As of June 30, 2024, the non-controlling Adtran Networks stockholders’ equity ownership percentage in Adtran Networks was approximately 35%.

The following table summarizes the redeemable non-controlling interest activity for the six months ended June 30, 2024 and for the year ended December 31, 2023:


	Six Months Ended			For the Year Ended
(In thousands)	June 30, 2024			December 31, 2023
Balance at beginning of period	$	451,756		$	—
Reclassification of non-controlling interests		—			443,757
Fair value on redemption of redeemable non-controlling interest		(30	)		(1,657	)
Net income attributable to redeemable non-controlling interests		5,734			11,525
Annual recurring compensation earned		(5,734	)		(11,525	)
Adtran Networks stock option exercises		—			52
Translation adjustment		(11,983	)		9,604
Balance at end of period	$	439,743		$	451,756

Annual recurring compensation payable on untendered outstanding shares under the DPLTA must be recognized as it is accrued. For the three and six months ended June 30, 2024, we have recognized $2.9 million and $5.7 million, respectively, representing the portion of the annual recurring cash compensation to the non-controlling shareholders accrued during such periods, which will be paid after the ordinary general shareholders' meeting of Adtran Networks in 2025. For the year ended December 31, 2023, we have recognized $11.5 million representing the portion of the annual recurring cash compensation to the non-controlling shareholders accrued during such periods, The Annual Recurring Compensation is due on the third banking day following the ordinary general shareholders’ meeting of Adtran Networks for the respective preceding fiscal year (but in any event within eight months following expiration of the fiscal year). With respect to the 2023 fiscal year, Adtran Networks’ ordinary general shareholders’ meeting occurred on June 28, 2024 and, therefore, the Annual Recurring Compensation was paid on July 3, 2024. See Note 1 for additional information on RNCI and the annual dividend.