NON-CONTROLLING INTERESTS

12 Months Ended

Dec. 25, 2019

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 SSE Holdings LLC Agreement 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 December 25, 2019 and December 26, 2018:



	2019			2018
	LLC Interests	Ownership %		LLC Interests	Ownership %
Number of LLC Interests held by Shake Shack Inc.	34,417,302	91.6	%	29,520,833	79.6	%
Number of LLC Interests held by non-controlling interest holders	3,145,197	8.4	%	7,557,347	20.4	%
Total LLC Interests outstanding	37,562,499	100.0	%	37,078,180	100.0	%

The weighted average ownership percentages for the applicable reporting periods are used to attribute net income and other comprehensive income (loss) between Shake Shack Inc. and the non-controlling interest holders. The non-controlling interest holders' weighted average ownership percentage for fiscal 2019 and 2018 was 15.9% and 23.4%, respectively.

The following table summarizes the effects of changes in ownership in SSE Holdings on our equity during fiscal 2019, 2018 and 2017.



		2019		2018		2017
Net income (loss) attributable to Shake Shack Inc.		$	19,827	$	15,179	$	(320	)
Other comprehensive income (loss):
	Unrealized holding gains (losses) on available-for-sale securities	—		10		(34		)
	Unrealized gain on foreign currency translation adjustment	2		—		—
Transfers (to) from non-controlling interests:
	Increase in additional paid-in capital as a result of the redemption of LLC Interests	11,934		15,202		4,415
	Increase in additional paid-in-capital as a result of the GTC Merger	19,218		—		—
	Increase in additional paid-in capital as a result of activity under the stock compensation plan and the related income tax effect	4,517		2,509		4,451
Total effect of changes in ownership interest on equity attributable to Shake Shack Inc.		$	55,498	$	32,900	$	8,512

During fiscal 2019, an aggregate of 4,412,150 LLC Interests were redeemed by the non-controlling interest holders for newly-issued shares of Class A common stock, of which 2,690,263 were received through the Gramercy Tavern Merger as described in Note 12, and we received 4,412,150 LLC Interests, increasing our total ownership interest in SSE Holdings to 91.6%. During 2018, an aggregate of 2,692,660 LLC Interests were redeemed by the non-controlling interest holders, and we received 2,692,660 LLC Interests, increasing our total ownership interest in SSE Holdings to 79.6%.

We received an aggregate of 484,319 and 300,696 LLC Interests in connection with the activity under our stock compensation plans during fiscal 2019 and 2018, respectively.