Deferred Acquisition Consideration (Tables)

9 Months Ended

Sep. 30, 2024

Schedule of Changes in Contingent Deferred Acquisition Consideration

The following table presents changes in deferred acquisition consideration for the nine months ended September 30, 2024 and the year ended December 31, 2023 and a reconciliation to the amounts reported on the Unaudited Consolidated Balance Sheet as of September 30, 2024 and Consolidated Balance Sheet as of December 31, 2023:


	September 30, 2024		December 31, 2023
	(dollars in thousands)
Beginning balance	$	101,058	$	161,323
Payments (1)	(61,044)		(97,447)
Adjustments to deferred acquisition consideration (2)	13,971		14,303
Additions (3)	7,201		22,172
Currency translation adjustment	487		680
Other	—		27
Ending balance (4)	$	61,673	$	101,058

(1) Includes deferred acquisition consideration payments settled in shares of Class A Common Stock of $18.2 million and $32.8 million, respectively, for the period ended September 30, 2024 and December 31, 2023.

(2) Adjustments to deferred acquisition consideration contains fair value changes from the Company’s initial estimates of deferred acquisition payments and accretion of expense as awards are earned over the vesting period.

(3) Additions of $22.2 million in 2023, represents a reclassification from redeemable noncontrolling interest to deferred acquisition consideration. Specifically, in 2021, the Company entered into an agreement to purchase the remaining 26.7% interest in Targeted Victory it did not previously own. The agreement provided for the purchase of 50% of the interest on October 1, 2021 (paid in October 2023) and 50% on July 31, 2023 (payable in October 2025 with a seller’s right to modify the performance period and defer payment until October 2027). In connection with the purchase, the estimated amount payable in October 2025, was reclassified from redeemable noncontrolling interest to deferred acquisition consideration in 2023.

(4) The contingent and fixed deferred acquisition consideration obligation was $61.6 million and $0.0 million, respectively, as of September 30, 2024 and $57.5 million and $43.6 million, respectively, as of December 31, 2023. The deferred acquisition consideration as of September 30, 2024 and December 31, 2023, includes $21.2 million and $29.3 million, respectively, expected to be settled in shares of Class A Common Stock.