Investments In Unconsolidated Joint Ventures

12 Months Ended

Dec. 31, 2016

Investments In Unconsolidated Joint Ventures [Abstract]

Investments In Unconsolidated Joint Ventures

NOTE 6 – Investments in Unconsolidated Joint Ventures

Investments in unconsolidated joint ventures are accounted for under the equity method of accounting, except for Rialto Distribution as described below.  The table below summarizes our investments in unconsolidated joint ventures:

(Dollars in thousands)	Interest	December 31, 2016		December 31, 2015
Rialto Distribution	33.3%	$	--	$	--
Rialto Cinemas	50.0%		1,197		1,276
Mt. Gravatt	33.3%		3,874		4,094
Total investments		$	5,071	$	5,370

We recorded our share of equity earnings from our investments in unconsolidated joint ventures as follows:

(Dollars in thousands)	2016		2015		2014
Rialto Distribution	$	--	$	22	$	120
Rialto Cinemas		194		136		297
Mt. Gravatt		805		1,046		598
Total equity earnings	$	999	$	1,204	$	1,015

Rialto Distribution

Due to significant losses in years past, we determined that the goodwill associated with Rialto Distribution’s investment in the film distribution business was fully impaired. As a result of these losses, as of January 1, 2010, we treat our interest as a cost method interest in an unconsolidated joint venture, and record income based on the distributions we receive.  We have also fully provided for any losses that may result from the bank guarantee that has been given on behalf of Rialto Distribution.

Rialto Cinemas

We own an undivided 50.0% interest in the assets and liabilities of the Rialto Entertainment joint venture that owns and operates two (2) movie theaters, with 13 screens in New Zealand.

Mt. Gravatt

We own an undivided 33.3% interest in Mt. Gravatt, an unincorporated joint venture that owns and operates a sixteen-screen multiplex cinema in Australia.

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 $6.8 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 be assured that we will receive any distributions from this tail interest. During 2014, we received $191,000 in interest on the promissory note, and, on June 14, 2011, we received $6.8 million of 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.