Uniwheels Noncontrolling Redeemable Equity

3 Months Ended

Mar. 31, 2018

Uniwheels Noncontrolling Redeemable Equity

Note 15 – Uniwheels Noncontrolling Redeemable Equity

On January 17, 2018, the DPLTA became effective with the entry into the commercial register. As a result, noncontrolling interests with a carrying value of $51.9 million were reclassified from stockholders’ equity to mezzanine equity effective January 1, 2018. Noncontrolling interests with redemption rights that are not within the company’s control are considered redeemable and must be classified outside shareholders’ equity. In addition, the carrying value of the noncontrolling interests must be adjusted to redemption value since they are currently redeemable. The following table summarizes Uniwheels noncontrolling redeemable equity activity for the three months ended March 31, 2018:


Uniwheels Noncontrolling Redeemable Equity
Balance at December 31, 2017	$	—
Reclassification of noncontrolling interests		51,943
Redemption value adjustment		3,625
Purchase of shares tendered in March 2018		(17	)

Balance at March 31, 2018	$	55,551

Annual compensation payable on untendered outstanding shares under the DPLTA must be recognized as they accrue, whether or not declared or paid. During the quarter ended March 31, 2018, we accrued $0.6 million representing one quarter of the annual deemed dividend due for 2018 to the noncontrolling interest.