Affiliate Equity

12 Months Ended

Dec. 31, 2021

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 $347.9 million, $306.3 million, and $334.3 million for the years ended December 31, 2019, 2020, and 2021, respectively.

Affiliate equity interests provide the Company a conditional right to call (following an Affiliate equity holder’s departure) and Affiliate equity holders have a conditional right to put their interests at certain intervals (including on an annual basis following an Affiliate equity holder’s departure). For Affiliates accounted for under the equity method, the Company does not typically have such put and call arrangements. 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. 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 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 purchases Affiliate equity from and issues Affiliate equity to the Company’s consolidated Affiliate partners and other parties. The amount of cash paid for purchases was $146.0 million, $315.1 million, and $150.5 million for the years ended December 31, 2019, 2020, and 2021, respectively. The total amount of cash received for issuances was $10.5 million, $20.2 million, and $117.7 million (including $99.6 million from a co-investor) for the years ended December 31, 2019, 2020, and 2021, 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 Years Ended December 31,
	2019		2020		2021
Controlling interest	$	9.6	$	20.9	$	17.4
Non-controlling interests	30.9		30.9		45.9
Total	$	40.5	$	51.8	$	63.3

The following table presents unrecognized Affiliate equity compensation expense:



Year	Controlling Interest		Remaining Life	Non-controlling Interests		Remaining Life
2019	$	40.9	4 years	$	124.6	6 years
2020	35.9		4 years	109.7		5 years
2021	41.9		6 years	294.1		7 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 $9.6 million and $9.0 million as of December 31, 2020 and 2021, respectively, and was included in Other assets. The total payable was $22.0 million and $12.6 million as of December 31, 2020 and 2021, 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 settled during the applicable periods:


	For the Years Ended December 31,
	2019		2020		2021
Net income (controlling interest)	$	15.7	$	202.2	$	565.7
(Decrease) increase in controlling interest paid-in capital from Affiliate equity issuances	(3.1)		1.1		(17.5)
Decrease in controlling interest paid-in capital from Affiliate equity purchases	(50.8)		(239.1)		(63.2)
Net income (loss) (controlling interest) including the net impact of Affiliate equity transactions	$	(38.2)	$	(35.8)	$	485.0