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NON-CONTROLLING INTERESTS | 6 Months Ended
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Jun. 30, 2024
Noncontrolling Interest [Abstract] |
NON-CONTROLLING INTERESTS | NON-CONTROLLING INTERESTS We are the sole managing member of Portillo's OpCo, and as a result, consolidate the financial results of Portillo's OpCo. We report a non-controlling interest representing the LLC Units in Portillo's OpCo held by pre-IPO LLC Members. Changes in our ownership interest in Portillo's OpCo while we retain our controlling interest in Portillo's OpCo will be accounted for as equity transactions. As such, future redemptions or direct exchanges of LLC Units in Portillo's OpCo by the pre-IPO LLC members will result in a change in ownership and reduce the amount recorded as non-controlling interest and increase additional paid-in capital. In the first quarter of 2024, in connection with the secondary offering described in Note 1. Description Of Business, 5,832,371 of LLC Units and corresponding shares of Class B common stock were redeemed by the pre-IPO LLC Members for newly-issued shares of Class A common stock and we received a total of 5,832,371 newly-issued LLC Units, increasing our total ownership interest in Portillo's OpCo. The following table summarizes the LLC interest ownership by Portillo's Inc. and pre-IPO LLC members:
| June 30, 2024 |  | December 31, 2023
| LLC Units |  | Ownership % |  | LLC Units |  | Ownership %
Portillo's Inc. | 61,739,874 |  |  | 84.1 | % |  | 55,502,375 |  |  | 76.1 | %
pre-IPO LLC Members | 11,640,555 |  |  | 15.9 | % |  | 17,472,926 |  |  | 23.9 | %
Total | 73,380,429 |  |  | 100.0 | % |  | 72,975,301 |  |  | 100.0 | %
The weighted average ownership percentages for the applicable reporting periods are used to attribute net income to Portillo's Inc. and the pre-IPO LLC Members. The pre-IPO LLC Members' weighted average ownership percentage for the quarter and two quarters ended June 30, 2024 was 15.9% and 18.7%, respectively. The pre-IPO LLC Members' weighted average ownership percentage for the quarter and two quarters ended June 25, 2023 was 24.2% and 27.8%, respectively. The following table summarizes the effects of changes in ownership in Portillo's OpCo on the Company’s equity (in thousands):
| Quarter Ended |  | Two Quarters Ended
| June 30, 2024 |  | June 25, 2023 |  | June 30, 2024 |  | June 25, 2023
Net income attributable to Portillo's Inc. | $ | 6,470 |  |  | $ | 6,788 |  |  | $ | 11,032 |  |  | $ | 6,274 |
Activity under equity-based compensation plans | 355 |  |  | 577 |  |  | 1,168 |  |  | 1,288 |
Non-controlling interest adjustment | 403 |  |  | 4,109 |  |  | 46,878 |  |  | 47,845 |
Redemption of LLC Units | — |  |  | (5) |  |  | (58) |  |  | (64) |
Establishment of liabilities under Tax Receivable Agreement and related changes to deferred tax assets associated with increases in tax basis | — |  |  | (1,189) |  |  | (15,913) |  |  | (13,682) |
Total effect of changes in ownership interest on equity attributable to Portillo's Inc. | $ | 7,228 |  |  | $ | 10,280 |  |  | $ | 43,107 |  |  | $ | 41,661 |

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- 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 810 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/810/tableOfContent + Details
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