Non-controlling Interest

The non-controlling interest on the consolidated statement of operations and comprehensive income (loss) 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 consolidated balance sheets 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 June 30, 2016			As of June 30, 2015
	Units	Ownership %		Units	Ownership %
Non-controlling LLC unit holders ownership in Malibu Boats Holdings, LLC	1,404,923	7.4	%	1,419,094	7.4	%
Malibu Boats, Inc. ownership in Malibu Boats Holdings, LLC	17,690,874	92.6	%	17,858,726	92.6	%
	19,095,797	100.0	%	19,277,820	100.0	%



Balance of non-controlling interest as of June 30, 2014	$	8,801
Allocation of income to non-controlling LLC Unit holders for period	8,522
Distributions paid and payable to non-controlling LLC Unit holders for period	(1,738		)
Reallocation of non-controlling interest from selling shareholders acquired in offerings	(11,687		)
Balance of non-controlling interest as of June 30, 2015	3,898
Allocation of income to non-controlling LLC Unit holders for period	2,253
Distributions paid and payable to non-controlling LLC Unit holders for period	(1,433		)
Reallocation of non-controlling ownership interests in exchange for Class A Common Stock	(39		)
Balance of non-controlling interest as of June 30, 2016	$	4,679

Issuance of Additional LLC Units

Under the LLC Agreement, the Company is required to cause the LLC to issue additional LLC Units to the Company when the Company issues additional shares of Class A Common Stock. Other than in connection with the issuance of Class A Common Stock in connection with an equity incentive program, the Company must contribute to the LLC net proceeds and property, if any, received by the Company with respect to the issuance of such additional shares of Class A Common Stock. The Company shall cause the LLC to issue a number of LLC Units equal to the number of shares of Class A Common Stock issued such that, at all times, the number of LLC Units held by the Company equals the number of outstanding shares of Class A Common Stock. During the fiscal year ended June 30, 2016, the LLC issued a total of 119,494 LLC Units to the Company in connection with the Company's issuance of Class A Common Stock to a non-employee director for his services, the exchange of LLC Units held by a non-controlling LLC Unit holder to Class A Common Stock, and the issuance of Class A Common Stock for the vesting of awards granted under the Malibu Boats, Inc. Long-Term Incentive Plan (the "Incentive Plan") and the issuance of restricted Class A Common Stock granted under the Incentive Plan. During fiscal year 2016, 287,346 LLC Units were redeemed and canceled by the LLC in connection with the purchase and retirement of 287,346 treasury shares under the Company's Repurchase Program.

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 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. As of June 30, 2016 and 2015, tax distributions payable to non-controlling LLC Unit holders were $341 and $147, respectively. During the fiscal years ended June 30, 2016, 2015, and 2014, tax distributions paid to the non-controlling LLC Unit holders were $1,239, $3,630, and $11,457, respectively.

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.