FINANCIAL RESULTS
Albanese Cormier Holdings, LLC and Subsidiaries NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Years ended December 31, 2025 and 2024
2.
Nature of Relationship with Edison Plaza Partners, LLC, continued Edison Plaza Partners, LLC will receive sixty percent and Tug Hill Edison Plaza Partners, LLC will receive forty percent of the distributions. Effective June 2017, Beaumont Edison Plaza Partners, LLC will receive seventy-five percent and Tug Hill Edison Plaza Partners, LLC will receive twenty-five percent of the distributions due to Tug Hill receiving distributions to the extent of their respective Unreturned Initial Capital Contributions. Due to the existence of the aforementioned items, Edison Plaza Partners, LLC was identified as a variable interest entity. Accounting principles generally accepted in the United States of America provide a framework for identifying variable interest entities (VIEs) and determining when a company should include the assets, liabilities, noncontrolling interests, and results of activities of a VIE in its financial statements. In general, a VIE is a corporation, partnership, limited-liability corporation, trust, or any other legal structure used to conduct activities or hold assets that (1) has an insufficient amount of equity to carry out its principal activities without additional subordinated financial support, (2) has a group of equity owners that are unable to direct the activities of the entity that most significantly impact its economic performance, or (3) has a group of equity owners that do not have the obligation to absorb losses of the entity or the right to receive returns of the entity. A VIE should be consolidated if a party with an ownership, contractual, or other financial interest in the VIE that is considered a variable interest (a variable interest holder) has the power to direct the VIE’s most significant activities and the obligation to absorb losses or right to receive benefits of the VIE that could be significant to the VIE. A variable interest holder that consolidates the VIE is called the primary beneficiary. Upon consolidation, the primary beneficiary generally must initially record all of the VIE’s assets, liabilities, and noncontrolling interests at their carrying amounts and subsequently account for the VIE as if it were consolidated based on majority voting interest. The balances are recorded at their carrying amounts and not fair value due to the related party relationships between Albanese Cormier Holdings, LLC and Edison Plaza Partners, LLC. Edison Plaza Partners, LLC is considered a variable interest entity. Albanese Cormier Holdings, LLC is determined to be the primary beneficiary of Edison Plaza Partners, LLC mainly due to the fact that Albanese Cormier Holdings, LLC manages the Edison Plaza Partners, LLC operations and also holds a seventy-five percent share of contributed capital. Accordingly, Albanese Cormier Holdings, LLC has consolidated the financial position and results of operations of Edison Plaza Partners, LLC in the accompanying consolidated financial statements at their carrying amounts. The accompanying financial statements therefore include the financial results of Edison Plaza Partners, LLC since December 2011, the date Albanese Cormier Holdings, LLC effectively became the primary beneficiary with the effects of intercompany transactions between the two entities eliminated. This elimination would also require the future management fees that Edison Plaza Partners, LLC would be committed to make to Albanese Cormier Holdings, LLC and lease payments
16
84
Made with FlippingBook - Share PDF online