Affiliate Equity

Affiliate equity interests provide holders with a ratable portion of ownership in one of the Company’s Affiliates. Affiliate equity interests are allocated income in a manner that is consistent with the structured partnership interests in place at the respective Affiliate. When the Company owns a share of the Affiliate’s revenue without regard to expenses, Affiliate equity holders are allocated Owner’s Allocation in proportion to their respective ownership interests. When the Company owns a share of the Affiliate’s revenue less certain agreed-upon expenses, Affiliate equity holders are allocated their share of revenue net of the agreed categories of expenses. The Company’s Affiliates generally pay quarterly distributions to Affiliate equity holders. Distributions paid to Affiliate equity holders were $267.1 million, $569.4 million and $431.4 million for the years ended December 31, 2013, 2014 and 2015, respectively.

Affiliate equity interests provide the Company a conditional right to call (on an annual basis following an Affiliate equity holder’s departure) and Affiliate equity holders have a conditional right to put their interests at certain intervals (between five and fifteen years from the date the equity interest is received or on an annual basis following an Affiliate equity holder’s departure). Affiliate equity holders are also permitted to sell their equity interests to other individuals or entities in certain cases, subject to the Company's approval or other restrictions. The purchase price of these conditional purchases are generally calculated based upon a multiple of cash flow distributions, which is intended to represent fair value. The Company, at its option, may pay for Affiliate equity purchases in cash, shares of its common stock or other forms of consideration and can consent to the transfer of these interests to other individuals or entities.

Sales and repurchases of Affiliate equity generally occur at fair value; however, the Company also grants Affiliate equity to its Affiliate partners, employees and officers as a form of compensation. If the equity is issued for consideration below the fair value of the equity or repurchased for consideration above the fair value of the equity, then such difference is recorded as compensation expense over the requisite service period.

The following is a summary of Affiliate equity expense:



	2013			2014			2015
Controlling interest	$	56.4		$	47.4		$	16.9
Tax benefit	(21.7		)	(18.2		)	(6.5		)
Controlling interest, net	$	34.7		$	29.2		$	10.4
Non-controlling interest	15.9			37.0			51.6
Total	$	50.6		$	66.2		$	62.0

The following is a summary of unrecognized Affiliate equity expense:



	Unrecognized Affiliate Equity Expense
Period	Controlling Interest		Remaining Life	Non-Controlling Interest		Remaining Life
2013	$	36.1	3 years	$	32.1	7 years
2014	29.5		3 years	41.6		6 years
2015	22.4		3 years	51.9		5 years

The Company periodically issues Affiliate equity interests to and repurchases Affiliate equity interests from its Affiliate partners. The amount paid for repurchases was $36.9 million, $32.6 million and $130.8 million for the years ended December 31, 2013, 2014 and 2015, respectively. The total amount received for issuances was $2.5 million, $11.0 million and $6.1 million for the years ended December 31, 2013, 2014 and 2015, respectively.

The Company records amounts receivable and payable to Affiliate partners in connection with the transfer of Affiliate equity interests that have not settled at the end of the period. The total receivable was $20.8 million and $22.6 million at December 31, 2014 and 2015, respectively, and was included in Other assets. The total payable was $29.3 million and $62.3 million as of December 31, 2014 and 2015, respectively, and was included in Other liabilities. The total amount received for such receivables was $6.9 million, $9.7 million and $7.4 million for the years ended December 31, 2013, 2014 and 2015, respectively. The total amount paid for such liabilities was $5.5 million, $4.4 million and $17.2 million for the years ended December 31, 2013, 2014 and 2015, respectively.

The current redemption value of the Company’s Affiliate equity has been presented as Redeemable non-controlling interests on the Company’s Consolidated Balance Sheets. Changes in the current redemption value are recorded to Additional paid-in capital. The following table presents the changes in Redeemable non-controlling interests:



	2014			2015
Balance, as of January 1	$	641.9		$	645.5
Repurchases of redeemable Affiliate equity	(61.7		)	(161.3		)
Transfers from Non-controlling interests	22.7			49.5
Changes in redemption value	43.0			81.6
Decrease attributable to consolidated products	(0.4		)	(2.8		)
Balance, as of December 31	$	645.5		$	612.5

During the years ended 2013, 2014 and 2015, the Company acquired interests from, and transferred interests to, holders of Affiliate equity. The following schedule discloses the effect of changes in the Company’s ownership interests in its Affiliates on the controlling interest’s equity:



	For the Years Ended December 31,
	2013			2014			2015
Net income (controlling interest)	$	360.5		$	452.1		$	516.0
Increase in controlling interest paid-in capital related to Affiliate equity issuances	13.1			2.5			0.7
Decrease in controlling interest paid-in capital related to Affiliate equity repurchases	(87.1		)	(35.8		)	(89.8		)
Net income attributable to controlling interest and transfers (to) or from Non-controlling interests	$	286.5		$	418.8		$	426.9