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Non-controlling and Other Beneficial Interests
12 Months Ended
Oct. 31, 2019
Non-Controlling and Other Beneficial Interests [Abstract]  
Non-controlling and Other Beneficial Interests

17.Non-controlling and Other Beneficial Interests

 

Non-controlling and other beneficial interests are as follows:

 

Non-redeemable non-controlling interests

 

Non-redeemable non-controlling interests consist entirely of unvested interests granted to employees of the Company’s majority-owned subsidiaries. These grants become subject to holder put rights upon vesting and are reclassified to temporary equity as vesting occurs.

 

Redeemable non-controlling interests at other than fair value

 

In fiscal 2017, the Company acquired the remaining direct profit interests held by the non-controlling interest holders of Atlanta Capital (see Note 9). As a result, the Company had no non-controlling interests that are redeemable at other than fair value as of October 31, 2019 and 2018.

 

Redeemable non-controlling interests at fair value

 

Redeemable non-controlling interests include vested interests held by employees of the Company’s majority-owned subsidiaries and are recorded in temporary equity at estimated redemption value. Future payments to purchase these interests reduce temporary equity. Future changes in the redemption value of these interests are recognized as increases or decreases to additional paid-in capital. Redeemable non-controlling interests also include interests in the Company’s consolidated sponsored funds, given that investors in those funds may request withdrawals at any time.

 

In the fourth quarter of fiscal 2019, the Company purchased all remaining outstanding non-controlling profit and capital interests in Parametric held by current and former Parametric employees (see Note 9).

 

The components of net (income) loss attributable to non-controlling and other beneficial interests for the years ended October 31, 2019, 2018 and 2017 were as follows:

 

(in thousands)

 

2019

 

2018

 

2017

 

Consolidated sponsored funds

$

(20,081)

$

232

$

(6,816)

 

Majority-owned subsidiaries

 

(12,760)

 

(16,199)

 

(16,895)

 

Non-controlling interest value adjustments(1)

 

-

 

-

 

(531)

 

Net income attributable to non-controlling and

 

 

 

 

 

 

 

other beneficial interests

$

(32,841)

$

(15,967)

$

(24,242)

 

 

 

 

 

 

 

 

 

 

(1)

Relates to non-controlling interests redeemable at other than fair value.