Noncontrolling Interest

9 Months Ended

Sep. 30, 2012

Note 13 – Noncontrolling Interest

Noncontrolling Interest recorded in the unaudited condensed consolidated financial statements of the Company relates to an 18% interest in Evercore LP, a 28% interest in ECB, a 49% interest in Evercore Wealth Management (“EWM”), a 34% equity interest in Atalanta Sosnoff Capital L.L.C. (“Atalanta Sosnoff”), a 37% interest in Institutional Equities (“IE”) and a 14% interest in Evercore Trust Company, N.A. (“ETC”), not owned by the Company at September 30, 2012. The Atalanta Sosnoff interest excludes the Series C Profits Interest, which has been reflected in Employee Compensation and Benefits Expense on the Unaudited Condensed Consolidated Statements of Operations. The Noncontrolling Interest for Evercore LP, EWM, Atalanta Sosnoff, IE and ETC have rights, in certain circumstances, to convert into Class A Shares.

Changes in Noncontrolling Interest for the nine months ended September 30, 2012 and 2011 were as follows:


	For the Nine Months Ended September 30,
	2012			2011
Beginning balance	$	58,162		$	66,542

Comprehensive income (loss)
Operating income		4,627			6,261
Other comprehensive income (loss)		1,033			(1,790	)

Total comprehensive income		5,660			4,471

Other items
Evercore LP Units Purchased or Converted into Class A Common Stock		(7,264	)		(11,990	)
Amortization and Vesting of LP Units		16,019			15,808
Distributions to Noncontrolling Interests		(11,984	)		(16,656	)
Issuance of noncontrolling interest		296			917
Other		(630	)		89

Total other items		(3,563	)		(11,832	)

Ending balance	$	60,259		$	59,181

Net Income (Loss) Attributable to Noncontrolling Interest related to EAM from Discontinued Operations was ($1,002) and ($1,659) for the three and nine months ended September 30, 2011, respectively.

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 Unaudited Condensed 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 $21 and $63 for the three and nine months ended September 30, 2012 and 2011, 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 $3,997 and $5,300 within Redeemable Noncontrolling Interest on the Unaudited Condensed Consolidated Statements of Financial Condition at September 30, 2012 and December 31, 2011, respectively.

The Company also maintains Redeemable Noncontrolling Interest in certain other entities, including EWM, of $3,727 and $720 as of September 30, 2012 and December 31, 2011, 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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