Non-controlling Interest

3 Months Ended

Sep. 30, 2014

The non-controlling interest on the condensed consolidated statement of operations represents the portion of earnings or loss attributable to the economic interest in the Company's subsidiary, Malibu Boats Holdings, LLC, held by the non-controlling LLC Unit holders. Non-controlling interest on the condensed consolidated balance sheet represents the portion of net assets of the Company attributable to the non-controlling LLC Unit holders, based on the portion of the LLC Units owned by such Unit holders. The ownership of Malibu Boats Holdings, LLC is summarized as follows:



	As of September 30, 2014			As of June 30, 2014
	Shares	Ownership %		Shares	Ownership %
Non-controlling LLC unit holders ownership in Malibu Boats Holdings, LLC	7,001,844	31.2	%	11,373,737	50.7	%
Malibu Boats, Inc. ownership In Malibu Boats Holdings, LLC	15,436,944	68.8	%	11,064,201	49.3	%
	22,438,788	100.0	%	22,437,938	100.0	%

During the three month period ended September 30, 2014, the Company was issued 850 LLC Units with respect to the Class A Common Stock issuance to a non-employee director for his services.

The balance of the non-controlling interest from June 30, 2014 to September 30, 2014 is as follows (in thousands):



Balance of non-controlling interest as of June 30, 2014	$	8,801
Allocation of income to non-controlling LLC Unit holders for period	1,009
Distributions paid and payable to non-controlling LLC Unit holders for period	(253		)
Balance of non-controlling interest as of September 30, 2014	$	9,557

Distributions and Other Payments to Non-controlling Unit holders

Distributions for Taxes

As a limited liability company (treated as a partnership for income tax purposes), Malibu Boats Holdings, LLC does not incur significant federal, state or local income taxes, as these taxes are primarily the obligations of its members. As authorized by the first amended and restated limited liability company agreement of the LLC, as amended (the "LLC Agreement"), the LLC is required to distribute cash, to the extent that the LLC has cash available, on a pro rata basis, to its members to the extent necessary to cover the members’ tax liabilities, if any, with respect to their share of LLC earnings. The LLC makes such tax distributions to its members based on an estimated tax rate and projections of taxable income. If the actual taxable income of the LLC multiplied by the estimated tax rate exceed the tax distributions made in a calendar year, the LLC may make true-up distributions to its members, if cash or borrowings is available for such purposes. Tax distributions payable to non-controlling LLC Unit holders for the three months ending September 30, 2014 was $212.

Other Distributions

Pursuant to the LLC Agreement, the Company has the right to determine when distributions will be made to LLC members and the amount of any such distributions. If the Company authorizes a distribution, such distribution will be made to the members of the LLC (including the Company) pro rata in accordance with the percentages of their respective LLC units.

- 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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