European Non-Controlling Redeemable Equity

6 Months Ended

Jun. 30, 2018

European Non-Controlling Redeemable Equity

Note 15 – European Non-Controlling Redeemable Equity

On January 17, 2018, the DPLTA (referred to in Note 3, “Acquisitions”) became effective with the entry into the commercial register. As a result, non-controlling interests with a carrying value of $51.9 million were reclassified from stockholders’ equity to mezzanine equity effective January 1, 2018 because non-controlling interests with redemption rights (not within the company’s control) are considered redeemable and must be classified outside shareholders’ equity. In addition, the carrying value of the non-controlling interests must be adjusted to redemption value since they are currently redeemable. The following table summarizes the European non-controlling redeemable equity activity for the six months ended June 30, 2018:


Balance at December 31, 2017	$	—
Reclassification of non-controlling interests		51,943
Redemption value adjustment		3,625
Translation adjustment		(2,851	)
Purchase of shares		(118	)

Balance at June 30, 2018	$	52,599

Annual compensation payable on untendered outstanding shares under the DPLTA must be recognized as it accrues, whether or not declared or paid. As of June 30, 2018, we have accrued $1.1 million representing the prorated annual dividend due to the European non-controlling shareholders for the first six months of 2018, which is included in accrued liabilities.