Note 6 – Acquisitions, Property Sold, Property Held for Sale, Property Held For and Under Development, and Property and Equipment

On August 25, 2011, we purchased a 17-screen multiplex in Murrieta, California (the "CalOaks Cinema") for $4.3 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 are in the process of finalizing the purchase accounting for this acquisition.

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, the note was paid off.

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).

Having obtained a rezoning of the property for multifamily residential use and completed the renovation of the existing motel into condominium units, we listed this property for sale in the fourth quarter of 2010. The condensed statement of operations of Lake Taupo is as follows (dollars in thousands):

While an anticipated sale earlier this year failed to mature, we continue to pursue selling this property. Accordingly, it is held for sale at September 30, 2011.

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 lacked a firm commitment from a buyer, we reclassified the current carrying value of this property of $55.9 million (AUS$52.1 million) from assets held for sale to property held for development on our September 30, 2011 condensed 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.

As of September 30, 2011 and December 31, 2010, we owned property held for and under development summarized as follows (dollars in thousands):

Property Held For and Under Development	September 30, 2011	December 31, 2010
Land	$ 80,956	$ 31,689
Construction-in-progress (including capitalized interest)	4,835	4,013
Property Held For and Under Development	$ 85,791	$ 35,702

At the beginning of 2010, we curtailed the development activities of our properties under development and are not currently capitalizing interest expense. As a result, we did not capitalize any interest during the three or nine months ended September 30, 2011 or 2010.

As of September 30, 2011 and December 31, 2010, we owned investments in property and equipment as follows (dollars in thousands):

Property and equipment	September 30, 2011	December 31, 2010
Land	$ 63,925	$ 64,845
Building and improvements	143,238	142,077
Leasehold interests	37,400	37,262
Construction-in-progress	406	408
Fixtures and equipment	100,342	99,399
Total cost	345,311	343,991
Less: accumulated depreciation	(132,326)	(123,741)
Property and equipment, net	$ 212,985	$ 220,250

Depreciation expense for property and equipment was $4.0 million and $3.2 million for the three months ended September 30, 2011 and 2010, respectively, and $11.7 million and $9.7 million for the nine months ended September 30, 2011 and 2010, respectively.