Related Parties

3 Months Ended

Mar. 31, 2020

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 $59.9 million and $7.1 million for the three months ended March 31, 2020 and 2019, 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):



	March 31, 2020		December 31, 2019
Assets
Accounts receivable	$	12,058	$	8,781
Prepaid expenses - current	1,552		1,592
Customer advance for regulatory capital requirements	39,955		40,000
Prepaid expenses and other noncurrent assets	44,761		2,709

Liabilities
Accounts payable	$	6,867	$	6,429
Accrued liabilities	5,322		2,583
Reserve for claims and performance-based arrangements	1,037		4,264

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



	For the Three Months Ended March 31,
	2020		2019
Revenue
Transformation services	$	1,700	$	1,159
Platform and operations services	67,948		12,944

Expenses
Cost of revenue (exclusive of depreciation and amortization expenses)	3,247		7,830
Selling, general and administrative expenses	70		156