Redeemable Noncontrolling Interests in FelCor LP/Redeemable Units

3 Months Ended

Mar. 31, 2016

Redeemable Noncontrolling Interests in FelCor LP / Redeemable Units

We record redeemable noncontrolling interests in FelCor LP, in the case of FelCor, and redeemable units, in the case of FelCor LP, in the mezzanine section (between liabilities and equity or partners’ capital) of our consolidated balance sheets because of the redemption feature of these units. Additionally, FelCor’s consolidated statements of operations and comprehensive income (loss) separately present earnings attributable to redeemable noncontrolling interests. We adjust redeemable noncontrolling interests in FelCor LP (or redeemable units) each period to reflect the greater of its carrying value based on the accumulation of historical cost or its redemption value. The historical cost is based on the proportionate relationship between the carrying value of equity associated with FelCor’s common stockholders relative to that of FelCor LP’s unitholders. Redemption value is based on the closing price of FelCor’s common stock at period end. FelCor allocates net income (loss) to FelCor LP’s noncontrolling partners based on their weighted average ownership percentage during the period.

At March 31, 2016, we had 611,462 limited partnership units outstanding carried at $5.0 million. The value of these outstanding units is based on the closing price of FelCor’s common stock at March 31, 2016 ($8.12 per share).


9.	Redeemable Noncontrolling Interests in FelCor LP / Redeemable Units — (continued)

Changes in redeemable noncontrolling interests (or redeemable units) for the three months ended March 31, 2016 and 2015 are shown below (in thousands):



	Three Months Ended
	March 31,
	2016			2015
Balance at beginning of period	$	4,464		$	6,616
Redemption value allocation	585			447
Distributions paid to unitholders	(36		)	(23		)
Net loss	(48		)	(14		)
Balance at end of period	$	4,965		$	7,026