Related Parties

12 Months Ended

Dec. 31, 2019

The entities described below are considered related parties and the balances and/or transactions with them are reported in our consolidated financial statements.

As discussed in Note 15, the Company has economic interests in several entities that are accounted for under the equity method of accounting, including Passport. The Company has allocated its proportional share of the investees’ earnings and losses each reporting period. In addition, Evolent has entered into services agreements with certain of the entities to provide certain management, operational and support services to help the entities manage elements of their service offerings. Revenues related to the services agreements were approximately $41.5 million, $10.7 million and $0.4 million for the years ended December 31, 2019, 2018 and 2017, respectively.

The Company also works closely with UPMC, one of its founding investors. The Company’s relationship with UPMC is a subcontractor relationship where UPMC has agreed to execute certain tasks (primarily TPA services) relating to certain customer commitments. We also conduct business with a company in which UPMC holds a significant equity interest.

The following table presents assets and liabilities attributable to our related parties (in thousands):



	As of December 31,
	2019		2018
Assets
Accounts receivable	$	8,781	$	8,519
Prepaid expenses - current	1,592		85
Customer advance for regulatory capital requirements	40,000		—
Prepaid expenses and other noncurrent assets	2,709		2,500

Liabilities
Accounts payable	$	6,429	$	1,564
Accrued liabilities	2,583		798
Reserve for claims and performance-based arrangements	4,264		—

The following table presents revenues and expenses attributable to our related parties (in thousands):



	For the Years Ended December 31,
	2019		2018		2017
Revenue
Transformation services	$	4,009	$	10,540	$	597
Platform and operations services	60,325		37,490		32,335

Expenses
Cost of revenue (exclusive of depreciation and amortization expenses)	28,954		9,451		22,389
Selling, general and administrative expenses	991		917		1,153