Noncontrolling Interest

3 Months Ended

Mar. 31, 2013

Note 12 – Noncontrolling Interest

Noncontrolling Interest recorded in the unaudited condensed consolidated financial statements of the Company relates to a 16% interest in Evercore LP, a 28% interest in ECB, a 49% interest in Evercore Wealth Management, LLC (“EWM”), a 34% equity interest in Atalanta Sosnoff Capital L.L.C. (“Atalanta Sosnoff”), a 38% interest in Institutional Equities, a 14% interest in Evercore Trust Company, N.A. (“ETC”) and a 32% interest in Pan, not owned by the Company at March 31, 2013. 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, Institutional Equities and ETC have rights, in certain circumstances, to convert into Class A Shares.

Changes in Noncontrolling Interest for the three months ended March 31, 2013 and 2012 were as follows:


	For the Three Months Ended March 31,
	2013			2012
Beginning balance	$	62,243		$	58,162

Comprehensive income (loss)
Operating income (loss)		2,409			(1,752	)
Other comprehensive income (loss)		(6	)		1,610

Total comprehensive income (loss)		2,403			(142	)

Other items
Evercore LP Units Converted into Class A Common Stock		(7,294	)		(1,175	)
Amortization and Vesting of LP Units		5,912			5,485
Distributions to Noncontrolling Interests		(7,260	)		(2,842	)
Fair value of Noncontrolling Interest in Pan		774			—
Issuance of Noncontrolling Interest		—			300
Other		—			69

Total other items		(7,868	)		1,837

Ending balance	$	56,778		$	59,857

Other comprehensive income (loss) attributed to Noncontrolling Interest includes Unrealized Gain on Marketable Securities, net, of $117 and $312 for the three months ended March 31, 2013 and 2012, respectively, and Foreign Currency Translation Adjustment Gain (Loss), net, of ($123) and $1,298 for the three months ended March 31, 2013 and 2012, respectively.

Pursuant to the strategic alliance with Trilantic, Evercore LP issued 500 LP Units with a minimum redemption value of $16,500 on December 31, 2014 in exchange for the issuance of certain limited partnership interests in Trilantic. 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 for the three months ended March 31, 2013 and 2012.

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 within Redeemable Noncontrolling Interest on the Unaudited Condensed Consolidated Statements of Financial Condition at March 31, 2013 and December 31, 2012.

EWM has issued capital interests to certain employees which may be redeemable for cash at fair value at certain points in the future. Accordingly, these interests have been reflected at their fair value of $28,831 and $29,399 within Redeemable Noncontrolling Interest on the Unaudited Condensed Consolidated Statements of Financial Condition at March 31, 2013 and December 31, 2012, 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.

+ References+ Details