Envestnet, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Other Non-Current Assets

Other Non-Current Assets

12 Months Ended

Dec. 31, 2018

Other non-current assets consist of the following:



	December 31,
	2018		2017
Deferred sales incentive compensation	$	7,014	$	—
Assets to fund deferred compensation liability	6,346		5,185
Lease and other deposits	4,341		4,906
Investments in private companies	2,862		2,731
Unamortized issuance costs on revolving credit facility	2,251		3,106
Other	2,484		1,248
Total	$	25,298	$	17,176

The Company owns 538,776 common units in a privately held company at a historical purchase price of $1,250. The Company uses the cost method of accounting for this investment. This investment is included in the Envestnet segment.

In November 2016, the Company purchased 1,500,000 Class A units representing 21.4% of the outstanding membership interests of a privately held company for cash consideration of $1,500. In September 2017, the Company purchased an additional 1,450,000 Class A units in this privately held company for cash consideration of $1,450. The additional investment increased the Company’s ownership interest to 34.5%. The Company uses the equity method of accounting to record its portion of this privately held company’s net income or loss on a one quarter lag from the actual results of operations due to our less than 50% ownership and lack of control and does not otherwise exercise control over the significant economic decisions of the privately held company. The Company’s share in the loss of the privately held company was $1,146 and $1,469 during the years ended December 31, 2018 and 2017, respectively, and is included in other expense, net on the consolidated statements of operations. This investment is included in the Envestnet segment.

In November 2018, the Company acquired approximately 27% of the outstanding membership interests of a privately held company for cash consideration of $1,200. In accordance with the agreement, the Company is required to make future capital contributions of $1,200 and $1,100 in 2019 and 2020, respectively, subject to certain conditions. The Company uses the equity method of accounting to record its portion of this privately held company’s net income or loss on a one quarter lag from the actual results of operations. The Company uses the equity method of accounting to record its portion of this privately held company’s net income or loss on a one quarter lag from the actual results of operations due to our less than 50% ownership and lack of control and does not otherwise exercise control over the significant economic decisions of the privately held company. This investment is included in the Envestnet segment.