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Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2019

Financial Data of Segments

The following tables present the financial data for Blackstone’s four segments for the three months ended June 30, 2019 and 2018:

		Three Months Ended June 30, 2019
		Real				Private				Hedge Fund								Total
		Estate				Equity				Solutions				Credit				Segments
Management and Advisory Fees, Net
Base Management Fees		$	255,636			$	265,139			$	136,990			$	147,550			$	805,315
Transaction, Advisory and Other Fees, Net			23,990				31,526				723				5,256				61,495
Management Fee Offsets			(1,686	)			(17,689	)			—				(3,279	)			(22,654	)
Total Management and Advisory Fees, Net			277,940				278,976				137,713				149,527				844,156
Fee Related Performance Revenues			11,072				—				—				2,552				13,624
Fee Related Compensation			(97,795	)			(105,107	)			(36,622	)			(54,310	)			(293,834	)
Other Operating Expenses			(40,114	)			(40,429	)			(21,112	)			(40,466	)			(142,121	)
Fee Related Earnings			151,103				133,440				79,979				57,303				421,825
Realized Performance Revenues			198,573				122,907				11,960				7,946				341,386
Realized Performance Compensation			(67,742	)			(52,081	)			(2,175	)			(3,468	)			(125,466	)
Realized Principal Investment Income			47,420				42,906				12,306				20,925				123,557
Total Net Realizations			178,251				113,732				22,091				25,403				339,477
Total Segment Distributable Earnings		$	329,354			$	247,172			$	102,070			$	82,706			$	761,302

		Three Months Ended June 30, 2018
		Real				Private				Hedge Fund								Total
		Estate				Equity				Solutions				Credit				Segments
Management and Advisory Fees, Net
Base Management Fees		$	249,680			$	195,521			$	129,553			$	118,161			$	692,915
Transaction, Advisory and Other Fees, Net			23,859				12,780				812				3,461				40,912
Management Fee Offsets			(3,785	)			(4,351	)			—				(2,697	)			(10,833	)
Total Management and Advisory Fees, Net			269,754				203,950				130,365				118,925				722,994
Fee Related Performance Revenues			45,515				—				—				—				45,515
Fee Related Compensation			(120,783	)			(94,170	)			(40,533	)			(50,757	)			(306,243	)
Other Operating Expenses			(36,026	)			(36,047	)			(18,494	)			(31,899	)			(122,466	)
Fee Related Earnings			158,460				73,733				71,338				36,269				339,800
Realized Performance Revenues			317,509				138,171				7,270				14,594				477,544
Realized Performance Compensation			(94,716	)			(68,513	)			(2,546	)			(7,119	)			(172,894	)
Realized Principal Investment Income			50,199				32,600				7,766				4,082				94,647
Total Net Realizations			272,992				102,258				12,490				11,557				399,297
Total Segment Distributable Earnings		$	431,452			$	175,991			$	83,828			$	47,826			$	739,097

The following tables present the financial data for Blackstone’s four segments as of June 30, 2019 and for the six months ended June 30, 2019 and 2018:

		June 30, 2019 and the Six Months Then Ended
		Real				Private				Hedge Fund								Total
		Estate				Equity				Solutions				Credit				Segments
Management and Advisory Fees, Net
Base Management Fees		$	515,881			$	484,556			$	274,318			$	288,078			$	1,562,833
Transaction, Advisory and Other Fees, Net			47,901				68,817				1,041				8,886				126,645
Management Fee Offsets			(1,966	)			(22,674	)			—				(6,620	)			(31,260	)
Total Management and Advisory Fees, Net			561,816				530,699				275,359				290,344				1,658,218
Fee Related Performance Revenues			17,748				—				—				3,655				21,403
Fee Related Compensation			(212,611	)			(212,694	)			(79,576	)			(112,984	)			(617,865	)
Other Operating Expenses			(79,100	)			(74,630	)			(38,997	)			(72,705	)			(265,432	)
Fee Related Earnings			287,853				243,375				156,786				108,310				796,324
Realized Performance Revenues			275,755				279,506				16,051				16,843				588,155
Realized Performance Compensation			(97,642	)			(102,637	)			(3,588	)			(6,839	)			(210,706	)
Realized Principal Investment Income			45,289				68,045				12,023				24,108				149,465
Total Net Realizations			223,402				244,914				24,486				34,112				526,914
Total Segment Distributable Earnings		$	511,255			$	488,289			$	181,272			$	142,422			$	1,323,238
Segment Assets		$	8,305,170			$	8,296,560			$	2,078,511			$	3,771,007			$	22,451,248

		Six Months Ended June 30, 2018
		Real				Private				Hedge Fund								Total
		Estate				Equity				Solutions				Credit				Segments
Management and Advisory Fees, Net
Base Management Fees		$	476,206			$	378,482			$	258,781			$	286,602			$	1,400,071
Transaction, Advisory and Other Fees, Net			46,947				23,874				1,157				6,000				77,978
Management Fee Offsets			(5,453	)			(7,544	)			—				(6,014	)			(19,011	)
Total Management and Advisory Fees, Net			517,700				394,812				259,938				286,588				1,459,038
Fee Related Performance Revenues			50,018				—				—				(666	)			49,352
Fee Related Compensation			(221,393	)			(183,736	)			(80,172	)			(117,016	)			(602,317	)
Other Operating Expenses			(65,443	)			(67,198	)			(37,279	)			(59,638	)			(229,558	)
Fee Related Earnings			280,882				143,878				142,487				109,268				676,515
Realized Performance Revenues			468,690				215,294				17,447				54,484				755,915
Realized Performance Compensation			(150,831	)			(101,558	)			(5,469	)			(29,865	)			(287,723	)
Realized Principal Investment Income			64,889				38,938				8,406				11,107				123,340
Total Net Realizations			382,748				152,674				20,384				35,726				591,532
Total Segment Distributable Earnings		$	663,630			$	296,552			$	162,871			$	144,994			$	1,268,047

Reconciliation of Total Segments to Income (Loss) Before Provision for Taxes

The following tables reconcile the Total Segment Revenues, Expenses and Distributable Earnings to their equivalent GAAP measure for the three and six months ended June 30, 2019 and 2018 along with Total Assets as of June 30, 2019:

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2019				2018				2019				2018
Revenues
Total GAAP Revenues		$	1,486,806			$	2,632,570			$	3,511,677			$	4,401,701
Less: Unrealized Performance Revenues (a)			(157,398	)			(440,424	)			(821,731	)			(1,068,763	)
Less: Unrealized Principal Investment (Income) Loss (b)			56,353				(52,126	)			(83,572	)			(66,104	)
Less: Interest and Dividend Revenue (c)			(45,991	)			(41,727	)			(92,690	)			(78,112	)
Less: Other Revenue (d)			20,150				(94,416	)			6,961				(33,522	)
Impact of Consolidation (e)			(35,119	)			(82,752	)			(104,968	)			(186,276	)
Amortization of Intangibles (f)			387				387				774				774
Transaction-Related Charges (g)			(4,174	)			(582,105	)			(2,706	)			(584,687	)
Intersegment Eliminations			1,709				1,293				3,496				2,634
Total Segment Revenue (h)		$	1,322,723			$	1,340,700			$	2,417,241			$	2,387,645

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2019				2018				2019				2018
Expenses
Total GAAP Expenses		$	862,240			$	1,016,381			$	1,903,404			$	1,999,312
Less: Unrealized Performance Allocations Compensation (i)			(64,518	)			(189,991	)			(351,533	)			(444,426	)
Less: Equity-Based Compensation (j)			(53,105	)			(34,394	)			(119,881	)			(78,542	)
Less: Interest Expense (k)			(43,230	)			(38,885	)			(84,868	)			(77,123	)
Impact of Consolidation (e)			(14,411	)			(26,288	)			(25,272	)			(86,187	)
Amortization of Intangibles (f)			(16,096	)			(14,486	)			(32,192	)			(28,972	)
Transaction-Related Charges (g)			(111,168	)			(112,027	)			(199,151	)			(167,098	)
Intersegment Eliminations			1,709				1,293				3,496				2,634
Total Segment Expenses (l)		$	561,421			$	601,603			$	1,094,003			$	1,119,598

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2019				2018				2019				2018
Other Income
Total GAAP Other Income		$	61,131			$	73,519			$	191,456			$	184,118
Impact of Consolidation (e)			(61,131	)			(73,519	)			(191,456	)			(184,118	)
Total Segment Other Income		$	—			$	—			$	—			$	—

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2019				2018				2019				2018
Income Before Provision for Taxes
Total GAAP Income Before Provision for Taxes		$	685,697			$	1,689,708			$	1,799,729			$	2,586,507
Less: Unrealized Performance Revenues (a)			(157,398	)			(440,424	)			(821,731	)			(1,068,763	)
Less: Unrealized Principal Investment (Income) Loss (b)			56,353				(52,126	)			(83,572	)			(66,104	)
Less: Interest and Dividend Revenue (c)			(45,991	)			(41,727	)			(92,690	)			(78,112	)
Less: Other Revenue (d)			20,150				(94,416	)			6,961				(33,522	)
Plus: Unrealized Performance Allocations Compensation (i)			64,518				189,991				351,533				444,426
Plus: Equity-Based Compensation (j)			53,105				34,394				119,881				78,542
Plus: Interest Expense (k)			43,230				38,885				84,868				77,123
Impact of Consolidation (e)			(81,839	)			(129,983	)			(271,152	)			(284,207	)
Amortization of Intangibles (f)			16,483				14,873				32,966				29,746
Transaction-Related Charges (g)			106,994				(470,078	)			196,445				(417,589	)
Total Segment Distributable Earnings		$	761,302			$	739,097			$	1,323,238			$	1,268,047

		As of
		June 30,
		2019
Total Assets
Total GAAP Assets		$	30,972,213
Impact of Consolidation (e)			(8,520,965	)
Total Segment Assets		$	22,451,248

Segment basis presents revenues and expenses on a basis that deconsolidates the investment funds Blackstone manages and excludes the amortization of intangibles and Transaction-Related Charges.

(a) This adjustment removes Unrealized Performance Revenues on a segment basis.

(b) This adjustment removes Unrealized Principal Investment Income on a segment basis.

(c) This adjustment removes Interest and Dividend Revenue on a segment basis.

(d) This adjustment removes Other Revenue on a segment basis.

(e) This adjustment reverses the effect of consolidating Blackstone Funds, which are excluded from Blackstone’s segment presentation. This adjustment includes the elimination of Blackstone’s interest in these funds, the removal of revenue from the reimbursement of certain expenses by the Blackstone Funds, which are presented gross under GAAP but netted against Management and Advisory Fees, Net in the Total Segment measures, and the removal of amounts associated with the ownership of Blackstone consolidated operating partnerships held by non-controlling interests.

(f) This adjustment removes the amortization of transaction-related intangibles, which are excluded from Blackstone’s segment presentation. This amount includes amortization of intangibles associated with Blackstone’s investment in Pátria, which is accounted for under the equity method.

(g) This adjustment removes Transaction-Related Charges, which are excluded from Blackstone’s segment presentation. Transaction-Related Charges arise from corporate actions including acquisitions, divestitures, and Blackstone’s initial public offering. They consist primarily of equity-based compensation charges, gains and losses on contingent consideration arrangements, changes in the balance of the Tax Receivable Agreement resulting from a change in tax law or similar event, transaction costs and any gains or losses associated with these corporate actions.

(h) Total Segment Revenues is comprised of the following:

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2019				2018				2019				2018
Total Segment Management and Advisory Fees, Net		$	844,156			$	722,994			$	1,658,218			$	1,459,038
Total Segment Fee Related Performance Revenues			13,624				45,515				21,403				49,352
Total Segment Realized Performance Revenues			341,386				477,544				588,155				755,915
Total Segment Realized Principal Investment Income			123,557				94,647				149,465				123,340
Total Segment Revenues		$	1,322,723			$	1,340,700			$	2,417,241			$	2,387,645

(i) This adjustment removes Unrealized Performance Allocations Compensation.

(j) This adjustment removes Equity-Based Compensation on a segment basis.

(k) This adjustment removes Interest Expense, excluding interest expense related to the Tax Receivable Agreement.

(l) Total Segment Expenses is comprised of the following:

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2019				2018				2019				2018
Total Segment Fee Related Compensation		$	293,834			$	306,243			$	617,865			$	602,317
Total Segment Realized Performance Compensation			125,466				172,894				210,706				287,723
Total Segment Other Operating Expenses			142,121				122,466				265,432				229,558
Total Segment Expenses		$	561,421			$	601,603			$	1,094,003			$	1,119,598

Reconciliation of Total Segments to Reported on the Consolidated Statement of Operations

The following tables reconcile the components of Total Segments to their equivalent GAAP measures, reported on the Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2019 and 2018:

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2019				2018				2019				2018
Management and Advisory Fees, Net
GAAP		$	840,378			$	721,384			$	1,650,104			$	1,450,233
Segment Adjustment (a)			3,778				1,610				8,114				8,805
Total Segment		$	844,156			$	722,994			$	1,658,218			$	1,459,038

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2019				2018				2019				2018
GAAP Realized Performance Revenues to Total Segment Fee Related Performance Revenues
GAAP
Incentive Fees		$	21,915			$	19,378			$	34,047			$	31,944
Investment Income - Realized Performance Allocations			332,520				503,376				574,895				773,016
GAAP			354,435				522,754				608,942				804,960
Total Segment
Less: Realized Performance Revenues			(341,386	)			(477,544	)			(588,155	)			(755,915	)
Segment Adjustment (b)			575				305				616				307
Total Segment		$	13,624			$	45,515			$	21,403			$	49,352

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2019				2018				2019				2018
GAAP Compensation to Total Segment Fee Related Compensation
GAAP
Compensation		$	438,521			$	427,479			$	909,918			$	816,882
Incentive Fee Compensation			8,886				9,743				14,292				16,405
Realized Performance Allocations Compensation			125,825				186,398				212,220				298,460
GAAP			573,232				623,620				1,136,430				1,131,747
Total Segment
Less: Realized Performance Compensation			(125,466	)			(172,894	)			(210,706	)			(287,723	)
Less: Equity-Based Compensation - Operating Compensation			(50,225	)			(31,483	)			(113,933	)			(71,731	)
Less: Equity-Based Compensation - Performance Compensation			(2,880	)			(2,911	)			(5,948	)			(6,811	)
Segment Adjustment (c)			(100,827	)			(110,089	)			(187,978	)			(163,165	)
Total Segment		$	293,834			$	306,243			$	617,865			$	602,317

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2019				2018				2019				2018
GAAP General, Administrative and Other to Total Segment Other Operating Expenses
GAAP		$	175,308			$	145,828			$	321,370			$	272,541
Segment Adjustment (d)			(33,187	)			(23,362	)			(55,938	)			(42,983	)
Total Segment		$	142,121			$	122,466			$	265,432			$	229,558

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2019				2018				2019				2018
Realized Performance Revenues
GAAP
Incentive Fees		$	21,915			$	19,378			$	34,047			$	31,944
Investment Income - Realized Performance Allocations			332,520				503,376				574,895				773,016
GAAP			354,435				522,754				608,942				804,960
Total Segment
Less: Fee Related Performance Revenues			(13,624	)			(45,515	)			(21,403	)			(49,352	)
Segment Adjustment (b)			575				305				616				307
Total Segment		$	341,386			$	477,544			$	588,155			$	755,915

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2019				2018				2019				2018
Realized Performance Compensation
GAAP
Incentive Fee Compensation		$	8,886			$	9,743			$	14,292			$	16,405
Realized Performance Allocation Compensation			125,825				186,398				212,220				298,460
GAAP			134,711				196,141				226,512				314,865
Total Segment
Less: Fee Related Performance Compensation			(6,365	)			(20,336	)			(9,858	)			(20,331	)
Less: Equity-Based Compensation - Performance Compensation			(2,880	)			(2,911	)			(5,948	)			(6,811	)
Total Segment		$	125,466			$	172,894			$	210,706			$	287,723

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2019				2018				2019				2018
Realized Principal Investment Income
GAAP		$	145,040			$	129,197			$	218,301			$	171,342
Segment Adjustment (e)			(21,483	)			(34,550	)			(68,836	)			(48,002	)
Total Segment		$	123,557			$	94,647			$	149,465			$	123,340

Segment basis presents revenues and expenses on a basis that deconsolidates the investment funds Blackstone manages and excludes the amortization of intangibles, the expense of equity-based awards and Transaction-Related Charges.

(a) Represents (1) the add back of net management fees earned from consolidated Blackstone Funds which have been eliminated in consolidation, and (2) the removal of revenue from the reimbursement of certain expenses by the Blackstone Funds, which are presented gross under GAAP but netted against Management and Advisory Fees, Net in the Total Segment measures.

(b) Represents the add back of Performance Revenues earned from consolidated Blackstone Funds which have been eliminated in consolidation.

(c) Represents the removal of Transaction-Related Charges that are not recorded in the Total Segment measures.

(d) Represents the removal of (1) the amortization of transaction-related intangibles, and (2) certain expenses reimbursed by the Blackstone Funds, which are presented gross under GAAP but netted against Management and Advisory Fees, Net in the Total Segment measures.

(e) Represents (1) the add back of Principal Investment Income, including general partner income, earned from consolidated Blackstone Funds which have been eliminated in consolidation, and (2) the removal of amounts associated with the ownership of Blackstone consolidated operating partnerships held by non-controlling interests.

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- Definition

Tabular disclosure of all significant reconciling items in the reconciliation of total assets from reportable segments to the entity's consolidated assets.

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Tabular disclosure of the reconciliation of profit (loss) from reportable segments to the consolidated income (loss) before income tax expense (benefit) and discontinued operations. Includes, but is not limited to, reconciliation after income tax if income tax is allocated to the reportable segment.

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Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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