Noncontrolling Interest

6 Months Ended

Jun. 30, 2013

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”), a 32% interest in Pan and other private equity partnerships, not owned by the Company at June 30, 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 six months ended June 30, 2013 and 2012 were as follows:



	For the Six Months Ended June 30,
	2013			2012
Beginning balance	$	62,243		$	58,162
Comprehensive income (loss)
Operating income	7,994			2,455
Other comprehensive income (loss)	(555		)	(61		)
Total comprehensive income	7,439			2,394
Other items
Evercore LP Units Purchased or Converted into Class A Common Stock	(13,187		)	(1,185		)
Amortization and Vesting of LP Units	10,725			10,554
Distributions to Noncontrolling Interests	(10,953		)	(7,868		)
Fair value of Noncontrolling Interest in Pan	774			—
Issuance of Noncontrolling Interest	3,080			333
Purchase of Noncontrolling Interest	(4,529		)	—
Other	—			(618		)
Total other items	(14,090		)	1,216
Ending balance	$	55,592		$	61,772

Other comprehensive income (loss) attributed to Noncontrolling Interest includes Unrealized Gain (Loss) on Marketable Securities, net, of ($156) and ($39) for the three and six months ended June 30, 2013, respectively, and ($341) and ($29) for the three and six months ended June 30, 2012, respectively, and Foreign Currency Translation Adjustment Gain (Loss), net, of ($393) and ($516) for the three and six months ended June 30, 2013, respectively, and ($1,330) and ($32) for the three and six months ended June 30, 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 and $42 for the three and six months ended June 30, 2013 and 2012, 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 within Redeemable Noncontrolling Interest on the Unaudited Condensed Consolidated Statements of Financial Condition at June 30, 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 $28,478 and $29,399 within Redeemable Noncontrolling Interest on the Unaudited Condensed Consolidated Statements of Financial Condition at June 30, 2013 and December 31, 2012, respectively.

During the three months ended June 30, 2013, the Company also had an issuance of noncontrolling interest related to EMP III. See Note 8 for further information.

During the three months ended June 30, 2013, the Company entered into a commitment to purchase, at fair value, all of the noncontrolling interest in ETC for $7,890. This purchase was settled on July 19, 2013.

- 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