FISERV INC | 2013 | FY | 3


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:

 

(In millions)

  2013     2012     2011  

Statements of income for the years ended December 31,

     

Total revenue

  $ 732      $ 806      $ 826   

Operating income

    24        47        42   

Income from continuing operations

    243        18        16   

Net income

    243        16        23   

Balance sheet as of December 31,

     

Current assets

  $ 74      $ 175     

Noncurrent assets

    629        576     

Current liabilities

    97        195     

Noncurrent liabilities

    527        421     

Noncontrolling interest

    -        17     

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