Non-controlling Interest (Tables)

9 Months Ended

Sep. 30, 2015

Summary of Ownership of the Common Units


	September 30,			December 31,
	2015			2014
	Shares	Ownership %		Shares	Ownership %
Non-controlling unitholders ownership of common units in RMCO	17,734,600	58.97	%	17,734,600	60.11	%
RE/MAX Holdings, Inc. outstanding Class A common stock (equal to RE/MAX Holdings, Inc. common units in RMCO)	12,339,639	41.03	%	11,768,041	39.89	%
Total common units in RMCO	30,074,239	100.00	%	29,502,641	100.00	%

Summary of Reconciliation from Income Before Provision for Income Taxes to Net Income

The aforementioned ownership percentages are used to calculate the net income attributable to RE/MAX Holdings. A reconciliation from “Income before provision for income taxes” to “Net income attributable to RE/MAX Holdings, Inc.” in the accompanying Condensed Consolidated Statements of Income for the periods indicated is detailed as follows (in thousands, except percentages):


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
Income before provision for income taxes	$	18,470		$	17,171		$	49,263		$	44,492
Weighted average ownership percentage of controlling interest		41.02	%		39.50	%		40.61	%		39.53	%
Income before provision for income taxes attributable to RE/MAX Holdings, Inc.		7,576			6,783			20,006			17,588
Provision for income taxes attributable to RE/MAX Holdings, Inc.		(2,779)			(2,508)			(7,532)			(6,525)
Net income attributable to RE/MAX Holdings, Inc.	$	4,797		$	4,275		$	12,474		$	11,063

Summary of Reconciliation of Provision for Income Taxes

A reconciliation of the “Provision for income taxes” in the accompanying Condensed Consolidated Statements of Income for the periods indicated is detailed as follows (in thousands):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Provision for income taxes attributable to RE/MAX Holdings, Inc. (a)	$	(2,779)	$	(2,508)	$	(7,532)	$	(6,525)
Provision for income taxes attributable to entities other than RE/MAX Holdings, Inc. (b)		(498)		(608)		(1,350)		(1,605)
Provision for income taxes	$	(3,277)	$	(3,116)	$	(8,882)	$	(8,130)

(a)

The provision for income taxes attributable to RE/MAX Holdings includes all U.S. federal and state income taxes as well as RE/MAX Holdings’ approximate 40% share of the taxes imposed directly on RE/MAX, LLC, a wholly-owned subsidiary of RMCO, related to tax liabilities in certain foreign jurisdictions of $346,000 and $395,000 for the three months ended September 30, 2015 and 2014, respectively, and $924,000 and $1,049,000 for the nine months ended September 30, 2015 and 2014, respectively.

(b)

The provision for income taxes attributable to entities other than RE/MAX Holdings represents taxes imposed directly on RE/MAX, LLC related to tax liabilities in certain foreign jurisdictions that are allocated to the non-controlling interest.