';" border="0" cellspacing="0"> <tr><td width="59%"> </td> <td width="3%"> </td> <td width="9%"> </td> <td width="2%"> </td> <td width="3%"> </td> <td width="9%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="7%"> </td> <td width="3%"> </td></tr> <tr valign="bottom"><td width="59%" align="left"> </td> <td width="3%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="34%" colspan="7" align="center">Year Ended December 31,</td> <td width="3%" align="center"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="59%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="3%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="9%" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="3%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="9%" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="center">2009</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="center"> </td></tr> <tr valign="bottom"><td width="59%" align="left">United States</td> <td width="3%" align="left">$</td> <td width="9%" align="right">(1,391</td> <td width="2%" align="left">)</td> <td width="3%" align="left">$</td> <td width="9%" align="right">(1,566</td> <td width="2%" align="left">)</td> <td width="2%" align="left">$</td> <td width="7%" align="right">10,870</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="59%" align="left">Foreign</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="9%" align="right">(147</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="9%" align="right">2,451</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">(2,821</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left">)</td></tr> <tr valign="bottom"><td width="59%" align="left">Income (loss) before income tax benefit (expense), equity earnings</td> <td width="3%" align="left"> </td> <td width="9%" align="left"> </td> <td width="2%" align="left"> </td> <td width="3%" align="left"> </td> <td width="9%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="7%" align="left"> </td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="59%" align="left">(loss) of unconsolidated joint ventures and entities, and</td> <td width="3%" align="left"> </td> <td width="9%" align="left"> </td> <td width="2%" align="left"> </td> <td width="3%" align="left"> </td> <td width="9%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="7%" align="left"> </td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="59%" align="left">discontinued operations</td> <td width="3%" align="left">$</td> <td width="9%" align="right">(1,538</td> <td width="2%" align="left">)</td> <td width="3%" align="left">$</td> <td width="9%" align="right">885</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="7%" align="right">8,049</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="59%" align="left">Net income attributable to noncontrolling interests:</td> <td width="3%" align="left"> </td> <td width="9%" align="left"> </td> <td width="2%" align="left"> </td> <td width="3%" align="left"> </td> <td width="9%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="7%" align="left"> </td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="59%" align="left">United States</td> <td width="3%" align="left"> </td> <td width="9%" align="right">(604</td> <td width="2%" align="left">)</td> <td width="3%" align="left"> </td> <td width="9%" align="right">(309</td> <td width="2%" align="left">)</td> <td width="2%" align="left"> </td> <td width="7%" align="right">(359</td> <td width="3%" align="left">)</td></tr> <tr valign="bottom"><td width="59%" align="left">Foreign</td> <td width="3%" align="left"> </td> <td width="9%" align="right">(336</td> <td width="2%" align="left">)</td> <td width="3%" align="left"> </td> <td width="9%" align="right">(307</td> <td width="2%" align="left">)</td> <td width="2%" align="left"> </td> <td width="7%" align="right">(29</td> <td width="3%" align="left">)</td></tr> <tr valign="bottom"><td width="59%" align="left">Equity earnings and gain on sale of unconsolidated subsidiary:</td> <td width="3%" align="left"> </td> <td width="9%" align="left"> </td> <td width="2%" align="left"> </td> <td width="3%" align="left"> </td> <td width="9%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="7%" align="left"> </td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="59%" align="left">United States</td> <td width="3%" align="left"> </td> <td width="9%" align="right">33</td> <td width="2%" align="left"> </td> <td width="3%" align="left"> </td> <td width="9%" align="right">86</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="7%" align="right">421</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="59%" align="left">Foreign</td> <td width="3%" align="left"> </td> <td width="9%" align="right">(1,585</td> <td width="2%" align="left">)</td> <td width="3%" align="left"> </td> <td width="9%" align="right">1,259</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="7%" align="right">(36</td> <td width="3%" align="left">)</td></tr> <tr valign="bottom"><td width="59%" align="left">Gain on sale of discontinued operation:</td> <td width="3%" align="left"> </td> <td width="9%" align="left"> </td> <td width="2%" align="left"> </td> <td width="3%" align="left"> </td> <td width="9%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="7%" align="left"> </td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="59%" align="left">United States</td> <td width="3%" align="left"> </td> <td width="9%" align="right">--</td> <td width="2%" align="left"> </td> <td width="3%" align="left"> </td> <td width="9%" align="right">--</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="7%" align="right">--</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="59%" align="left">Foreign</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="9%" align="right">1,656</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="9%" align="right">--</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">--</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="59%" align="left">Income (loss) before income tax expense</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="9%" align="right">(2,374</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="9%" align="right">1,614</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">8,046</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"> </td></tr></table></div>   <div align="left"> Significant components of the provision for income taxes are as follows (dollars in thousands): <table style="font-family: 'Times New Roman';" border="0" cellspacing="0"> <tr><td width="55%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="2%"> </td> <td width="10%"> </td></tr> <tr valign="bottom"><td width="55%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="42%" colspan="7" align="center"> Year Ended December 31, </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="55%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="10%" align="center">2009</td></tr> <tr valign="bottom"><td width="55%" align="left">Current income tax expense (benefit)</td> <td width="2%" align="left"> </td> <td width="12%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="left"> </td> <td width="2%" align="left"> </td> <td width="10%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="55%" align="left">Federal</td> <td width="2%" align="left">$</td> <td width="12%" align="right">1,332</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="12%" align="right">7,730</td> <td width="2%" align="left">$</td> <td width="10%" align="right">690</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="55%" align="left">State</td> <td width="2%" align="left"> </td> <td width="12%" align="right">531</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="right">5,239</td> <td width="2%" align="left"> </td> <td width="10%" align="right">320</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="55%" align="left">Foreign</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">1,067</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">1,295</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right">942</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 4px;" width="55%" align="left">Total</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">2,930</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">14,264</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right">1,952</td></tr> <tr valign="bottom"><td width="55%" align="left">Deferred income tax expense (benefit)</td> <td width="2%" align="left"> </td> <td width="12%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="left"> </td> <td width="2%" align="left"> </td> <td width="10%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="55%" align="left">Federal</td> <td width="2%" align="left"> </td> <td width="12%" align="right">--</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="right">--</td> <td width="2%" align="left"> </td> <td width="10%" align="right">--</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="55%" align="left">State</td> <td width="2%" align="left"> </td> <td width="12%" align="right">--</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="right">--</td> <td width="2%" align="left"> </td> <td width="10%" align="right">--</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="55%" align="left">Foreign</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">--</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">--</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right">--</td></tr> <tr valign="bottom"><td style="text-indent: 4px;" width="55%" align="left">Total</td> <td width="2%" align="left"> </td> <td width="12%" align="right">--</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="right">--</td> <td width="2%" align="left"> </td> <td width="10%" align="right">--</td></tr> <tr valign="bottom"><td width="55%" align="left">Increase (decrease) in valuation allowance</td> <td width="2%" align="left"> </td> <td width="12%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="left"> </td> <td width="2%" align="left"> </td> <td width="10%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="55%" align="left">Federal</td> <td width="2%" align="left"> </td> <td width="12%" align="right">--</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="right">--</td> <td width="2%" align="left"> </td> <td width="10%" align="right">--</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="55%" align="left">State</td> <td width="2%" align="left"> </td> <td width="12%" align="right">--</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="right">--</td> <td width="2%" align="left"> </td> <td width="10%" align="right">--</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="55%" align="left">Foreign</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">(15,260</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">--</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right">--</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 4px;" width="55%" align="left">Total</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">(15,260</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">--</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right">--</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="55%" align="left">Total income tax expense (benefit)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">(12,330</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">14,264</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right">1,952</td></tr></table></div>         Deferred income taxes reflect the "temporary differences" between the financial statement carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, adjusted by the relevant tax rate. The components of the deferred tax assets and liabilities are as follows (dollars in thousands):</div><a name="page_92"> </a> <div style="padding-left: 0%; padding-right: 0%;"> <div align="left"> <table style="font-family: 'Times New Roman';" border="0" cellspacing="0"> <tr><td width="65%"> </td> <td width="3%"> </td> <td width="12%"> </td> <td width="2%"> </td> <td width="3%"> </td> <td width="12%"> </td> <td width="3%"> </td></tr> <tr valign="bottom"><td width="65%" align="left"> </td> <td width="3%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="29%" colspan="4" align="center">December 31,</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="65%" align="left">Components of Deferred Tax Assets and Liabilities</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="3%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="65%" align="left">Deferred Tax Assets:</td> <td width="3%" align="left"> </td> <td width="12%" align="left"> </td> <td width="2%" align="left"> </td> <td width="3%" align="left"> </td> <td width="12%" align="left"> </td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="65%" align="left">Net operating loss carry forwards</td> <td width="3%" align="left">$</td> <td width="12%" align="right">35,455</td> <td width="2%" align="left"> </td> <td width="3%" align="center">$</td> <td width="12%" align="right">37,824</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="65%" align="left">Impairment reserves</td> <td width="3%" align="left"> </td> <td width="12%" align="right">1,764</td> <td width="2%" align="left"> </td> <td width="3%" align="left"> </td> <td width="12%" align="right">961</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="65%" align="left">Alternative minimum tax carry forwards</td> <td width="3%" align="left"> </td> <td width="12%" align="right">2,993</td> <td width="2%" align="left"> </td> <td width="3%" align="left"> </td> <td width="12%" align="right">2,993</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="65%" align="left">Installment sale of cinema property</td> <td width="3%" align="left"> </td> <td width="12%" align="right">2,929</td> <td width="2%" align="left"> </td> <td width="3%" align="left"> </td> <td width="12%" align="right">5,070</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="65%" align="left">Deferred revenue and expense</td> <td width="3%" align="left"> </td> <td width="12%" align="right">6,378</td> <td width="2%" align="left"> </td> <td width="3%" align="left"> </td> <td width="12%" align="right">3,806</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="65%" align="left">Acquired and option properties</td> <td width="3%" align="left"> </td> <td width="12%" align="right">2,924</td> <td width="2%" align="left"> </td> <td width="3%" align="left"> </td> <td width="12%" align="right">1,555</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="65%" align="left">Other</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">402</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">2,304</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="65%" align="left">Net deferred tax assets before valuation allowance</td> <td width="3%" align="left"> </td> <td width="12%" align="right">52,845</td> <td width="2%" align="left"> </td> <td width="3%" align="left"> </td> <td width="12%" align="right">54,513</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="65%" align="left">Valuation allowance</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">(38,461</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">(54,513</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left">)</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="65%" align="left">Net deferred tax asset</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">14,384</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="3%" align="center">$</td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">--</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"> </td></tr></table></div>       <div> In accordance with FASB ASC 740-10 – Income Taxes ("ASC 740-10"), we record net deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such determination, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial performance. ASC 740-10 presumes that a valuation allowance is required when there is substantial negative evidence about realization of deferred tax assets, such as a pattern of losses in recent years, coupled with facts that suggest such losses may continue. Because of such negative evidence available for the U.S., Puerto Rico, and New Zealand, as of December 31, 2011, we recorded a valuation allowance of $38.7 million. After consideration of a number of factors for the Reading Australia group, including its recent history of financial income, its expected future earnings, the increase in market value of its real estate assets, and having executed a credit facility of over $100 million to resolve potential liquidity issues, the Company determined as of July 1, 2011 that it is more likely than not that deferred tax assets in Reading Australia group will be realized. Accordingly, we reversed the full valuation allowance in Australia, resulting in a net deferred tax asset of $14.4 million as of December 31, 2011, with approximately $2.0 million classified as current and $12.4 million as non-current.                 As of December 31, 2011, we had U.S. net operating loss carry forwards of $33.4 million, of which $26.1 million expire between 2025 and 2030, while $7.3 million expire between 2030 and 2035.   In addition to the above net operating loss carry forwards having expiration dates, we have the following carry forwards that have no expiration date at December 31, 2011: ·         approximately $2.9 million in U.S. alternative minimum tax credit carry forwards; ·         approximately $45.9 million in Australian loss carry forwards; and ·         approximately $15.8 million in New Zealand loss carry forwards.   We disposed of our Puerto Rico operations during 2005 and plan no further investment in Puerto Rico for the foreseeable future. We have approximately $14.1 million in Puerto Rico loss carry forwards expiring no later than 2018. No material future tax benefits from Puerto Rico loss carry forwards can be recognized by the Company unless it re-enters the Puerto Rico market.   We expect no other substantial limitations on the future use of U.S. or foreign loss carry forwards except as may occur for certain losses occurring in New Zealand related to the Landplan operations, which may only be used to offset income and gains from those particular activities, and cannot be shared with their respective consolidated group.   U.S. income taxes have not been recognized on the temporary differences between book value and tax basis of investment in foreign subsidiaries. These differences become taxable upon a sale of the subsidiary or upon distribution of assets from the subsidiary to U.S. shareholders. We expect neither of these events will occur in the foreseeable future for any of our foreign subsidiaries.</div></div><a name="page_93"> </a> <div style="padding-left: 0%; padding-right: 0%;"> The provision for income taxes is different from amounts computed by applying U.S. statutory rates to consolidated losses before taxes. The significant reason for these differences follows (dollars in thousands): <div align="left"> <table style="font-family: 'Times New Roman';" border="0" cellspacing="0"> <tr><td width="52%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="8%"> </td> <td width="3%"> </td></tr> <tr valign="bottom"><td width="52%" align="left"> </td> <td width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 7px;" width="40%" colspan="7" align="center">Year Ended December 31, </td> <td style="border-bottom: #000000 1px solid;" width="3%" align="center"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="52%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="8%" align="center">2009</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="center"> </td></tr> <tr valign="bottom"><td width="52%" align="left">Expected tax provision (benefit)</td> <td width="2%" align="left">$</td> <td width="12%" align="right">(831</td> <td width="2%" align="left">)</td> <td width="2%" align="left">$</td> <td width="12%" align="right">554</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="8%" align="right">2,817</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="52%" align="left">Increase (decrease) in tax expense resulting from:</td> <td width="2%" align="left"> </td> <td width="12%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="8%" align="left"> </td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="52%" align="left">Change in valuation allowance</td> <td width="2%" align="left"> </td> <td width="12%" align="right">(15,260</td> <td width="2%" align="left">)</td> <td width="2%" align="left"> </td> <td width="12%" align="right">(5,595</td> <td width="2%" align="left">)</td> <td width="2%" align="left"> </td> <td width="8%" align="right">(4,509</td> <td width="3%" align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="52%" align="left">Expired foreign loss carry forward</td> <td width="2%" align="left"> </td> <td width="12%" align="right">1,100</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="right">1,816</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="8%" align="right">1,847</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="52%" align="left">Foreign tax provision</td> <td width="2%" align="left"> </td> <td width="12%" align="right">1,067</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="right">1,291</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="8%" align="right">942</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="52%" align="left">Tax effect of foreign tax rates on current income</td> <td width="2%" align="left"> </td> <td width="12%" align="right">24</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="right">(240</td> <td width="2%" align="left">)</td> <td width="2%" align="left"> </td> <td width="8%" align="right">528</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="52%" align="left">State and local tax provision</td> <td width="2%" align="left"> </td> <td width="12%" align="right">361</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="right">440</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="8%" align="right">320</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="52%" align="left">Tax/Audit Litigation Settlement</td> <td width="2%" align="left"> </td> <td width="12%" align="right">1,375</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="right">12,528</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="8%" align="right">--</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="52%" align="left">Effect of tax rate change</td> <td width="2%" align="left"> </td> <td width="12%" align="right">--</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="right">3,422</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="8%" align="right">--</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="52%" align="left">Other items</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">(166</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">48</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right">7</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="52%" align="left">Actual tax provision (benefit)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">(12,330</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">14,264</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right">1,952</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"> </td></tr></table></div>         <div> Pursuant to ASC 740-10, a provision should be made for the tax effect of earnings of foreign subsidiaries that are not permanently invested outside the United States. Our intent is that earnings of our foreign subsidiaries are not permanently invested outside the United States. Current earnings were available for distribution in the Reading Australia consolidated group of subsidiaries as of December 31, 2011. There is no withholding tax on dividends paid by an Australian company to its 80% or more U.S. public company shareholder, thus we have not provided foreign withholding taxes for these current retained earnings. We believe the U.S. tax impact of a dividend from our Australian subsidiary, net of loss carry forward and potential foreign tax credits, would not have a material effect on the tax provision as of December 31 2011. We have accrued $27.3 million in income tax liabilities as of December 31, 2011, of which $14.9 million has been classified as income taxes payable and $12.4 million have been classified as non-current tax liabilities. As part of current tax liabilities, we have accrued $9.8 million in connection with the "Tax/Audit Litigation" matter which has now been settled (see Note 19 – Commitments and Contingencies). As part of noncurrent tax liabilities, we have accrued an additional $10.0 million related to the "Tax Audit/Litigation" matter. Amounts assessed by IRS and expected to be assessed by state income tax agencies in connection with the "Tax Audit/Litigation" matter are no longer recorded under the cumulative probability approach prescribed by FASB ASC 740-10-25 but are recorded as a fixed and determinable liability. We believe the $27.3 million in tax liabilities represents an adequate provision for our income tax exposures.   The following table is a summary of the activity related to unrecognized tax benefits, excluding interest and penalties, for the years ending December 31, 2011, December 31, 2010, and December 31, 2009 (dollars in thousands):</div> <div align="left"> <table style="font-family: 'Times New Roman';" border="0" cellspacing="0"> <tr><td width="50%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="3%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td width="50%" align="left"> </td> <td width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="40%" colspan="7" align="center">Year Ended December 31, </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="50%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="9%" align="center">2009</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td></tr> <tr valign="bottom"><td width="50%" align="left">Unrecognized tax benefits – gross beginning balance</td> <td width="2%" align="left">$</td> <td width="11%" align="right">8,058</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="11%" align="right">11,412</td> <td width="3%" align="left"> </td> <td width="2%" align="left">$</td> <td width="9%" align="right">11,271</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="50%" align="left">Gross increases – prior period tax provisions</td> <td width="2%" align="left"> </td> <td width="11%" align="right">--</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="11%" align="right">--</td> <td width="3%" align="left"> </td> <td width="2%" align="left"> </td> <td width="9%" align="right">92</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="50%" align="left">Gross decreases – prior period tax positions</td> <td width="2%" align="left"> </td> <td width="11%" align="right">--</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="11%" align="right">--</td> <td width="3%" align="left"> </td> <td width="2%" align="left"> </td> <td width="9%" align="right">--</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="50%" align="left">Gross increases – current period tax positions</td> <td width="2%" align="left"> </td> <td width="11%" align="right">151</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="11%" align="right">405</td> <td width="3%" align="left"> </td> <td width="2%" align="left"> </td> <td width="9%" align="right">219</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="50%" align="left">Settlements</td> <td width="2%" align="left"> </td> <td width="11%" align="right">(6,235</td> <td width="2%" align="left">)</td> <td width="2%" align="left"> </td> <td width="11%" align="right">(3,189</td> <td width="3%" align="left">)</td> <td width="2%" align="left"> </td> <td width="9%" align="right">--</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="50%" align="left">Statute of limitations lapse</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">--</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">(570</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="9%" align="right">(170</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="50%" align="left">Unrecognized tax benefits – gross ending balance</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">1,974</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">8,058</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="9%" align="right">11,412</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td></tr></table></div>  </div> <div> </div><a name="page_94"> </a> <div style="padding-left: 0%; padding-right: 0%;">       <div> <div style="page: WordSection1;" class="WordSection1"> We adopted FASB ASC 740-10-25 – Income Taxes - Uncertain Tax Positions ("ASC 740-10-25") on January 1, 2007. In connection, we record interest and penalties related to income tax matters as part of income tax expense.   We had approximately $10.8 million and $11.4 million of gross tax benefits as of the adoption date and December 31, 2007, respectively, plus $1.7 million and $2.3 million of tax interest unrecognized on the financial statements as of each date, respectively. The gross tax benefits mostly reflect operating loss carry forwards and the IRS Tax Audit/Litigation case described below.   We recorded an increase to our gross unrecognized tax benefits of approximately $0.2 million and an increase to tax interest of approximately $0.6 million during the period January 1, 2009 to December 31, 2009, and the total balance at December 31, 2009 was approximately $15.3 million (of which approximately $3.8 million represents IRS interest). Of the $11.4 million gross unrecognized tax benefit at December 31, 2009, $3.2 million would impact the effective tax rate if recognized. We further recorded a reduction to our gross unrecognized tax benefits of approximately $3.4 million and an increase to tax interest of approximately $8.8 million during the period January 1, 2010 to December 31, 2010, and the total balance at December 31, 2010 was approximately $20.6 million (of which approximately $12.6 million represents IRS interest). Having settled the Tax Audit/Litigation matter described in Note 19 – Commitments and Contingencies, we further recorded a net reduction to our gross unrecognized tax benefits of approximately $6.1 million and a reduction to tax interest of approximately $10.4 million during the period January 1, 2011 to December 31, 2011, resulting in a total balance at December 31, 2011 of approximately $4.1 million, consisting of $1.9 million tax and $2.2 million interest. Of the $4.4 million gross unrecognized tax benefit at December 31, 2011, approximately $3.0 million would impact the effective tax rate if recognized.   It is difficult to predict the timing and resolution of uncertain tax positions. Based upon the Company's assessment of many factors, including past experience and judgments about future events, it is probable that within the next 12 months the reserve for uncertain tax positions will increase within a range of $0.5 million to $1.5 million. The reasons for such change include but are not limited to tax positions expected to be taken during 2011, reevaluation of current uncertain tax positions, and expiring statutes of limitations.   Our company and subsidiaries are subject to U.S. federal income tax, income tax in various U.S. states, and income tax in Australia, New Zealand, and Puerto Rico.   Generally, changes to our federal and most state income tax returns for the calendar year 2007 and earlier are barred by statutes of limitations. Certain domestic subsidiaries filed federal and state tax returns for periods before these entities became consolidated with us. These subsidiaries were examined by IRS for the years 1996 to 1999 and significant tax deficiencies were assessed for those years. Those deficiencies have been settled, as discussed in "Tax Audit/Litigation," Note 19 – Commitments and Contingencies. Our income tax returns of Australia filed since inception in 1995 are generally open for examination. The income tax returns filed in New Zealand and Puerto Rico for calendar year 2006 and afterward remain open for examination as of December 31, 2011.</div> </div></div> </div>

774000

792000

2688000

1952000

14264000

-12330000

238000

115000

833000

1762000

13009000

908000

-977000

93000

-782000

1712000

162000

7000

494000

-4363000

1468000

-1335000

1838000

168000

20156000

17999000

15726000

13637000

22520000

14347000

15133000

16957000

989000

1035000

1154000

1351000

1482000

<div> Note 17 – Lease Agreements      Most of our cinemas conduct their operations in leased facilities. Thirteen of our eighteen operating multiplexes in Australia, four of our eight cinemas in New Zealand, and all but one of our cinemas in the United States are in leased facilities. These cinema leases have remaining terms inclusive of options of 1 to 39 years. Certain of our cinema leases provide for contingent rentals based upon a specified percentage of theater revenue with a guaranteed minimum. Substantially all of our leases require the payment of property taxes, insurance, and other costs applicable to the property. We also lease office space and equipment under non-cancelable operating leases. All of our leases are accounted for as operating leases and accordingly, we have no leases of facilities that require capitalization.      We determine the annual base rent expense of our cinemas by amortizing total minimum lease obligations on a straight-line basis over the lease terms. Base rent expense and contingent rental expense under the operating leases totaled approximately $31.2 million and $1.6 million for 2011, respectively; $30.9 million and $1.1 for 2010, respectively; and $27.5 million and $794,000 for 2009, respectively. Future minimum lease payments by year and, in the aggregate, under non-cancelable operating leases consisted of the following at December 31, 2011 (dollars in thousands): <div> </div> <div> <table style="width: 790px; height: 224px;" border="0" cellspacing="0"> <tr><td width="30%"> </td> <td width="2%"> </td> <td width="20%"> </td> <td width="2%"> </td> <td width="20%"> </td> <td width="2%"> </td> <td width="20%"> </td></tr> <tr valign="bottom"><td width="30%" align="left"> </td> <td width="2%" align="left"> </td> <td width="20%" align="center">Minimum Ground</td> <td width="2%" align="center"> </td> <td width="20%" align="center">Minimum Premises</td> <td width="2%" align="center"> </td> <td width="20%" align="center">Total Minimum</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="30%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="20%" align="center">Lease Payments</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="20%" align="center">Lease Payments</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="20%" align="center">Lease Payments</td></tr> <tr valign="bottom"><td width="30%" align="left">2012</td> <td width="2%" align="left">$</td> <td width="20%" align="right">3,160</td> <td width="2%" align="left">$</td> <td width="20%" align="right">27,957</td> <td width="2%" align="left">$</td> <td width="20%" align="right">31,117</td></tr> <tr valign="bottom"><td width="30%" align="left">2013</td> <td width="2%" align="left"> </td> <td width="20%" align="right">3,216</td> <td width="2%" align="left"> </td> <td width="20%" align="right">25,196</td> <td width="2%" align="left"> </td> <td width="20%" align="right">28,412</td></tr> <tr valign="bottom"><td width="30%" align="left">2014</td> <td width="2%" align="left"> </td> <td width="20%" align="right">2,131</td> <td width="2%" align="left"> </td> <td width="20%" align="right">22,929</td> <td width="2%" align="left"> </td> <td width="20%" align="right">25,060</td></tr> <tr valign="bottom"><td width="30%" align="left">2015</td> <td width="2%" align="left"> </td> <td width="20%" align="right">1,095</td> <td width="2%" align="left"> </td> <td width="20%" align="right">19,950</td> <td width="2%" align="left"> </td> <td width="20%" align="right">21,045</td></tr> <tr valign="bottom"><td width="30%" align="left">2016</td> <td width="2%" align="left"> </td> <td width="20%" align="right">1,129</td> <td width="2%" align="left"> </td> <td width="20%" align="right">18,449</td> <td width="2%" align="left"> </td> <td width="20%" align="right">19,578</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="30%" align="left">Thereafter</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="20%" align="right">16,472</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="20%" align="right">60,470</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="20%" align="right">76,942</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="30%" align="left">Total minimum lease payments</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="20%" align="right">27,203</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="20%" align="right">174,951</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="20%" align="right">202,154</td></tr></table></div>        Since approximately $86.4 million of our total minimum lease payments of $202.2 million as of December 31, 2011 consisted of lease obligations denominated in Australian and New Zealand dollars, the U.S dollar amounts of these obligations will fluctuate in accordance with the relative values of these currencies. See Note 26 – Related Parties and Transactions for the amount of leases associated with any related party leases. </div>

317710000

305777000

430349000

430764000

162551000

77963000

83784000

143071000

2985000

2874000

-1047000

25000

852000

1235000

1147000

1406000

654000

<div> Note 20 – Noncontrolling interests      As of December 31, 2011, the noncontrolling interests in our consolidated subsidiaries are comprised of the following: <ul> <li>50% of membership interest in Angelika Film Center LLC ("AFC LLC") owned by a subsidiary of iDNA </li> <li>25% noncontrolling interest in Australian Country Cinemas by 21st Century Pty, Ltd </li> <li>25% noncontrolling interest in the Sutton Hill Properties, LLC owned by Sutton Hill Capital, LLC </li></ul> The components of noncontrolling interest are as follows (dollars in thousands): <div> </div> <div> <table style="width: 704px; height: 186px;" border="0" cellspacing="0"> <tr><td width="70%"> </td> <td width="2%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td width="70%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="23%" colspan="4" align="center">December 31,</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="70%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="10%" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="9%" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="70%" align="left">AFC LLC</td> <td width="2%" align="left">$</td> <td width="10%" align="right">1,125</td> <td width="2%" align="left"> </td> <td width="2%" align="center">$</td> <td width="9%" align="right">681</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="70%" align="left">Australian Country Cinemas</td> <td width="2%" align="left"> </td> <td width="10%" align="right">360</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="9%" align="right">162</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="70%" align="left">Elsternwick unincorporated joint venture</td> <td width="2%" align="left"> </td> <td width="10%" align="right">-</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="9%" align="right">176</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="70%" align="left">Sutton Hill Properties</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right">(250</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="9%" align="right">(167</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="70%" align="left">Noncontrolling interests in consolidated subsidiaries</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right">1,235</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center">$</td> <td style="border-bottom: #000000 1px solid;" width="9%" align="right">852</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td></tr></table></div>   The components of income attributable to noncontrolling interests are as follows (dollars in thousands): <div> <table border="0" cellspacing="0"> <tr><td width="54%"> </td> <td width="2%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="10%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td width="54%" align="left"> </td> <td width="2%" align="left"> </td> <td width="10%" align="center"> </td> <td width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="center">December 31,</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="10%" align="center"> </td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="54%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="10%" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="10%" align="center">2009</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="54%" align="left">AFC LLC</td> <td width="2%" align="left">$</td> <td width="10%" align="right">909</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="11%" align="right">546</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="10%" align="right">606</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="54%" align="left">Australian Country Cinemas</td> <td width="2%" align="left"> </td> <td width="10%" align="right">311</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="11%" align="right">249</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="10%" align="right">152</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="54%" align="left">Elsternwick unincorporated joint venture</td> <td width="2%" align="left"> </td> <td width="10%" align="right">25</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="11%" align="right">59</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="10%" align="right">34</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="54%" align="left">Landplan</td> <td width="2%" align="left"> </td> <td width="10%" align="right">-</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="11%" align="right">-</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="10%" align="right">(157</td> <td width="2%" align="left">)</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="54%" align="left">Sutton Hill Properties</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right">(305</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">(238</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right">(247</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="54%" align="left">Net income attributable to noncontrolling interests</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right">940</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">616</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right">388</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td></tr></table></div>   Landplan Property Partners, Ltd      In 2006, we formed Landplan Property Partners, Ltd ("Reading Landplan") to identify, acquire, develop, or redevelop properties on an opportunistic basis in Australia and New Zealand. These properties are held in separate special purpose entities, which are collectively referred to as "Reading Landplan." The properties held through Landplan currently consist of the holdings described above as being located at Indooroopilly, Taringa, Lake Taupo (including the adjacent undeveloped parcel), and Manukau. On April 1, 2010, we terminated our then existing contractual relationship with Doug Osborne, at that time the chief executive officer of our Landplan real estate operations. Mr. Osborne's incentive interest in our various Landplan projects, which was valued at $0, was revoked at that time. Mr. Osborne continues to provide services to us on a non-exclusive independent contractor basis. Elsternwick Sale      On April 14, 2011, we sold our 66.7% share of the 5-screen Elsternwick Classic cinema located in Melbourne, Australia to our joint venture partner for $1.9 million (AUS$1.8 million) and recognized a gain on sale of a discontinued operation of $1.7 million (AUS$1.6 million). </div>

175000

225000

233000

<div> <div style="padding-left: 0%; padding-right: 0%;"> <div> Note 1 – Nature of Business                   Reading International, Inc., a Nevada corporation ("RDI" and collectively with our consolidated subsidiaries and corporate predecessors, the "Company," "Reading" and "we," "us," or "our"), was incorporated in 1999 and, following the consummation of a consolidation transaction on December 31, 2001 (the "Consolidation"), is now the owner of the consolidated businesses and assets of Reading Entertainment, Inc. ("RDGE"), Craig Corporation ("CRG"), and Citadel Holding Corporation ("CDL").  Our businesses consist primarily of: ·         the development, ownership and operation of multiplex cinemas in the United States, Australia, and New Zealand; and ·         the development, ownership, and operation of retail and commercial real estate in Australia, New Zealand, and the United States.</div></div> </div>

-14394000

5544000

-23411000

-12899000

-20992000

-3768000

17978000

22784000

24253000

6094000

-12650000

9956000

388000

616000

940000

147000

108124000

29630000

9000000

4381000

203092000

216953000

227395000

13922000

13166000

18410000

<div> Note 5 – Prepaid and Other Assets Prepaid and other assets are summarized as follows (dollars in thousands): <div> <table border="0" cellspacing="0"> <tr><td width="66%"> </td> <td width="2%"> </td> <td width="13%"> </td> <td width="2%"> </td> <td width="15%"> </td></tr> <tr valign="bottom"><td width="66%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="32%" colspan="4" align="center">December 31,</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="66%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" colspan="2" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" width="17%" colspan="2" align="center">2010</td></tr> <tr valign="bottom"><td width="66%" align="left">Prepaid and other current assets</td> <td width="2%" align="left"> </td> <td width="13%" align="left"> </td> <td width="2%" align="left"> </td> <td width="15%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="66%" align="left">Prepaid expenses</td> <td width="2%" align="left">$</td> <td width="13%" align="right">1,168</td> <td width="2%" align="left">$</td> <td width="15%" align="right">1,145</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="66%" align="left">Prepaid taxes</td> <td width="2%" align="left"> </td> <td width="13%" align="right">781</td> <td width="2%" align="left"> </td> <td width="15%" align="right">1,044</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="66%" align="left">Deposits</td> <td width="2%" align="left"> </td> <td width="13%" align="right">605</td> <td width="2%" align="left"> </td> <td width="15%" align="right">151</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="66%" align="left">Other</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">1,227</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right">1,196</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 4px;" width="66%" align="left">Total prepaid and other current assets</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">3,781</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right">3,536</td></tr> <tr><td width="98%" colspan="5"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="66%" align="left">Other non-current assets</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="66%" align="left">Other non-cinema and non-rental real estate assets</td> <td width="2%" align="left">$</td> <td width="13%" align="right">1,134</td> <td width="2%" align="left">$</td> <td width="15%" align="right">1,134</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="66%" align="left">Long-term deposits</td> <td width="2%" align="left"> </td> <td width="13%" align="right">264</td> <td width="2%" align="left"> </td> <td width="15%" align="right">294</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="66%" align="left">Deferred financing costs, net</td> <td width="2%" align="left"> </td> <td width="13%" align="right">3,725</td> <td width="2%" align="left"> </td> <td width="15%" align="right">3,830</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="66%" align="left">Interest rate swaps at fair value</td> <td width="2%" align="left"> </td> <td width="13%" align="right">-</td> <td width="2%" align="left"> </td> <td width="15%" align="right">446</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="66%" align="left">Other receivable</td> <td width="2%" align="left"> </td> <td width="13%" align="right">-</td> <td width="2%" align="left"> </td> <td width="15%" align="right">6,750</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="66%" align="left">Tenant inducement asset</td> <td width="2%" align="left"> </td> <td width="13%" align="right">1,064</td> <td width="2%" align="left"> </td> <td width="15%" align="right">1,327</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="66%" align="left">Straight-line rent asset</td> <td width="2%" align="left"> </td> <td width="13%" align="right">2,776</td> <td width="2%" align="left"> </td> <td width="15%" align="right">2,627</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="66%" align="left">Mortgage notes receivable</td> <td width="2%" align="left"> </td> <td width="13%" align="right">851</td> <td width="2%" align="left"> </td> <td width="15%" align="right">-</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="66%" align="left">Other</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">-</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right">128</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 4px;" width="66%" align="left">Total non-current assets</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">9,814</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right">16,536</td></tr></table></div>   Investment in Notes Receivable Other Receivable      On June 14, 2011, we received $6.8 million with respect to the principal and interest owed on a note previously received in connection with a settlement agreement. We believe that further amounts are owed under that note, and we have begun litigation to collect such amounts. Mortgage Notes Receivable      On February 14, 2011, we purchased for $2.8 million mortgage notes secured by certain properties. These mortgage notes were in default on the date of acquisition and were acquired with the intention of acquiring the underlying properties. In February 2011 and in September 2011, we foreclosed on two of these properties valued at $859,000 and $1.1 million, respectively, which are now classified as a part of properties held for development. We are currently pursuing our remedies for the remaining mortgage note, which, at December 31, 2011, remained in default. We anticipate that we will ultimately acquire the remaining property. </div>

16536000

9814000

418000

-112000

-832000

34271000

34130000

141000

34130000

16015000

15972000

43000

15972000

1028000

1017000

11000

1017000

524000

-478000

-32000

141000

137000

<div> Note 15 – Other Liabilities Other liabilities are summarized as follows (dollars in thousands): <div> <table border="0" cellspacing="0"> <tr><td width="64%"> </td> <td width="2%"> </td> <td width="14%"> </td> <td width="2%"> </td> <td width="14%"> </td></tr> <tr valign="bottom"><td width="64%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="32%" colspan="4" align="center">December 31,</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="64%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="center">2010</td></tr> <tr valign="bottom"><td width="64%" align="center">Current liabilities</td> <td width="2%" align="left"> </td> <td width="14%" align="left"> </td> <td width="2%" align="left"> </td> <td width="14%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="64%" align="left">Security Deposit Payable</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">137</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">141</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="64%" align="left">Other current liabilities</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">137</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center">$</td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">141</td></tr> <tr valign="bottom"><td width="64%" align="left">Other liabilities</td> <td width="2%" align="left"> </td> <td width="14%" align="left"> </td> <td width="2%" align="left"> </td> <td width="14%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="64%" align="left">Foreign Withholding Taxes</td> <td width="2%" align="left">$</td> <td width="14%" align="right">6,212</td> <td width="2%" align="center">$</td> <td width="14%" align="right">5,944</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="64%" align="left">Straight-line Rent Liability</td> <td width="2%" align="left"> </td> <td width="14%" align="right">8,067</td> <td width="2%" align="left"> </td> <td width="14%" align="right">7,559</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="64%" align="left">Related Party Lease Liability</td> <td width="2%" align="left"> </td> <td width="14%" align="right">5,746</td> <td width="2%" align="left"> </td> <td width="14%" align="right">5,637</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="64%" align="left">Environmental Reserve</td> <td width="2%" align="left"> </td> <td width="14%" align="right">1,656</td> <td width="2%" align="left"> </td> <td width="14%" align="right">1,656</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="64%" align="left">Accrued Pension</td> <td width="2%" align="left"> </td> <td width="14%" align="right">4,289</td> <td width="2%" align="left"> </td> <td width="14%" align="right">4,406</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="64%" align="left">Interest Rate Swap</td> <td width="2%" align="left"> </td> <td width="14%" align="right">4,722</td> <td width="2%" align="left"> </td> <td width="14%" align="right">181</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="64%" align="left">Acquired Lease Liability</td> <td width="2%" align="left"> </td> <td width="14%" align="right">2,742</td> <td width="2%" align="left"> </td> <td width="14%" align="right">3,264</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="64%" align="left">Other Payable</td> <td width="2%" align="left"> </td> <td width="14%" align="right">1,243</td> <td width="2%" align="left"> </td> <td width="14%" align="right">2,603</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="64%" align="left">Other</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">962</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">945</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="64%" align="left">Other liabilities</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">35,639</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center">$</td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">32,195</td></tr></table></div>   Village East Purchase Option      On June 29, 2010, we agreed to extend our existing lease from SHC of the Village East Cinema in New York City by 10 years, with a new termination date of June 30, 2020. The Village East lease includes a sub-lease of the ground underlying the cinema that is subject to a longer-term ground lease between SHC and an unrelated third party that expires in June 2031 (the "cinema ground lease"). The extended lease provides for a call option pursuant to which Reading may purchase the cinema ground lease for $5.9 million at the end of the lease term. Additionally, the lease has a put option pursuant to which SHC may require Reading to purchase all or a portion of SHC's interest in the existing cinema lease and the cinema ground lease at any time between July 1, 2013 and December 4, 2019. SHC's put option may be exercised on one or more occasions in increments of not less than $100,000 each. Because our Chairman, Chief Executive Officer, and controlling shareholder, Mr. James J. Cotter, is also the managing member of SHC, RDI and SHC are considered entities under common control. As a result, we recorded the Village East Cinema building as a property asset of $4.7 million on our balance sheet based on the cost carry-over basis from an entity under common control with a corresponding lease liability of $5.6 million presented under other liabilities which accretes up to the $5.9 million liability till July 1, 2013 (see Note 26 – Related Parties and Transactions). </div>

32195000

35639000

-2013000

-347000

1157000

2551000

251000

747000

1347000

774000

5313000

3917000

11463000

42000

2784000

5686000

14058000

5459000

1147000

1406000

654000

<div> Note 18 – Pension Liabilities Supplemental Executive Retirement Plan      In March 2007, the Board of Directors of Reading International, Inc. ("Reading") approved a Supplemental Executive Retirement Plan ("SERP") pursuant to which Reading has agreed to provide James J. Cotter, its Chief Executive Officer and Chairman of the Board of Directors, supplemental retirement benefits effective March 1, 2007. Under the SERP, Mr. Cotter will receive a monthly payment of the greater of (i) 40% of the average monthly earnings over the highest consecutive 36-month period of earnings prior to Mr. Cotter's separation from service with Reading or (ii) $25,000 per month for the remainder of his life, with a guarantee of 180 monthly payments following his separation from service with Reading or following his death. The beneficiaries under the SERP may be designated by Mr. Cotter or by his beneficiary following his or his beneficiary's death. The benefits under the SERP are fully vested as of March 1, 2007.      The SERP initially will be unfunded, but Reading may choose to establish one or more grantor trusts from which to pay the SERP benefits. As such, the SERP benefits are unsecured, general obligations of Reading. The SERP is administered by the Compensation Committee of the Board of Directors of Reading. In accordance with FASB ASC 715-30-05 – Defined Benefit Pension Plans ("ASC 715-30-05"), the initial pension benefit obligation of $2.7 million was included in our other liabilities with a corresponding amount of unrecognized prior service cost included in accumulated other comprehensive income on March 1, 2007 (see Note 24 – Comprehensive Income (Loss)). The initial benefit obligation was based on a discount rate of 5.75% and a compensation increase rate of 3.5%. The $2.7 million is being amortized as a prior service cost over the estimated service period of 10 years combined with an annual interest cost. For the years ended December 31, 2011, 2010, and 2009, we recognized $195,000, $200,000, and $160,000, respectively, of interest cost and $304,000 of amortized prior service cost per year. For the years ended December 31, 2011 and 2010, we recognized $24,000 and $0 of amortized net gains. The balance of the other liability for this pension plan was $3.5 million and $3.8 million at December 31, 2011 and 2010, respectively, and the accumulated unrecognized prior service costs included in other comprehensive income balance was $1.2 and $2.1 million at December 31, 2011 and 2010, respectively. The December 31, 2011 and 2010 values of the SERP are based on a discount rate of 5.10% and 6.25%, respectively and an annual compensation growth rate of 3.50% per year.      The change in the SERP pension benefit obligation and the funded status for the year ending December 31, 2011 and 2010are as follows (dollars in thousands): <div> </div> <div> <table border="0" cellspacing="0"> <tr><td width="69%"> </td> <td width="2%"> </td> <td width="25%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td width="69%" align="left"> </td> <td width="2%" align="left"> </td> <td width="25%" align="center">For the year ending</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="69%" align="left">Change in Benefit Obligation</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="25%" align="center">December 31, 2011</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="69%" align="left">Benefit obligation at January 1, 2011</td> <td width="2%" align="left">$</td> <td width="25%" align="right">3,820</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="69%" align="left">Interest cost</td> <td width="2%" align="left"> </td> <td width="25%" align="right">195</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="69%" align="left">Actuarial gain</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="25%" align="right">(504</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="69%" align="left">Benefit obligation at December 31, 2011</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="25%" align="right">3,511</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="69%" align="left">Funded status at December 31, 2011</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="25%" align="right">(3,511</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td></tr> <tr><td width="98%" colspan="4"> </td></tr> <tr valign="bottom"><td width="69%" align="left"> </td> <td width="2%" align="left"> </td> <td width="25%" align="center">For the year ending</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="69%" align="left">Change in Benefit Obligation</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="25%" align="center">December 31, 2010</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="69%" align="left">Benefit obligation at January 1, 2010</td> <td width="2%" align="left">$</td> <td width="25%" align="right">3,428</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="69%" align="left">Interest cost</td> <td width="2%" align="left"> </td> <td width="25%" align="right">200</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="69%" align="left">Actuarial gain</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="25%" align="right">192</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="69%" align="left">Benefit obligation at December 31, 2010</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="25%" align="right">3,820</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="69%" align="left">Funded status at December 31, 2010</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="25%" align="right">(3,820</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td></tr></table></div>   Amount recognized in balance sheet consists of (dollars in thousands): <div> <table border="0" cellspacing="0"> <tr><td width="49%"> </td> <td width="2%"> </td> <td width="23%"> </td> <td width="2%"> </td> <td width="22%"> </td></tr> <tr valign="bottom"><td width="49%" align="left"> </td> <td width="2%" align="left"> </td> <td width="23%" align="center">At December 31,</td> <td width="2%" align="center"> </td> <td width="22%" align="center">At December 31,</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="49%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="23%" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="22%" align="center">2010</td></tr> <tr valign="bottom"><td width="49%" align="left">Noncurrent assets</td> <td width="2%" align="left">$</td> <td width="23%" align="right">-</td> <td width="2%" align="left">$</td> <td width="22%" align="right">-</td></tr> <tr valign="bottom"><td width="49%" align="left">Current liabilities</td> <td width="2%" align="left"> </td> <td width="23%" align="right">10</td> <td width="2%" align="left"> </td> <td width="22%" align="right">9</td></tr> <tr valign="bottom"><td width="49%" align="left">Noncurrent liabilities</td> <td width="2%" align="left"> </td> <td width="23%" align="right">3,501</td> <td width="2%" align="left"> </td> <td width="22%" align="right">3,811</td></tr></table></div>   Items not yet recognized as a component of net periodic pension cost consist of (dollars in thousands): <div> <table style="width: 699px; height: 136px;" border="0" cellspacing="0"> <tr><td width="53%"> </td> <td width="2%"> </td> <td width="19%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="19%"> </td></tr> <tr valign="bottom"><td width="53%" align="left"> </td> <td width="2%" align="left"> </td> <td width="19%" align="center">At December 31,</td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="19%" align="center">At December 31,</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="53%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="19%" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="19%" align="center">2010</td></tr> <tr valign="bottom"><td width="53%" align="left">Unamortized actuarial (gain) loss</td> <td width="2%" align="left">$</td> <td width="19%" align="right">(14</td> <td width="2%" align="left">)</td> <td width="2%" align="left">$</td> <td width="19%" align="right">514</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="53%" align="left">Prior service costs</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="19%" align="right">1,234</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="19%" align="right">1,538</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="53%" align="left">Accumulated other comprehensive loss</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="19%" align="right">1,220</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="19%" align="right">2,052</td></tr></table></div>        The components of the net periodic benefit cost and other amounts recognized in other comprehensive income are as follows (dollars in thousands): <div> </div> <div> <table style="width: 750px; height: 413px;" border="0" cellspacing="0"> <tr><td width="48%"> </td> <td width="2%"> </td> <td width="21%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="21%"> </td> <td width="3%"> </td></tr> <tr valign="bottom"><td width="48%" align="left"> </td> <td width="2%" align="left"> </td> <td width="21%" align="center">From January 1, 2011</td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="21%" align="center">From January 1, 2010</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="48%" align="left">Net periodic benefit cost</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="21%" align="center">to December 31, 2011</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="21%" align="center">to December 31, 2010</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="48%" align="left">Service cost</td> <td width="2%" align="right">$</td> <td width="21%" align="right">-</td> <td width="2%" align="left"> </td> <td width="2%" align="right">$</td> <td width="21%" align="right">-</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="48%" align="left">Interest cost</td> <td width="2%" align="left"> </td> <td width="21%" align="right">195</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="21%" align="right">200</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="48%" align="left">Expected return on plan assets</td> <td width="2%" align="left"> </td> <td width="21%" align="right">-</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="21%" align="right">-</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="48%" align="left">Amortization of prior service costs</td> <td width="2%" align="left"> </td> <td width="21%" align="right">304</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="21%" align="right">304</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="48%" align="left">Amortization of net gain</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="21%" align="right">24</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="21%" align="right">-</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="48%" align="left">Net periodic benefit cost</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="21%" align="right">523</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="21%" align="right">504</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="48%" align="left">Other changes in plan assets and benefit obligations</td> <td width="2%" align="left"> </td> <td width="21%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="21%" align="left"> </td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="48%" align="left">recognized in other comprehensive income</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="21%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="21%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="48%" align="left">Net (gain) loss</td> <td width="2%" align="right">$</td> <td width="21%" align="right">(504</td> <td width="2%" align="left">)</td> <td width="2%" align="right">$</td> <td width="21%" align="right">192</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="48%" align="left">Prior service cost</td> <td width="2%" align="left"> </td> <td width="21%" align="right">-</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="21%" align="right">-</td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td width="48%" align="left">Amortization of prior service cost</td> <td width="2%" align="left"> </td> <td width="21%" align="right">(304</td> <td width="2%" align="left">)</td> <td width="2%" align="left"> </td> <td width="21%" align="right">(304</td> <td width="3%" align="left">)</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="48%" align="left">Amortization of net gain</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="21%" align="right">(24</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="21%" align="right">-</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="48%" align="left">Total recognized in other comprehensive income</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="21%" align="right">(832</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="21%" align="right">(112</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left">)</td></tr> <tr valign="bottom"><td width="48%" align="left">Total recognized in net periodic benefit cost and other</td> <td width="2%" align="left"> </td> <td width="21%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="21%" align="left"> </td> <td width="3%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="48%" align="left">comprehensive income</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="21%" align="right">(309</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="21%" align="right">392</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left"> </td></tr></table></div>        The estimated net loss and prior service cost for the defined benefit pension plan that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year will be $0 and $304,000, respectively.      The following weighted average assumptions were used to determine the plan benefit obligations at December 31, 2011 and 2010: <div> <table style="width: 516px; height: 86px;" border="0" cellspacing="0"> <tr><td width="59%"> </td> <td width="15%"> </td> <td width="4%"> </td> <td width="15%"> </td> <td width="4%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="59%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" width="4%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" width="4%" align="center"> </td></tr> <tr valign="bottom"><td width="59%" align="left">Discount rate</td> <td width="15%" align="right">4.25</td> <td width="4%" align="left">%</td> <td width="15%" align="right">5.10</td> <td width="4%" align="left">%</td></tr> <tr valign="bottom"><td width="59%" align="left">Rate of compensation increase</td> <td width="15%" align="right">3.50</td> <td width="4%" align="left">%</td> <td width="15%" align="right">3.50</td> <td width="4%" align="left">%</td></tr></table></div>        The following weighted-average assumptions were used to determine net periodic benefit cost for the year ended December 31, 2011 and 2010: <div> <table style="width: 521px; height: 105px;" border="0" cellspacing="0"> <tr><td width="62%"> </td> <td width="14%"> </td> <td width="4%"> </td> <td width="15%"> </td> <td width="4%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="62%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" width="4%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" width="4%" align="center"> </td></tr> <tr valign="bottom"><td width="62%" align="left">Discount rate</td> <td width="14%" align="right">5.10</td> <td width="4%" align="left">%</td> <td width="15%" align="right">5.85</td> <td width="4%" align="left">%</td></tr> <tr valign="bottom"><td width="62%" align="left">Expected long-term return on plan assets</td> <td width="14%" align="right">0.00</td> <td width="4%" align="left">%</td> <td width="15%" align="right">0.00</td> <td width="4%" align="left">%</td></tr> <tr valign="bottom"><td width="62%" align="left">Rate of compensation increase</td> <td width="14%" align="right">3.50</td> <td width="4%" align="left">%</td> <td width="15%" align="right">3.50</td> <td width="4%" align="left">%</td></tr></table></div>   Other Pension Liabilities      In addition to the aforementioned SERP, Mr. S. Craig Tompkins has a vested interest in the pension plan originally established by Craig Corporation prior to its merger with our company of $195,000 and $194,000 at December 31, 2011 and 2010, respectively. The balance accrues interest at 30 day LIBOR and is maintained as an unfunded Executive Pension Plan obligation included in other liabilities. Mr. Tompkins will be paid the balance of this pension once he no longer provides services to the Company. Additionally, as part of his employment agreement, Mr. John Hunter, our Chief Operating Officer, has a vested interest in a pension plan that currently accrues $200,000 per year and had a balance of $583,000 and $392,000 at December 31, 2011 and 2010, respectively. Mr. Hunter will be paid the balance of his pension on the last day of his employment with the Company. <div> </div>      The benefit payments for all of our pensions, which reflect expected future service, as appropriate, are expected to be paid over the following periods (dollars in thousands): <div> <table border="0" cellspacing="0"> <tr><td width="76%"> </td> <td width="2%"> </td> <td width="19%"> </td></tr> <tr valign="bottom"><td width="76%" align="left"> </td> <td width="2%" align="left"> </td> <td width="19%" align="center">Pension</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="76%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="19%" align="center">Payments</td></tr> <tr valign="bottom"><td width="76%" align="left">2012</td> <td width="2%" align="left">$</td> <td width="19%" align="right">10</td></tr> <tr valign="bottom"><td width="76%" align="left">2013</td> <td width="2%" align="left"> </td> <td width="19%" align="right">20</td></tr> <tr valign="bottom"><td width="76%" align="left">2014</td> <td width="2%" align="left"> </td> <td width="19%" align="right">30</td></tr> <tr valign="bottom"><td width="76%" align="left">2015</td> <td width="2%" align="left"> </td> <td width="19%" align="right">40</td></tr> <tr valign="bottom"><td width="76%" align="left">2016</td> <td width="2%" align="left"> </td> <td width="19%" align="right">50</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="76%" align="left">Thereafter</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="19%" align="right">4,139</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="76%" align="left">Total pension payments</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="19%" align="right">4,289</td></tr></table></div> </div>

-418000

112000

832000

0.01

12000

3536000

3781000

6750000

285000

1455000

23525000

105311000

175000

225000

233000

30000

143000

11000

248000

6482000

388000

6094000

-12034000

616000

-12650000

10896000

940000

9956000

<div> Note 7 – Property and Equipment Property and equipment is summarized as follows (dollars in thousands): <div> <table border="0" cellspacing="0"> <tr><td width="61%"> </td> <td width="2%"> </td> <td width="13%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td width="61%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="33%" colspan="6" align="center">December 31,</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="61%" align="left">Property and Equipment</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 4px;" width="61%" align="left">Land</td> <td width="2%" align="left">$</td> <td width="13%" align="right">65,281</td> <td width="2%" align="left"> </td> <td width="2%" align="center">$</td> <td width="12%" align="right">64,845</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 4px;" width="61%" align="left">Building and improvements</td> <td width="2%" align="left"> </td> <td width="13%" align="right">144,155</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="right">142,077</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 4px;" width="61%" align="left">Leasehold interests</td> <td width="2%" align="left"> </td> <td width="13%" align="right">40,855</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="right">37,262</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 4px;" width="61%" align="left">Construction-in-progress</td> <td width="2%" align="left"> </td> <td width="13%" align="right">525</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="right">408</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 4px;" width="61%" align="left">Fixtures and equipment</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">104,804</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">99,399</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="61%" align="left">Total cost</td> <td width="2%" align="left"> </td> <td width="13%" align="right">355,620</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="12%" align="right">343,991</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 4px;" width="61%" align="left">Less: accumulated depreciation</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">(140,192</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">(123,741</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="61%" align="left">Property and equipment, net</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">215,428</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center">$</td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">220,250</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td></tr></table></div>        Depreciation expense for property and equipment was $15.6 million, $13.3 million, and $12.4 million for the three years ending December 31, 2011, 2010, and 2009, respectively.      In 2009, the slower recovery in New Zealand led to a further impairment charge to one of our operating properties of $3.2 million as reported in our segment operating income. Additionally, in 2011, we recorded impairment losses totaling $65,000 on two of our cinema properties. We did not record an impairment charge for our operating assets during 2010. </div>

220250000

215428000

<div> Note 23 – Unaudited Quarterly Financial Information (dollars in thousands, except per share amounts) <div> <table style="width: 776px; height: 393px;" border="0" cellspacing="0"> <tr><td width="38%"> </td> <td width="2%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="10%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td width="38%" align="left"> </td> <td width="2%" align="left"> </td> <td style="text-indent: 2px;" width="10%" align="center">First</td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="10%" align="center">Second</td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td style="text-indent: 1px;" width="10%" align="center">Third</td> <td width="2%" align="center"> </td> <td width="10%" align="center">Fourth</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="38%" align="left">2011</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="10%" align="center">Quarter</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="10%" align="center">Quarter</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="10%" align="center">Quarter</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="10%" align="center">Quarter</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="38%" align="left">Revenue</td> <td width="2%" align="left">$</td> <td width="10%" align="right">54,242</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="10%" align="right">67,174</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="10%" align="right">66,762</td> <td width="2%" align="left">$</td> <td width="10%" align="right">57,627</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="38%" align="left">Net income (loss)</td> <td width="2%" align="left">$</td> <td width="10%" align="right">(2,247</td> <td width="2%" align="left">)</td> <td width="2%" align="left">$</td> <td width="10%" align="right">17,613</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="10%" align="right">291</td> <td width="2%" align="left">$</td> <td width="10%" align="right">(4,761</td> <td width="2%" align="left">)</td></tr> <tr valign="bottom"><td width="38%" align="left">Net income (loss) attributable to Reading</td> <td width="2%" align="left"> </td> <td width="10%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="10%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="10%" align="left"> </td> <td width="2%" align="left"> </td> <td width="10%" align="left"> </td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="38%" align="left">International, Inc. shareholders</td> <td width="2%" align="left">$</td> <td width="10%" align="right">(2,480</td> <td width="2%" align="left">)</td> <td width="2%" align="left">$</td> <td width="10%" align="right">17,432</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="10%" align="right">38</td> <td width="2%" align="left">$</td> <td width="10%" align="right">(5,034</td> <td width="2%" align="left">)</td></tr> <tr valign="bottom"><td width="38%" align="left">Basic earnings (loss) per share</td> <td width="2%" align="left">$</td> <td width="10%" align="right">(0.11</td> <td width="2%" align="left">)</td> <td width="2%" align="left">$</td> <td width="10%" align="right">0.76</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="10%" align="right">-</td> <td width="2%" align="left">$</td> <td width="10%" align="right">(0.21</td> <td width="2%" align="left">)</td></tr> <tr valign="bottom"><td width="38%" align="left">Diluted earnings (loss) per share</td> <td width="2%" align="left">$</td> <td width="10%" align="right">(0.11</td> <td width="2%" align="left">)</td> <td width="2%" align="left">$</td> <td width="10%" align="right">0.76</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="10%" align="right">-</td> <td width="2%" align="left">$</td> <td width="10%" align="right">(0.22</td> <td width="2%" align="left">)</td></tr> <tr><td width="92%" colspan="12"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="38%" align="left">2010</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="10%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="10%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="10%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="10%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="38%" align="left">Revenue</td> <td width="2%" align="left">$</td> <td width="10%" align="right">58,150</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="10%" align="right">57,032</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="10%" align="right">60,638</td> <td width="2%" align="left">$</td> <td width="10%" align="right">54,299</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="38%" align="left">Net income (loss)</td> <td width="2%" align="left">$</td> <td width="10%" align="right">568</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="10%" align="right">(13,561</td> <td width="2%" align="left">)</td> <td width="2%" align="left">$</td> <td width="10%" align="right">1,378</td> <td width="2%" align="left">$</td> <td width="10%" align="right">(419</td> <td width="2%" align="left">)</td></tr> <tr valign="bottom"><td width="38%" align="left">Net income (loss) attributable to Reading</td> <td width="2%" align="left"> </td> <td width="10%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="10%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="10%" align="left"> </td> <td width="2%" align="left"> </td> <td width="10%" align="left"> </td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="38%" align="left">International, Inc. shareholders</td> <td width="2%" align="left">$</td> <td width="10%" align="right">353</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="10%" align="right">(13,714</td> <td width="2%" align="left">)</td> <td width="2%" align="left">$</td> <td width="10%" align="right">1,242</td> <td width="2%" align="left">$</td> <td width="10%" align="right">(531</td> <td width="2%" align="left">)</td></tr> <tr valign="bottom"><td width="38%" align="left">Basic earnings (loss) per share</td> <td width="2%" align="left">$</td> <td width="10%" align="right">0.02</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="10%" align="right">(0.60</td> <td width="2%" align="left">)</td> <td width="2%" align="left">$</td> <td width="10%" align="right">0.05</td> <td width="2%" align="left">$</td> <td width="10%" align="right">(0.03</td> <td width="2%" align="left">)</td></tr> <tr valign="bottom"><td width="38%" align="left">Diluted earnings (loss) per share</td> <td width="2%" align="left">$</td> <td width="10%" align="right">0.02</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="10%" align="right">(0.60</td> <td width="2%" align="left">)</td> <td width="2%" align="left">$</td> <td width="10%" align="right">0.05</td> <td width="2%" align="left">$</td> <td width="10%" align="right">(0.03</td> <td width="2%" align="left">)</td></tr></table></div> </div>

<div> Note 6 – Property Held For and Under Development Property held for and under development is summarized as follows (dollars in thousands): <div> <table border="0" cellspacing="0"> <tr><td width="70%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="2%"> </td> <td width="11%"> </td></tr> <tr valign="bottom"><td width="70%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="27%" colspan="4" align="center">December 31,</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="70%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="center">2010</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="70%" align="left">Land</td> <td width="2%" align="left">$</td> <td width="12%" align="right">86,667</td> <td width="2%" align="left">$</td> <td width="11%" align="right">31,689</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="70%" align="left">Construction-in-progress (including capitalized interest)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">5,031</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">4,013</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="70%" align="left">Property Held For and Under Development</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="12%" align="right">91,698</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">35,702</td></tr></table></div>   <div> </div>      The amount of capitalized interest for our properties under development was $136,000 for the year ending December 31, 2009. During the year-ended December 31, 2009, we decided to curtail our current development progress on certain Australian and New Zealand land development projects. As a result, we did not capitalize interest on these projects during 2011, 2010, and 2009 and we will not capitalize interest for these projects until development work recommences. During 2010, we determined that we would no longer pursue the development of our Taringa properties. As such, we recorded an impairment to our investment in these properties based on the sales comparison valuation approach of $2.2 million, primarily associated with the development costs of the project. During 2009, we recorded a contractual commitment loss of $1.1 million associated with a property for which we purchased in April 2010. The impairments and contractual commitment loss are primarily related to the impact of the economic downturn in the Australian and New Zealand economies and the timing of our purchases of those assets. </div>

<div> Note 26 – Related Parties and Transactions Sutton Hill Capital      In 2001, we entered into a transaction with Sutton Hill Capital, LLC ("SHC") regarding the leasing with an option to purchase of certain cinemas located in Manhattan. In connection with that transaction, we also agreed to lend certain amounts to SHC, to provide liquidity in its investment, pending our determination whether or not to exercise our option to purchase and to manage the 86th Street Cinema on a fee basis. SHC is a limited liability company owned in equal shares by James J. Cotter and Michael Forman and of which Mr. Cotter is the managing member. During 2011, 2010, and 2009, we paid rent to SHC in the amount of $590,000, $547,000, and $487,000, respectively.       <div> </div> On June 29, 2010, we agreed to extend our existing lease from SHC of the Village East Cinema in New York City by 10 years, with a new termination date of June 30, 2020. The Village East lease includes a sub-lease of the ground underlying the cinema that is subject to a longer-term ground lease between SHC and an unrelated third party that expires in June 2031 (the "cinema ground lease"). The extended lease provides for a call option pursuant to which Reading may purchase the cinema ground lease for $5.9 million at the end of the lease term. Additionally, the lease has a put option pursuant to which SHC may require Reading to purchase all or a portion of SHC's interest in the existing cinema lease and the cinema ground lease at any time between July 1, 2013 and December 4, 2019. SHC's put option may be exercised on one or more occasions in increments of not less than $100,000 each. Because our Chairman, Chief Executive Officer, and controlling shareholder, Mr. James J. Cotter, is also the managing member of SHC, RDI and SHC are considered entities under common control. As a result, we recorded the Village East Cinema building as a property asset of $4.7 million on our balance sheet based on the cost carryover basis from an entity under common control with a corresponding capital lease liability of $5.6 million presented under other liabilities (see Note 15 – Other Liabilities). This resulted in a deemed equity distribution of $877,000.      In 2005, we acquired from a third party the fee interest and from SHC its interest in the ground lease estate underlying the Cinemas 1, 2 & 3 in Manhattan. In connection with that transaction, we agreed to grant to SHC an option to acquire a 25% interest in the special purpose entity formed to acquire these interests at cost. On June 28, 2007, SHC exercised this option, paying the option exercise price through the application of their $3.0 million deposit plus the assumption of its proportionate share of SHP's liabilities giving it a 25% non-managing membership interest in SHP. OBI Management Agreement      Pursuant to a Theater Management Agreement (the "Management Agreement"), our live theater operations are managed by OBI LLC ("OBI Management"), which is wholly owned by Ms. Margaret Cotter who is the daughter of James J. Cotter and a member of our Board of Directors.      The Management Agreement generally provides that we will pay OBI Management a combination of fixed and incentive fees, which historically have equated to approximately 21% of the net cash flow received by us from our live theaters in New York. Since the fixed fees are applicable only during such periods as the New York theaters are booked, OBI Management receives no compensation with respect to a theater at any time when it is not generating revenue for us. This arrangement provides an incentive to OBI Management to keep the theaters booked with the best available shows, and mitigates the negative cash flow that would result from having an empty theater. In addition, OBI Management manages our Royal George live theater complex in Chicago on a fee basis based on theater cash flow. In 2011, OBI Management earned $398,000, which was 19.4% of net cash flows for the year. In 2010, OBI Management earned $416,000, which was 24.2% of net cash flows for the year. In 2009, OBI Management earned $325,000, which was 28.3% of net cash flows for the year. In each year, we reimbursed travel related expenses for OBI Management personnel with respect to travel between New York City and Chicago in connection with the management of the Royal George complex.      OBI Management conducts its operations from our office facilities on a rent-free basis, and we share the cost of one administrative employee of OBI Management. Other than these expenses and travel-related expenses for OBI Management personnel to travel to Chicago as referred to above, OBI Management is responsible for all of its costs and expenses related to the performance of its management functions. The Management Agreement renews automatically each year unless either party gives at least six months' prior notice of its determination to allow the Management Agreement to expire. In addition, we may terminate the Management Agreement at any time for cause. Live Theater Play Investment      From time to time, our officers and directors may invest in plays that lease our live theaters. The play STOMP has been playing in our Orpheum Theatre since prior to the time we acquired the theater in 2001. Messrs. James J. Cotter and Michael Forman own an approximately 5% interest in that play, an interest that they have held since prior to our acquisition of the theater. </div>

14888000

15450000

126780000

2159000

2379000

-76035000

-66079000

217014000

230119000

245805000

<div> Note 13 – Derivative Instruments      We are exposed to interest rate changes from our outstanding floating rate borrowings. We manage our fixed to floating rate debt mix to mitigate the impact of adverse changes in interest rates on earnings and cash flows and on the market value of our borrowings. From time to time, we may enter into interest rate hedging contracts, which effectively convert a portion of our variable rate debt to a fixed rate over the term of the interest rate swap. In the case of our Australian borrowings, we are presently required to swap no less than 75% of our drawdowns under our Australian Corporate Credit Facility into fixed interest rate obligations. In conjunction with this NAB Credit Facility, we entered into a five-year interest swap agreement, which swaps 100% of our variable rate term loan based on BBSY for a 5.50% fixed rate loan which steps down commensurate with the payments of the loan balance. At the time of entering into this NAB swap, our existing BOSI swap was "in-the-money" by $160,000. In lieu of a cash payment for the in-the-money BOSI swap, we negotiated a slightly lower fixed swap rate by 0.05% for our new NAB fixed rate swap. As of December 1, 2010, under the amended GE Capital Term Loan, we are required to swap no less than 50% of the original loan balance on that date of $37.5 million for the first three years of the loan. We elected to swap 100% of the original loan balance and have contracted for balance step-downs that correspond with the loan's principal payments through December 31, 2013. On December 3, 2010, as part of amending our GE Capital loan, we were required to cancel the existing $29.5 million hedge and replace it for a cost of $368,000.      The following table sets forth the terms of our interest rate swap derivative instruments at December 31, 2011: <div> <table style="width: 737px; height: 109px;" border="0" cellspacing="0"> <tr><td width="18%"> </td> <td width="2%"> </td> <td width="18%"> </td> <td width="16%"> </td> <td width="3%"> </td> <td width="16%"> </td> <td width="3%"> </td> <td width="17%"> </td></tr> <tr valign="bottom"><td width="18%" align="center"> </td> <td width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="18%" align="center">Notional</td> <td width="16%" align="center"> </td> <td width="3%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="16%" align="center">Receive Variable</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="center"> </td> <td width="17%" align="center"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="18%" align="center">Type of Instrument</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="18%" align="center">Amount</td> <td style="border-bottom: #000000 1px solid;" width="16%" align="center">Pay Fixed Rate</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="16%" align="center">Rate</td> <td style="border-bottom: #000000 1px solid;" width="3%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="17%" align="center">Maturity Date</td></tr> <tr valign="bottom"><td width="18%" align="left">Interest rate swap</td> <td width="2%" align="left">$</td> <td style="text-indent: 1px;" width="18%" align="left">33,750,000</td> <td width="16%" align="right">1.340</td> <td width="3%" align="left">%</td> <td width="16%" align="right">0.580</td> <td width="3%" align="left">%</td> <td width="17%" align="center">December 31, 2013</td></tr> <tr valign="bottom"><td width="18%" align="left">Interest rate swap</td> <td width="2%" align="left">$</td> <td style="text-indent: 1px;" width="18%" align="left">88,671,000</td> <td width="16%" align="right">5.500</td> <td width="3%" align="left">%</td> <td width="16%" align="right">4.550</td> <td width="3%" align="left">%</td> <td width="17%" align="center">June 30, 2016</td></tr></table></div>        In accordance with FASB ASC 815-20 – Derivatives and Hedging, we marked our interest swap instruments to market on the consolidated balance sheet resulting in a $5.0 million increase to interest expense during 2011, a $284,000 decrease to interest expense during 2010, and a $1.4 million decrease to interest expense during 2009. At December 31, 2011, we recorded the fair market value of an interest rate swap of $4.7 million as an other long-term liability. At December 31, 2010, we recorded the fair market value of an interest rate swap and a cap of $446,000 as other long-term assets and an interest rate swap of $181,000 as an other long-term liability. In accordance with FASB ASC 815-20, we have not designated any of our current interest rate swap positions as financial reporting hedges. </div>

<div> Note 21 - Common Stock      Our common stock trades on the NASDAQ under the symbols RDI and RDIB which are our Class A (non-voting) and Class B (voting) stock, respectively. Our Class A (non-voting) has preference over our Class B (voting) share upon liquidation. No dividends have ever been issued for either share class. 2011 Common Stock Activity      During 2011, we issued 174,825 of Class A Nonvoting shares to certain executive employee associated with his prior years' stock grants. During 2011, we purchased 172,300 of Class A Nonvoting shares on the open market for $747,000. <div> </div> 2010 Common Stock Activity      During 2010, we issued 148,616 shares of Class A Stock (non-voting) to certain executive employees associated with their prior years' stock bonuses. Additionally, we canceled 4,348,780 shares of Class A Stock (non-voting) held as treasury by one of our subsidiaries due to an issuance error made in 2002 associated with the consolidation of Reading Entertainment Inc. and Craig Corporation, Inc. into Reading International, Inc.      For the stock options exercised during 2010, we issued for cash to employees or directors of the corporation under our employee stock option plan 90,000 shares of Class A Stock at an exercise price of $2.76 per share.      Due to a perceived low price to our common shares, during the first quarter of 2010, we purchased 62,375 shares for a total cost of $251,000. Also, as a result of our revised Village East Cinema building lease, we recorded a deemed equity distribution of $877,000 (see Note 26 – Related Parties and Transactions). 2009 Common Stock Activity      During 2009, we issued 146,017 shares of Class A Stock to certain executive employees associated with their prior years' stock bonuses. Additionally, 98,949 shares of Class A Stock which were previously held as treasury shares were canceled during 2009.      For the stock options exercised during 2009, we issued for cash to an employee of the corporation under our employee stock option plan 3,000 shares of Class A Stock at an exercise price of $3.80 per share. </div>

<div> <div style="padding-left: 0%; padding-right: 0%;"> <div> Note 28 – Subsequent Events   Coachella, California Land Acquisition On January 10, 2012, a limited liability company owned by our Company acquired a 202 acre property, zoned for the development of up to 843 single family residential units, located in the City of Coachella, California.  The property was acquired at a foreclosure auction for $5.5 million.  The property was acquired as a long-term investment in developable land with the intention of using it in the interim for agricultural purposes. Half of the funds used to acquire the land were provided by James J. Cotter, our Chairman, Chief Executive Officer and controlling shareholder.    Upon the approval of our Conflicts Committee, these funds were converted on January 18, 2012 into a 50% interest in the limited liability company that acquired the land.   The limited liability company is managed by our Company.   Renewed New Zealand Credit Facility   On February 8, 2012, we received an approved amendment from Westpac renewing our existing $35.1 million (NZ$45.0 million) New Zealand credit facility with a 3-year credit facility. The renewed facility calls for a decrease in the overall facility by $3.9 million ($5.0 million) to $31.2 million (NZ$40.0 million) and an increase in the facility margin of 0.55% to 2.0%. No other significant changes to the facility were made.   Taringa Sale   As of December 31, 2011, we were under contract to sell the three properties in the Taringa area of Brisbane, Australia of approximately 1.1 acres for $1.8 million (AUS$1.8 million). These properties were sold on February 21, 2012 for the agreed upon amount.   iDNA Note Receivable   On February 29, 2012, we acquired for $1.8 million from the original lender a promissory note which is currently in default and which we believe to be indirectly secured by the 50% membership interest in the Angelika Film Center, LLC not already owned by the Company. The note was acquired in order to protect our interest in the Angelika Film Center, LLC, with the intention of providing for an orderly satisfaction of the debt evidenced by that promissory note. </div></div> </div>

<div> Schedule II - Valuation and Qualifying Accounts <div> <table border="0" cellspacing="0"> <tr><td width="43%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="11%"> </td></tr> <tr valign="bottom"><td width="43%" align="left"> </td> <td width="2%" align="left"> </td> <td width="11%" align="center"> </td> <td width="2%" align="center"> </td> <td width="11%" align="center">Additions</td> <td width="2%" align="center"> </td> <td width="10%" align="center"> </td> <td width="2%" align="center"> </td> <td width="11%" align="center"> </td></tr> <tr valign="bottom"><td width="43%" align="left"> </td> <td width="2%" align="left"> </td> <td width="11%" align="center">Balance at</td> <td width="2%" align="center"> </td> <td width="11%" align="center">charged to</td> <td width="2%" align="center"> </td> <td width="10%" align="center"> </td> <td width="2%" align="center"> </td> <td width="11%" align="center">Balance at</td></tr> <tr valign="bottom"><td width="43%" align="left"> </td> <td width="2%" align="left"> </td> <td width="11%" align="center">beginning</td> <td width="2%" align="center"> </td> <td width="11%" align="center">costs and</td> <td width="2%" align="center"> </td> <td width="10%" align="center"> </td> <td width="2%" align="center"> </td> <td width="11%" align="center">end of</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="43%" align="left">Description</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="center">of year</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="center">expenses</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="10%" align="center">Deductions</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 3px;" width="11%" align="center">year</td></tr> <tr valign="bottom"><td width="43%" align="left">Allowance for doubtful accounts</td> <td width="2%" align="left"> </td> <td width="11%" align="left"> </td> <td width="2%" align="left"> </td> <td width="11%" align="left"> </td> <td width="2%" align="left"> </td> <td width="10%" align="left"> </td> <td width="2%" align="left"> </td> <td width="11%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 3px;" width="43%" align="left">Year-ended December 31, 2011 –</td> <td width="2%" align="left"> </td> <td width="11%" align="left"> </td> <td width="2%" align="left"> </td> <td width="11%" align="left"> </td> <td width="2%" align="left"> </td> <td width="10%" align="left"> </td> <td width="2%" align="left"> </td> <td width="11%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 3px;" width="43%" align="left">Allowance for doubtful accounts</td> <td width="2%" align="left">$</td> <td width="11%" align="right">58</td> <td width="2%" align="left">$</td> <td width="11%" align="right">153</td> <td width="2%" align="left">$</td> <td width="10%" align="right">158</td> <td width="2%" align="left">$</td> <td width="11%" align="right">53</td></tr> <tr valign="bottom"><td style="text-indent: 3px;" width="43%" align="left">Year-ended December 31, 2010 –</td> <td width="2%" align="left"> </td> <td width="11%" align="left"> </td> <td width="2%" align="left"> </td> <td width="11%" align="left"> </td> <td width="2%" align="left"> </td> <td width="10%" align="left"> </td> <td width="2%" align="left"> </td> <td width="11%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 3px;" width="43%" align="left">Allowance for doubtful accounts</td> <td width="2%" align="left">$</td> <td width="11%" align="right">207</td> <td width="2%" align="left">$</td> <td width="11%" align="right">69</td> <td width="2%" align="left">$</td> <td width="10%" align="right">218</td> <td width="2%" align="left">$</td> <td width="11%" align="right">58</td></tr> <tr valign="bottom"><td style="text-indent: 3px;" width="43%" align="left">Year-ended December 31, 2009 –</td> <td width="2%" align="left"> </td> <td width="11%" align="left"> </td> <td width="2%" align="left"> </td> <td width="11%" align="left"> </td> <td width="2%" align="left"> </td> <td width="10%" align="left"> </td> <td width="2%" align="left"> </td> <td width="11%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 3px;" width="43%" align="left">Allowance for doubtful accounts</td> <td width="2%" align="left">$</td> <td width="11%" align="right">397</td> <td width="2%" align="left">$</td> <td width="11%" align="right">142</td> <td width="2%" align="left">$</td> <td width="10%" align="right">332</td> <td width="2%" align="left">$</td> <td width="11%" align="right">207</td></tr> <tr><td width="94%" colspan="9"> </td></tr> <tr valign="bottom"><td width="43%" align="left">Tax valuation allowance</td> <td width="2%" align="left"> </td> <td width="11%" align="left"> </td> <td width="2%" align="left"> </td> <td width="11%" align="left"> </td> <td width="2%" align="left"> </td> <td width="10%" align="left"> </td> <td width="2%" align="left"> </td> <td width="11%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 3px;" width="43%" align="left">Year-ended December 31, 2011 – Tax</td> <td width="2%" align="left"> </td> <td width="11%" align="left"> </td> <td width="2%" align="left"> </td> <td width="11%" align="left"> </td> <td width="2%" align="left"> </td> <td width="10%" align="left"> </td> <td width="2%" align="left"> </td> <td width="11%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 3px;" width="43%" align="left">valuation allowance</td> <td width="2%" align="left">$</td> <td width="11%" align="right">54,513</td> <td width="2%" align="left">$</td> <td width="11%" align="right">-</td> <td width="2%" align="left">$</td> <td width="10%" align="right">16,052</td> <td width="2%" align="left">$</td> <td width="11%" align="right">38,461</td></tr> <tr valign="bottom"><td style="text-indent: 3px;" width="43%" align="left">Year-ended December 31, 2010 – Tax</td> <td width="2%" align="left"> </td> <td width="11%" align="left"> </td> <td width="2%" align="left"> </td> <td width="11%" align="left"> </td> <td width="2%" align="left"> </td> <td width="10%" align="left"> </td> <td width="2%" align="left"> </td> <td width="11%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 3px;" width="43%" align="left">valuation allowance</td> <td width="2%" align="left">$</td> <td width="11%" align="right">59,603</td> <td width="2%" align="left">$</td> <td width="11%" align="right">-</td> <td width="2%" align="left">$</td> <td width="10%" align="right">5,090</td> <td width="2%" align="left">$</td> <td width="11%" align="right">54,513</td></tr> <tr valign="bottom"><td style="text-indent: 3px;" width="43%" align="left">Year-ended December 31, 2009 – Tax</td> <td width="2%" align="left"> </td> <td width="11%" align="left"> </td> <td width="2%" align="left"> </td> <td width="11%" align="left"> </td> <td width="2%" align="left"> </td> <td width="10%" align="left"> </td> <td width="2%" align="left"> </td> <td width="11%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 3px;" width="43%" align="left">valuation allowance</td> <td width="2%" align="left">$</td> <td width="11%" align="right">59,938</td> <td width="2%" align="left">$</td> <td width="11%" align="right">-</td> <td width="2%" align="left">$</td> <td width="10%" align="right">335</td> <td width="2%" align="left">$</td> <td width="11%" align="right">59,603</td></tr></table></div> </div>

<div> Note 22 – Business Segments and Geographic Area Information      During 2010, we changed our reporting for intercompany property rent where our cinema operations were substantially the only tenant of such property by eliminating the intersegment revenue and expense relating to the intercompany rent, and transferring the third party lease costs from the real estate segment to the cinema exhibition segment. This change in management's structure of the reportable segments commenced on January 1, 2010, such changes to segment reporting are reflected in the segment results for 2010 and 2009, respectively. The retroactive presentation in 2009 segment results decreased intersegment revenue and expense for the intercompany rent by $4.4 million and transferred the third party lease costs from the real estate segment to the cinema exhibition segment. The overall results of these changes decreased real estate segment revenue and expense by $4.4 million for the year ended December 31, 2009. This change results in a reduction of real estate operating expense and an increase of cinema operating expense of $4.4 million on our Consolidated Statements of Operations for the year ended December 31, 2009.      The table below sets forth certain information concerning our cinema operations and our real estate operations (which includes information relating to both our real estate development, retail rental and live theater rental activities) for the three years ended December 31, 2011 (dollars in thousands): <div> <table style="width: 680px; height: 205px;" border="0" cellspacing="0"> <tr><td width="34%"> </td> <td width="2%"> </td> <td width="15%" align="center"> </td> <td width="2%" align="center"> </td> <td width="13%" align="center"> </td> <td width="2%" align="center"> </td> <td width="14%" align="center"> </td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="14%" align="center"> </td></tr> <tr valign="bottom"><td width="34%" align="left"> </td> <td width="2%" align="right"> </td> <td width="15%" align="center">Cinema</td> <td width="2%" align="center"> </td> <td width="13%" align="center">Real</td> <td width="2%" align="center"> </td> <td width="14%" align="center">Intersegment</td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="14%" align="center"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="34%" align="left">Year Ended December 31, 2011</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="center">Exhibition</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="center">Estate</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="center">Eliminations</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="center">Total</td></tr> <tr valign="bottom"><td width="34%" align="left">Revenue</td> <td width="2%" align="right">$</td> <td width="15%" align="right">225,849</td> <td width="2%" align="left">$</td> <td width="13%" align="right">27,388</td> <td width="2%" align="left">$</td> <td width="14%" align="right">(7,432</td> <td width="2%" align="left">)</td> <td width="2%" align="left">$</td> <td width="14%" align="right">245,805</td></tr> <tr valign="bottom"><td width="34%" align="left">Operating Expense</td> <td width="2%" align="right"> </td> <td width="15%" align="right">189,647</td> <td width="2%" align="left"> </td> <td width="13%" align="right">10,419</td> <td width="2%" align="left"> </td> <td width="14%" align="right">(7,432</td> <td width="2%" align="left">)</td> <td width="2%" align="left"> </td> <td width="14%" align="right">192,634</td></tr> <tr valign="bottom"><td width="34%" align="left">Depreciation & amortization</td> <td width="2%" align="right"> </td> <td width="15%" align="right">11,842</td> <td width="2%" align="left"> </td> <td width="13%" align="right">4,809</td> <td width="2%" align="left"> </td> <td width="14%" align="right">-</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="14%" align="right">16,651</td></tr> <tr valign="bottom"><td width="34%" align="left">Impairment expense</td> <td width="2%" align="right"> </td> <td width="15%" align="right">-</td> <td width="2%" align="left"> </td> <td width="13%" align="right">369</td> <td width="2%" align="left"> </td> <td width="14%" align="right">-</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="14%" align="right">369</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="34%" align="left">General & administrative expense</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right">2,740</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">646</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">-</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">3,386</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="34%" align="left">Segment operating income</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right">21,620</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">11,145</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">-</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">32,765</td></tr></table></div>   <div> </div> <div> <table border="0" cellspacing="0"> <tr><td width="33%"> </td> <td width="2%"> </td> <td width="15%"> </td> <td width="2%"> </td> <td width="13%"> </td> <td width="2%"> </td> <td width="14%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="14%"> </td></tr> <tr valign="bottom"><td width="33%" align="left"> </td> <td width="2%" align="right"> </td> <td width="15%" align="center">Cinema</td> <td width="2%" align="center"> </td> <td width="13%" align="center">Real</td> <td width="2%" align="center"> </td> <td width="14%" align="center">Intersegment</td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="14%" align="center"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="33%" align="left">Year Ended December 31, 2010</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="center">Exhibition</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="center">Estate</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="center">Eliminations</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="center">Total</td></tr> <tr valign="bottom"><td width="33%" align="left">Revenue</td> <td width="2%" align="right">$</td> <td width="15%" align="right">211,073</td> <td width="2%" align="left">$</td> <td width="13%" align="right">25,512</td> <td width="2%" align="left">$</td> <td width="14%" align="right">(6,466</td> <td width="2%" align="left">)</td> <td width="2%" align="left">$</td> <td width="14%" align="right">230,119</td></tr> <tr valign="bottom"><td width="33%" align="left">Operating expense</td> <td width="2%" align="right"> </td> <td width="15%" align="right">178,261</td> <td width="2%" align="left"> </td> <td width="13%" align="right">9,221</td> <td width="2%" align="left"> </td> <td width="14%" align="right">(6,466</td> <td width="2%" align="left">)</td> <td width="2%" align="left"> </td> <td width="14%" align="right">181,016</td></tr> <tr valign="bottom"><td width="33%" align="left">Depreciation & amortization</td> <td width="2%" align="right"> </td> <td width="15%" align="right">10,559</td> <td width="2%" align="left"> </td> <td width="13%" align="right">4,640</td> <td width="2%" align="left"> </td> <td width="14%" align="right">-</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="14%" align="right">15,199</td></tr> <tr valign="bottom"><td width="33%" align="left">Impairment expense</td> <td width="2%" align="right"> </td> <td width="15%" align="right">-</td> <td width="2%" align="left"> </td> <td width="13%" align="right">2,239</td> <td width="2%" align="left"> </td> <td width="14%" align="right">-</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="14%" align="right">2,239</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="33%" align="left">General & administrative expense</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right">2,880</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">1,220</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">-</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">4,100</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="33%" align="left">Segment operating income</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right">19,373</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">8,192</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">-</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">27,565</td></tr> <tr><td width="99%" colspan="10"> </td></tr> <tr valign="bottom"><td width="33%" align="left"> </td> <td width="2%" align="right"> </td> <td width="15%" align="center">Cinema</td> <td width="2%" align="center"> </td> <td width="13%" align="center">Real</td> <td width="2%" align="center"> </td> <td width="14%" align="center">Intersegment</td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="14%" align="center"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="33%" align="left">Year Ended December 31, 2009</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="center">Exhibition</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="center">Estate</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="center">Eliminations</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="center">Total</td></tr> <tr valign="bottom"><td width="33%" align="left">Revenue</td> <td width="2%" align="right">$</td> <td width="15%" align="right">201,388</td> <td width="2%" align="left">$</td> <td width="13%" align="right">20,867</td> <td width="2%" align="left">$</td> <td width="14%" align="right">(5,241</td> <td width="2%" align="left">)</td> <td width="2%" align="left">$</td> <td width="14%" align="right">217,014</td></tr> <tr valign="bottom"><td width="33%" align="left">Operating expense</td> <td width="2%" align="right"> </td> <td width="15%" align="right">165,708</td> <td width="2%" align="left"> </td> <td width="13%" align="right">7,591</td> <td width="2%" align="left"> </td> <td width="14%" align="right">(5,241</td> <td width="2%" align="left">)</td> <td width="2%" align="left"> </td> <td width="14%" align="right">168,058</td></tr> <tr valign="bottom"><td width="33%" align="left">Depreciation & amortization</td> <td width="2%" align="right"> </td> <td width="15%" align="right">10,816</td> <td width="2%" align="left"> </td> <td width="13%" align="right">3,686</td> <td width="2%" align="left"> </td> <td width="14%" align="right">-</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="14%" align="right">14,502</td></tr> <tr valign="bottom"><td width="33%" align="left">Loss on transfer of real estate held for sale to</td> <td width="2%" align="right"> </td> <td width="15%" align="left"> </td> <td width="2%" align="left"> </td> <td width="13%" align="left"> </td> <td width="2%" align="left"> </td> <td width="14%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="14%" align="left"> </td></tr> <tr valign="bottom"><td width="33%" align="left">continuing operations</td> <td width="2%" align="right"> </td> <td width="15%" align="right">-</td> <td width="2%" align="left"> </td> <td width="13%" align="right">549</td> <td width="2%" align="left"> </td> <td width="14%" align="right">-</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="14%" align="right">549</td></tr> <tr valign="bottom"><td width="33%" align="left">Impairment expense</td> <td width="2%" align="right"> </td> <td width="15%" align="right">-</td> <td width="2%" align="left"> </td> <td width="13%" align="right">3,217</td> <td width="2%" align="left"> </td> <td width="14%" align="right">-</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="14%" align="right">3,217</td></tr> <tr valign="bottom"><td width="33%" align="left">Contractual commitment loss</td> <td width="2%" align="right"> </td> <td width="15%" align="right">-</td> <td width="2%" align="left"> </td> <td width="13%" align="right">1,092</td> <td width="2%" align="left"> </td> <td width="14%" align="right">-</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="14%" align="right">1,092</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="33%" align="left">General & administrative expense</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right">2,645</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">1,063</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">-</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">3,708</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="33%" align="left">Segment operating income</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right">22,219</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">3,669</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">-</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">25,888</td></tr></table></div>   <div> <table border="0" cellspacing="0"> <tr><td width="46%"> </td> <td width="2%"> </td> <td width="15%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="14%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="15%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td width="46%" align="left">Reconciliation to net income attributable to Reading</td> <td width="2%" align="left"> </td> <td width="15%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="14%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="15%" align="left"> </td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="46%" align="left">International, Inc. shareholders:</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="center">2009</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="46%" align="left">Total segment operating income</td> <td width="2%" align="left">$</td> <td width="15%" align="right">32,765</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="14%" align="right">27,565</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="15%" align="right">25,888</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 3px;" width="46%" align="left">Non-segment:</td> <td width="2%" align="left"> </td> <td width="15%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="14%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="15%" align="left"> </td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 7px;" width="46%" align="left">Depreciation & amortization expense</td> <td width="2%" align="left"> </td> <td width="15%" align="right">309</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="14%" align="right">715</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="15%" align="right">666</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 7px;" width="46%" align="left">General & administrative expense</td> <td width="2%" align="left"> </td> <td width="15%" align="right">14,046</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="14%" align="right">13,684</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="15%" align="right">13,851</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="46%" align="left">Other operating income</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right">-</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">-</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right">(2,551</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td></tr> <tr valign="bottom"><td width="46%" align="left">Operating income</td> <td width="2%" align="left"> </td> <td width="15%" align="right">18,410</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="14%" align="right">13,166</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="15%" align="right">13,922</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 3px;" width="46%" align="left">Interest expense, net</td> <td width="2%" align="left"> </td> <td width="15%" align="right">(21,038</td> <td width="2%" align="left">)</td> <td width="2%" align="left"> </td> <td width="14%" align="right">(12,286</td> <td width="2%" align="left">)</td> <td width="2%" align="left"> </td> <td width="15%" align="right">(14,572</td> <td width="2%" align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 3px;" width="46%" align="left">Other income (expense)</td> <td width="2%" align="left"> </td> <td width="15%" align="right">1,157</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="14%" align="right">(347</td> <td width="2%" align="left">)</td> <td width="2%" align="left"> </td> <td width="15%" align="right">(2,013</td> <td width="2%" align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 3px;" width="46%" align="left">Gain (loss) on sale of assets</td> <td width="2%" align="left"> </td> <td width="15%" align="right">(67</td> <td width="2%" align="left">)</td> <td width="2%" align="left"> </td> <td width="14%" align="right">352</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="15%" align="right">(2</td> <td width="2%" align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 3px;" width="46%" align="left">Income tax benefit (expense)</td> <td width="2%" align="left"> </td> <td width="15%" align="right">12,330</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="14%" align="right">(14,264</td> <td width="2%" align="left">)</td> <td width="2%" align="left"> </td> <td width="15%" align="right">(1,952</td> <td width="2%" align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 3px;" width="46%" align="left">Equity earnings (loss) of unconsolidated joint ventures and</td> <td width="2%" align="left"> </td> <td width="15%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="14%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="15%" align="left"> </td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 3px;" width="46%" align="left">entities</td> <td width="2%" align="left"> </td> <td width="15%" align="right">(1,552</td> <td width="2%" align="left">)</td> <td width="2%" align="left"> </td> <td width="14%" align="right">1,345</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="15%" align="right">117</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 3px;" width="46%" align="left">Income from discontinued operations</td> <td width="2%" align="left"> </td> <td width="15%" align="right">1,656</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="14%" align="right">-</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="15%" align="right">-</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 3px;" width="46%" align="left">Gain on extinguishment of debt</td> <td width="2%" align="left"> </td> <td width="15%" align="right">-</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="14%" align="right">-</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="15%" align="right">10,714</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 3px;" width="46%" align="left">Gain on sale of unconsolidated joint venture</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right">-</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">-</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right">268</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="46%" align="left">Net income (loss)</td> <td width="2%" align="left">$</td> <td width="15%" align="right">10,896</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="14%" align="right">(12,034</td> <td width="2%" align="left">)</td> <td width="2%" align="left">$</td> <td width="15%" align="right">6,482</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 3px;" width="46%" align="left">Net income attributable to noncontrolling interests</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right">(940</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">(616</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right">(388</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td></tr> <tr valign="bottom"><td width="46%" align="left">Net income (loss) attributable to Reading International, Inc.</td> <td width="2%" align="left"> </td> <td width="15%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="14%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="15%" align="left"> </td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="46%" align="left">common shareholders</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right">9,956</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">(12,650</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right">6,094</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td></tr></table></div>   <div> <table border="0" cellspacing="0"> <tr><td width="64%"> </td> <td width="2%"> </td> <td width="16%"> </td> <td width="2%"> </td> <td width="15%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="64%" align="left">Summary of assets:</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="16%" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="center">2010</td></tr> <tr valign="bottom"><td width="64%" align="left">Segment assets</td> <td width="2%" align="left">$</td> <td width="16%" align="right">414,608</td> <td width="2%" align="left">$</td> <td width="15%" align="right">406,569</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="64%" align="left">Corporate assets</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="16%" align="right">16,156</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right">23,780</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="64%" align="left">Total Assets</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="16%" align="right">430,764</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right">430,349</td></tr></table></div>   <div> </div> <div> <table border="0" cellspacing="0"> <tr><td width="48%"> </td> <td width="2%"> </td> <td width="15%"> </td> <td width="2%"> </td> <td width="14%"> </td> <td width="2%"> </td> <td width="15%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="48%" align="left">Summary of capital expenditures:</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="center">2009</td></tr> <tr valign="bottom"><td width="48%" align="left">Segment capital expenditures</td> <td width="2%" align="left">$</td> <td width="15%" align="right">8,419</td> <td width="2%" align="left">$</td> <td width="14%" align="right">18,942</td> <td width="2%" align="left">$</td> <td width="15%" align="right">5,584</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="48%" align="left">Corporate capital expenditures</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right">957</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">429</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right">102</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="48%" align="left">Total capital expenditures</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right">9,376</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">19,371</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right">5,686</td></tr></table></div>        The cinema results shown above include revenue and operating expense directly linked to our cinema assets. The real estate results include rental income from our properties and live theaters and operating expense directly linked to our property assets.      The following table sets forth the book value of our property and equipment by geographical area (dollars in thousands): <div> <table border="0" cellspacing="0"> <tr><td width="64%"> </td> <td width="2%"> </td> <td width="15%"> </td> <td width="2%"> </td> <td width="15%"> </td></tr> <tr valign="bottom"><td width="64%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="32%" colspan="3" align="center">December 31,</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="64%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="center">2010</td></tr> <tr valign="bottom"><td width="64%" align="left">Australia</td> <td width="2%" align="left">$</td> <td width="15%" align="right">117,911</td> <td width="2%" align="center">$</td> <td width="15%" align="right">121,403</td></tr> <tr valign="bottom"><td width="64%" align="left">New Zealand</td> <td width="2%" align="left"> </td> <td width="15%" align="right">33,322</td> <td width="2%" align="left"> </td> <td width="15%" align="right">33,809</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="64%" align="left">United States</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right">64,195</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right">65,038</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="64%" align="left">Total property and equipment</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right">215,428</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center">$</td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right">220,250</td></tr></table></div>   The following table sets forth our revenue by geographical area (dollars in thousands): <div> <table border="0" cellspacing="0"> <tr><td width="45%"> </td> <td width="2%"> </td> <td width="14%"> </td> <td width="2%"> </td> <td width="16%"> </td> <td width="2%"> </td> <td width="15%"> </td></tr> <tr valign="bottom"><td width="45%" align="left"> </td> <td width="2%" align="left"> </td> <td width="14%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="16%" align="center">December 31,</td> <td width="2%" align="left"> </td> <td width="15%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="45%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="16%" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="center">2009</td></tr> <tr valign="bottom"><td width="45%" align="left">Australia</td> <td width="2%" align="left">$</td> <td width="14%" align="right">111,568</td> <td width="2%" align="left">$</td> <td width="16%" align="right">94,215</td> <td width="2%" align="left">$</td> <td width="15%" align="right">80,848</td></tr> <tr valign="bottom"><td width="45%" align="left">New Zealand</td> <td width="2%" align="left"> </td> <td width="14%" align="right">22,247</td> <td width="2%" align="left"> </td> <td width="16%" align="right">25,338</td> <td width="2%" align="left"> </td> <td width="15%" align="right">22,776</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="45%" align="left">United States</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">111,990</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="16%" align="right">110,566</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right">113,390</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="45%" align="left">Total revenue</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">245,805</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="16%" align="right">230,119</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="15%" align="right">217,014</td></tr></table></div> </div>

916000

821000

939000

<div> Note 2 – Summary of Significant Accounting Policies   Basis of Consolidation                   The consolidated financial statements of RDI and its subsidiaries include the accounts of CDL, RDGE, and CRG.  Also consolidated are Australia Country Cinemas Pty, Limited ("ACC"), a company in which we own a 75% interest, and whose only assets are our leasehold cinemas in Townsville and Dubbo, Australia; and the Angelika Film Center LLC ("AFC") in which we own a 50% controlling membership interest and whose only asset is the Angelika Film Center in Manhattan.   Our investment interests are accounted for as unconsolidated joint ventures and entities, and accordingly, our unconsolidated joint ventures and entities in 20% to 50% owned companies are accounted for on the equity method. These investment interests include our ·         25% undivided interest in the unincorporated joint venture that owns 205-209 East 57th Street Associates, LLC (Place 57) a limited liability company formed to redevelop our former cinema site at 205 East 57th Street in Manhattan; ·         33.3% undivided interest in the unincorporated joint venture that owns the Mt. Gravatt cinema in a suburb of Brisbane, Australia; ·         33.3% undivided interest in Rialto Distribution, an unincorporated joint venture engaged in the business of distributing art film in New Zealand and Australia; and ·         50% undivided interest in the unincorporated joint venture that owns Rialto Cinemas.   Refinancing Long-Term Debt   Australian Credit Facility   On June 24, 2011, we replaced our Australian Corporate Credit Facility with BOS International ("BOSI") of $115.8 million (AUS$110.0 million) with the proceeds from a new credit facility from National Australia Bank ("NAB") of $110.5 million (AUS$105.0 million). The outstanding balance of this loan of $101.7 million (AUS$100.5 million) was classified as a current liability at December 31, 2010 on our 2010 Consolidated Balance Sheet as we had not refinanced the then currently maturing facility prior to the annual report issuance date. See Note 12 – Notes Payable.     New Zealand Credit Facility   The term of our New Zealand Credit Facility with Westpac matures on March 31, 2012. On February 8, 2012, we received an approved amendment from Westpac renewing our existing $35.1 million (NZ$45.0 million) New Zealand credit facility with a 3-year $31.2 million (NZ$40.0 million) credit facility (see Note 28 – Subsequent Events). Accordingly, the December 31, 2011 outstanding balance of this debt of $21.9 million (NZ$28.0 million) is classified as long-term on our balance sheet.   Cinemas 1, 2, 3 Loan   As the loan is due to mature on July 1, 2012, the December 31, 2011 outstanding balance of this debt of $15.0 million is classified as current on our balance sheet. We intend to either refinance the property's debt with similar financing or sell the property and use the proceeds to pay off the loan.   Cash Position   Our cash position at December 31, 2011 was $31.6 million. Of the $31.6 million, $16.5 million was in Australia, $11.8 million was in the U.S., and $3.3 million was in New Zealand. Of the $16.5 million in Australia, pursuant to our new NAB Credit Facility, we are only able to transfer $4.1 million (AUS$4.0 million) per year outside of Australia without the prior approval of NAB. Of the $11.8 million in the U.S., $8.7 million is included in our Consolidated Entertainment subsidiary and is subject to certain debt covenants with GE Capital as discussed in Note 12 that limit the use of this cash outside of the subsidiary without the prior approval of GE. Therefore, at December 31, 2011, we have approximately $6.4 million of cash worldwide that is not restricted by covenants.   At December 31, 2011, we had undrawn funds of $10.3 million (AU$10.0 million) available under our NAB line of credit in Australia, effectively $9.4 million (NZ$12.0 million) available under our renewed New Zealand Corporate Credit facility, $5.0 million available under our GE Capital revolving loan credit facility in the U.S., and $500,000 available under our Bank of America line of credit in the U.S. Accordingly, we believe that we have sufficient borrowing capacity under our various credit facilities, together with our $31.6 million cash balance, to meet our anticipated short-term working capital requirements.   Accounting Principles   Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP").   Cash and Cash Equivalents   We consider all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents for which cost approximates fair value.   Receivables   Our receivables balance is composed primarily of credit card receivables, representing the purchase price of tickets, concessions, or coupon books sold at our various businesses. Sales charged on customer credit cards are collected when the credit card transactions are processed. The remaining receivables balance is primarily made up of the goods and services tax ("GST") refund receivable from our Australian taxing authorities and the management fee receivable from the managed cinemas. We have no history of significant bad debt losses and we have established an allowance for accounts that we deem uncollectible.   Inventory   Inventory is composed of concession goods used in theater operations and is stated at the lower of cost (first-in, first-out method) or net realizable value.     Investment in Marketable Securities   We account for investments in marketable debt and equity securities in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 320-10 - Investments—Debt and Equity Securities ("ASC 320-10"). Our investment in Marketable Securities includes equity instruments that are classified as available for sale and are recorded at market using the specific identification method. In accordance with ASC 320-10, available for sale securities are carried at their fair market value and any difference between cost and market value is recorded as unrealized gain or loss, net of income taxes, and is reported as accumulated other comprehensive income in the consolidated statement of stockholders' equity. Premiums and discounts of any debt instruments are recognized in interest income using the effective interest method. Realized gains and losses and declines in value expected to be other-than-temporary on available for sale securities are included in other expense. We evaluate our available for sale securities for other than temporary impairments at the end of each reporting period. During 2009, we realized a loss of $2.1 million on certain marketable securities due to an other than temporary decline in market price. This loss was later offset by a $1.1 million realized gain on exchange of marketable securities. Additionally, these investments have a cumulative unrealized loss of $11,000 included in other comprehensive income at December 31, 2011. For the twelve months ended December 31, 2011, 2010, and 2009, our <a name="OLE_LINK68">net unrealized gain (loss) </a>was ($32,000), ($478,000), and $524,000, respectively. The cost of securities sold is based on the specific identification method. Interest and dividends on securities classified as available for sale are included in interest income.                 Variable Interest Entity                   Our determination of the appropriate accounting method with respect to our investment in Reading International Trust I, which is considered a Variable Interest Entity ("VIE"), is based on FASB ASC 810-10.  We account for this VIE, of which we are not the primary beneficiary, under the equity method of accounting.                   We determine if an entity is a VIE under FASB ASC 810-10 based on several factors, including whether the entity's total equity investment at risk upon inception is sufficient to finance the entity's activities without additional subordinated financial support.  We make judgments regarding the sufficiency of the equity at risk based first on a qualitative analysis, then a quantitative analysis, if necessary.  In a quantitative analysis, we incorporate various estimates, including estimated future cash flows, asset hold periods and discount rates, as well as estimates of the probabilities of various scenarios occurring.  If the entity is a VIE, we then determine whether we consolidate the entity as the primary beneficiary.  We determine whether an entity is a VIE and, if so, whether it should be consolidated by utilizing judgments and estimates that are inherently subjective.  If we made different judgments or utilized different estimates in these evaluations, it could result in differing conclusions as to whether or not an entity is a VIE and whether or not to consolidate such entity.  Our investments in unconsolidated entities in which we have the ability to exercise significant influence over operating and financial policies, but do not control, or entities which are variable interest entities in which we are not the primary beneficiary are accounted for under the equity method.                   We carry our investment in the Reading International Trust I using the equity method of accounting because we have the ability to exercise significant influence (but not control) over operating and financial policies of the entity.  We eliminate transactions with an equity method entity to the extent of our ownership in such an entity.  Accordingly, our share of net income (loss) of this equity method entity is included in consolidated net income (loss).  We have no implicit or explicit obligation to further fund our investment in Reading International Trust I.   Restricted Cash   We classify restricted cash as those cash accounts for which the use of funds is restricted by contract or bank covenant. At December 31, 2011 and 2010, our restricted cash balance was $2.4 million and $2.2 million, respectively, which was primarily funds held in escrow for our Mackie litigation settlement.   Fair Value of Financial Instruments   The carrying amounts of our cash and cash equivalents, accounts receivable, restricted cash, and accounts payable approximate fair value due to their short-term maturities. See Note 16 – Fair Value of Financial Instruments.   Derivative Financial Instruments   In accordance with FASB ASC 815-20 – Derivatives and Hedging ("ASC 815-20"), we carry all derivative financial instruments on our consolidated balance sheets at fair value. Derivatives are generally executed for interest rate management purposes but are not designated as hedges in accordance with ASC 815-20. Therefore, changes in market values are recognized in current earnings.   Property Held for and Under Development   Property held for development is carried at the lower of cost or fair market value. Property under development consists of land, new buildings and improvements under development, and their associated capitalized interest and other development costs. These building and improvement costs are directly associated with the development of potential cinemas (whether for sale or lease), the development of entertainment themed retail centers ("ETRCs"), or other improvements to real property. As incurred, we expense start-up costs (such as pre-opening cinema advertising and training expense) and other costs not directly related to the acquisition and development of long-term assets. We cease capitalization on a development property when the property is complete and ready for its intended use, or if activities necessary to get the property ready for its intended use have been substantially curtailed. During the year-ended December 31, 2009, we decided to curtail our current development progress on certain <a name="OLE_LINK38"> </a><a name="OLE_LINK37">Australian and New Zealand </a>land development projects. As a result, these properties are considered held for development and we have not capitalized interest for these projects and will not do so, until the development work recommences.   Incident to the development of our Burwood property, in late 2006, we began various fill and earth moving operations. In late February 2007, it became apparent that our cost estimates with respect to site preparation were low, as the extent of the contaminated soil present at the site, a former brickworks site, was greater than we had originally believed. As we were not the source of this contamination, we are not currently under any legal obligation to remove this contaminated soil from the site. However, as a practical matter, we intend to address these issues in connection with our planned redevelopment of the site as a mixed-use retail, entertainment, commercial and residential complex. As of December 31, 2011, we estimate that the total site preparation costs associated with the removal of this contaminated soil will be $12.5 million (AUS$12.2 million) and as of that date we had incurred a total of $8.5 million (AUS$8.3 million) of these costs. In accordance with FASB ASC 410-30-25 – Environmental Obligations, contamination clean up costs that improve the property from its original acquisition state are capitalized as part of the property's overall development costs.   Property and Equipment   Property and equipment consists of land, buildings and improvements, leasehold improvements, fixtures and equipment. With the exception of land, property and equipment is carried at the lower of cost or fair market value and depreciated over the useful lives of the related assets. In accordance with US GAAP, land is not depreciated.   Construction-in-Progress Costs   Construction-in-progress includes costs associated with already existing buildings, property, furniture, and fixtures for which we are in the process of improving the site or its associated business assets.   Accounting for the Impairment of Long Lived Assets   We assess whether there has been impairment in the value of our long-lived assets whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is then measured by a comparison of the carrying amount to the future net cash flows, undiscounted and without interest, expected to be generated by the asset. If such assets are considered impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value, less costs to sell. We recorded impairment losses of approximately $369,000, $2.2 million, and $3.2 million, relating to certain of our property under development, property held for development, and cinema locations for the years ended December 31, 2011, 2010, and 2009, respectively. The impairments reflect our estimates of fair value which were based on appraisals or a discounted income approach with market based assumptions. Our impairment calculations contain uncertainties and use significant estimates and judgments, and are based on the information available at the balance sheet date. Future economic and other events could negatively impact the evaluation and future material impairment charges may become necessary. We evaluate our joint venture investments for other than temporary impairments in accordance with FASB ASC 318-10 – Investments—Equity Method and Joint Ventures.   Goodwill and Intangible Assets   We use the purchase method of accounting for all business combinations. Goodwill and intangible assets with indefinite useful lives are not amortized, but instead, tested for impairment at least annually. Prior to conducting our goodwill impairment analysis, we assess long-lived assets for impairment in accordance with FASB ASC 360-15 - Impairment or Disposal of Long-Lived Assets ("ASC 360-15"). We then perform the impairment analysis at the reporting unit level (one level below the operating segment level) (see Note 10 – Goodwill and Intangibles) as defined by FASB ASC 350-35 – Goodwill Subsequent Measurement ("ASC 350-35"). This analysis requires management to make a series of critical assumptions to: (1) evaluate whether any impairment exists; and (2) measure the amount of impairment. We estimate the fair value of our reporting units as compared with their current book value. If the estimated fair value of a reporting unit is less than the book value, then impairment is deemed to have occurred. In estimating the fair value of our reporting units, we primarily use the income approach (which uses forecasted, discounted cash flows to estimate the fair value of the reporting unit). For the years ended December 31, 2010 and 2009, in accordance with the sale agreement of Consolidated Entertainment, the initial aggregate purchase price of the cinemas was adjusted down by $16.9 million and $226,000, respectively, resulting in a corresponding decrease in goodwill associated with the purchased cinemas. No further adjustments are anticipated for this transaction. The resulting net goodwill balance associated with this transaction is $1.7 million at December 31, 2011 and 2010.   Discontinued Operations and Properties Held for Sale   In accordance with ASC 360-15, the revenue, expenses and net gain on dispositions of operating properties and the revenue and expenses on properties classified as held for sale are reported in the consolidated statements of operations as discontinued operations for all periods presented through the date of the respective disposition. The net gain (loss) on disposition is included in the period the property is sold. In determining whether the income and loss and net gain on dispositions of operating properties is reported as discontinued operations, we evaluate whether we have any significant continuing involvement in the operations, leasing or management of the sold property in accordance with FASB ASC 205-20 – Presentation of Financial Statements – Discontinued Operations ("ASC 205-20"). If we were to determine that there was any significant continuing involvement, the income and loss and net gain on dispositions of the operating property would not be recorded in discontinued operations.   A property is classified as held for sale when certain criteria, as set forth under ASC 360-15, are met. At such time, we present the respective assets and liabilities related to the property held for sale separately on the balance sheet and cease to record depreciation and amortization expense. Properties held for sale are reported at the lower of their carrying value or their estimated fair value less the estimated costs to sell. For a description of the properties previously held for sale see Note 9 – Transfer of Held for Sale Real Estate to Continuing Operations and Related Items. The reclassified results for these transfers of held for sale to operating are reflected in our December 31, 2011, 2010, and 2009 Statement of Operations.   Revenue Recognition   Revenue from cinema ticket sales and concession sales are recognized when sold. Revenue from gift certificate sales is deferred and recognized when the certificates are redeemed. Rental revenue is recognized on a straight-line basis in accordance with FASB ASC 840-20-25 – Leases Having Both Scheduled Rent Increases and Contingent Rents ("ASC 840-20-25").     Deferred Leasing/Financing Costs   Direct costs incurred in connection with obtaining tenants and/or financing are amortized over the respective term of the lease or loan on a straight-line basis. Direct costs incurred in connection with financing are amortized over the respective term of the loan utilizing the effective interest method, or straight-line method if the result is not materially different. In addition, interest on loans with increasing interest rates and scheduled principal pre-payments are also recognized on the effective interest method.   Advertising Expense                   We expense our advertising as incurred.  The amount of our advertising expense was $3.8 million, $3.8 million, and $3.4 million for the years ended December 2011, 2010, and 2009, respectively.   Other Income/Expense                                 For the years ended December 31, 2011, 2010, and 2009, we recorded gains/(losses) on the settlement of litigation of $0, ($808,000), and $3.3 million, respectively, included in other income, as a recovery of legal expenses previously included in general and administrative expenses.   Depreciation and Amortization   Depreciation and amortization are provided using the straight-line method over the estimated useful lives of the assets. The estimated useful lives are generally as follows:   <div align="center"> <table style="border-collapse: collapse; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0"> <tr><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 174.2pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="232"> Building and improvements</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 291.15pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="388"> 15-40 years</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 174.2pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="232"> Leasehold improvement</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 291.15pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="388"> Shorter of the life of the lease or useful life of the improvement</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 174.2pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="232"> Theater equipment</td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 291.15pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="388"> 7 years</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 5.4pt; width: 174.2pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="232"> Furniture and fixtures         </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; width: 291.15pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="388"> 5 – 10 years</td></tr></table></div>   Translation of Non-U.S. Currency Amounts   The financial statements and transactions of our Australian and New Zealand cinema and real estate operations are reported in their functional currencies, namely Australian and New Zealand dollars, respectively, and are then translated into U.S. dollars. Assets and liabilities of these operations are denominated in their functional currencies and are then translated at exchange rates in effect at the balance sheet date. Revenue and expenses are translated at the average exchange rate for the reporting period. Translation adjustments are reported in "Accumulated Other Comprehensive Income," a component of Stockholders' Equity.                   The carrying value of our Australian and New Zealand assets fluctuates due to changes in the exchange rate between the U.S. dollar and the Australian and New Zealand dollars.  The exchange rates of the U.S. dollar to the Australian dollar were $1.0251 and $1.0122 as of December 31, 2011 and 2010, respectively.  The exchange rates of the U.S. dollar to the New Zealand dollar were $0.7805 and $0.7687 as of December 31, 2011 and 2010, respectively.   Income Taxes                   We account for income taxes under FASB ASC 740-10 – Income Taxes ("ASC 740-10"), which prescribes an asset and liability approach.  Under the asset and liability method, deferred tax assets and liabilities are recognized for the expected future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and the respective tax bases.  Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.  Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.  Income tax expense (benefit) is the tax payable (refundable) for the period and the change during the period in deferred tax assets and liabilities.                   In evaluating our ability to recover our deferred tax assets within the jurisdiction from which they arise we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial operations.  In projecting future taxable income, we begin with historical results adjusted for the results of discontinued operations and changes in accounting policies.  We then include assumptions about the amount of projected future state, federal and foreign pretax operating income, the reversal of temporary differences, and the implementation of feasible and prudent tax planning strategies.  These assumptions require significant judgment about the forecasts of future taxable income and are consistent with the plans and estimates we use to manage the underlying businesses.  In evaluating the objective evidence that historical results provide, we consider three years of cumulative operating income (loss).  In the event we were to determine that we would be able to realize our deferred income tax assets in the future in excess of their net recorded amount, we would make an adjustment to the valuation allowance, which would reduce the provision for income taxes.                   ASC 740-10 provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits.                   We recognize tax liabilities in accordance with ASC 740-10 and we adjust these liabilities when our judgment changes as a result of the evaluation of new information not previously available.  Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from our current estimate of the tax liabilities.  These differences will be reflected as increases or decreases to income tax expense in the period in which they are determined.   Earnings Per Share   Basic earnings per share is calculated using the weighted average number of shares of Class A and Class B Stock outstanding during the years ended December 31, 2011, 2010, and 2009, respectively. Diluted earnings per share is calculated by dividing net earnings available to common stockholders by the weighted average common shares outstanding plus the dilutive effect of stock options and unvested restricted stock. We had issued stock options to purchase 622,350, 622,350, and 589,750 shares of Class A Common Stock at December 31, 2011, 2010, and 2009, respectively, at a weighted average exercise price of $5.65, $5.65, and $5.51 per share, respectively. Stock options to purchase 185,100, 185,100, and 150,000 shares of Class B Common Stock were outstanding at the years ended December 31, 2011, 2010, and 2009, respectively, at a weighted average exercise price of $9.90, $9.90, and $10.24 per share, respectively. In accordance with FASB ASC 260-10 – Earnings Per Share ("ASC 260-10"), as we had recorded a loss from continuing operations before discontinued operations for the year ended December 31, 2010, the effect of the stock options and restricted stock was anti-dilutive and accordingly excluded from the diluted earnings per share computation.   Real Estate Purchase Price Allocation   We allocate the purchase price to tangible assets of an acquired property (which includes land, building and tenant improvements) based on the estimated fair values of those tangible assets assuming the building was vacant. Estimates of fair value for land are based on factors such as comparisons to other properties sold in the same geographic area adjusted for unique characteristics. Estimates of fair values of buildings and tenant improvements are based on present values determined based upon the application of hypothetical leases with market rates and terms.   We record above-market and below-market in-place lease values for acquired properties based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) management's estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining non-cancelable term of the lease. We amortize any capitalized above-market lease values as a reduction of rental income over the remaining non-cancelable terms of the respective leases. We amortize any capitalized below-market lease values as an increase to rental income over the initial term and any fixed-rate renewal periods in the respective leases.   We measure the aggregate value of other intangible assets acquired based on the difference between (i) the property valued with existing in-place leases adjusted to market rental rates and (ii) the property valued as if vacant. Management's estimates of value are made using methods similar to those used by independent appraisers (e.g., discounted cash flow analysis). Factors considered by management in its analysis include an estimate of carrying costs during hypothetical expected lease-up periods considering current market conditions, and costs to execute similar leases. We also consider information obtained about each property as a result of our pre-acquisition due diligence, marketing, and leasing activities in estimating the fair value of the tangible and intangible assets acquired. In estimating carrying costs, management includes real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates during the expected lease-up periods. Management also estimates costs to execute similar leases including leasing commissions, legal, and other related expenses to the extent that such costs are not already incurred in connection with a new lease origination as part of the transaction.   The total amount of other intangible assets acquired is further allocated to in-place lease values and customer relationship intangible values based on management's evaluation of the specific characteristics of each tenant's lease and our overall relationship with that respective tenant. Characteristics considered by management in allocating these values include the nature and extent of our existing business relationships with the tenant, growth prospects for developing new business with the tenant, the tenant's credit quality and expectations of lease renewals (including those existing under the terms of the lease agreement), among other factors.   We amortize the value of in-place leases to expense over the initial term of the respective leases. The value of customer relationship intangibles is amortized to expense over the initial term and any renewal periods in the respective leases, but in no event may the amortization period for intangible assets exceed the remaining depreciable life of the building. Should a tenant terminate its lease, the unamortized portion of the in-place lease value and customer relationship intangibles would be charged to expense.   These assessments have a direct impact on net income and revenue. If we assign more fair value to the in-place leases versus buildings and tenant improvements, assigned costs would generally be depreciated over a shorter period, resulting in more depreciation expense and a lower net income on an annual basis. Likewise, if we estimate that more of our leases in-place at acquisition are on terms believed to be above the current market rates for similar properties, the calculated present value of the amount above market would be amortized monthly as a direct reduction to rental revenue and ultimately reduce the amount of net income.   Business Acquisition Valuations   The assets and liabilities of businesses acquired are recorded at their respective preliminary fair values as of the acquisition date in accordance with FASB ASC 805-10 – Business Combinations ("ASC 805-10"). Upon the acquisition of real properties, we allocate the purchase price of such properties to acquired tangible assets, consisting of land and building, and identified intangible assets and liabilities, consisting of the value of above market and below market leases and the value of in-place leases, based in each case on their fair values. We use independent appraisals to assist in the determination of the fair values of the tangible assets of an acquired property (which includes land and building). We also perform valuations and physical counts of property, plant and equipment, valuations of investments and the involuntary termination of employees, as necessary. Costs in excess of the net fair values of assets and liabilities acquired are recorded as goodwill.   We record and amortize above-market and below-market operating leases assumed in the acquisition of a business in the same way as those under real estate acquisitions.   The fair values of any other intangible assets acquired are based on the expected discounted cash flows of the identified intangible assets. Finite-lived intangible assets are amortized using the straight-line method of amortization over the expected period in which those assets are expected to contribute to our future cash flows. We do not amortize indefinite lived intangibles and goodwill.     Fair Value of Financial Instruments   Effective January 1, 2008, we adopted FASB ASC 820-10 – Fair Value Measurements and Disclosures ("ASC 820-10"). ASC 820-10 defines fair value, establishes a framework for measuring fair value in GAAP and provides for expanded disclosure about fair value measurements. ASC 820-10 applies prospectively to all other accounting pronouncements that require or permit fair value measurements. The adoption of ASC 820-10 did not have a material impact on our consolidated financial statements since it only applies to our fair value measurement of our interest rate swaps and cap and we generally do not record our other financial assets and liabilities in our consolidated financial statements at fair value.   The fair value of our financial assets and liabilities are disclosed in Note 16 – Fair Value of Financial Instruments to our consolidated financial statements. We generally determine or calculate the fair value of financial instruments using quoted market prices in active markets when such information is available or using appropriate present value or other valuation techniques, such as discounted cash flow analyses, incorporating available market discount rate information for similar types of instruments while estimating for non-performance and liquidity risk. These techniques are significantly affected by the assumptions used, including the discount rate, credit spreads, and estimates of future cash flow.   The financial assets and liabilities recorded at fair value in our consolidated financial statements are marketable securities and interest rate swaps/cap. The carrying amounts of our cash and cash equivalents, restricted cash and accounts payable approximate fair value due to their short-term maturities. The remaining financial assets and liabilities that are only disclosed at fair value are comprised of notes payable, TPS, and other debt instruments. We estimated the fair value of our secured mortgage notes payable, our unsecured notes payable, TPS and other debt instruments by performing discounted cash flow analyses using an appropriate market discount rate. We calculated the market discount rate by obtaining period-end treasury rates for fixed-rate debt, or LIBOR rates for variable-rate debt, for maturities that correspond to the maturities of our debt adding an appropriate credit spreads derived from information obtained from third-party financial institutions. These credit spreads take into account factors such as our credit standing, the maturity of the debt, whether the debt is secured or unsecured, and the loan-to-value ratios of the debt.   We adopted ASC 820-10 for our non-financial assets and non-financial liabilities on January 1, 2009. The adoption of ASC 820-10 did not have a material impact to our consolidated financial statements. Assets and liabilities typically recorded at fair value on a non-recurring basis to which ASC 820-10 applies include: ·         Non-financial assets and liabilities initially measured at fair value in an acquisition or business combination; ·         Long-lived assets measured at fair value due to an impairment assessment under ASC 360-15; and ·         Asset retirement obligations initially measured under FASB ASC 410-20 – Asset Retirement Obligations ("ASC 410-20").   Use of Estimates   The preparation of financial statements in conformity with US GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported period. Actual results could differ from those estimates.   Accounting Pronouncements Adopted During 2011   FASB Accounting Standards Update ("ASU") 2010-06 – Fair Value Measurements   ASU 2010-06 requires additional disclosures about the transfers of classifications among the fair value classification levels and the reasons for those changes and separate presentation of purchases, sales, issuances, and settlements in the presentation of the roll forward of Level 3 assets and liabilities. Those disclosures are effective for interim and annual reporting periods for fiscal years beginning after December 15, 2010. The adoption of this portion of the ASU did not have a material effect on the Company's financial statements.   New Accounting Pronouncements   FASB ASU No. 2011-05 - Comprehensive Income (Topic 220): Presentation of Comprehensive Income and FASB ASU No. 2011-12—Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05   ASU No. 2011-05 requires that all non-owner changes in stockholders' equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements, eliminating the option to present other comprehensive income in the statement of changes in equity. Under either choice, items that are reclassified from other comprehensive income to net income are required to be presented on the face of the financial statements where the components of net income and the components of other comprehensive income are presented. This amendment will be effective for our Company in 2013 and will be applied retrospectively. This amendment will change the manner in which the Company presents comprehensive income but will not change any of the balances or activity.   FASB ASU No. 2011-08 - Intangibles—Goodwill and Other   ASU No. 2011-08 relates to a change in the annual test of goodwill for impairment. The statement permits an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test described in Topic 350. This amendment is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. This amendment will change the manner in which the Company performs its goodwill impairment test. </div>

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