XML 62 R10.htm IDEA: XBRL DOCUMENT v2.4.0.8
Acquisitions and Revaluations of Non-Controlling Interests
 3 Months Ended
Mar. 31, 2014
Acquisitions and Revaluations of Non-Controlling Interests

4. ACQUISITIONS AND REVALUATIONS OF NON-CONTROLLING INTERESTS

In three separate transactions during the three months ended March 31, 2014, the Company purchased interests in two partnerships. The interests in the partnerships purchased ranged from 20.5% to 35.0%. The aggregate of the purchase prices paid was $2.8 million, which included $1.7 million of net book value. The remaining purchase price of $1.1 million, less future tax benefits of $0.4 million, was recognized as an adjustment to additional paid-in capital.

Two of the above transactions related to non-controlling interests were classified as redeemable non-controlling interest.  In addition to those two transactions it was deemed probable that two other individuals would assert their redemption rights.  For the three months ended March 31, 2014, the following table details the changes in the carrying amount of redeemable non-controlling interest:

 

 

Three Months

 

 

Ended

 

 

March 31, 2014

 

Beginning balance

$

4,104

 

Increase due to revaluation of redeemable non-controlling interests

 

1,639

 

Purchases of redeemable non-controlling interests

 

(2,776

)

Ending balance

$

2,967

 

 

 

 

 

The non-controlling interests that are reflected as redeemable non-controlling interests in the consolidated financial statements consist of those owners who have certain redemption rights that are currently exercisable, and that, if exercised, require that the Company purchase the non-controlling interest of those owners.  The redeemable non-controlling interests are adjusted to the fair value in the reporting period in which the Company deems it probable that the limited partner will assert the redemption rights and it will be adjusted each reporting period thereafter.  The adjustments are charged to additional paid-in capital and are not reflected in the statement of net income.  Although the adjustments are not reflected in the statement of net income, current accounting rules require that the Company reflect the charge in an earnings per share calculation.