Non-controlling Interest (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Ownership of the Common Units


	As of December 31,
	2018			2017
	Shares	Ownership %		Shares	Ownership %
Non-controlling interest ownership of common units in RMCO	12,559,600	41.43	%	12,559,600	41.51	%
RE/MAX Holdings, Inc. outstanding Class A common stock (equal to RE/MAX Holdings, Inc. common units in RMCO)	17,754,416	58.57	%	17,696,991	58.49	%
Total common units in RMCO	30,314,016	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 Consolidated Statements of Income for the periods indicated is detailed as follows (in thousands, except percentages):


	Year Ended December 31,
										2017									2016
	2018									As adjusted*									As adjusted*
	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)		58.55	%		41.45	%		100.00	%		58.48	%		41.52	%		100.00	%		58.40	%		41.60	%		100.00	%
Income before provision for income taxes	$	41,238		$	24,926		$	66,164		$	65,493		$	23,369		$	88,862		$	36,165		$	25,850		$	62,015
Provision for income taxes (b)(c)		(14,194)			(1,605)			(15,799)			(55,255)			(1,792)			(57,047)			(13,944)			(1,223)			(15,167)
Net income	$	27,044		$	23,321		$	50,365		$	10,238		$	21,577		$	31,815		$	22,221		$	24,627		$	46,848

*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 (a) certain relatively insignificant expenses and (b) the significant gain on reduction in TRA liability in 2018 and 2017 attributable only to RE/MAX Holdings. See Note 12, Income Taxes for additional information.

(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. In 2018 and 2017, the provision for income taxes attributable to RE/MAX Holdings also includes a significant decrease in the value of deferred tax assets. See Note 12, Income Taxes for additional information.

(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):


	Year Ended
	December 31,
	2018		2017
Tax and other distributions	$	4,511	$	8,217
Dividend distributions		10,048		9,043
Total distributions to non-controlling unitholders	$	14,559	$	17,260