Noncontrolling Interest

12 Months Ended

Dec. 31, 2011

Note 15 – Noncontrolling Interest

Noncontrolling Interest recorded in the consolidated financial statements of the Company relates to a 22% interest in Evercore LP, a 28% interest in PCB, a 49% interest in EWM, a 34% equity interest in Atalanta Sosnoff, a 35% interest in Institutional Equities, and a 14% interest in ETC, not owned by the Company at December 31, 2011. The Atalanta Sosnoff interest excludes the Series C Profits Interest, which has been reflected in Employee Compensation and Benefits Expense on the Consolidated Statements of Operations. The Noncontrolling Interest for Evercore LP, EWM, Atalanta Sosnoff, Institutional Equities and ETC have rights, in certain circumstances, to convert into Class A Shares.

Changes in Noncontrolling Interest for the years ended December 31, 2011, 2010 and 2009 were as follows:


	For the Years Ended December 31,
	2011			2010			2009
Beginning balance	$	66,542		$	29,361		$	15,978
Comprehensive income
Operating income		3,579			8,851			1,816
Other comprehensive income (loss)		(2,218	)		(754	)		4,546

Total comprehensive income		1,361			8,097			6,362
Other items
Evercore LP Units Purchased or Converted into Class A Common Stock		(12,268	)		(9,834	)		(5,623	)
Issuance and sale of LP Units		—			—			15,000
Amortization and Vesting of LP Units		21,057			20,059			8,552
Distributions to Noncontrolling Interests		(19,087	)		(19,513	)		(19,741	)
Fair value of noncontrolling interest in EAM		—			—			5,068
Fair value of noncontrolling interest in ETC		—			—			2,704
Fair value of noncontrolling interest in AS		—			33,139			—
Issuance of noncontrolling interest in IE		917			4,381			—
Other		(360	)		852			1,061

Total other items		(9,741	)		29,084			7,021

Ending balance	$	58,162		$	66,542		$	29,361

In February 2010, the Company issued 500 LP Units in exchange for a minority economic interest in Trilantic. At December 31, 2014, at the option of the holder, these LP Units are exchangeable on a one-for-one basis for Class A Shares or may be redeemed for cash of $16,500. This transaction resulted in Redeemable Noncontrolling Interest on the Consolidated Statements of Financial Condition of $16,090, representing the fair value of the LP Units exchanged at the date of issuance. This value is being accreted to the minimum redemption value of $16,500 over the five-year period ended December 31, 2014. Accretion was $84 and $74 for the years ended December 31, 2011 and 2010, respectively.

In conjunction with the Company's purchase agreement with Atalanta Sosnoff, the Company issued a management member of Atalanta Sosnoff certain capital interests in Atalanta Sosnoff, which are redeemable for cash, at their fair value. Accordingly, these capital interests have been reflected at their fair value of $5,300 and $9,242 within Redeemable Noncontrolling Interest on the Consolidated Statements of Financial Condition at December 31, 2011 and 2010, respectively.

- 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.

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