Non-controlling Interest (Tables)

6 Months Ended

Jun. 30, 2016

Summary of Ownership of the Common Units


	June 30,			December 31,
	2016			2015
	Shares	Ownership %		Shares	Ownership %
Non-controlling unitholders ownership of common units in RMCO	12,559,600	41.58	%	12,559,600	41.67	%
RE/MAX Holdings, Inc. outstanding Class A common stock (equal to RE/MAX Holdings, Inc. common units in RMCO)	17,645,696	58.42	%	17,584,351	58.33	%
Total common units in RMCO	30,205,296	100.00	%	30,143,951	100.00	%

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

The weighted average ownership percentages for the applicable reporting periods are used to calculate the net income attributable to RE/MAX Holdings. RE/MAX Holdings’ weighted average ownership percentage in RMCO was 58.41% and 40.81% for the three months ended June 30, 2016 and 2015, respectively and 58.37% and 40.40% for the six months ended June 30, 2016 and 2015, respectively. RE/MAX Holdings’ economic interest in RMCO increased due to the increase in common units from the issuance of shares of Class A common stock as a result of the Secondary Offering described in Note 1, Business and Organization. A reconciliation of “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):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Income before provision for income taxes attributable to RE/MAX Holdings, Inc.	$	10,900	$	7,964		18,865		12,440
Provision for income taxes attributable to RE/MAX Holdings, Inc.		(3,939)		(2,994)		(6,964)		(4,752)
Net income attributable to RE/MAX Holdings, Inc.	$	6,961	$	4,970	$	11,901	$	7,688

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				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Provision for income taxes attributable to RE/MAX Holdings, Inc. (a)	$	(3,939)	$	(2,994)	$	(6,964)	$	(4,752)
Provision for income taxes attributable to entities other than RE/MAX Holdings, Inc. (b)		(346)		(463)		(580)		(853)
Provision for income taxes	$	(4,285)	$	(3,457)	$	(7,544)	$	(5,605)

(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’ proportionate share of the net assets of RMCO of the taxes imposed directly on RE/MAX, LLC and its consolidated subsidiaries (“RE/MAX, LLC”), a wholly-owned subsidiary of RMCO, related primarily to tax liabilities in certain foreign jurisdictions of $493,000 and $316,000 for the three months ended June 30, 2016 and 2015, respectively, and $828,000 and $578,000 for the six months ended June 30, 2016 and 2015, 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 primarily in certain foreign jurisdictions that are allocated to the non-controlling interest.