Non-controlling Interest (Tables)

9 Months Ended

Sep. 30, 2018

Summary of Ownership of the Common Units


	September 30,			December 31,
	2018			2017
	Shares	Ownership %		Shares	Ownership %
Non-controlling interest ownership of common units in RMCO	12,559,600	41.44	%	12,559,600	41.51	%
RE/MAX Holdings, Inc. outstanding Class A common stock (equal to RE/MAX Holdings, Inc. common units in RMCO)	17,746,184	58.56	%	17,696,991	58.49	%
Total common units in RMCO	30,305,784	100.00	%	30,256,591	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
	2018									As adjusted*
	RE/MAX Holdings, Inc.			Non-controlling interest			Total			RE/MAX Holdings, Inc.			Non-controlling interest			Total
Weighted average ownership percentage of RMCO(a)		58.56	%		41.44	%		100.00	%		58.49	%		41.51	%		100.00	%
Income before provision for income taxes(a)	$	11,096		$	7,865		$	18,961		$	5,992		$	4,319		$	10,311
Provision for income taxes(b)(c)		(2,957)			(463)			(3,420)			(2,275)			(746)			(3,021)
Net income	$	8,139		$	7,402		$	15,541		$	3,717		$	3,573		$	7,290


	Nine Months Ended September 30,
										2017
	2018									As adjusted*
	RE/MAX Holdings, Inc.			Non-controlling interest			Total			RE/MAX Holdings, Inc.			Non-controlling interest			Total
Weighted average ownership percentage of RMCO(a)		58.54	%		41.46	%		100.00	%		58.47	%		41.53	%		100.00	%
Income before provision for income taxes(a)	$	27,916		$	19,812		$	47,728		$	25,104		$	17,899		$	43,003
Provision for income taxes(b)(c)		(7,146)			(1,283)			(8,429)			(9,389)			(1,397)			(10,786)
Net income	$	20,770		$	18,529		$	39,299		$	15,715		$	16,502		$	32,217

*See Note 3, Revenue for more information.

(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 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. It also includes RE/MAX Holdings’ share of taxes directly incurred by RMCO and its subsidiaries, 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 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 non-controlling unitholders are summarized as follows (in thousands):


	Nine Months Ended
	September 30,
	2018		2017
Tax and other distributions	$	3,723	$	7,430
Dividend distributions		7,536		6,783
Total distributions to non-controlling unitholders	$	11,259	$	14,213