Value Investing A question about consolidation of limited partnerships... |
| A question about consolidation of limited partnerships... Posted: 02 Jun 2018 04:06 PM PDT A company I'm researching is a general partner of several limited partnerships. Additionally, the company owns anywhere between ~10% - 48% of these limited partnership units. In the 10-K the company states, "As a result of these controlling interests, we consolidate the operations of these limited partnerships with ours despite the fact that we do not own in excess of 50% of the equity interests. All intercompany transactions are eliminated in consolidation. The minority interests in the earnings of these limited partnerships are removed from net income and are not included in the calculation of earnings per share." My question is whether this is a red flag or not. I am just unsure if it's okay for the company to consolidate the operations even though they don't own 50%+ of the equity interest. If this is okay/legal, can you please explain why? I apologize if this is basic and something I should already know. Any help is appreciated! [link] [comments]  |
| You are subscribed to email updates from Value Investing. To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google, 1600 Amphitheatre Parkway, Mountain View, CA 94043, United States | |
No comments:
Post a Comment