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Related Party Transactions
12 Months Ended
Dec. 31, 2021
Related Party Transactions [Abstract]  
Related Party Transactions Related Party Transactions
In the ordinary course of business, the Company enters into transactions with related parties, including its affiliates. The transactions may range in the nature and value of services underlying the arrangements. Below are the related party transactions that are significant in nature:
In August 2016, a Brand of the Company entered into an arrangement to provide technology development services to a client in which several of Brand’s partners hold key leadership positions. Under the arrangement, the Brand is expected to receive from the client approximately $1,844, which is expected to be fully recognized as of December 31, 2022. During the
twelve months ended December 31, 2021 and 2020, the Company recognized $950 and $1, respectively, in revenue related to this transaction. As of December 31, 2021 and 2020, $506 and $134, respectively, was due from the client.
In December 2018, a Brand entered into a continuous arrangement to provide marketing services to a client in which a family member of one of the Brand’s partners holds an executive leadership position. During the twelve months ended December 31, 2021 and 2020, the Company recognized $243 and $522, respectively, in revenue related to this transaction. As of December 31, 2021 and 2020, $88 and $109, respectively, was due from the client.
In December 2018, a Brand entered into a continuous arrangement with a third party in which the third party appointed the Brand as the manager of proprietary data to be used in the Brand’s ordinary course of business. A family member of one of the Brand’s partners holds an executive leadership position in this entity. Under the arrangement, the Brand is expected to pay the affiliate based upon the success of their services with no minimum or maximum spend. During the twelve months ended December 31, 2021 and 2020, the Company incurred $1,473 and $8,009, respectively, in expenses related to this transaction. As of December 31, 2021 and 2020, $569 and $3,020, respectively, was due to the vendor.
In 2019, the Company entered into an arrangement to provide polling services to a client in which a family member of one of the Company’s Chief Executive Officer holds a key leadership position. Under the arrangement, the Company will receive from the client approximately $772 which is expected to be fully recognized as of December 2022. During the twelve months ended December 31, 2021 and 2020, the Company recognized revenue of $436 and $0, respectively, related to this arrangement. As of December 31, 2021 and 2020, $70 and $0 was due from the client, respectively.
In March 2019, a Brand of the Company, entered into a loan agreement with a third party who holds a minority interest in the Brand. The loan receivable of $3,784 and $3,391 due from the third party is included within Other current assets in the Company’s Audited Consolidated Balance Sheets as of December 31, 2021 and 2020, respectively. The Company recognized $307 and $249 of interest income within Interest expense, net on its Audited Consolidated Statements of Operations for the twelve months ended December 31, 2021 and 2020, respectively.
In October 2020, a Brand entered into a continuous arrangement to provide marketing services to a client in which one of the Brand’s partners holds a key leadership position. During the twelve months ended December 31, 2021 and 2020, the Company recognized $5,146 and $4,866, respectively, in revenue related to this transaction. As of December 31, 2021 and 2020, $0 and $7,125, respectively, was due from the client related to this arrangement.
In 2021, a Brand entered into an arrangement to provide marketing and website development services to a client that has a significant interest in the Company. The arrangement was for the Brand to provide marketing program campaign creative services. Under the arrangement, the Brand is expected to receive from the Stagwell affiliate approximately $944 which will be fully recognized in January 2022. The Company recorded $430 of related party revenue for the twelve months ended December 31, 2021. As of December 31, 2021, $238 was due from the related party.
In 2021, a Brand entered into an arrangement to provide marketing and website development services to a client that has a significant interest in the Company. The arrangement was for the Brand to provide strategic communications support. Under the arrangement, the Brand is expected to receive from the Stagwell affiliate approximately $320 which has been fully recognized in December 2021. The Company recorded $207 of related party revenue for the twelve months ended December 31, 2021. As of December 31, 2021, $0 was due from the related party.
In 2021, a Brand entered into an arrangement to provide marketing and website development services to a client that has a significant interest in the Company. Under the arrangement, the Brand is expected to receive from the Stagwell affiliate approximately $3,396 which will be fully recognized in April 2022. During the twelve months ended December 31, 2021, the Company recognized $3,132 in revenue related to this transaction. As of December 31, 2021, $3,132 was due from the client.
In 2021, a Brand entered into an arrangement to obtain sales and management services from an affiliate for which the CEO of the Brand is a shareholder of the affiliate. Under the arrangement, the Brand has incurred $788 of related party expense for the twelve months ended December 31, 2021. As of December 31, 2021, $23 was due to the related party.
In June 2021, a Brand entered into a continuous arrangement to provide marketing services to a client in which all of the Brand’s partners have an ownership interest. During the twelve months ended December 31, 2021, the Company recognized $4,814 in revenue related to this transaction. As of December 31, 2021, $4,033 was due from the client.
The Stagwell Group LLC, the registered investment advisor of Stagwell Media, engaged certain of its Brands to provide services for the Stagwell Group for interagency customers. The Company recorded $0 and $900 of related party revenue for the twelve months ended December 31, 2021 and 2020, respectively.
Stagwell Media made noncash investments in the Company of $12,400 and $93,900 during the twelve months ended December 31, 2021 and 2020, respectively. Additionally, during the twelve months ended December 31, 2021 and 2020, the Company made cash investments of $1,600 and $1,500.
On March 11, 2021, Stagwell Media received a Noncash distribution of $13,000 for the transfer of the Company’s ownership in the Finn Partners Preferred shares.
Additionally, the Company made cash distributions to Stagwell Media of $191,900 and $108,500 during the twelve months ended December 31, 2021 and 2020, respectively.