Redeemable Non-controlling Interest

12 Months Ended

Dec. 31, 2024

Redeemable Noncontrolling Interest, Equity, Carrying Amount [Abstract]

Note 15 – Redeemable Non-Controlling Interest

As of December 31, 2024 and 2023, the non-controlling Adtran Networks stockholders’ equity ownership percentage in Adtran Networks was approximately 33.0% and 34.7%, respectively.

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


	For the year ended December 31,
(In thousands)	2024			2023
Balance at beginning of period	$	442,152		$	—
Reclassification of non-controlling interests		1,175			443,757
Redemption of redeemable non-controlling interests		(20,384	)		(1,657	)
Net income attributable to redeemable non-controlling interests		9,824			10,092		(1)
Annual recurring compensation earned		(9,824	)		(10,092	)	(1)
Adtran Networks stock option exercises		—			52
Balance at end of period	$	422,943		$	442,152		(1)

(1) During the the third quarter of 2024, the Company identified errors primarily impacting the carrying values of the redeemable non-controlling interest, retained deficit, the net income attributable to the non-controlling interest and the net loss attributable to the Company and, as a consequence, of the loss per common share attributable to the Company. We have revised our previously issued Consolidated Financial Statements for the year ended December 31, 2023. See Note 1 for additional information.

Annual Recurring Compensation payable on untendered outstanding shares under the DPLTA must be recognized as it is accrued. For the years ended December 31, 2024 and 2023, we accrued $9.8 million and $10.1 million, respectively, representing the portion of the annual recurring cash compensation cash to the non-controlling shareholders during such periods. The 2024 Annual Recurring Compensation accrual will be paid after the ordinary general shareholders' meeting of Adtran Networks in 2025. For the year ended December 31, 2023, we paid $10.1 million representing the portion of the annual recurring cash compensation to the non-controlling shareholders during such period. See Note 1 for additional information on RNCI and the Annual Recurring Compensation.