4. Investment in Unconsolidated Affiliate
The Company owns a 49% interest in StoneRiver Group, L.P. (“StoneRiver”), which is accounted for as an equity method investment, and reports its share of StoneRiver’s net income as income from investment in unconsolidated affiliate. The Company’s investment in StoneRiver was $39 million and $78 million at December 31, 2013 and 2012, respectively, and was reported within other long-term assets in the consolidated balance sheets. In 2013, 2012 and 2011, the Company received cash dividends from StoneRiver of $122 million, $55 million, and $54 million, respectively, which were recorded as reductions in the Company’s investment in StoneRiver. A portion of the dividends, $6 million in 2013, $23 million in 2012 and $12 million in 2011, represented a return on the Company’s investment and were reported in cash flows from operating activities.
In the fourth quarter of 2013, StoneRiver completed a transaction which reduced its ownership interest in a subsidiary business, resulting in a significant gain associated with the deconsolidation. The Company’s share of the gain on the transaction of $71 million was recorded within income from investment in unconsolidated affiliate, with the related income tax expense of $17 million recorded through the income tax provision, in the accompanying consolidated statement of income. As a result of the transaction gain, the significance of income from the Company’s investment in unconsolidated affiliate increased. Accordingly, as required by Regulation S-X, Rule 4-08(g), summarized StoneRiver financial information is as follows:
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(In millions) |
2013 | 2012 | 2011 | |||||||||
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Statements of income for the years ended December 31, |
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Total revenue |
$ | 732 | $ | 806 | $ | 826 | ||||||
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Operating income |
24 | 47 | 42 | |||||||||
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Income from continuing operations |
243 | 18 | 16 | |||||||||
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Net income |
243 | 16 | 23 | |||||||||
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Balance sheet as of December 31, |
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Current assets |
$ | 74 | $ | 175 | ||||||||
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Noncurrent assets |
629 | 576 | ||||||||||
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Current liabilities |
97 | 195 | ||||||||||
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Noncurrent liabilities |
527 | 421 | ||||||||||
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Noncontrolling interest |
- | 17 | ||||||||||