| REDEEMABLE NON-CONTROLLING INTERESTS Our subsidiaries with membership interests in the investment funds we formed have the right to elect to require the non-controlling interest holder to sell all of its membership units to our subsidiaries, a call option. Our investment funds also include rights for the non-controlling interest holder to elect to require our subsidiaries to purchase all of the non-controlling membership interests in the fund, a put option.
The following table sets forth information about the call and put options for our investment funds:
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Call Option |
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Put Option |
| Investment Fund Number |
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Formation Date |
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Start Date |
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End Date |
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Purchase Price |
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Start Date |
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End Date |
|
Purchase Price |
| 1 |
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September 2015 |
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March 2021 |
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September 2021 |
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(1) |
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March 2022 |
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March 2023 |
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(4) |
| 2 |
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April 2017 |
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December 2022 |
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June 2023 |
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(1) |
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December 2023 |
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December 2024 |
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(4) |
| 3 |
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June 2018 |
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April 2024 |
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October 2024 |
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(2) |
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October 2024 |
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April 2025 |
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(5) |
| 4 |
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October 2018 |
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June 2024 |
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December 2024 |
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(2) |
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December 2024 |
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June 2025 |
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(5) |
| 5 |
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December 2019 |
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March 2026 |
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September 2026 |
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(3) |
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September 2026 |
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September 2027 |
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(6) |
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| (1) Purchase price is equal to the fair market value of such interest at the time the option is exercised. |
(2) Purchase price is equal to the greater of (i) the fair market value of such interests at the time the option is exercised or (ii) 7% of the investors’ contributed capital balance at the time the option is exercisable. |
(3) Purchase price is equal to the greater of (i) the fair market value of such interests at the time the option is exercised or (ii) 5% of the investors’ contributed capital balance at the time the option is exercisable. The call options are exercisable beginning on the date that specified conditions are met for each respective fund. These dates are estimates, which are subject to change based on the final funding date. |
(4) Purchase price is the lessor of fair market value at the time the option is exercised and a specified amount, ranging from $659 to $917. |
| (5) Purchase price is the sum of (i) the fair market value at the time the option is exercised, and (ii) the closing costs incurred by the investor in connection with the exercise of the put option. |
(6) Purchase price is the lessor of fair market value at the time the option is exercised and the sum of (i) 5% of the investors’ contributed capital balance at the time the option is exercisable, and (ii) the fair market value of any unpaid tax law change losses incurred by the investor in connection with the exercise of the put option. These dates are estimates, which are subject to change based on the final funding date. |
The call options are exercisable beginning on the date that specified conditions are met for each respective fund. We expect to require the non-controlling interest holders to sell all of their membership units to our subsidiaries when the call options become available to us. The put options for the investment funds are exercisable beginning on the date that specified conditions are met for each respective fund.
Because the put options represent redemption features that are not solely within our control, the non-controlling interests in these funds are presented outside of permanent equity. Redeemable non-controlling interests are reported using the greater of their carrying value (which is impacted by attribution under the HLBV method) or their estimated redemption value at each reporting period. At both December 31, 2020 and 2019, redeemable non-controlling interests were reported in the accompanying consolidated balance sheets at their carrying values, as the carrying value at each reporting period was greater than the estimated redemption value.
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