Noncontrolling Interests

6 Months Ended

Jun. 30, 2011

Noncontrolling Interest Disclosure [Text Block]

Noncontrolling Interests

We record the noncontrolling interests of other consolidated partnerships as a separate component of equity in the condensed consolidated balance sheets. Additionally, the condensed consolidated statements of operations separately present earnings and other comprehensive income attributable to controlling and non-controlling interests. We adjust the noncontrolling interests of FelCor LP each period so that the carrying value equals the greater of its carrying value based on the accumulation of historical cost or its redemption value. The historical cost of the noncontrolling interests of FelCor LP is based on the proportional relationship between the carrying value of equity associated with our common stockholders relative to that of the unitholders of FelCor LP. Net income (loss) is allocated to the noncontrolling partners of FelCor LP based on their weighted average ownership percentage during the period.

In May 2011, we sold 367,647 units of limited partner interest in our operating partnership at $6.80 per unit. At June 30, 2011, these units were carried at $2.4 million, which is the issue price of the units less the holders’ share of allocated losses for the period the units were outstanding. The other outstanding 272,513 units of limited partner interest were carried at $1.5 million at June 30, 2011. This value is based on the June 30, 2011 closing price for our common stock ($5.33/share).

The changes in redeemable noncontrolling interests for the six months ended June 30, 2011 and 2010 are shown below (in thousands):



	Six Months Ended June 30,
	2011			2010
Balance at beginning of period	$	2,004		$	1,062
Issuance of units	2,500			—
Conversion of units	(79		)	—
Redemption value allocation	(239		)	687
Comprehensive income (loss):
Foreign exchange translation	4			(3		)
Net loss	(303		)	(274		)
Balance at end of period	$	3,887		$	1,472

- Definition

The entire disclosure for noncontrolling interest in consolidated subsidiaries, which could include the name of the subsidiary, the ownership percentage held by the parent, the ownership percentage held by the noncontrolling owners, the amount of the noncontrolling interest, the location of this amount on the balance sheet (when not reported separately), an explanation of the increase or decrease in the amount of the noncontrolling interest, the noncontrolling interest share of the net Income or Loss of the subsidiary, the location of this amount on the income statement (when not reported separately), the nature of the noncontrolling interest such as background information and terms, the amount of the noncontrolling interest represented by preferred stock, a description of the preferred stock, and the dividend requirements of the preferred stock.

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