Non-controlling Interest

3 Months Ended

Mar. 31, 2022

Ownership

Switch, Inc. owns an economic interest in Switch, Ltd., where “economic interest” means the right to receive any distributions, whether cash, property, or securities of Switch, Ltd., in connection with Common Units. Switch, Inc. presents interest held by noncontrolling interest holders within noncontrolling interest in the consolidated financial statements. During the three months ended March 31, 2022 and 2021, Switch, Inc. issued an aggregate of 2.6 million shares and 7.7 million shares, respectively, of Class A common stock to members in connection with such members’ redemptions of an equivalent number of Common Units and corresponding cancellation and retirement of an equivalent number of Switch, Inc.’s Class B common stock. Such retired shares of Class B common stock may not be reissued. The redemptions occurred pursuant to the terms of the Switch operating agreement entered into in connection with the Company’s IPO.

The ownership of the Common Units is summarized as follows:


	March 31, 2022			December 31, 2021
	Units (in thousands)	Ownership %		Units (in thousands)	Ownership %
Switch, Inc.’s ownership of Common Units(1)	148,775	60.8	%	145,116	59.6	%
Noncontrolling interest holders’ ownership of Common Units	95,773	39.2	%	98,331	40.4	%
Total Common Units	244,548	100.0	%	243,447	100.0	%

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(1)Common Units held by Switch, Inc. exclude 71,000 Common Units underlying unvested restricted stock awards.

The Company uses the weighted average ownership percentages during the period to calculate the income or loss before income taxes attributable to Switch, Inc. and the noncontrolling interest holders of Switch, Ltd.