Redeemable Noncontrolling Interests in FelCor LP/Redeemable Units

6 Months Ended

Jun. 30, 2015

Redeemable Noncontrolling Interests in FelCor LP / Redeemable Units

We record redeemable noncontrolling interests in FelCor LP, in the case of FelCor, and redeemable units, in the case of FelCor LP, in the mezzanine section (between liabilities and equity or partners’ capital) of our consolidated balance sheets because of the redemption feature of these units. Additionally, FelCor’s consolidated statements of operations separately present earnings attributable to redeemable noncontrolling interests. We adjust redeemable noncontrolling interests in FelCor LP (or redeemable units) each period to reflect the greater of its carrying value based on the accumulation of historical cost or its redemption value. The historical cost is based on the proportionate relationship between the carrying value of equity associated with FelCor’s common stockholders relative to that of FelCor LP’s unitholders. Redemption value is based on the closing price of FelCor’s common stock at period end. FelCor allocates net income (loss) to FelCor LP’s noncontrolling partners based on their weighted average ownership percentage during the period.


10.	Redeemable Noncontrolling Interests in FelCor LP / Redeemable Units — (continued)

At June 30, 2015, we had 611,462 limited partnership units outstanding carried at $6.0 million. The value of these outstanding units is based on the closing price of FelCor’s common stock at June 30, 2015 ($9.88 per share).

Changes in redeemable noncontrolling interests (or redeemable units) for the six months ended June 30, 2015 and 2014 are shown below (in thousands):



	Six Months Ended
	June 30,
	2015			2014
Balance at beginning of period	$	6,616		$	5,039
Conversion of units	—			(44		)
Redemption value allocation	(439		)	1,519
Distributions paid to unitholders	(47		)	(24		)
Comprehensive loss:
Net loss	(89		)	(50		)
Balance at end of period	$	6,041		$	6,440