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Redeemable Noncontrolling Interests in FelCor LP/Redeemable Units
 9 Months Ended
Sep. 30, 2016
Noncontrolling Interest [Abstract]  
Redeemable Noncontrolling Interests in FelCor LP / Redeemable Units
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. We base the historical cost on the proportionate relationship between the carrying value of equity associated with FelCor’s common stockholders relative to that of FelCor LP’s unitholders. We base redemption value 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.

11.
Redeemable Noncontrolling Interests in FelCor LP/Redeemable Units — (continued)

At September 30, 2016, we carried 610,183 outstanding limited partnership units at $3.9 million. We base the value of these outstanding units on the closing price of FelCor’s common stock at September 30, 2016 ($6.43 per share).

Changes in redeemable noncontrolling interests (or redeemable units) for the nine months ended September 30, 2016 and 2015 are shown below (in thousands):
 
Nine Months Ended
 
September 30,
 
2016
 
2015
Balance at beginning of period
$
4,464

 
 
$
6,616

 
Conversion of units
(9
)
 
 
—

 
Redemption value allocation
(355
)
 
 
(2,076
)
 
Distributions paid to unitholders
(110
)
 
 
(67
)
 
Net loss
(67
)
 
 
(150
)
 
Balance at end of period
$
3,923

 
 
$
4,323