NON-CONTROLLING INTERESTS

12 Months Ended

Dec. 31, 2011

6. NON-CONTROLLING INTERESTS

Changes in the non-controlling interest amounts of Digital Domain for the year ended December 31, 2011 and 2010 and the 2009 Consolidated Period were as follows (in thousands):


Balance at Acquisition Date	$	27,272
Net loss of subsidiary attributable to non-controlling interests		(2,703	)

Balance at December 31, 2009		24,569
Issuance of common stock to acquire common stock in subsidiary		(298	)
Acquisition of common stock in subsidiary		(9,706	)
Foreign currency translation loss		(44	)
Net loss of subsidiary attributable to non-controlling interests		(2,747	)

Balance at December 31, 2010		11,774
Issuance of common stock of subsidiaries		4,870
Issuance of common stock to acquire common stock in subsidiary		(16	)
Issuance of common stock upon exchange of stock in subsidiary		(8,042	)
Stock based compensation		1,345
Foreign currency translation gain		25
Net loss attributable to non-controlling interests		(3,518	)

Balance at December 31, 2011	$	6,438

Digital Domain, a subsidiary of the Company, incurred a net loss of $22.2 million, $1.0 million and $3.1 million for the year ended December 31, 2011 and 2010, and the 2009 Consolidated Period, respectively. Pursuant to the requirements under FASB ASC Topic 810, Consolidation, the Company allocates Digital Domain's earnings results to non-controlling interests based on the percentage of Common Stock not owned by the Company. During the years ended December 31, 2011 and 2010, the losses were allocated to accumulated deficit in the amounts of $18.8 million and $1.7 million, representing the Company's proportionate holdings in Digital Domain Common Stock outstanding (an average of approximately 86% and 81%), and $3.4 million and $2.7 million to non-controlling interests. During the period from the Acquisition Date through December 31, 2009, $0.4 million was allocated to Accumulated deficit representing the Company's proportionate holdings in Digital Domain common stock outstanding (an average of 13.2%), and the remaining 86.8% of Digital Domain's net loss, amounting to $2.7 million, was allocated to non-controlling interests. Intercompany transactions are eliminated in consolidation but impact the net earnings of each of the respective entities and as such affect amounts allocated to non-controlling interests.

During 2011, another subsidiary of the Company, Digital Domain Institute, reported a net loss of $0.6 million. As the Company owned 85.2% of this subsidiary, $0.5 million of this loss was allocated to the accumulated deficit and $0.1 million of the loss was allocated to non-controlling interests.

- Definition

The entire disclosure for noncontrolling interest in consolidated subsidiaries, which could include the name of the subsidiary, the ownership percentage held by the parent, the ownership percentage held by the noncontrolling owners, the amount of the noncontrolling interest, the location of this amount on the balance sheet (when not reported separately), an explanation of the increase or decrease in the amount of the noncontrolling interest, the noncontrolling interest share of the net Income or Loss of the subsidiary, the location of this amount on the income statement (when not reported separately), the nature of the noncontrolling interest such as background information and terms, the amount of the noncontrolling interest represented by preferred stock, a description of the preferred stock, and the dividend requirements of the preferred stock.

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