Redeemable Non-Controlling Interest (Temporary Equity)
9 Months Ended
Redeemable Non-Controlling Interest
(Temporary Equity)
Sep. 30, 2011
Redeemable Non-Controlling Interest
(Temporary Equity)
Redeemable Non-Controlling Interest
(Temporary Equity)
16. REDEEMABLE NON-CONTROLLING INTEREST (TEMPORARY EQUITY)
The redeemable non-controlling interest represents the equity interests of PrinceRidge which
are not owned by the Company. The members of PrinceRidge have the right to withdraw from
PrinceRidge and require PrinceRidge to redeem the interests for cash over a contractual payment
period. The Company has concluded these interests should be treated as temporary equity under
Accounting Series Release 268 ("ASR 268"). These interests will be shown outside of the
permanent equity of IFMI in its consolidated balance sheet as redeemable non-controlling interests.
In June 2011, one partner withdrew from PrinceRidge and, therefore, the Company
reclassified $3,536 from redeemable non-controlling interest to accounts payable and other
liabilities. Per the terms of the operating agreement, PrinceRidge must redeem the partner's equity
interests over a five year period. The amount actually due to the withdrawing partner will fluctuate
over time based on the operating results of PrinceRidge. The carrying value of the liability owed to
the withdrawing partner will be recorded at the amount owed as of each balance sheet date. Any
increases or decreases in the amount owed will be recorded as interest income or expense and will
be included in the non operating section of the consolidated statement of operations. As of
September 30, 2011, the withdrawal payable to the partner was $3,215. See note 13.
• XBRL Rendering • Last update 11.9.2011