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Note 11 - Noncontrolling Interests
9 Months Ended
Sep. 30, 2018
Notes to Financial Statements  
Noncontrolling Interest Disclosure [Text Block]
11.
Noncontrolling Interests
 
      Noncontrolling interests represent the portion of equity that the Company does
not
own in entities it consolidates as a result of having a controlling interest or determined that the Company was the primary beneficiary of a VIE in accordance with the provisions of the FASB’s Consolidation guidance.  The Company accounts and reports for noncontrolling interests in accordance with the Consolidation guidance and the Distinguishing Liabilities from Equity guidance issued by the FASB. The Company identifies its noncontrolling interests separately within the equity section on the Company’s Condensed Consolidated Balance Sheets. The amounts of consolidated net income attributable to the Company and to the noncontrolling interests are presented separately on the Company’s Condensed Consolidated Statements of Income.  During the
nine
months ended
September 30, 2018,
there were various transactions that had an impact on noncontrolling interest. See Footnotes
3
and
5
to the Notes to Condensed Consolidated Financial Statements for additional information regarding specific transactions.
 
In addition, during the
nine
months ended
September 30, 2018,
the Company acquired its partners’ interests in
three
consolidated entities, in
two
separate transactions, for an aggregate purchase price of
$3.4
million. These transactions resulted in a net decrease in Noncontrolling interest of
$4.6
million and a corresponding net increase in Paid-in capital of
$1.2
million on the Company’s Condensed Consolidated Balance Sheets. There are
no
remaining partners in
two
of these consolidated entities.
 
Included within noncontrolling interests are units that were determined to be contingently redeemable that are classified as Redeemable noncontrolling interests and presented in the mezzanine section between Total liabilities and Stockholder’s equity on the Company’s Condensed Consolidated Balance Sheets.
 
The following table presents the change in the redemption value of the Redeemable noncontrolling interests for the
nine
months ended
September 30, 2018
and
2017
(in thousands): 
 
   
2018
   
2017
 
Balance at January 1,
  $
16,143
    $
86,953
 
Issuance of redeemable partnership interests (1)
   
-
     
10,000
 
Income
   
279
     
1,203
 
Distributions
   
(266
)    
(2,448
)
Redemption/conversion of redeemable units (2)
   
-
     
(79,569
)
Adjustment to estimated redemption value (1)
   
3,918
     
-
 
Balance at September 30,
 
$
20,074
   
$
16,139
 
 
 
(
1
)
During
2017,
KIM Lincoln, a wholly owned subsidiary of the Company, and Lincoln Member entered into a joint venture agreement wherein KIM Lincoln has a
90%
controlling interest and Lincoln Member has a
10%
noncontrolling interest. During the
nine
months ended
September 30, 2018,
the Company recorded an adjustment of
$3.9
million to the estimated redemption fair market value of this noncontrolling interest in accordance with the provisions of the joint venture agreement and ASC
480
– Accounting for Redeemable Equity Instruments.
 
(
2
)
During
2017,
the Company redeemed the remaining
79,642,697
Preferred A Units for a total redemption price of
$79.9
million, including an accrued preferred return of
$0.4
million. These units, which had a par value of
$1.00
and return per annum of
5.0%,
were issued during
2006
along with the acquisition of
seven
shopping center properties located in Puerto Rico.