XML 39 R20.htm IDEA: XBRL DOCUMENT v3.24.0.1
Noncontrolling and Redeemable Noncontrolling Interests
 12 Months Ended
Dec. 31, 2023
Noncontrolling Interest [Abstract]  
Noncontrolling and Redeemable Noncontrolling Interests
13. Noncontrolling and Redeemable Noncontrolling Interests
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 within Shareholders’ Equity in the Consolidated Balance Sheets. Where the incremental purchase may be required of the Company, the amounts are recorded as Redeemable noncontrolling interests in mezzanine equity in the Consolidated Balance Sheets 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.
The following table presents Net income attributable to noncontrolling and redeemable noncontrolling interests between holders of Class C Common Stock and other equity interest holders for the years ended December 31, 2023, 2022, and 2021:
Year Ended December 31,
202320222021
(dollars in thousands)
Net income attributable to Class C shareholders
$39,066 $16,004 $6,126 
Net income attributable to other equity interest holders
3,076 5,986 9,170 
Net income attributable to noncontrolling interests
$42,142 $21,990 $15,296 
Net income (loss) attributable to redeemable noncontrolling interests(634)8,135 (412)
Net income attributable to noncontrolling and redeemable noncontrolling interests
$41,508 $30,125 $14,884 
The following table presents noncontrolling interests between holders of Class C Common Stock and other equity interest holders as of December 31, 2023 and December 31, 2022:
December 31,
2023		December 31,
2022
(dollars in thousands)
Noncontrolling interest of Class C shareholders$436,215 $399,316 
Noncontrolling interest of other equity interest holders32,362 30,848 
Total noncontrolling interests$468,577 $430,164 
The following table presents changes in redeemable noncontrolling interests:
December 31,
2023		December 31,
2022
(dollars in thousands)
Beginning balance$39,111 $43,364 
Redemptions (1)
(22,172)(1,400)
Distributions(5,800)(2,822)
Changes in redemption value442 (8,711)
Net income (loss) attributable to redeemable noncontrolling interests(634)8,135 
Other(155)545 
Ending balance$10,792 $39,111 
(1) Redemptions for the year ended December 31, 2023, is associated with redeemable noncontrolling interest of a certain brand we did not previously own. The amount was reclassified as a deferred acquisition contingent obligation (see Note 9).

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 2024 to 2028. 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 $10.8 million as of December 31, 2023, consists of $7.3 million, assuming that the subsidiaries meet certain performance metrics, and $3.5 million upon termination of such owner’s employment with the applicable subsidiary or death.
These adjustments will not impact the calculation of earnings (loss) per share if the redemption values are less than the estimated fair values. As such, there is no related impact on the Company’s earnings per share calculations for the year ended December 31, 2023 and 2022.
Comprehensive Loss Attributable to Noncontrolling and Redeemable Noncontrolling Interests
For the year ended December 31, 2023, comprehensive income attributable to the noncontrolling and redeemable noncontrolling interests was $47.4 million, which consists of $41.5 million of net income and $5.9 million of other comprehensive income.
For the year ended December 31, 2022, comprehensive income attributable to the noncontrolling and redeemable noncontrolling interests was $6.6 million, which consists of $30.1 million of net income and $23.5 million of other comprehensive loss.