Affiliate Equity

6 Months Ended

Jun. 30, 2023

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. Distributions paid to non-controlling interest Affiliate equity holders were $211.8 million and $156.4 million for the six months ended June 30, 2022 and 2023, respectively.

The Company periodically purchases Affiliate equity from and issues Affiliate equity to the Company’s consolidated Affiliate partners and other parties under agreements that provide the Company a conditional right to call and Affiliate equity holders the conditional right to put their Affiliate equity interests to the Company at certain intervals. The Company has the right to settle a portion of these purchases in shares of its common stock. For Affiliates accounted for under the equity method, the Company does not typically have such put and call arrangements. For the six months ended June 30, 2022 and 2023, the amount of cash paid for purchases was $32.2 million and $21.8 million, respectively. For the six months ended June 30, 2022 and 2023, the total amount of cash received for issuances was $13.1 million and $13.4 million, respectively.

Sales and purchases of Affiliate equity generally occur at fair value; however, the Company also grants Affiliate equity to its consolidated Affiliate partners and other parties as a form of compensation. If the equity is issued for consideration below the fair value of the equity, or purchased for consideration above the fair value of the equity, the 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 compensation expense:


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2022		2023		2022		2023
Controlling interest	$	(1.4)	$	6.8	$	0.3	$	6.1
Non-controlling interests	12.1		10.6		26.6		21.9
Total	$	10.7	$	17.4	$	26.9	$	28.0

The following table presents unrecognized Affiliate equity compensation expense:

Controlling Interest

Remaining Life

Non-controlling Interests

Remaining Life

December 31, 2022

31.4

5 years

284.6

7 years

June 30, 2023

29.5

5 years

271.0

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 $11.6 million and $6.9 million as of December 31, 2022 and June 30, 2023, respectively, and was included in Other assets. The total payable was $24.5 million and $68.4 million as of December 31, 2022 and June 30, 2023, 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 the Consolidated Statements of 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 occurred during the applicable periods:


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2022		2023		2022		2023
Net income (controlling interest)	$	109.4	$	125.3	$	255.4	$	259.8
Increase (decrease) in controlling interest paid-in capital from Affiliate equity issuances	1.5		(5.0)		4.9		(8.6)
Decrease in controlling interest paid-in capital from Affiliate equity purchases	(4.0)		(10.5)		(29.9)		(38.0)
Net income (controlling interest) including the net impact of Affiliate equity transactions	$	106.9	$	109.8	$	230.4	$	213.2