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Equity Investments in Affiliates
 12 Months Ended
Dec. 31, 2012
Equity Investments in Affiliates  
Equity Investments in Affiliates

21.   Equity Investments in Affiliates

        During the quarter ended September 30, 2012, the Company announced and closed an additional investment in BlueMountain, a leading global credit alternatives manager. The Company continues to hold a minority interest and accounts for the investment under the equity method of accounting. The Company's purchase price allocation was measured using a financial model that includes assumptions of expected market performance and net client cash flows. The Company allocated $131.7 million to acquired client relationships. The consideration paid will be deductible for U.S. tax purposes over a 15-year life.

        For the Affiliates in which the Company holds a significant but non-controlling interest, the equity method of accounting is applied. The definite-lived acquired client relationships attributable to the Company's equity method investments are amortized over their expected useful lives. As of December 31, 2012, these relationships were being amortized over a weighted average life of approximately nine years. The Company recognized amortization expense for these relationships of $32.9 million for twelve months ended December 31, 2011 as compared to $36.9 million and for the twelve months ended December 31, 2012. Assuming no additional investments in new or existing Affiliates, the Company estimates the annual amortization expense attributable to its current equity-method Affiliates for the next five years as follows:

Year Ending December 31,
  Estimated
Amortization
Expense		  

2013

   $ 41.5  

2014

     20.0  

2015

     11.7  

2016

     8.9  

2017

     8.9  

        The following table presents summarized financial information for Affiliates accounted for under the equity method.

 
   For the Years Ended December 31,  
 
   2010   2011   2012  

Revenue(1)(2)

   $ 619.5   $ 581.0   $ 1,005.4  

Net income

     444.2     387.9     783.3  

 

 
   December 31,
  
 
   2011   2012  

Current assets(2)

   $ 8,193.1   $ 11,957.8  

Noncurrent assets

     29.1     34.7  

Current liabilities

     1,022.7     1,361.5  

Noncurrent liabilities and Non-controlling interest(2)

     6,754.3     9,857.6  
(1)
Revenue includes advisory fees for asset management services, investment income and dividends from consolidated investment partnerships.

(2)
For its investments in AQR, BlueMountain and ValueAct, the Company is entitled to a share of revenue but no portion of the assets held by investors that are unrelated to the Company (which include consolidated investment partnerships).

        The Company's share of undistributed earnings from equity method investments totaled $87.0 million as of December 31, 2012.