Business Combination

9 Months Ended

Sep. 30, 2020

The Company has a noncontrolling interest attributable to the 20% minority interest in GRBK GHO Homes, LLC (“GRBK GHO”) owned by our Florida-based partner that is included as redeemable noncontrolling interest in equity of consolidated subsidiary in the Company’s condensed consolidated financial statements.

In February 2020, the Company and the minority partner of GRBK GHO amended the operating agreement of GRBK GHO to change the initial date upon which the put and purchase options related to the redeemable noncontrolling interest can be exercised from April 2021 to April 2024.

The following tables show the changes in redeemable noncontrolling interest in equity of consolidated subsidiary during the three and nine months ended September 30, 2020 and 2019 (in thousands):


	Three Months Ended September 30,
	2020		2019
Redeemable noncontrolling interest, beginning of period	$	12,485	$	12,509
Net income attributable to redeemable noncontrolling interest partner	501		863
Distributions of income to redeemable noncontrolling interest partner	—		—
Change in fair value of redeemable noncontrolling interest	638		(1,163)
Redeemable noncontrolling interest, end of period	$	13,624	$	12,209


	Nine Months Ended September 30,
	2020		2019
Redeemable noncontrolling interest, beginning of period	$	13,611	$	8,531
Net income attributable to redeemable noncontrolling interest partner	1,743		2,528
Distributions of income to redeemable noncontrolling interest partner	(1,505)		(527)
Change in fair value of redeemable noncontrolling interest	(225)		1,677
Redeemable noncontrolling interest, end of period	$	13,624	$	12,209

Under the terms of the purchase agreement, the Company may be obligated to pay contingent consideration to our partner if certain annual performance targets are met over the three-year period following the Acquisition Date. The performance targets specified in the purchase agreement were met for the period from January 1, 2019 through December 31, 2019, and contingent consideration of $5.3 million was earned by the minority partner in 2019 and paid by the Company in April 2020 in addition to a $1.5 million distribution of income. As of September 30, 2020, the estimate of the undiscounted contingent consideration payouts for the period from January 1, 2020 through April 26, 2021 was $0.4 million.