Annual report pursuant to Section 13 and 15(d)

Redeemable Noncontrolling Interests

Redeemable Noncontrolling Interests
12 Months Ended
Dec. 31, 2022
Noncontrolling Interest [Abstract]  
Redeemable Noncontrolling Interests Redeemable Noncontrolling Interests
As discussed further in Note 6, our partners in two real estate joint ventures, LW Redstone Company, LLC and Stevens Investors, LLC, have the right to require us to acquire their respective interests at fair value; accordingly, we classify the fair value of our partners’ interests as redeemable noncontrolling interests in the mezzanine section of our consolidated balance sheets. The table below sets forth the activity for these redeemable noncontrolling interests (in thousands):
For the Years Ended December 31,
2022 2021 2020
Beginning balance $ 26,898  $ 25,430  $ 29,431 
Distributions to noncontrolling interests (2,976) (3,307) (14,034)
Net income attributable to noncontrolling interests 2,807  3,160  3,426 
Adjustment to arrive at fair value of interests (436) 1,615  6,607 
Ending balance $ 26,293  $ 26,898  $ 25,430 
We determine the fair value of the interests based on unobservable inputs after considering the assumptions that market participants would make in pricing the interest. We apply a discount rate to the estimated future cash flows allocable to our partners from the properties underlying the respective joint ventures. Estimated cash flows used in such analyses are based on our plans for the properties and our views of market and economic conditions, and consider items such as current and future rental rates, occupancy projections and estimated operating and development expenditures.