Non-controlling Interest (Tables)

12 Months Ended

Dec. 31, 2013

Summary of Ownership of the Common Units

The Reorganization Transactions and IPO resulted in RE/MAX Holdings becoming RMCO’s sole managing member. As a result, RE/MAX Holdings operates and controls all of the business and affairs of RMCO while owning a 39.56% minority economic interest in RMCO. Therefore, beginning on October 7, 2013, RE/MAX Holdings began to consolidate the financial results of RMCO and its subsidiaries and to record a non-controlling interest for the remaining 60.44% economic interest in RMCO held by RIHI. RE/MAX Holdings’ only sources of cash flow from operations are distributions from RMCO and management fees received pursuant to the management services agreement between RE/MAX Holdings and RMCO. Net income attributable to the non-controlling interest on the Consolidated Statement of Income and Comprehensive Income represents the portion of earnings attributable to the economic interest in RMCO held by the non-controlling unitholders. As of October 7, 2013, the non-controlling interest on the Consolidated Balance Sheets represents the carryover basis of RIHI’s capital account in RMCO. Prospectively, non-controlling interest on the Consolidated Balance Sheets is adjusted to reflect the distributions to and income allocated to the non-controlling unitholders. The ownership of the Common Units is summarized as follows:

	Non-controlling unitholders ownership of Common Units in RMCO			RE/MAX Holdings outstanding Class A common stock (equal to RE/MAX Holdings Common Units in RMCO)			Total
As of October 7, 2013 and December 31, 2013		17,734,600			11,607,971			29,342,571
		60.44	%		39.56	%		100.00	%

Balance of Noncontrolling Interest

The balance of the non-controlling interest as of October 7, 2013 and December 31, 2013 is as follows (in thousands):

Equity held by the non-controlling unitholders as of October 7, 2013 immediately prior to the Reorganization Transactions and IPO	$	(155,823	)
Reorganization Transactions whereby a portion of the Class A preferred units were converted to Common Units		82,500
Redemption of remaining Common Units held by Weston Presidio, and a portion of the Common Units held by RIHI		(147,768	)
Offering expenses incurred by RMCO and deducted against proceeds received		(5,972	)
RMCO equity held by the non-controlling unitholders as of October 7, 2013 immediately after the Reorganization Transactions and IPO	$	(227,063	)
Allocation of income subsequent to Reorganization Transactions and IPO		3,470
Distributions paid and payable to non-controlling unitholders		(2,832	)
Balance of non-controlling interest as of December 31, 2013	$	(226,425	)