Acquisition

6 Months Ended

Jun. 30, 2011

Acquisition

Acquisition

5. Acquisition

In March 2011, we acquired the Skinnygirl ready-to-drink cocktail business. The acquisition included inventory and identifiable intangible assets. In addition to goodwill, we recorded contingent consideration which is based on the achievement of certain sales targets. In future periods, the Company may be required to record contingent consideration in an amount not in excess of approximately $25 million. Any change in the Company's estimated liabilities for contingent consideration will impact operating income in future periods. The acquisition was not material for purposes of supplemental disclosure (per ASC 805).