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NON-CONTROLLING INTERESTS
6 Months Ended
Jun. 29, 2016
Noncontrolling Interest [Abstract]  
NON-CONTROLLING INTERESTS
NON-CONTROLLING INTERESTS
 
We are the sole managing member of SSE Holdings and, as a result, consolidate the financial results of SSE Holdings. We report a non-controlling interest representing the economic interest in SSE Holdings held by the other members of SSE Holdings. The Third Amended and Restated Limited Liability Company Agreement (the "LLC Agreement") of SSE Holdings provides that holders of LLC Interests may, from time to time, require SSE Holdings to redeem all or a portion of their LLC Interests for newly-issued shares of Class A common stock on a one-for-one basis. In connection with any redemption or exchange, we will receive a corresponding number of LLC Interests, increasing our total ownership interest in SSE Holdings. Changes in our ownership interest in SSE Holdings while we retain our controlling interest in SSE Holdings will be accounted for as equity transactions. As such, future redemptions or direct exchanges of LLC Interests in SSE Holdings by the other members of SSE Holdings will result in a change in ownership and reduce the amount recorded as non-controlling interest and increase additional paid-in capital.
The following table summarizes the ownership interest in SSE Holdings as of June 29, 2016 and December 30, 2015.
 
June 29, 2016
 
 
December 30, 2015
 
 
LLC Interests

 
Ownership %

 
LLC Interests

 
Ownership %

Number of LLC Interests held by Shake Shack Inc.
23,344,339

 
64.3
%
 
19,789,259

 
54.6
%
Number of LLC Interests held by non-controlling interest holders
12,983,596

 
35.7
%
 
16,460,741

 
45.4
%
Total LLC Interests outstanding
36,327,935

 
100.0
%
 
36,250,000

 
100.0
%

The weighted average ownership percentages for the applicable reporting periods are used to attribute net income and other comprehensive income to Shake Shack Inc. and the non-controlling interest holders. The non-controlling interest holders' weighted average ownership percentage for the thirteen and twenty-six weeks ended June 29, 2016 was 37.9% and 40.9%, respectively. For the twenty-six weeks ended July 1, 2015, net income was attributed to non-controlling interest holders only for the period subsequent to the IPO and the organizational transactions completed in connection with our IPO, based on a weighted-average ownership percentage of 66.7%.
The following table summarizes the effects of changes in ownership in SSE Holdings on our equity during the thirteen and twenty-six weeks ended June 29, 2016 and July 1, 2015.
 
 
Thirteen Weeks Ended
 
 
Twenty-Six Weeks Ended
 
 
June 29
2016

 
July 1
2015

 
June 29
2016

 
July 1
2015

Comprehensive income (loss) attributable to Shake Shack Inc.
$
3,294

 
$
1,118

 
$
4,755

 
$
(11,550
)
Transfers (to) from non-controlling interests:
 
 
 
 

 

 
Increase in additional paid-in capital as a result of the settlement of unit appreciation rights

 

 

 
987

 
Decrease in additional paid-in as a result of the organizational transactions completed in connection with our IPO

 

 

 
(75,182
)
 
Increase in additional paid-in capital as a result of the redemption of LLC Interests
5,736

 

 
10,378

 

 
Increase in additional paid-in capital as a result of stock option exercises and the related income tax effect
161

 

 
404

 

Total effect of changes in ownership interest on equity attributable to Shake Shack Inc.
$
9,191

 
$
1,118

 
$
15,537

 
$
(85,745
)

In February 2015, we used the net proceeds from our IPO to purchase 5,750,000 newly-issued LLC Interests. Additionally, in connection with our IPO, we acquired 5,968,841 LLC Interests through the acquisition, by merger, of two entities there were owned by former indirect members of SSE Holdings. Pursuant to the LLC Agreement, we received 339,306 LLC Interests as a result of the issuance of 339,306 shares of Class A common stock in settlement of the outstanding UARs.
During twenty-six weeks ended June 29, 2016, an aggregate of 3,477,145 LLC Interests were redeemed by non-controlling interest holders for newly-issued shares of Class A common stock, and we received 3,477,145 LLC Interests in connection with these redemptions, increasing our total ownership interest in SSE Holdings. No LLC Interests were redeemed during the twenty-six weeks ended July 1, 2015.
During twenty-six weeks ended June 29, 2016, we received an aggregate of 77,935 LLC Interests in connection with the exercise of employee stock options. No stock options were exercised during the twenty-six weeks ended July 1, 2015.