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Note 12 - Redeemable Non-controlling Interests
12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Noncontrolling Interest Disclosure [Text Block]

12.

Redeemable non-controlling interests

 

The minority equity positions in the Company’s subsidiaries are referred to as redeemable non-controlling interests (“RNCI”). The RNCI are considered to be redeemable securities. The following table provides a reconciliation of the beginning and ending RNCI amounts:

 

  

2024

  

2023

 
         

Balance, January 1

 $332,963  $233,429 

RNCI share of earnings

  15,624   14,140 

RNCI redemption increment

  37,775   32,490 

Distributions paid to RNCI

  (9,292)  (7,376)

Purchases of interests from RNCI, net

  (24,354)  (4,285)

RNCI recognized on business acquisitions

  95,143   63,859 

Other

  1,478   706 

Balance, December 31

 $449,337  $332,963 

 

The Company has shareholders’ agreements in place at each of its non-wholly owned subsidiaries. These agreements allow the Company to “call” the non-controlling interest at a price determined with the use of a formula price, which is usually equal to a fixed multiple of average annual net earnings before extraordinary items, income taxes, interest, depreciation, and amortization. The agreements also have redemption features which allow the owners of the RNCI to “put” their equity to the Company at the same price subject to certain limitations. The formula price is referred to as the redemption amount and may be paid in cash or in Common Shares. The redemption amount as of December 31, 2024 was $402,122 (2023 - $293,911). The redemption amount is lower than that recorded on the balance sheet as the formula price of certain RNCI are lower than the amount initially recorded at the inception of the minority equity position. If all put or call options were settled with Common Shares as at December 31, 2024, approximately 2,100,000 such shares would be issued, and would have resulted in an increase of $0.80 to earnings per share for the year ended December 31, 2024.