Related Party Transactions

Management Fees

The Company provides management services and receives a fee for such services under agreements with its joint venture investees, South Kent, Grand, K2, and Armow, in addition to various Pattern Development 1.0 subsidiaries and equity method investments. The Company reclassified its presentation of management service fees received from related party revenue, as disclosed in prior periods, to other revenue on the consolidated statements of operations.

Management Services Agreement and Shared Management

The Company has entered into a Multilateral Management Services Agreement (MSA) with the Pattern Development Companies, which provides for the Company and the Pattern Development Companies to benefit, primarily on a cost-reimbursement basis, from the parties’ respective management and other professional, technical and administrative personnel, all of whom report to the Company’s executive officers. Costs and expenses incurred at the Pattern Development Companies or their respective subsidiaries on the Company's behalf will be allocated to the Company. Conversely, costs and expenses incurred at the Company or its respective subsidiaries on the behalf of a Pattern Development Company will be allocated to the respective Pattern Development Company.

Pursuant to the MSA, certain of the Company’s executive officers, including its Chief Executive Officer (shared PEG executives), also serve as executive officers of the Pattern Development Companies and devote their time to both the Company and the Pattern Development Companies as is prudent in carrying out their executive responsibilities and fiduciary duties. The shared PEG executives have responsibilities for both the Company and the respective Pattern Development Companies and, as a result, these individuals do not devote all of their time to the Company’s business. Under the terms of the MSA, each of the respective Pattern Development Companies is required to reimburse the Company for an allocation of the compensation paid to such shared PEG executives reflecting the percentage of time spent providing services to such Pattern Development Company. The Company reclassified its presentation of related party receivables and payables as disclosed in prior periods to be presented within other current assets and other current liabilities on the consolidated balance sheets, respectively. In addition, the Company reclassified its presentation of reimbursements received by the Pattern Development Companies under the MSA from related party income, as disclosed in prior periods, to a reduction to general and administrative expense on the consolidated statements of operations. The MSA costs incurred by the company are included in related party general and administrative on the consolidated statements of operations. The MSA had been further amended and restated in June 2017.

Related Party Transactions

The table below presents amounts due from and to related parties as included in the consolidated balance sheets for the following periods (in millions):



	June 30, 2017		December 31, 2016
Other current assets:
Amounts due from Pattern Development 1.0	$	0.5	$	0.4
Amounts due from Pattern Development 2.0	0.6		0.2
Amounts due from unconsolidated investments	0.6		0.5
Total due from related parties	$	1.7	$	1.1

Other current liabilities:
Amounts due to Pattern Development 1.0	$	5.6	$	1.3
Total due to related parties	$	5.6	$	1.3

The table below presents revenue, reimbursement and (expenses) recognized for management fees and the MSA, as included in the statements of operations for the following periods (in thousands):



		Three months ended June 30,						Six months ended June 30,
Related Party Agreement	Financial Statement Line Item	2017			2016			2017			2016
Management fees	Other revenue	$	1,780		$	1,332		$	4,004		$	2,547
MSA reimbursement	General and administrative	$	2,098		$	1,097		$	3,889		$	2,104
MSA costs	Related party general and administrative expense	$	(3,576	)	$	(1,931	)	$	(7,002	)	$	(3,828	)

Purchase and Sales Agreements

During the six months ended June 30, 2017, the Company consummated the following acquisition with Pattern Development 1.0 which is further detailed in Note 3, Acquisitions (in millions):



Acquisitions from Pattern Development 1.0	Date of Acquisition	Cash Consideration		Debt Assumed		Contingent Consideration
Broadview Project	April 21, 2017	$	214.7	$	51.2	$	21.3

PSP Joint Venture

We entered into a Joint Venture Agreement with PSP, pursuant to which, PSP will have the right to co-invest up to an aggregate amount of approximately $500 million in projects acquired by the Company under its ROFO with the Pattern Development Companies, including investments in Meikle, MSM and Panhandle 2.