NONCONTROLLING INTERESTS

3 Months Ended

Mar. 31, 2018

NOTE 14—NONCONTROLLING INTERESTS

The Company has ownership interests in multiple subsidiaries that are consolidated within the Company’s financial statements but are not wholly owned. During the three months ended March 31, 2018 and 2017, the Company entered into transactions that impacted its ownership interest in certain of these subsidiaries while maintaining control over such subsidiaries. As a result of the Company’s change in ownership interest in these subsidiaries, the Company reduced its noncontrolling interests and recognized an increase in equity related to transactions with holders of noncontrolling interests. The Company reports a noncontrolling interest representing the common units of SES Holdings held by Legacy Owner Holdco. Changes in Select Inc.’s ownership interest in SES Holdings while it retains its controlling interest are accounted for as equity transactions.

The following table summarizes the effects of changes in noncontrolling interests on equity for the three months ended March 31, 2018 and 2017:


	For the three months ended March 31,
	2018		2017
	(in thousands)
Net income (loss) attributable to Select Energy Services, Inc.	$	10,099	$	(4,172)
Transfers from noncontrolling interests:
Decrease in additional paid-in capital as a result of the contribution of net assets acquired to SES Holdings, LLC in exchange for common units		—		(3,002)
Decrease in additional paid-in capital as a result of stock option exercises		(49)		—
Increase in additional paid-in capital as a result of restricted stock issuance		1,424		—
Increase in additional paid-in capital as a result of issuance of common stock due to vesting of restricted stock units		2		—
Increase in additional paid-in capital as a result of the repurchase of common units of SES Holdings, LLC		42		—
Change to equity from net income (loss) attributable to Select Energy Services, Inc. and transfers from noncontrolling interests	$	11,518	$	(7,174)