Affiliate Equity

Affiliate equity interests provide holders with a ratable portion of ownership in one of the Company’s Affiliates. The Company’s Affiliates generally pay quarterly distributions to Affiliate equity holders. Distributions paid to Affiliate equity holders were $114.6 million and $101.6 million for the three months ended March 31, 2015 and 2016, respectively.

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 service period.

The following is a summary of Affiliate equity expense:



	For the Three Months Ended March 31,
	2015			2016
Controlling interest	$	4.0		$	2.1
Tax benefit	(1.5		)	(0.8		)
Controlling interest, net	2.5			1.3
Non-controlling interests	5.3			3.9
Total	$	7.8		$	5.2

The following is a summary of unrecognized Affiliate equity expense:



Period	Controlling Interest		Remaining Life	Non-controlling Interests		Remaining Life
December 31, 2015	$	22.4	3 years	$	51.9	5 years
March 31, 2016	30.4		4 years	62.9		6 years

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 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 is 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.

The Company periodically issues Affiliate equity interests to and repurchases Affiliate equity interests from Affiliate equity holders. The amount paid for repurchases was $18.1 million and $57.0 million for the three months ended March 31, 2015 and 2016, respectively. The total amount received for issuances was $5.0 million and $2.9 million for the three months ended March 31, 2015 and 2016, respectively.

The Company records amounts receivable from 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 $22.6 million and $17.2 million at December 31, 2015 and March 31, 2016, respectively, and was included in Other assets. The total payable was $62.3 million and $35.6 million as of December 31, 2015 and March 31, 2016, respectively, and was included in Other liabilities.

The current redemption value of the Company’s Affiliate equity has been presented as Redeemable non-controlling interests on the 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:



	Redeemable Non-controlling Interests
Balance, as of December 31, 2015	$	612.5
Increase attributable to consolidated products	24.9
Repurchases of redeemable Affiliate equity	(30.1		)
Transfers from Non-controlling interests	5.7
Changes in redemption value	45.3
Balance, as of March 31, 2016	$	658.3

During the three months ended March 31, 2015 and 2016, the Company acquired interests from, and transferred interests to, Affiliate equity holders. The following schedule discloses the effect of changes in the Company’s ownership interest in its Affiliates on the controlling interest’s equity:



	For the Three Months Ended March 31,
	2015			2016
Net income (controlling interest)	$	128.0		$	104.5
Increase in controlling interest paid-in capital from purchases and sales of Affiliate equity issuances	0.5			(0.9		)
Decrease in controlling interest paid-in capital related to Affiliate equity repurchases	(3.5		)	(17.5		)
Net income attributable to controlling interest and transfers (to) or from Non-controlling interests	$	125.0		$	86.1