Non-controlling Interests

9 Months Ended

Sep. 30, 2021

Immediately following the Offering Reorganization and IPO in May 2015, the Company owned 70.3% of Evolent Health LLC. The Company’s ownership percentage changes with the issuance of Class A or Class B common stock and Class B Exchanges. In order to account for any changes in the Company’s ownership of Evolent Health LLC, we record a reclassification of equity between non-controlling interests and shareholders’ equity attributable to Evolent Health, Inc.

2020

On September 1, 2020, in connection with the consolidation of EVH Passport, the Company recognized a $25.7 million non-controlling interest for the Sponsors’ 30% equity interest in EVH Passport which represented the fair value of the non-controlling interest as of the date of consolidation. Pursuant to the shareholders’ agreement with the Sponsors, the Company was required to acquire the Sponsors’ 30% ownership interest for $20.0 million on or prior to December 31, 2021. On November 16, 2020, the Company acquired the Sponsors’ 30% equity interest and reclassified the non-controlling interests into shareholders’ equity attributable to Evolent Health, Inc. As a result of this transaction, the Company recorded a $5.7 million gain on consolidation for the year ended December 31, 2020 in gain (loss) on disposal of assets and consolidation on the consolidated statements of operations.

Changes in non-controlling interests (in thousands) for the periods presented were as follows:


	For the Three Months Ended September 30, 2020		For the Nine Months Ended September 30, 2020
Non-controlling interests balance as of beginning of period	$	—	$	6,689
Issuance of non-controlling interest	25,749		25,749
Net loss attributable to non-controlling interest	(822)		(822)
Reclassification of non-controlling interests	—		(6,689)
Non-controlling interests balance as of end of period	$	24,927	$	24,927