Non-controlling Interest

The non-controlling interest on the consolidated statement of operations and comprehensive income 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, 2019			As of June 30, 2018
	Units	Ownership %		Units	Ownership %
Non-controlling LLC unit holders ownership in Malibu Boats Holdings, LLC	830,152	3.8	%	1,043,186	4.8	%
Malibu Boats, Inc. ownership in Malibu Boats Holdings, LLC	20,852,640	96.2	%	20,555,348	95.2	%
	21,682,792	100.0	%	21,598,534	100.0	%



Balance of non-controlling interest as of June 30, 2017	$	4,941
Allocation of income to non-controlling LLC Unit holders for period	3,356
Distributions paid and payable to non-controlling LLC Unit holders for period	(1,852		)
Reallocation of non-controlling interest	(943		)
Balance of non-controlling interest as of June 30, 2018	5,502
Allocation of income to non-controlling LLC Unit holders for period	3,635
Distributions paid and payable to non-controlling LLC Unit holders for period	(1,845		)
Reallocation of non-controlling interest	(1,174		)
Balance of non-controlling interest as of June 30, 2019	$	6,118

Issuance of Additional LLC Units

Under the limited liability company agreement of the LLC (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 must 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, 2019, the LLC issued a total of 322,181 LLC Units to the Company in connection with (i) the Company's issuance of Class A Common Stock to a non-employee director for his services, (ii) 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"), (iii) the issuance of restricted Class A Common Stock granted under the Incentive Plan, (iv) the issuance of Class A Common Stock to LLC Unit holders for exchange of their LLC Units and (v) the issuance of Class A Common Stock for the exercise of options granted under the Incentive Plan. During fiscal year 2019, 16,939 LLC Units were canceled in connection with the vesting of share-based equity awards to satisfy employee tax withholding requirements and the retirement of 16,939 treasury shares in accordance with the LLC Agreement.

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 exceeds the tax distributions made in a calendar year, the LLC may make true-up distributions to its members, if cash or borrowings are available for such purposes. As of June 30, 2019 and 2018, tax distributions payable to non-controlling LLC Unit holders were $568 and $511, respectively. During the fiscal years ended June 30, 2019, 2018, and 2017, tax distributions paid to the non-controlling LLC Unit holders were $1,785, $1,647, and $1,226, 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.