Noncontrolling Interest

Note 13 – Noncontrolling Interest

Noncontrolling Interest recorded in the unaudited condensed consolidated financial statements of the Company relates to a 20% interest in Evercore LP, a 28% interest in PCB, a 49% interest in Evercore Wealth Management ("EWM"), a 49% interest in Evercore Asset Management L.L.C. ("EAM"), a 34% equity interest in Atalanta Sosnoff Capital L.L.C. ("Atalanta Sosnoff"), a 34% interest in Institutional Equities and a 14% interest in Evercore Trust Company, N.A. ("ETC"), not owned by the Company at June 30, 2011. The Atalanta Sosnoff interest excludes the Series C Profits Interest, which has been reflected in Employee Compensation and Benefits Expense on the Unaudited Condensed Consolidated Statements of Operations. The Noncontrolling Interest for Evercore LP, EWM, Atalanta Sosnoff, Institutional Equities and ETC have rights, in certain circumstances, to convert into Class A common shares.

Changes in Noncontrolling Interest for the six months ended June 30, 2011 and 2010 were as follows:


	For the Six Months Ended June 30,
	2011			2010
Beginning balance	$	66,542		$	29,361

Comprehensive income
Operating income		6,727			2,279
Other comprehensive income (loss)		1,488			(2,803	)

Total comprehensive income		8,215			(524	)

Other items
Evercore LP Units Purchased or Converted into Class A Common Stock		(11,774	)		(2,410	)
Amortization and Vesting of LP Units		10,975			9,961
Distributions to Noncontrolling Interests		(12,014	)		(10,205	)
Fair value of noncontrolling interest in Atalanta Sosnoff		—			33,139
Issuance of noncontrolling interest in Institutional Equities		729			3,503

Total other items		(12,084	)		33,988

Ending balance	$	62,673		$	62,825

In February 2010, the Company issued 500 LP Units in exchange for a minority economic interest in Trilantic. At December 31, 2014, at the option of the holder, these LP Units are exchangeable on a one-for-one basis for Class A common stock of the Company or may be redeemed for cash of $16,500. This transaction resulted in Redeemable Noncontrolling Interest on the Unaudited Condensed Consolidated Statements of Financial Condition of $16,090, representing the fair value of the LP Units exchanged at the date of issuance. This value is being accreted to the minimum redemption value of $16,500 over the five-year period ended December 31, 2014. Accretion was $21 and $42 for the three and six months ended June 30, 2011, respectively, and $21 and $32 for the three and six months ended June 30, 2010, respectively.

In conjunction with the Company's purchase agreement with Atalanta Sosnoff, the Company issued a management member of Atalanta Sosnoff certain capital interests in Atalanta Sosnoff, which are redeemable for cash, at their fair value. Accordingly, these capital interests have been reflected at their fair value of $9,242 within Redeemable Noncontrolling Interest on the Unaudited Condensed Consolidated Statements of Financial Condition at June 30, 2011 and December 31, 2010.

- 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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