European Non-Controlling Redeemable Equity

9 Months Ended

Sep. 30, 2018

European Non-Controlling Redeemable Equity

Note 15 – European Non-Controlling Redeemable Equity

On January 17, 2018, the DPLTA (referred to in Note 3, “Acquisition”) became effective with the entry into the commercial register. As a result, non-controlling interests with a carrying value of $51.9 million were reclassified from stockholders’ equity to mezzanine equity effective January 1, 2018 because non-controlling interests with redemption rights (not within the company’s control) are considered redeemable and must be classified outside shareholders’ equity. In addition, the carrying value of the non-controlling interests must be adjusted to redemption value since they are currently redeemable. The following table summarizes the European non-controlling redeemable equity activity for the nine months ended September 30, 2018:


Balance at December 31, 2017	$	—
Reclassification of non-controlling interests		51,943
Redemption value adjustment		3,625
Translation adjustment		(2,882	)
Purchase of shares		(32,697	)

Balance at September 30, 2018	$	19,989

Annual compensation payable on untendered outstanding shares under the DPLTA must be recognized as it accrues, whether declared or paid. As of September 30, 2018, we have recognized $1.3 million representing the prorated annual dividend due to the European non-controlling shareholders for the first nine months of 2018, $0.6 million of which is included in accrued liabilities and $0.7 million of which was paid upon redemption of the shares tendered during the nine months ended September 30, 2018.