Redeemable Non-controlling Interests and Non-controlling Interest

12 Months Ended

Dec. 31, 2017

Redeemable Non-controlling Interests and Non-controlling Interest

17. REDEEMABLE NON-CONTROLLING INTERESTS AND NON-CONTROLLING INTEREST

Redeemable Non-controlling Interests

A non-controlling owner previously held a 35.0 percent interest in the Travel Channel. The owner of the non-controlling interest had a put option requiring us to purchase their interest, and we had a call option to acquire their interest. In February 2016, we purchased the remaining 35.0 percent non-controlling interest for $99.0 million, resulting in our 100.0 percent ownership of Travel Channel.

A non-controlling owner previously held a 30.0 percent interest in FNLA. In December 2016, we purchased the remaining 30.0 percent non-controlling interest in FNLA for $4.5 million, resulting in our 100.0 percent ownership of FNLA.

The following table summarizes the activity for account balances whose fair value measurements are estimated utilizing Level 3 inputs:

	December 31,
(in thousands)	2017		2016
Balance - beginning of year	$	-	$	99,000
Net income		-		1,018
Fair value adjustments		-		3,482
Purchase of non-controlling interest		-		(103,500	)
Balance - end of year	$	-	$	-

The net income amount reflected in the table above are reported within net income attributable to non-controlling interests in our consolidated statements of operations.

Non-controlling Interest

The Food Network and Cooking Channel are operated and organized under the terms of the Partnership. The Company and a non-controlling owner hold interests in the Partnership. During the fourth quarter of 2016, the Partnership agreement was extended and specifies a dissolution date of December 31, 2020. If the term of the Partnership is not extended prior to that date, the Partnership agreement permits the Company, as holder of 80.0 percent of the applicable votes, to reconstitute the Partnership and continue its business. If for some reason the Partnership is not continued, it will be required to limit its activities to winding up, settling debts, liquidating assets and distributing proceeds to the partners in proportion to their partnership interests.