v2.4.0.8

SEGMENT REPORTING | 12 Months Ended
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Dec. 31, 2013
SEGMENT REPORTING | 21. SEGMENT REPORTING Blackstone transacts its primary business in the United States and substantially all of its revenues are generated domestically. Blackstone conducts its alternative asset management and financial advisory businesses through five segments:
• |  | Private Equity—Blackstone’s Private Equity segment comprises its management of private equity funds and certain multi-asset class investment funds.
• |  | Real Estate—Blackstone’s Real Estate segment primarily comprises its management of global, European focused and Asian focused opportunistic real estate funds. In addition, the segment has debt investment funds and a publicly traded REIT targeting non-controlling real estate debt-related investment opportunities in the public and private markets, primarily in the United States and Europe.
• |  | Hedge Fund Solutions—Blackstone’s Hedge Fund Solutions segment is comprised principally of Blackstone Alternative Asset Management (“BAAM”), an institutional solutions provider utilizing hedge funds across a variety of strategies.
• |  | Credit—Blackstone’s Credit segment, which principally includes GSO Capital Partners LP (“GSO”), manages credit-focused products within private debt and public market strategies. GSO’s products include senior credit-focused funds, distressed debt funds, mezzanine funds, general credit-focused funds, registered investment companies, separately managed accounts and CLO vehicles.
• |  | Financial Advisory—Blackstone’s Financial Advisory segment comprises its financial and strategic advisory services, restructuring and reorganization advisory services, capital markets services and Park Hill Group, which provides fund placement services for alternative investment funds.
These business segments are differentiated by their various sources of income. The Private Equity, Real Estate, Hedge Fund Solutions and Credit segments primarily earn their income from management fees and investment returns on assets under management, while the Financial Advisory segment primarily earns its income from fees related to investment banking services and advice and fund placement services. Blackstone uses Economic Income (“EI”) as a key measure of value creation, a benchmark of its performance and in making resource deployment and compensation decisions across its five segments. EI represents segment net income before taxes excluding transaction-related charges. Transaction-related charges arise from Blackstone’s IPO and long-term retention programs outside of annual deferred compensation and other corporate actions, including acquisitions. Transaction-related charges include equity-based compensation charges, the amortization of intangible assets and contingent consideration associated with acquisitions. EI presents revenues and expenses on a basis that deconsolidates the investment funds Blackstone manages. Economic Net Income (“ENI”) represents EI adjusted to include current period taxes. Taxes represent the current tax provision (benefit) calculated on Income (Loss) Before Provision for Taxes. Management makes operating decisions and assesses the performance of each of Blackstone’s business segments based on financial and operating metrics and data that is presented without the consolidation of any of the Blackstone Funds that are consolidated into the Consolidated Financial Statements. Consequently, all segment data excludes the assets, liabilities and operating results related to the Blackstone Funds. The following table presents the financial data for Blackstone’s five segments as of and for the years ended December 31, 2013, 2012 and 2011:
|  | December 31, 2013 and the Year Then Ended |
|  | Private Equity |  |  | Real Estate |  |  | Hedge Fund Solutions |  |  | Credit |  |  | Financial Advisory |  |  | Total Segments |
Segment Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Management and Advisory Fees, Net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Base Management Fees |  | $ | 368,146 |  |  | $ | 565,182 |  |  | $ | 409,321 |  |  | $ | 398,158 |  |  | $ | — |  |  | $ | 1,740,807 |
Advisory Fees |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 410,514 |  |  |  | 410,514 |
Transaction and Other Fees, Net |  |  | 96,988 |  |  |  | 79,675 |  |  |  | 623 |  |  |  | 28,586 |  |  |  | 1,105 |  |  |  | 206,977 |
Management Fee Offsets |  |  | (5,683 | ) |  |  | (22,821 | ) |  |  | (3,387 | ) |  |  | (40,329 | ) |  |  | — |  |  |  | (72,220 | )
Total Management and Advisory Fees, Net |  |  | 459,451 |  |  |  | 622,036 |  |  |  | 406,557 |  |  |  | 386,415 |  |  |  | 411,619 |  |  |  | 2,286,078 |
Performance Fees |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Realized |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Carried Interest |  |  | 329,993 |  |  |  | 486,773 |  |  |  | — |  |  |  | 127,192 |  |  |  | — |  |  |  | 943,958 |
Incentive Fees |  |  | — |  |  |  | 45,862 |  |  |  | 207,735 |  |  |  | 220,736 |  |  |  | — |  |  |  | 474,333 |
Unrealized |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Carried Interest |  |  | 398,232 |  |  |  | 1,651,700 |  |  |  | — |  |  |  | 108,078 |  |  |  | — |  |  |  | 2,158,010 |
Incentive Fees |  |  | — |  |  |  | (28,753 | ) |  |  | 7,718 |  |  |  | 1,107 |  |  |  | — |  |  |  | (19,928 | )
Total Performance Fees |  |  | 728,225 |  |  |  | 2,155,582 |  |  |  | 215,453 |  |  |  | 457,113 |  |  |  | — |  |  |  | 3,556,373 |
Investment Income (Loss) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Realized |  |  | 88,026 |  |  |  | 52,359 |  |  |  | 27,613 |  |  |  | 4,098 |  |  |  | (1,625 | ) |  |  | 170,471 |
Unrealized |  |  | 161,749 |  |  |  | 350,201 |  |  |  | (9,306 | ) |  |  | 13,951 |  |  |  | 739 |  |  |  | 517,334 |
Total Investment Income (Loss) |  |  | 249,775 |  |  |  | 402,560 |  |  |  | 18,307 |  |  |  | 18,049 |  |  |  | (886 | ) |  |  | 687,805 |
Interest and Dividend Revenue |  |  | 15,602 |  |  |  | 21,563 |  |  |  | 7,605 |  |  |  | 18,146 |  |  |  | 8,020 |  |  |  | 70,936 |
Other |  |  | 4,259 |  |  |  | 3,384 |  |  |  | 688 |  |  |  | 527 |  |  |  | 1,450 |  |  |  | 10,308 |
Total Revenues |  |  | 1,457,312 |  |  |  | 3,205,125 |  |  |  | 648,610 |  |  |  | 880,250 |  |  |  | 420,203 |  |  |  | 6,611,500 |
Expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Compensation and Benefits |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Compensation |  |  | 236,120 |  |  |  | 294,222 |  |  |  | 136,470 |  |  |  | 186,514 |  |  |  | 262,314 |  |  |  | 1,115,640 |
Performance Fee Compensation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Realized |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Carried Interest |  |  | 38,953 |  |  |  | 148,837 |  |  |  | — |  |  |  | 69,411 |  |  |  | — |  |  |  | 257,201 |
Incentive Fees |  |  | — |  |  |  | 23,878 |  |  |  | 65,793 |  |  |  | 111,244 |  |  |  | — |  |  |  | 200,915 |
Unrealized |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Carried Interest |  |  | 342,733 |  |  |  | 566,837 |  |  |  | — |  |  |  | 57,147 |  |  |  | — |  |  |  | 966,717 |
Incentive Fees |  |  | — |  |  |  | (15,015 | ) |  |  | 2,856 |  |  |  | 508 |  |  |  | — |  |  |  | (11,651 | )
Total Compensation and Benefits |  |  | 617,806 |  |  |  | 1,018,759 |  |  |  | 205,119 |  |  |  | 424,824 |  |  |  | 262,314 |  |  |  | 2,528,822 |
Other Operating Expenses |  |  | 124,137 |  |  |  | 116,391 |  |  |  | 66,966 |  |  |  | 96,940 |  |  |  | 82,205 |  |  |  | 486,639 |
Total Expenses |  |  | 741,943 |  |  |  | 1,135,150 |  |  |  | 272,085 |  |  |  | 521,764 |  |  |  | 344,519 |  |  |  | 3,015,461 |
Economic Income |  | $ | 715,369 |  |  | $ | 2,069,975 |  |  | $ | 376,525 |  |  | $ | 358,486 |  |  | $ | 75,684 |  |  | $ | 3,596,039 |
Segment Assets |  | $ | 4,444,227 |  |  | $ | 7,496,591 |  |  | $ | 1,325,631 |  |  | $ | 2,381,603 |  |  | $ | 781,469 |  |  | $ | 16,429,521 |
|  | December 31, 2012 and the Year Then Ended |
|  | Private Equity |  |  | Real Estate |  |  | Hedge Fund Solutions |  |  | Credit |  |  | Financial Advisory |  |  | Total Segments |
Segment Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Management and Advisory Fees, Net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Base Management Fees |  | $ | 348,594 |  |  | $ | 551,322 |  |  | $ | 346,210 |  |  | $ | 345,277 |  |  | $ | — |  |  | $ | 1,591,403 |
Advisory Fees |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 357,417 |  |  |  | 357,417 |
Transaction and Other Fees, Net |  |  | 100,080 |  |  |  | 85,681 |  |  |  | 188 |  |  |  | 40,875 |  |  |  | 295 |  |  |  | 227,119 |
Management Fee Offsets |  |  | (5,926 | ) |  |  | (28,609 | ) |  |  | (1,414 | ) |  |  | (5,004 | ) |  |  | — |  |  |  | (40,953 | )
Total Management and Advisory Fees, Net |  |  | 442,748 |  |  |  | 608,394 |  |  |  | 344,984 |  |  |  | 381,148 |  |  |  | 357,712 |  |  |  | 2,134,986 |
Performance Fees |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Realized |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Carried Interest |  |  | 109,797 |  |  |  | 165,114 |  |  |  | — |  |  |  | 52,511 |  |  |  | — |  |  |  | 327,422 |
Incentive Fees |  |  | — |  |  |  | 25,656 |  |  |  | 83,433 |  |  |  | 192,375 |  |  |  | — |  |  |  | 301,464 |
Unrealized |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Carried Interest |  |  | 148,381 |  |  |  | 683,764 |  |  |  | — |  |  |  | 162,045 |  |  |  | — |  |  |  | 994,190 |
Incentive Fees |  |  | — |  |  |  | (119 | ) |  |  | 9,042 |  |  |  | (38,234 | ) |  |  | — |  |  |  | (29,311 | )
Total Performance Fees |  |  | 258,178 |  |  |  | 874,415 |  |  |  | 92,475 |  |  |  | 368,697 |  |  |  | — |  |  |  | 1,593,765 |
Investment Income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Realized |  |  | 25,823 |  |  |  | 45,302 |  |  |  | 7,270 |  |  |  | 15,611 |  |  |  | 1,392 |  |  |  | 95,398 |
Unrealized |  |  | 85,337 |  |  |  | 90,875 |  |  |  | 8,517 |  |  |  | 4,769 |  |  |  | 1,348 |  |  |  | 190,846 |
Total Investment Income |  |  | 111,160 |  |  |  | 136,177 |  |  |  | 15,787 |  |  |  | 20,380 |  |  |  | 2,740 |  |  |  | 286,244 |
Interest and Dividend Revenue |  |  | 13,556 |  |  |  | 14,448 |  |  |  | 2,139 |  |  |  | 9,330 |  |  |  | 7,157 |  |  |  | 46,630 |
Other |  |  | 2,417 |  |  |  | 894 |  |  |  | 3,816 |  |  |  | (1,174 | ) |  |  | (804 | ) |  |  | 5,149 |
Total Revenues |  |  | 828,059 |  |  |  | 1,634,328 |  |  |  | 459,201 |  |  |  | 778,381 |  |  |  | 366,805 |  |  |  | 4,066,774 |
Expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Compensation and Benefits |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Compensation |  |  | 222,709 |  |  |  | 271,122 |  |  |  | 119,731 |  |  |  | 182,077 |  |  |  | 235,137 |  |  |  | 1,030,776 |
Performance Fee Compensation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Realized |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Carried Interest |  |  | 3,679 |  |  |  | 62,418 |  |  |  | — |  |  |  | 30,336 |  |  |  | — |  |  |  | 96,433 |
Incentive Fees |  |  | — |  |  |  | 13,060 |  |  |  | 23,080 |  |  |  | 103,902 |  |  |  | — |  |  |  | 140,042 |
Unrealized |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Carried Interest |  |  | 58,555 |  |  |  | 165,482 |  |  |  | — |  |  |  | 97,562 |  |  |  | — |  |  |  | 321,599 |
Incentive Fees |  |  | — |  |  |  | (583 | ) |  |  | 1,317 |  |  |  | (45,262 | ) |  |  | — |  |  |  | (44,528 | )
Total Compensation and Benefits |  |  | 284,943 |  |  |  | 511,499 |  |  |  | 144,128 |  |  |  | 368,615 |  |  |  | 235,137 |  |  |  | 1,544,322 |
Other Operating Expenses |  |  | 130,845 |  |  |  | 123,714 |  |  |  | 57,809 |  |  |  | 84,488 |  |  |  | 84,589 |  |  |  | 481,445 |
Total Expenses |  |  | 415,788 |  |  |  | 635,213 |  |  |  | 201,937 |  |  |  | 453,103 |  |  |  | 319,726 |  |  |  | 2,025,767 |
Economic Income |  | $ | 412,271 |  |  | $ | 999,115 |  |  | $ | 257,264 |  |  | $ | 325,278 |  |  | $ | 47,079 |  |  | $ | 2,041,007 |
Segment Assets |  | $ | 4,625,310 |  |  | $ | 5,599,759 |  |  | $ | 876,881 |  |  | $ | 2,004,529 |  |  | $ | 749,000 |  |  | $ | 13,855,479 |
|  | December 31, 2011 and the Year Then Ended |
|  | Private Equity |  |  | Real Estate |  |  | Hedge Fund Solutions |  |  | Credit |  |  | Financial Advisory |  |  | Total Segments |
Segment Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Management and Advisory Fees, Net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Base Management Fees |  | $ | 331,997 |  |  | $ | 394,778 |  |  | $ | 315,863 |  |  | $ | 238,547 |  |  | $ | — |  |  | $ | 1,281,185 |
Advisory Fees |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 382,240 |  |  |  | 382,240 |
Transaction and Other Fees, Net |  |  | 133,004 |  |  |  | 109,510 |  |  |  | 2,798 |  |  |  | 1,880 |  |  |  | 321 |  |  |  | 247,513 |
Management Fee Offsets |  |  | (27,073 | ) |  |  | (4,950 | ) |  |  | (980 | ) |  |  | (390 | ) |  |  | — |  |  |  | (33,393 | )
Total Management and Advisory Fees, Net |  |  | 437,928 |  |  |  | 499,338 |  |  |  | 317,681 |  |  |  | 240,037 |  |  |  | 382,561 |  |  |  | 1,877,545 |
Performance Fees |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Realized |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Carried Interest |  |  | 37,393 |  |  |  | 22,844 |  |  |  | — |  |  |  | 78,670 |  |  |  | — |  |  |  | 138,907 |
Incentive Fees |  |  | — |  |  |  | 9,629 |  |  |  | 11,472 |  |  |  | 67,928 |  |  |  | — |  |  |  | 89,029 |
Unrealized |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Carried Interest |  |  | 33,490 |  |  |  | 913,418 |  |  |  | — |  |  |  | 24,610 |  |  |  | — |  |  |  | 971,518 |
Incentive Fees |  |  | — |  |  |  | 3,658 |  |  |  | 774 |  |  |  | (29,360 | ) |  |  | — |  |  |  | (24,928 | )
Total Performance Fees |  |  | 70,883 |  |  |  | 949,549 |  |  |  | 12,246 |  |  |  | 141,848 |  |  |  | — |  |  |  | 1,174,526 |
Investment Income (Loss) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Realized |  |  | 44,988 |  |  |  | 27,972 |  |  |  | 17,722 |  |  |  | 11,299 |  |  |  | 594 |  |  |  | 102,575 |
Unrealized |  |  | 9,476 |  |  |  | 92,648 |  |  |  | (19,031 | ) |  |  | (708 | ) |  |  | 304 |  |  |  | 82,689 |
Total Investment Income (Loss) |  |  | 54,464 |  |  |  | 120,620 |  |  |  | (1,309 | ) |  |  | 10,591 |  |  |  | 898 |  |  |  | 185,264 |
Interest and Dividend Revenue |  |  | 13,749 |  |  |  | 12,902 |  |  |  | 2,025 |  |  |  | 3,369 |  |  |  | 6,799 |  |  |  | 38,844 |
Other |  |  | 1,810 |  |  |  | (1,061 | ) |  |  | 7,902 |  |  |  | (853 | ) |  |  | (383 | ) |  |  | 7,415 |
Total Revenues |  |  | 578,834 |  |  |  | 1,581,348 |  |  |  | 338,545 |  |  |  | 394,992 |  |  |  | 389,875 |  |  |  | 3,283,594 |
Expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Compensation and Benefits |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Compensation |  |  | 217,556 |  |  |  | 236,771 |  |  |  | 128,959 |  |  |  | 128,588 |  |  |  | 248,695 |  |  |  | 960,569 |
Performance Fee Compensation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Realized |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Carried Interest |  |  | 1,465 |  |  |  | 10,103 |  |  |  | — |  |  |  | 32,047 |  |  |  | — |  |  |  | 43,615 |
Incentive Fees |  |  | — |  |  |  | 4,564 |  |  |  | 3,498 |  |  |  | 47,850 |  |  |  | — |  |  |  | 55,912 |
Unrealized |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Carried Interest |  |  | (2,229 | ) |  |  | 221,140 |  |  |  | — |  |  |  | 19,033 |  |  |  | — |  |  |  | 237,944 |
Incentive Fees |  |  | — |  |  |  | 3,106 |  |  |  | 234 |  |  |  | (24,099 | ) |  |  | — |  |  |  | (20,759 | )
Total Compensation and Benefits |  |  | 216,792 |  |  |  | 475,684 |  |  |  | 132,691 |  |  |  | 203,419 |  |  |  | 248,695 |  |  |  | 1,277,281 |
Other Operating Expenses |  |  | 120,918 |  |  |  | 103,859 |  |  |  | 65,072 |  |  |  | 49,955 |  |  |  | 81,538 |  |  |  | 421,342 |
Total Expenses |  |  | 337,710 |  |  |  | 579,543 |  |  |  | 197,763 |  |  |  | 253,374 |  |  |  | 330,233 |  |  |  | 1,698,623 |
Economic Income |  | $ | 241,124 |  |  | $ | 1,001,805 |  |  | $ | 140,782 |  |  | $ | 141,618 |  |  | $ | 59,642 |  |  | $ | 1,584,971 |
The following table reconciles the Total Segments to Blackstone’s Income Before Provision for Taxes and Total Assets as of and for the years ended December 31, 2013, 2012 and 2011:
|  | December 31, 2013 and the Year Then Ended |
|  | Total Segments |  |  | Consolidation Adjustments and Reconciling Items |  |  | Blackstone Consolidated |
Revenues |  | $ | 6,611,500 |  |  | $ | 1,668 | (a) |  | $ | 6,613,168 |
Expenses |  | $ | 3,015,461 |  |  | $ | 851,279 | (b) |  | $ | 3,866,740 |
Other Income |  | $ | — |  |  | $ | 402,133 | (c) |  | $ | 402,133 |
Economic Income |  | $ | 3,596,039 |  |  | $ | (447,478 | )(d) |  | $ | 3,148,561 |
Total Assets |  | $ | 16,429,521 |  |  | $ | 13,249,085 | (e) |  | $ | 29,678,606 |
|  | December 31, 2012 and the Year Then Ended |
|  | Total Segments |  |  | Consolidation Adjustments and Reconciling Items |  |  | Blackstone Consolidated |
Revenues |  | $ | 4,066,774 |  |  | $ | (47,333 | )(a) |  | $ | 4,019,441 |
Expenses |  | $ | 2,025,767 |  |  | $ | 1,234,914 | (b) |  | $ | 3,260,681 |
Other Income |  | $ | — |  |  | $ | 256,145 | (c) |  | $ | 256,145 |
Economic Income |  | $ | 2,041,007 |  |  | $ | (1,026,102 | )(d) |  | $ | 1,014,905 |
Total Assets |  | $ | 13,855,479 |  |  | $ | 15,076,073 | (e) |  | $ | 28,931,552 |
|  | Year Ended December 31, 2011 |
|  | Total Segments |  |  | Consolidation Adjustments and Reconciling Items |  |  | Blackstone Consolidated |
Revenues |  | $ | 3,283,594 |  |  | $ | (31,018 | )(a) |  | $ | 3,252,576 |
Expenses |  | $ | 1,698,623 |  |  | $ | 1,689,446 | (b) |  | $ | 3,388,069 |
Other Income |  | $ | — |  |  | $ | 212,751 | (c) |  | $ | 212,751 |
Economic Income |  | $ | 1,584,971 |  |  | $ | (1,507,713 | )(d) |  | $ | 77,258 |
(a) | The Revenues adjustment represents management and performance fees earned from Blackstone Funds which were eliminated in consolidation to arrive at Blackstone consolidated revenues and non-segment related Investment Income, which is included in Blackstone consolidated revenues.
(b) | The Expenses adjustment represents the addition of expenses of the consolidated Blackstone Funds to the Blackstone unconsolidated expenses, amortization of intangibles and expenses related to transaction-related equity-based compensation to arrive at Blackstone consolidated expenses.
(c) | The Other Income adjustment results from the following:
|  | Year Ended December 31, |
|  | 2013 |  |  | 2012 |  |  | 2011 |
Fund Management Fees and Performance Fees Eliminated in Consolidation and Transactional Investment Loss |  | $ | (5,575 | ) |  | $ | 43,393 |  |  | $ | 21,000 |
Fund Expenses Added in Consolidation |  |  | 30,727 |  |  |  | 37,548 |  |  |  | 30,129 |
Non-Controlling Interests in Income (Loss) of Consolidated Entities |  |  | 381,872 |  |  |  | 203,557 |  |  |  | (16,916 | )
Transaction-Related Other Income (Loss) |  |  | (4,891 | ) |  |  | (28,353 | ) |  |  | 178,538 |
Total Consolidation Adjustments and Reconciling Items |  | $ | 402,133 |  |  | $ | 256,145 |  |  | $ | 212,751 |
(d) | The reconciliation of Economic Income to Income Before Provision for Taxes as reported in the Consolidated Statements of Operations consists of the following:
|  | Year Ended December 31, |
| 2013 |  |  | 2012 |  |  | 2011 |
Economic Income |  | $ | 3,596,039 |  |  | $ | 2,041,007 |  |  | $ | 1,584,971 |
Adjustments |  |  |  |  |  |  |  |  |  |  |  |
Amortization of Intangibles |  |  | (106,643 | ) |  |  | (150,148 | ) |  |  | (220,865 | )
IPO and Acquisition-Related Charges |  |  | (722,707 | ) |  |  | (1,079,511 | ) |  |  | (1,269,932 | )
Non-Controlling Interests in Income (Loss) of Consolidated Entities |  |  | 381,872 |  |  |  | 203,557 |  |  |  | (16,916 | )
Total Consolidation Adjustments and Reconciling Items |  |  | (447,478 | ) |  |  | (1,026,102 | ) |  |  | (1,507,713 | )
Income Before Provision for Taxes |  | $ | 3,148,561 |  |  | $ | 1,014,905 |  |  | $ | 77,258 |
(e) | The Total Assets adjustment represents the addition of assets of the consolidated Blackstone Funds to the Blackstone unconsolidated assets to arrive at Blackstone consolidated assets.

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