Consolidated Businesses

Redeemable Noncontrolling Interests

In connection with GovDelivery's acquisitions of NuCivic, Inc. ("NuCivic") and Textizen, Inc. ("Textizen"), certain GovDelivery stockholders had the ability to require GovDelivery to redeem a portion of their shares in the future based on a fair value determination. In connection with the GovDelivery Sale, the vesting of the redeemable shares related to the NuCivic and Textizen acquisitions was accelerated, and the shares were cashed out for a portion of the sale consideration.

Certain VelocityEHS stockholders had the ability to require VelocityEHS to redeem a portion of their shares in 2017 based on a mutually agreed upon fair value determination. Certain FolioDynamix shareholders had the ability to require FolioDynamix to redeem a portion of their shares in the future based on a mutually agreed upon fair value determination. Because any such redemptions would be outside the control of the respective businesses, Actua had classified the noncontrolling interests outside of equity and accreted to the estimated redemption values with an offset to additional paid-in capital. The noncontrolling interests are classified as "Redeemable noncontrolling interests" in Actua’s Consolidated Balance Sheets.

The following is a reconciliation of the activity related to Actua’s redeemable noncontrolling interests during the years ended December 31, 2017, 2016 and 2015:



(in thousands)
Balance at December 31, 2014	$	10,346
Redeemable noncontrolling interests portion of subsidiary net loss	(393		)
FolioDynamix impairment charge ⁽¹⁾	(812		)
Accretion to estimated redemption value	4,704
Equity transfer among owners ⁽²⁾	(3,339		)
Balance at December 31, 2015	$	10,506
Redeemable noncontrolling interests portion of subsidiary net loss	(778		)
Reduction to redeemable noncontrolling interests due to GovDelivery Sale	(4,338		)
Accretion to estimated redemption value	4,937
Equity transfer among owners ⁽³⁾	(4,469		)
Balance at December 31, 2016	$	5,858
Redeemable noncontrolling interests portion of subsidiary net loss	(696		)
Accretion to estimated redemption value	834
Reduction to redeemable noncontrolling interests due to Velocity/Bolt Sale	(2,955		)
Balance at December 31, 2017 ⁽⁴⁾	$	3,041

____________________________


⁽¹⁾	This amount pertains to the FolioDynamix goodwill impairment charge attributed to redeemable noncontrolling interests which is reflected in the "Net income (loss) attributed to the noncontrolling interests" line of Actua's Consolidated Statement of Operations and Comprehensive Income (Loss).

⁽²⁾

This amount primarily relates to accretion value adjustments of $0.7 million that partially offset cash payments made during the year ended December 31, 2015 of $4.0 million to acquire $1.9 million of redeemable noncontrolling interests associated with GovDelivery and $1.4 million of redeemable noncontrolling interests associated with VelocityEHS. These transactions increased Actua’s ownership in GovDelivery from 91% to 93% and its ownership in VelocityEHS from 96% to 98%.

⁽³⁾

This amount primarily relates to accretion value adjustments of $1.0 million that partially offset cash payments made during the year ended December 31, 2016 of $5.4 million to acquire $2.5 million of redeemable noncontrolling interests associated with GovDelivery, $2.4 million of redeemable noncontrolling interests associated with VelocityEHS and $0.5 million of redeemable noncontrolling interests associated with FolioDynamix. These transactions increased Actua’s ownership in GovDelivery from 92% to 94% and its ownership in VelocityEHS from 98% to 99%. Its ownership in FolioDynamix did not significantly change as a result of this repurchase.


⁽⁴⁾	This redeemable noncontrolling interests balance was eliminated with the sale of FolioDynamix which was completed on January 2, 2018.

Other Consolidated Businesses Transactions

From time to time, Actua acquired additional equity ownership interests in its consolidated businesses. Purchasing equity ownership interests from a consolidated business’s existing shareholders results in an increase in Actua’s controlling interest in that business and a corresponding decrease in the noncontrolling interests ownership. Those transactions are accounted for as decreases to "Noncontrolling interests" and increases to "Additional paid-in capital" in Actua’s Consolidated Balance Sheets for the relevant periods. Actua may have also acquired additional equity ownership interests in its consolidated businesses as a result of share issuances by one or more of those businesses, and Actua’s equity ownership interests may be diluted by any such share issuances to other parties. An issuance of equity securities by a consolidated business that results in a decrease in Actua’s equity ownership interests is accounted for in accordance with the policy for "Principles of Accounting for Ownership Interests" described in Note 2, "Significant Accounting Policies." Other changes to Actua’s equity ownership interests in its consolidated businesses, as well as equity-based compensation award activity at those businesses, also result in adjustments to "Additional paid-in capital" and "Noncontrolling interests" in Actua’s Consolidated Balance Sheets. The impact of any equity-related transactions at Actua’s consolidated businesses is included in the line item "Impact of subsidiary equity transactions" in Actua’s Consolidated Statements of Changes in Equity. The impact of these changes to the noncontrolling interests are also included in the line item "Impact of subsidiary equity transactions" in Actua’s Consolidated Statements of Changes in Equity for the relevant period. During the year ended December 31, 2016, the "Impact of subsidiary equity transaction" line item as shown on Actua's Consolidated Statements of Changes in Equity that affected "Additional paid in capital" was $4.9 million, which was comprised of (1) $5.4 million paid by Actua in order to purchase shares in its consolidated businesses and (2) ($0.5) million relating to Actua's share of its consolidated businesses' equity transactions. Actua did not repurchase any shares of its consolidated businesses during the year ended December 31, 2017; therefore, the balance of $2.3 million in the line item "Impact of subsidiary equity transactions" in Actua's Consolidated Statements of Changes in Equity that affected "Additional paid in capital" relates entirely to Actua's share of its consolidated businesses' equity transactions.