Business Combination

9 Months Ended

Sep. 30, 2021

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.

The following tables show the changes in redeemable noncontrolling interest in equity of consolidated subsidiary during the three and nine months ended September 30, 2021 and 2020 (in thousands):


	Three Months Ended September 30,
	2021		2020
Redeemable noncontrolling interest, beginning of period	$	17,515	$	12,485
Net income attributable to redeemable noncontrolling interest partner	623		501
Distributions of income to redeemable noncontrolling interest partner	—		—
Change in fair value of redeemable noncontrolling interest	(732)		638
Redeemable noncontrolling interest, end of period	$	17,406	$	13,624


	Nine Months Ended September 30,
	2021		2020
Redeemable noncontrolling interest, beginning of period	$	13,543	$	13,611
Net income attributable to redeemable noncontrolling interest partner	1,694		1,743
Distributions of income to redeemable noncontrolling interest partner	(106)		(1,505)
Change in fair value of redeemable noncontrolling interest	2,275		(225)
Redeemable noncontrolling interest, end of period	$	17,406	$	13,624

Contingent Consideration

Under the terms of the purchase agreement, the Company was obligated to pay contingent consideration to our partner if certain annual performance targets were 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, 2020 through December 31, 2020, and contingent consideration of $0.4 million was earned by the minority partner and paid by the Company in April 2021 in addition to a $0.1 million distribution of income. The performance targets were not met for the period from January 1, 2021 through April 26, 2021. The contingent consideration period expired April 26, 2021.