Unconsolidated Affiliates

Unconsolidated affiliates are as follows (in millions):



		Carrying Value
	Ownership Percentage (1)	December 31, 2017		December 31, 2016
Unconsolidated affiliates:
International Financial Data Services U.K.	—	$	—	$	133.3
Boston Financial Data Services, Inc.	—	—		91.2
International Financial Data Services L.P.	50%	45.7		73.2
Other unconsolidated affiliates		48.3		33.5
Total		$	94.0	$	331.2

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(1)	DST’s ownership percentage in IFDS U.K. and BFDS was 50% prior to the respective acquisitions in March 2017, at which time the businesses became wholly-owned subsidiaries.

In March 2017, we acquired State Street’s 50% ownership interests in BFDS and IFDS U.K., which resulted in control and consolidation of the entities. Our investment balances in these joint ventures were eliminated through the acquisition method of accounting on the date of acquisition, which resulted in a gain of $56.0 million related to BFDS and a loss of $12.2 million related to IFDS U.K, which are included in Other income, net in the Consolidated Statement of Income.

Immediately prior to our acquisitions of the remaining interests in IFDS U.K. and BFDS, IFDS L.P. made cash and asset distributions to both DST and State Street, which resulted in realized gains on the step-up of certain investments and real estate assets. Our proportionate share of the realized gains was $10.2 million and is included in Equity in earnings of unconsolidated affiliates in the Consolidated Statement of Income. Through such distributions, we acquired an investment in a privately-held company and 100% of the equity interest in IFDS Realty, LLC, which holds the real estate assets used in BFDS’ operations.

Our investments in other unconsolidated affiliates are primarily comprised of various joint ventures which own and lease real estate to our operating businesses as well as other third parties. One of these investments is a 50% ownership of Pershing Road Development Company, LLC, a limited special purpose real estate joint venture which leases approximately 1.1 million square feet of office space to the U.S. government. This investment has a zero carrying value at December 31, 2017 and 2016 as a result of losses incurred on an interest rate swap which is held by the joint venture. We received a $0.8 million cash distribution from Pershing Road Development Company, LLC for each of the years ended December 31, 2017, 2016, and 2015.

In December 2017, we received a distribution of real estate and the related debt from Broadway Square Partners, LLP (“Broadway Square Partners”), a 50% owned real estate joint venture included within other unconsolidated affiliates. Broadway Square Partners recognized a gain of $46.0 million on the step-up to fair value of the distributed real estate and debt, of which $23.0 million is included in our equity in earnings of unconsolidated affiliates. We recorded $19.2 million of real estate and $4.4 million of debt with a corresponding $14.8 million net reduction to our investment in Broadway Square Partners based on the assessed fair values on the date of distribution.

Equity in earnings of unconsolidated affiliates, is as follows (in millions):



	Year Ended December 31,
	2017		2016		2015
International Financial Data Services U.K. (1)	$	1.0	$	10.0	$	22.5
Boston Financial Data Services, Inc. (1)	3.6		8.3		5.3
International Financial Data Services L.P.	18.3		2.2		7.4
Other unconsolidated affiliates	31.6		6.7		10.2
Total	$	54.5	$	27.2	$	45.4

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(1)	Equity in earnings related to BFDS and IFDS U.K. represent earnings prior to our acquisition of the remaining interests of these entities in March 2017, at which time the businesses became wholly-owned subsidiaries.

Certain condensed financial information of our unconsolidated affiliates is presented below (in millions):



	Year Ended December 31,
Income Statement Data: (1)	2017		2016		2015
Revenues	$	590.1	$	1,248.6	$	1,225.7
Costs and expenses	477.1		1,192.4		1,132.7
Net income	113.0		56.2		93.0

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(1)	Income Statement data for the year ended December 31, 2017 includes BFDS and IFDS U.K. activity for the period prior to our acquisition of the remaining interests of these entities in March 2017, at which time the businesses became wholly-owned subsidiaries.



	December 31,
Balance Sheet Data: (1)	2017		2016
Current assets	$	156.2	$	570.2
Noncurrent assets	358.6		823.8
Current liabilities	98.7		423.0
Noncurrent liabilities	286.3		396.6
Partners’ and stockholders’ equity	129.8		574.4

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(1) Balance Sheet data as of December 31, 2017 excludes BFDS and IFDS U.K.

The following tables summarize related party transactions and balances outstanding with our related parties, primarily comprised of transactions with our unconsolidated affiliates (in millions):



	Year Ended December 31,
	2017		2016		2015
Operating revenues from related parties	$	55.4	$	138.5	$	134.9
Amounts paid to related parties (1)	42.7		36.8		27.3
Distributions received from related parties	18.6		3.5		15.3



	December 31,
	2017		2016
Outstanding advances/loans to related parties	$	6.1	$	31.4
Trade accounts receivable from related parties	6.7		19.7
Total amounts receivable from related parties	$	12.8	$	51.1

Amounts payable to related parties	$	0.6	$	3.4

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(1)	Excludes amounts paid to our unconsolidated joint ventures related to loans, advancements, and other capital investments. In addition, this excludes amounts paid on the BFDS installment loan which had an outstanding balance of $1.5 million at December 31, 2015 and was fully repaid in 2016.

Operating revenues from related parties were primarily generated from services provided to BFDS for the use of our proprietary software and software development services provided to IFDS U.K., which have been eliminated from consolidated operating revenues subsequent to the date of acquisition. Payments to our related parties primarily included payments for rent and other facility and maintenance costs pursuant to the properties we lease from our unconsolidated real estate joint ventures and staffing services. Distributions received from related parties were primarily related to distributions from our real estate joint ventures.

During 2016, we and State Street each provided subordinate loans of approximately $28.0 million to IFDS U.K. In February 2017, DST provided an additional subordinate loan of approximately $12.5 million to IFDS U.K. In connection with the acquisitions, DST effectively settled all of IFDS U.K.’s outstanding note payables, including those owed to State Street, which were considered part of the total cash paid to acquire State Street’s interests in IFDS U.K.

In December 2017, we made an additional $1.2 million investment in Broadway Square Partners prior to the real estate distribution discussed above.