Affiliate Equity

Affiliate equity interests are allocated income in a manner that is consistent with the structured partnership interests in place at the respective Affiliate. The Company’s Affiliates generally pay quarterly distributions to Affiliate equity holders. For the six months ended June 30, 2017 and 2018, distributions paid to Affiliate equity holders (non-controlling interests) were $178.6 million and $205.3 million, respectively.

The Company periodically repurchases Affiliate equity interests from and issues Affiliate equity interests to its Affiliate partners, its employees and its officers. For the six months ended June 30, 2017 and 2018, the amount of cash paid for repurchases was $85.1 million and $57.1 million, respectively. For the six months ended June 30, 2017 and 2018, the total amount of cash received for issuances was $8.0 million and $6.2 million, respectively.

Sales and repurchases of Affiliate equity generally occur at fair value; however, the Company also grants Affiliate equity to its Affiliate partners, its employees and its 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 in Compensation and related expenses in the Consolidated Statements of Income over the requisite service period.

The following table presents Affiliate equity expense:



	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2017		2018		2017		2018
Controlling interest	$	3.1	$	2.2	$	7.1	$	4.8
Non-controlling interests	8.8		6.1		21.4		22.9
Total	$	11.9	$	8.3	$	28.5	$	27.7

The following table presents unrecognized Affiliate equity expense:



	Controlling Interest		Remaining Life	Non-controlling Interests		Remaining Life
December 31, 2017	$	33.3	5 years	$	95.9	6 years
June 30, 2018	40.2		5 years	123.6		6 years

The Company records amounts receivable from and payable to Affiliate equity holders in connection with the transfer of Affiliate equity interests that have not settled at the end of the period. The total receivable was $12.4 million and $15.9 million at December 31, 2017 and June 30, 2018, respectively, and was included in Investments and other assets. The total payable was $49.2 million and $36.9 million as of December 31, 2017 and June 30, 2018, respectively, and was included in Other liabilities.

Effects of Changes in the Company’s Ownership in Affiliates

The Company periodically acquires interests from, and transfers interests to, Affiliate equity holders. Because these transactions do not result in a change of control, any gain or loss related to these transactions is recorded to Additional paid-in capital, which increases or decreases the controlling interest’s equity. No gain or loss related to these transactions is recognized in the Consolidated Statements of Income or Comprehensive Income.

While the Company presents the current redemption value of Affiliate equity within Redeemable non-controlling interests, with changes in the current redemption value increasing or decreasing the controlling interest’s equity over time, the following table presents the cumulative effect that ownership changes had on the controlling interest’s equity related only to Affiliate equity transactions that settled during the applicable periods:



	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2017			2018			2017			2018
Net income (controlling interest)	$	126.3		$	117.0		$	248.8		$	270.0
Increase / (decrease) in controlling interest paid-in capital from Affiliate equity issuances	0.9			(2.3		)	(0.3		)	(3.3		)
Increase / (decrease) in controlling interest paid-in capital from Affiliate equity repurchases	(16.5		)	1.0			(69.1		)	(32.1		)
Net income (controlling interest) including net impact of Affiliate equity transactions	$	110.7		$	115.7		$	179.4		$	234.6