7. Noncontrolling Interests

9 Months Ended

Sep. 30, 2013

Notes

7. Noncontrolling Interests

7. NONCONTROLLING INTERESTS

The Company owns 100% of all subsidiaries, except for its UK subsidiary Omega Flex, Limited, of which it owns 95%.  A noncontrolling interest owns the other 5%, and held a value of $62,000 at December 31, 2012.  The total equity of the Company including the non-controlling interest was $19,742,000 at December 31, 2012.

For the three and nine months ended September 30, 2013, the operations of Omega Flex, Limited generated income of $530,000 and $855,000, respectively.  The noncontrolling interest’s portion of the income related to each of those periods was therefore $27,000 and $43,000.

The noncontrolling interest must also recognize its share of any currency translation adjustment, since the subsidiary’s functional currency is British Pounds, and the local books are translated into US Dollars for consolidation purposes.  The noncontrolling interest’s share of foreign currency translation was a gain of $6,000 for the three months ended September 30, 2013, and $2,000 for the nine months ended September 30, 2013.

At September 30, 2013, after considering the income and foreign currency translation components described above, the balance of the noncontrolling interest was $107,000.