Non-controlling Interest (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Ownership of the Common Units


	As of December 31,
	2017			2016
	Shares	Ownership %		Shares	Ownership %
Non-controlling interest 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 Consolidated Statements of Income for the periods indicated is detailed as follows (in thousands, except percentages):


	Year Ended December 31,
	2017									2016									2015
	RE/MAX Holdings, Inc.			Non-controlling interest			Total			RE/MAX Holdings, Inc.			Non-controlling interest			Total			RE/MAX Holdings, Inc.			Non-controlling interest			Total
Weighted average ownership percentage of RMCO (a)		58.48	%		41.52	%		100.00	%		58.40	%		41.60	%		100.00	%		42.33	%		57.67	%		100.00	%
Income before provision for income taxes	$	66,599		$	24,156		$	90,755		$	36,446		$	26,053		$	62,499		$	26,554		$	36,251		$	62,805
Provision for income taxes (b)(c)		(53,784)			(1,792)			(55,576)			(14,050)			(1,223)			(15,273)			(10,142)			(1,888)			(12,030)
Net income	$	12,815		$	22,364		$	35,179		$	22,396		$	24,830		$	47,226		$	16,412		$	34,363		$	50,775

(a)

The weighted average ownership percentage of RMCO differs from the allocation of income before provision for income taxes between RE/MAX Holdings and the non-controlling interest due to certain relatively insignificant expenses and the gain on reduction in TRA liability in 2017 being 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 directly incurred by RMCO and its subsidiaries, related primarily to tax liabilities in certain foreign jurisdictions.

The provision for income taxes attributable to the non-controlling interest represents its share of taxes related primarily to tax liabilities in certain foreign jurisdictions directly incurred by RMCO or its subsidiaries. Because RMCO is a pass-through entity there is no U.S. federal and state income tax provision recorded on the non-controlling interest.

Distributions Paid or Payable

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


	Year Ended
	December 31,
	2017		2016
Tax and other distributions	$	8,217	$	10,391
Dividend distributions		9,043		7,536
Total distributions to non-controlling unitholders	$	17,260	$	17,927