11.

OFFSETTING OF ASSETS AND LIABILITIES

The following tables present the offsetting of assets and liabilities as of September 30, 2014:


	Gross and Net Amounts of Assets Presented in the Statement of Financial Condition		Gross Amounts Not Offset in the Statement of Financial Condition				Net Amount
			Financial Instruments		Cash Collateral Received		Net Amount
Assets
Freestanding Derivatives	$	6,454	$	1,236	$	540	$	4,678
Reverse Repurchase Agreements		93,538		92,968		—		570

Total	$	99,992	$	94,204	$	540	$	5,248


	Gross and Net Amounts of Liabilities Presented in the Statement of Financial Condition		Gross Amounts Not Offset in the Statement of Financial Condition				Net Amount
			Financial Instruments		Cash Collateral Pledged		Net Amount
Liabilities
Freestanding Derivatives	$	9,838	$	1,236	$	8,571	$	31
Repurchase Agreements		122,349		121,880		469		—

Total	$	132,187	$	123,116	$	9,040	$	31

The following tables present the offsetting of assets and liabilities as of December 31, 2013:


	Gross and Net Amounts of Assets Presented in the Statement of Financial Condition		Gross Amounts Not Offset in the Statement of Financial Condition				Net Amount
			Financial Instruments		Cash Collateral Received		Net Amount
Assets
Freestanding Derivatives	$	10,343	$	3,025	$	582	$	6,736
Reverse Repurchase Agreements		148,984		148,394		—		590

Total	$	159,327	$	151,419	$	582	$	7,326


	Gross and Net Amounts of Liabilities Presented in the Statement of Financial Condition		Gross Amounts Not Offset in the Statement of Financial Condition				Net Amount
			Financial Instruments		Cash Collateral Pledged		Net Amount
Liabilities
Freestanding Derivatives	$	4,282	$	3,025	$	1,257	$	—
Repurchase Agreements		316,352		316,352		—		—

Total	$	320,634	$	319,377	$	1,257	$	—

Reverse Repurchase Agreements and Repurchase Agreements are presented separately on the Condensed Consolidated Statements of Financial Condition. Freestanding Derivative assets are included in Other Assets in the Condensed Consolidated Statements of Financial Condition. The following table presents the components of Other Assets:


	September 30, 2014		December 31, 2013
Furniture, Equipment and Leasehold Improvements, Net	$	133,999	$	137,088
Prepaid Expenses		142,560		61,226
Other Assets		77,923		75,815
Freestanding Derivatives		6,454		10,343

	$	360,936	$	284,472

Freestanding Derivative liabilities are included in Accounts Payable, Accrued Expenses and Other Liabilities in the Condensed Consolidated Statements of Financial Condition and are not a significant component thereof.

Notional Pooling Arrangement

Blackstone has entered into a notional cash pooling arrangement with a financial institution for cash management purposes. This arrangement allows for cash withdrawals based upon aggregate cash balances on deposit at the same financial institution. Cash withdrawals cannot exceed aggregate cash balances on deposit. The net balance of cash on deposit and overdrafts is used as a basis for calculating net interest expense or income. As of September 30, 2014, the aggregate cash balance on deposit relating to the cash pooling arrangement was $1.2 billion, which was fully offset with an accompanying overdraft.