Significant Business Transactions and Events (Tables)

12 Months Ended

Dec. 31, 2017

Significant Business Transactions and Events [Abstract]

Schedule of Business Acquisitions, by Acquisition

The following table summarizes the aggregate acquisition-date fair value of the consideration transferred for the acquisition of KRFS and the amounts recognized as of the acquisition date for the assets acquired and liabilities assumed (in millions):

Consideration
Cash paid	$	94.7
Recognized amounts of identifiable assets acquired and liabilities assumed
Cash and cash equivalents	$	1.0
Accounts receivable	2.9
Other current assets	0.1
Investments	0.5
Properties (1)	6.8
Intangible assets	23.4
Goodwill	61.0
Total assets	95.7
Deferred revenue	0.6
Other current liabilities	0.4
Total liabilities	1.0
Net assets acquired	$	94.7

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(1) Includes $6.5 million of acquired software with a weighted-average useful life of 6 years.

The following table summarizes the aggregate acquisition-date fair value of the consideration transferred for the acquisition of BFDS and the amounts recognized as of the acquisition date for the assets acquired and liabilities assumed (in millions):

Consideration
Fair value of common stock used to acquire the remaining equity interests in BFDS, certain investments and real estate	$	163.4
Estimated fair value of DST’s previously-held equity interests (1)	151.1
Effective settlement of pre-existing relationships	(5.9		)
Total consideration transferred	$	308.6
Recognized amounts of identifiable assets acquired and liabilities assumed
Cash and cash equivalents	$	96.8
Accounts receivable	81.6
Other current assets	3.6
Investments (2)	35.8
Properties (3)	22.6
Intangible assets	57.2
Goodwill	68.7
Deferred income taxes	2.2
Other assets	3.2
Total assets	371.7
Accounts payable	5.2
Accrued compensation and benefits	15.4
Deferred revenue	2.1
Other current liabilities	7.4
Other liabilities	33.0
Total liabilities	63.1
Net assets acquired	$	308.6

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(1) Equals the estimated fair value of DST’s previously-held equity interest in BFDS valued at $151.1 million, which represents an approximate 7.5% discount to the acquisition price for State Street’s equity interests in BFDS prior to the acquisition date. The difference between the fair value of State Street common stock transferred of $163.4 million and the $151.1 million represents an estimate of a control premium, which has not been included in the valuation of DST’s previous non-controlling interest.

(2) As a result of the acquisition of the remaining interests in BFDS, we acquired certain investments associated with active deferred compensation plans for senior management and certain highly compensated employees. Approximately $3.7 million of the underlying investments were in DST common stock. As a result, the common stock was considered effectively repurchased at the acquisition date and reclassified to Treasury stock in the Consolidated Balance Sheet.

(3) Includes $2.0 million of acquired software with a weighted-average useful life of 5 years.

The following table summarizes the aggregate acquisition-date fair value of the consideration transferred for the acquisition of the remaining interests in IFDS U.K., IFDS Realty U.K. and IFDS Percana and the amounts recognized as of the acquisition date for the assets acquired and liabilities assumed (in millions):

Consideration
Cash paid to acquire the remaining equity interests in IFDS U.K. and other related interests (1)	$	234.9
Estimated fair value of previously-held equity interests (2)	136.8
Effective net settlement of pre-existing relationships	54.5
Total consideration transferred	$	426.2
Recognized amounts of identifiable assets acquired and liabilities assumed
Cash and cash equivalents	$	99.2
Accounts receivable	101.7
Other current assets	14.4
Properties (3)	94.7
Intangible assets	104.0
Goodwill	196.7
Deferred income taxes	11.6
Other assets	2.1
Total assets	624.4
Current portion of long-term debt	2.8
Accounts payable	29.1
Accrued compensation and benefits	23.6
Deferred revenue	31.1
Other current liabilities	61.7
Long-term debt	26.3
Other liabilities	23.6
Total liabilities	198.2
Net assets acquired	$	426.2

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(1) Cash paid is comprised of cash payments to acquire State Street’s equity interest in IFDS U.K. and a note receivable from IFDS U.K., as well as IFDS L.P.’s equity interests in IFDS Percana and IFDS Realty U.K.

(2) Equals the estimated fair value of DST’s previously-held equity interest in IFDS U.K. valued at $136.8 million, which represents an approximate 3.0% discount to the acquisition price for State Street’s equity interests in IFDS U.K. prior to the acquisition date. The difference between the $141.0 million of cash paid to acquire State Street’s equity interests in IFDS U.K. and the $136.8 million represents an estimate of a control premium, which has not been included in the valuation of DST’s previous non-controlling interest.

(3) Includes $21.0 million of acquired software with a weighted-average useful life of 6 years.

The following table summarizes the aggregate acquisition-date fair value of the consideration transferred for the acquisitions of kasina LLC, Red Rocks Capital LLC, and Wealth Management Systems Inc. and the amounts recognized as of the acquisition date for the assets acquired and liabilities assumed (in millions):

Consideration
Cash paid	$	118.8
Fair value of contingent consideration	0.8
Fair value of total consideration transferred	$	119.6
Recognized amounts of identifiable assets acquired and liabilities assumed
Cash and cash equivalents	$	1.6
Accounts receivable	4.2
Other current assets	0.2
Properties (1)	3.3
Intangible assets	49.5
Goodwill	75.8
Total assets	134.6
Accounts payable	0.2
Accrued compensation and benefits	0.4
Deferred revenue	5.5
Other current liabilities	0.7
Deferred income tax liabilities	8.2
Total liabilities	15.0
Net assets acquired	$	119.6

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(1) Includes $3.0 million of acquired software

Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination

The following table summarizes the intangible assets acquired and estimated weighted-average useful lives as of the acquisition date (in millions):

	Fair Value		Weighted-Average Useful Life
Client relationships	$	104.0	10 years

The following table summarizes the intangible assets acquired and estimated weighted average useful lives as of the acquisition dates (in millions):

	Fair Value		Weighted Average Useful Life
Client relationships	$	48.0	17 years
Other	1.5		7 years
	$	49.5

The following table summarizes the intangible assets acquired and estimated weighted-average useful lives as of the acquisition date (in millions):

	Fair Value		Weighted-Average Useful Life
Client relationships	$	22.5	10 years
Other	0.9		3 years
	$	23.4

The following table summarizes the intangible assets acquired and estimated weighted-average useful lives as of the acquisition date (in millions):

	Fair Value		Weighted-Average Useful Life
Client relationships	$	57.2	13 years

Business Acquisition, Pro Forma Information

The following table summarizes the unaudited pro forma results of operations for the years ended December 31, 2017 and 2016 as if the BFDS and IFDS U.K. acquisitions had occurred on January 1, 2016 (in millions, except per share amounts):

	Year Ended December 31,
	2017		2016
Total revenues	$	2,366.3	$	2,327.0
Net income attributable to DST Systems, Inc.	273.0		386.3
Diluted earnings per share	4.40		5.79