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Related Party Transactions
12 Months Ended
Dec. 31, 2017
Related Party Transactions  
Related Party Transactions

20. Related Party Transactions

 

The Company incurs expenses and maintains balances with its affiliates in the ordinary course of business. As of December 31, 2017, and December 31, 2016, the Company had a receivable of $0.08 million and a payable of $0.2 million to its affiliates, respectively.

 

The Company conducts securities lending transactions with Industrial and Commercial Bank of China (“ICBC”), which is partially owned by Temasek Holdings (Private) Limited and its affiliates. As of December 31, 2017, the Company had a securities borrowed contract of $23.1 million and a securities loaned contract of $1.1 million with ICBC. The Company did not have outstanding securities with ICBC as of December 31, 2016. 

 

The Company purchases network connections services from affiliates of Level 3 Communications (“Level 3”). Temasek Holdings (Private) Limited and its affiliates have a significant ownership interest in Level 3. During the years ended December 31, 2017, 2016 and 2015 the Company paid $2.5 million, $2.4 million, and $4.3 million, respectively, to Level 3 for these services.

The Company purchases and leases computer equipment and maintenance and support from affiliates of Dell Inc. (“Dell”). Temasek Holdings (Private) Limited and its affiliates have a significant ownership interest in Dell. During the years ended December 31, 2017. 2016 and 2015, the Company paid $2.5 million, $2.7 million and $3.6 million, respectively, to Dell for these purchases and leases.

 

The Company purchases telecommunications services from Singapore Telecommunications Limited (“Singtel”).  Temasek and its affiliates have a significant ownership interest in Singtel. During the years ended December 31, 2017, 2016, and 2015, the Company paid $0.1 million, $0.2 million, and $0.1 million, respectively, to Singtel for these purchases.

 

The Company employed the son of the Company’s Founder and Executive Chairman, as a trader during the year ended December 31, 2015, This employee was paid approximately $0.8 million of employee compensation during year ended December 31, 2015, and granted 60,000 stock options with respect to shares of the Company’s Class A common stock under the 2015 Management Incentive Plan. The Company had no such expense during the years ended December 31, 2017 and 2016.

 

The Company has engaged a member of the Board of Directors to provide leadership consulting services. The Company has paid approximately $4 thousand,  $0.03 million and $0.1 million for such engagement for the years ended December 31, 2017, 2016, and 2015, respectively.

 

Additionally, the Company entered into sublease arrangements with affiliates of the Company’s Founder and Executive Chairman for office space no longer used by the Company.  For the years ended December 31, 2017, 2016 and 2015, the Company received $0.06 million, $0.04 million and $0.1 million, respectively, pursuant to these arrangements.

 

The Company has held a minority interest in SBI since 2016 (See Note 11, “Financial Assets and Liabilities”). The Company pays exchange fees to SBI for the trading activities conducted on its proprietary trading system. The Company paid $6.0 million and $2.2 million for the year ended December 31, 2017 and for the period since the completion of the minority interest investment to December 31, 2016, respectively.

 

The Company makes payments to two JVs (See Note 2, “Summary of Significant Accounting Policies”) to fund the construction of the microwave communication networks, and to purchase microwave communication networks, which are recorded within communications and data processing on the consolidated statements of comprehensive income.  The Company made payments of $8.3 million and $0.6 million to the JVs for the years ended December 31, 2017 and 2016, respectively.  The Company made no such payments for the year ended December 31, 2015.