Blackstone

has granted equity-based compensation awards to Blackstone’s senior managing directors,

non-partner

professionals,

non-professionals

and selected external advisers under

Blackstone

’s

2007

Equity Incentive Plan (the “Equity Plan”). The Equity Plan allows for the granting of options, unit appreciation rights or other unit-based awards (units, restricted units, restricted common units, deferred restricted common units, phantom restricted common units or other unit-based awards based in whole or in part on the fair value of the Blackstone common units or Blackstone Holdings Partnership Units) which may contain certain service or performance requirements. As of January

2019

Blackstone

had the ability to grant

171,502,746

units under the Equity Plan.

For the three and six months ended June 30, 2019,

Blackstone

recorded compensation expense of $102.8 million and $224.0 million, respectively, in relation to its equity-based awards with corresponding tax benefits of $15.9 million and $34.5 million, respectively. For the three and six months ended June 30, 2018,

Blackstone

recorded compensation expense of $116.8 million and $209.0 million, respectively, in relation to its equity-based awards with corresponding tax benefits of $20.1 million and $34.5 million, respectively.

As of June 30, 2019, there was $937.1 million of estimated unrecognized compensation expense related to unvested awards. This cost is expected to be recognized over a weighted-average period of 3.7 years.

Total vested and unvested outstanding units, including Blackstone common units, Blackstone Holdings Partnership Units and deferred restricted common units, were 1,195,112,059 as of June 30, 2019. Total outstanding unvested phantom units were 49,075 as of June 30, 2019.

A summary of the status of

Blackstone

’s unvested equity-based awards as of June 30, 2019 and of changes during the period January 1, 2019 through June 30, 2019 is presented below:


	Blackstone Holdings					The Blackstone Group L.P.
						Equity Settled Awards					Cash Settled Awards
						Deferred
				Weighted-		Restricted			Weighted-					Weighted-
				Average		Common			Average					Average
	Partnership			Grant Date		Units and			Grant Date		Phantom			Grant Date
Unvested Units	Units			Fair Value		Options			Fair Value		Units			Fair Value
Balance, December 31, 2018		31,554,127		$	34.38		9,312,268		$	31.43		46,808		$	34.66
Granted		2,450,200			35.29		1,731,220			30.30		—			—
Vested		(1,860,292	)		34.71		(1,989,321	)		29.81		(80	)		33.47
Forfeited		(92,956	)		32.17		(268,962	)		31.33		—			—

Balance, June 30, 2019		32,051,079		$	34.11		8,785,205		$	31.56		46,728		$	38.69

Units Expected to Vest

The following unvested units, after expected forfeitures, as of June 30, 2019, are expected to vest:


			Weighted-
			Average
			Service Period
	Units		in Years
Blackstone Holdings Partnership Units		28,301,673		3.2
Deferred Restricted Blackstone Common Units		7,618,444		2.1

Total Equity-Based Awards		35,920,117		3.0

Phantom Units		40,016		2.0