REDEEMABLE NONCONTROLLING INTEREST (Notes)

12 Months Ended

Dec. 31, 2015

REDEEMABLE NONCONTROLLING INTEREST [Abstract]

Noncontrolling Interest Disclosure [Text Block]

REDEEMABLE NONCONTROLLING INTEREST

The Company has a shareholders’ agreement with One Equity Partners (OEP) and the Russian Direct Investment Fund (RDIF) which was used for the acquisition of Voltyre-Prom, a leading producer of agricultural and industrial tires in Volgograd, Russia. The agreement contains a settlement put option which is exercisable beginning in July of 2018 and may require Titan to purchase the shares of OEP and RDIF at a value set by the agreement.

The redemption features of the settlement put option are not solely within the Company’s control and the noncontrolling interest is presented as redeemable noncontrolling interest separately from total equity in the Consolidated Balance Sheet at the redemption value of the settlement put option. If the redemption value is greater than carrying value of the noncontrolling interest, the increase is adjusted directly to retained earnings of the affected entity, or additional paid-in capital if there are no available retained earnings applicable to the redeemable noncontrolling interest.

The following is a reconciliation of redeemable noncontrolling interest as of December 31, 2015 and 2014 (amounts in thousands):

Balance at January 1, 2014	$	89,155
Purchase of subsidiary shares	(12,193		)
Loss attributable to redeemable noncontrolling interest	(37,644		)
Currency translation	(17,403		)
Redemption value adjustment	49,277
Balance at December 31, 2014	$	71,192
Loss attributable to redeemable noncontrolling interest	(7,014		)
Currency translation	(4,672		)
Redemption value adjustment	17,668
Balance at December 31, 2015	$	77,174

This obligation approximates the cost if all remaining shares were purchased by the Company on December 31, 2015, and is presented in the Consolidated Balance Sheet in redeemable noncontrolling interest, which is treated as mezzanine equity.