Noncontrolling interests in the condensed consolidated financial statements represent the portion of equity held by noncontrolling partners in the Company’s non-wholly owned subsidiaries. At June 30, 2026, the Company operated 19 facilities through non-wholly owned subsidiaries. The Company owns between approximately 65% and 90% of the equity interests of these entities and noncontrolling partners own the remaining equity interests. The initial value of the noncontrolling interests is based on the fair value of contributions. The Company consolidates the operations of each facility based on its status as primary beneficiary, as further discussed in Note 12 – Variable Interest Entities. The noncontrolling interests are reflected as redeemable noncontrolling interests on the accompanying condensed consolidated balance sheets based on put rights that could require the Company to purchase the noncontrolling interests upon the occurrence of a change in control.

The components of redeemable noncontrolling interests are as follows (in thousands):


Balance at January 1, 2025	$	117,116
Contributions from noncontrolling partners in joint ventures		67,504
Net income attributable to noncontrolling interests		10,849
Distributions to noncontrolling partners in joint ventures		(3,877	)
Balance at December 31, 2025		191,592
Contributions from noncontrolling partners in joint ventures		22,035
Net income attributable to noncontrolling interests		1,691
Distributions to noncontrolling partners in joint ventures		(2,593	)
Balance at June 30, 2026	$	212,725