When acquiring less than 100% ownership of an entity, the Company may enter into agreements that give the Company an option to purchase, or require the Company to purchase, the incremental ownership interests under certain circumstances. Where the option to purchase the incremental ownership is within the Company’s control, the amounts are recorded as noncontrolling interests in the equity section of the Company’s Audited Consolidated Balance Sheets. Where the incremental

purchase may be required of the Company, the amounts are recorded as redeemable noncontrolling interests in mezzanine equity at their estimated acquisition date redemption value and adjusted at each reporting period for changes to their estimated redemption value through Retained earnings (but not less than their initial redemption value), except for foreign currency translation adjustments.

Changes in the Company’s ownership interests in our less than 100% owned subsidiaries during the twelve months ended December 31, 2021 and 2020 were as follows:


	Twelve Months Ended December 31,
		2021		2020
Net income attributable to Stagwell Inc. common shareholders		$	21,036	$	56,356
Transfers from the noncontrolling interest:
Decrease in Stagwell Inc. Paid-in capital for purchase of RNCI and noncontrolling interests		(26,538)		—
Net transfers from noncontrolling interests		$	(26,538)	$	—
Change from net income (loss) attributable to Stagwell Inc. and transfers to noncontrolling interests		$	(5,502)	$	56,356

The following table presents net income attributable to noncontrolling interests between holders of Class C shares and other equity interest holders for the twelve months ended December 31, 2021 and 2020:


	Twelve Months Ended December 31,
	2021		2020
Net income attribitable of Class C shareholders	$	6,126	$	—
Net income attribitable of other equity interest holders	9,170		18,231
Net income attributable to noncontrolling interests	$	15,296	$	18,231

The following table presents noncontrolling interests between holders of Class C shares and other equity interest holders as of December 31, 2021 and 2020:


	December 31,
	2021		2020
Noncontrolling interest of Class C shareholders	$	475,373	$	—
Noncontrolling interest of other equity interest holders	32,914		39,787
NCI attributable to noncontrolling interests	$	508,287	$	39,787


	December 31,
	2021		2020
Beginning Balance	$	604	$	3,602
Redemptions	(15,231)		—
Acquisitions (1)	53,270		—
Changes in redemption value	3,834		128

Net loss attributable to redeemable noncontrolling interests	(412)		(3,126)
Other	1,299		—
Ending Balance	$	43,364	$	604

(1) Approximately $26,000 represents redeemable noncontrolling interests acquired in connection with the acquisition of MDC. Approximately $27,000 represents redeemable noncontrolling interests acquired in connection with the purchase of the noncontrolling interest of Targeted Victory. See Note 4 of the Notes included herein for additional information related to the purchase of Targeted Victory.

The noncontrolling shareholders’ ability to exercise any such option right is subject to the satisfaction of certain conditions, including conditions requiring notice in advance of exercise and specific employment termination conditions. In addition, these rights cannot be exercised prior to specified staggered exercise dates. The exercise of these rights at their earliest contractual date would result in obligations of the Company to fund the related amounts during 2021 to 2025. It is not determinable, at this time, if or when the owners of these rights will exercise all or a portion of these rights.

The redeemable noncontrolling interest of $43,364 as of December 31, 2021, consists of $41,324, assuming that the subsidiaries perform over the relevant periods at their current profit levels, $2,040 upon termination of such owner’s employment with the applicable subsidiary or death, and $0 representing the initial redemption value (required floor) recorded for certain acquisitions in excess of the amount the Company would have to pay should the Company acquire the remaining ownership interests for such subsidiaries.

These adjustments will not impact the calculation of earnings (loss) per share if the redemption values are less than the estimated fair values. There is no related impact on the Company’s income per share calculations.