Non-controlling Interest (Tables)

9 Months Ended

Sep. 30, 2017

Summary of Ownership of the Common Units


	September 30,			December 31,
	2017			2016
	Shares	Ownership %		Shares	Ownership %
Non-controlling unitholders ownership of common units in RMCO	12,559,600	41.51	%	12,559,600	41.57	%
RE/MAX Holdings, Inc. outstanding Class A common stock (equal to RE/MAX Holdings, Inc. common units in RMCO)	17,696,991	58.49	%	17,652,548	58.43	%
Total common units in RMCO	30,256,591	100.00	%	30,212,148	100.00	%

Reconciliation from Income Before Provision for Income Taxes to Net Income

A reconciliation of “Income before provision for income taxes” to “Net Income attributable to RE/MAX Holdings, Inc.” and “Net Income attributable to non-controlling interest” in the accompanying Condensed Consolidated Statements of Income for the periods indicated is detailed as follows (in thousands, except for percentages):


	Three Months Ended September 30,
	2017									2016
	RE/MAX Holdings, Inc.			Non-controlling interest			Total			RE/MAX Holdings, Inc.			Non-controlling interest			Total
Weighted average ownership percentage of RMCO (a)		58.49	%		41.51	%		100.00	%		58.42	%		41.58	%		100.00	%
Income before provision for income taxes	$	6,180		$	4,448		$	10,628		$	11,025		$	7,913		$	18,938
Provision for income taxes (b)(c)		(2,345)			(746)			(3,091)			(4,239)			(393)			(4,632)
Net income	$	3,835		$	3,702		$	7,537		$	6,786		$	7,520		$	14,306


	Nine Months Ended September 30,
	2017									2016
	RE/MAX Holdings, Inc.			Non-controlling interest			Total			RE/MAX Holdings, Inc.			Non-controlling interest			Total
Weighted average ownership percentage of RMCO (a)		58.47	%		41.53	%		100.00	%		58.39	%		41.61	%		100.00	%
Income before provision for income taxes	$	25,763		$	18,365		$	44,128		$	29,742		$	21,263		$	51,005
Provision for income taxes (b)(c)		(9,486)			(1,397)			(10,883)			(11,203)			(973)			(12,176)
Net income	$	16,277		$	16,968		$	33,245		$	18,539		$	20,290		$	38,829

(a)

The weighted average ownership percentage of RMCO differs slightly from the allocation of income before provision for income taxes between RE/MAX Holdings and the non-controlling interest as there are certain relatively insignificant expenses recorded at RE/MAX Holdings.

(b)

The provision for income taxes attributable to RE/MAX Holdings is primarily comprised of U.S. federal and state income taxes on its proportionate share of the pass-through income from RMCO. However, it also includes its share of 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.

(c)

The provision for income taxes attributable to the non-controlling interest represents its share of taxes imposed on RE/MAX, LLC related primarily to tax liabilities in certain foreign jurisdictions.

Distributions Paid or Payable

The distributions paid or payable to or on behalf of non-controlling unitholders are summarized as follows (in thousands):


	Nine Months Ended
	September 30,
	2017		2016
Tax and other distributions	$	7,430	$	8,442
Dividend distributions		6,783		5,652
Total distributions to non-controlling unitholders	$	14,213	$	14,094