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Segment Reporting (Tables) | 3 Months Ended
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Mar. 31, 2017
Segment Reporting [Abstract] |
Reportable segments financial data | The following table presents the financial data for the Partnership’s four reportable segments as of and for the three months ended March 31, 2017:
| March 31, 2017 and the Three Months Then Ended
| Corporate Private Equity |  | Real Assets |  | Global Market Strategies |  | Investment Solutions |  | Total
| (Dollars in millions)
Segment Revenues |  |  |  |  |  |  |  |  |
Fund level fee revenues |  |  |  |  |  |  |  |  |
Fund management fees | $ | 115.7 |  |  | $ | 56.0 |  |  | $ | 48.1 |  |  | $ | 35.8 |  |  | $ | 255.6 |
Portfolio advisory fees, net | 3.8 |  |  | 0.1 |  |  | 0.1 |  |  | — |  |  | 4.0 |
Transaction fees, net | 7.7 |  |  | — |  |  | — |  |  | — |  |  | 7.7 |
Total fund level fee revenues | 127.2 |  |  | 56.1 |  |  | 48.2 |  |  | 35.8 |  |  | 267.3 |
Performance fees |  |  |  |  |  |  |  |  |
Realized | 51.3 |  |  | 13.5 |  |  | 5.6 |  |  | 12.6 |  |  | 83.0 |
Unrealized | 515.3 |  |  | 78.7 |  |  | 14.5 |  |  | 23.2 |  |  | 631.7 |
Total performance fees | 566.6 |  |  | 92.2 |  |  | 20.1 |  |  | 35.8 |  |  | 714.7 |
Investment income (loss) |  |  |  |  |  |  |  |  |
Realized | 0.2 |  |  | (8.1 | ) |  | 2.4 |  |  | 0.1 |  |  | (5.4 | )
Unrealized | 5.5 |  |  | 5.2 |  |  | 4.2 |  |  | 1.1 |  |  | 16.0 |
Total investment income (loss) | 5.7 |  |  | (2.9 | ) |  | 6.6 |  |  | 1.2 |  |  | 10.6 |
Interest income | 1.1 |  |  | 0.6 |  |  | 1.6 |  |  | 0.1 |  |  | 3.4 |
Other income | 1.3 |  |  | 0.4 |  |  | 3.4 |  |  | 0.1 |  |  | 5.2 |
Total revenues | 701.9 |  |  | 146.4 |  |  | 79.9 |  |  | 73.0 |  |  | 1,001.2 |
Segment Expenses |  |  |  |  |  |  |  |  |
Compensation and benefits |  |  |  |  |  |  |  |  |
Direct base compensation | 55.4 |  |  | 19.7 |  |  | 17.1 |  |  | 16.1 |  |  | 108.3 |
Indirect base compensation | 18.7 |  |  | 10.9 |  |  | 6.6 |  |  | 2.8 |  |  | 39.0 |
Equity-based compensation | 15.0 |  |  | 8.8 |  |  | 4.3 |  |  | 2.0 |  |  | 30.1 |
Performance fee related |  |  |  |  |  |  |  |  |
Realized | 26.1 |  |  | 6.8 |  |  | 2.7 |  |  | 12.1 |  |  | 47.7 |
Unrealized | 227.8 |  |  | 19.3 |  |  | 6.8 |  |  | 19.0 |  |  | 272.9 |
Total compensation and benefits | 343.0 |  |  | 65.5 |  |  | 37.5 |  |  | 52.0 |  |  | 498.0 |
General, administrative, and other indirect expenses | 35.0 |  |  | 15.6 |  |  | 23.2 |  |  | 6.8 |  |  | 80.6 |
Depreciation and amortization expense | 3.7 |  |  | 1.8 |  |  | 1.2 |  |  | 0.8 |  |  | 7.5 |
Interest expense | 6.8 |  |  | 4.1 |  |  | 2.6 |  |  | 1.5 |  |  | 15.0 |
Total expenses | 388.5 |  |  | 87.0 |  |  | 64.5 |  |  | 61.1 |  |  | 601.1 |
Economic Net Income | $ | 313.4 |  |  | $ | 59.4 |  |  | $ | 15.4 |  |  | $ | 11.9 |  |  | $ | 400.1 |
(-) Net Performance Fees | 312.7 |  |  | 66.1 |  |  | 10.6 |  |  | 4.7 |  |  | 394.1 |
(-) Investment Income (Loss) | 5.7 |  |  | (2.9 | ) |  | 6.6 |  |  | 1.2 |  |  | 10.6 |
(+) Equity-based Compensation | 15.0 |  |  | 8.8 |  |  | 4.3 |  |  | 2.0 |  |  | 30.1 |
(=) Fee Related Earnings | $ | 10.0 |  |  | $ | 5.0 |  |  | $ | 2.5 |  |  | $ | 8.0 |  |  | $ | 25.5 |
(+) Realized Net Performance Fees | 25.2 |  |  | 6.7 |  |  | 2.9 |  |  | 0.5 |  |  | 35.3 |
(+) Realized Investment Income (Loss) | 0.2 |  |  | (8.1 | ) |  | 2.4 |  |  | 0.1 |  |  | (5.4 | )
(=) Distributable Earnings | $ | 35.4 |  |  | $ | 3.6 |  |  | $ | 7.8 |  |  | $ | 8.6 |  |  | $ | 55.4 |
Segment assets as of March 31, 2017 | $ | 2,967.8 |  |  | $ | 1,640.9 |  |  | $ | 716.7 |  |  | $ | 889.9 |  |  | $ | 6,215.3 |
The following table presents the financial data for the Partnership’s four reportable segments for the three months ended March 31, 2016:
| Three Months Ended March 31, 2016
| Corporate Private Equity |  | Real Assets |  | Global Market Strategies |  | Investment Solutions |  | Total
| (Dollars in millions)
Segment Revenues |  |  |  |  |  |  |  |  |
Fund level fee revenues |  |  |  |  |  |  |  |  |
Fund management fees | $ | 127.2 |  |  | $ | 65.2 |  |  | $ | 51.1 |  |  | $ | 36.4 |  |  | $ | 279.9 |
Portfolio advisory fees, net | 3.1 |  |  | — |  |  | 0.1 |  |  | — |  |  | 3.2 |
Transaction fees, net | 20.3 |  |  | — |  |  | — |  |  | — |  |  | 20.3 |
Total fund level fee revenues | 150.6 |  |  | 65.2 |  |  | 51.2 |  |  | 36.4 |  |  | 303.4 |
Performance fees |  |  |  |  |  |  |  |  |
Realized | 126.2 |  |  | 1.8 |  |  | 1.8 |  |  | 2.2 |  |  | 132.0 |
Unrealized | (93.1 | ) |  | 97.7 |  |  | (0.3 | ) |  | 11.7 |  |  | 16.0 |
Total performance fees | 33.1 |  |  | 99.5 |  |  | 1.5 |  |  | 13.9 |  |  | 148.0 |
Investment income (loss) |  |  |  |  |  |  |  |  |
Realized | 4.5 |  |  | 2.2 |  |  | 0.8 |  |  | — |  |  | 7.5 |
Unrealized | (6.1 | ) |  | (4.7 | ) |  | (2.1 | ) |  | (1.0 | ) |  | (13.9 | )
Total investment income (loss) | (1.6 | ) |  | (2.5 | ) |  | (1.3 | ) |  | (1.0 | ) |  | (6.4 | )
Interest income | 0.9 |  |  | 0.5 |  |  | 1.5 |  |  | 0.1 |  |  | 3.0 |
Other income | 1.5 |  |  | 0.4 |  |  | 1.1 |  |  | 0.1 |  |  | 3.1 |
Total revenues | 184.5 |  |  | 163.1 |  |  | 54.0 |  |  | 49.5 |  |  | 451.1 |
Segment Expenses |  |  |  |  |  |  |  |  |
Compensation and benefits |  |  |  |  |  |  |  |  |
Direct base compensation | 59.8 |  |  | 20.2 |  |  | 23.2 |  |  | 18.6 |  |  | 121.8 |
Indirect base compensation | 19.6 |  |  | 9.2 |  |  | 8.2 |  |  | 2.8 |  |  | 39.8 |
Equity-based compensation | 17.8 |  |  | 6.2 |  |  | 5.0 |  |  | 2.4 |  |  | 31.4 |
Performance fee related |  |  |  |  |  |  |  |  |
Realized | 58.6 |  |  | 0.8 |  |  | 0.8 |  |  | 1.7 |  |  | 61.9 |
Unrealized | (44.7 | ) |  | 44.8 |  |  | (1.1 | ) |  | 11.8 |  |  | 10.8 |
Total compensation and benefits | 111.1 |  |  | 81.2 |  |  | 36.1 |  |  | 37.3 |  |  | 265.7 |
General, administrative, and other indirect expenses | 30.9 |  |  | 14.9 |  |  | 19.2 |  |  | 9.4 |  |  | 74.4 |
Depreciation and amortization expense | 3.4 |  |  | 1.5 |  |  | 1.5 |  |  | 0.9 |  |  | 7.3 |
Interest expense | 6.9 |  |  | 4.0 |  |  | 2.7 |  |  | 1.6 |  |  | 15.2 |
Total expenses | 152.3 |  |  | 101.6 |  |  | 59.5 |  |  | 49.2 |  |  | 362.6 |
Economic Net Income (Loss) | $ | 32.2 |  |  | $ | 61.5 |  |  | $ | (5.5 | ) |  | $ | 0.3 |  |  | $ | 88.5 |
(-) Net Performance Fees | 19.2 |  |  | 53.9 |  |  | 1.8 |  |  | 0.4 |  |  | 75.3 |
(-) Investment Loss | (1.6 | ) |  | (2.5 | ) |  | (1.3 | ) |  | (1.0 | ) |  | (6.4 | )
(+) Equity-based Compensation | 17.8 |  |  | 6.2 |  |  | 5.0 |  |  | 2.4 |  |  | 31.4 |
(=) Fee Related Earnings | $ | 32.4 |  |  | $ | 16.3 |  |  | $ | (1.0 | ) |  | $ | 3.3 |  |  | $ | 51.0 |
(+) Realized Net Performance Fees | 67.6 |  |  | 1.0 |  |  | 1.0 |  |  | 0.5 |  |  | 70.1 |
(+) Realized Investment Income | 4.5 |  |  | 2.2 |  |  | 0.8 |  |  | — |  |  | 7.5 |
(=) Distributable Earnings | $ | 104.5 |  |  | $ | 19.5 |  |  | $ | 0.8 |  |  | $ | 3.8 |  |  | $ | 128.6 |
Total segments to partnership income before provision for taxes reconciliation | The following table reconciles the Total Segments to the Partnership’s Income Before Provision for Taxes for the three months ended March 31, 2017 and 2016, and Total Assets as of March 31, 2017.
| March 31, 2017 and the Three Months Then Ended
| Total Reportable Segments |  | Consolidated Funds |  | Reconciling Items |  |  |  | Carlyle Consolidated
| (Dollars in millions)
Revenues | $ | 1,001.2 |  |  | $ | 42.9 |  |  | $ | 76.0 |  |  | (a) |  | $ | 1,120.1 |
Expenses | $ | 601.1 |  |  | $ | 53.0 |  |  | $ | 155.4 |  |  | (b) |  | $ | 809.5 |
Other income | $ | — |  |  | $ | 17.1 |  |  | $ | — |  |  | (c) |  | $ | 17.1 |
Economic net income | $ | 400.1 |  |  | $ | 7.0 |  |  | $ | (79.4 | ) |  | (d) |  | $ | 327.7 |
Total assets | $ | 6,215.3 |  |  | $ | 4,343.0 |  |  | $ | (183.1 | ) |  | (e) |  | $ | 10,375.2 |
| Three Months Ended March 31, 2016
| Total Reportable Segments |  | Consolidated Funds |  | Reconciling Items |  |  |  | Carlyle Consolidated
| (Dollars in millions)
Revenues | $ | 451.1 |  |  | $ | 28.9 |  |  | $ | 3.1 |  |  | (a) |  | $ | 483.1 |
Expenses | $ | 362.6 |  |  | $ | 29.7 |  |  | $ | 67.1 |  |  | (b) |  | $ | 459.4 |
Other income | $ | — |  |  | $ | (8.4 | ) |  | $ | — |  |  | (c) |  | $ | (8.4 | )
Economic net income | $ | 88.5 |  |  | $ | (9.2 | ) |  | $ | (64.0 | ) |  | (d) |  | $ | 15.3 |
(a) | The Revenues adjustment principally represents fund management and performance fees earned from the Consolidated Funds which were eliminated in consolidation to arrive at the Partnership’s total revenues, adjustments for amounts attributable to non-controlling interests in consolidated entities, adjustments related to expenses associated with the investments in NGP Management and its affiliates that are included in operating captions or are excluded from the segment results, adjustments to reflect the Partnership’s share of Urbplan’s net losses as a component of investment income, the inclusion of tax expenses associated with certain performance fees, and adjustments to reflect the Partnership’s ownership interests in Claren Road (through January 2017), ESG (through June 2016), and Vermillion that were included in Revenues in the Partnership’s segment reporting.
(b) | The Expenses adjustment represents the elimination of intercompany expenses of the Consolidated Funds payable to the Partnership, the inclusion of certain tax expenses associated with performance fee compensation, adjustments related to expenses associated with the investment in NGP Management that are included in operating captions, adjustments to reflect the Partnership’s share of Urbplan’s net losses as a component of investment income, changes in the tax receivable agreement liability, charges and credits associated with Carlyle corporate actions and non-recurring items and adjustments to reflect the Partnership’s economic interests in Claren Road (through January 2017), ESG (through June 2016), and Vermillion, as detailed below (Dollars in millions):
| Three Months Ended March 31,
| 2017 |  | 2016
Equity-based compensation issued in conjunction with the initial public offering, acquisitions and strategic investments | $ | 67.0 |  |  | $ | 45.4 |
Acquisition related charges, including amortization of intangibles and impairment | 8.8 |  |  | 17.7 |
Other non-operating expense | — |  |  | 3.8 |
Tax expense associated with performance fees | (2.9 | ) |  | (3.3 | )
Non-Carlyle economic interests in acquired businesses and the consolidated real estate VIE | 87.5 |  |  | 2.4 |
Severance and other adjustments | 2.8 |  |  | 7.4 |
Elimination of expenses of Consolidated Funds | (7.8 | ) |  | (6.3 | )
| $ | 155.4 |  |  | $ | 67.1 |
(c) | The Other Income (Loss) adjustment results from the Consolidated Funds which were eliminated in consolidation to arrive at the Partnership’s total Other Income (Loss).
(d) | The following table is a reconciliation of Income Before Provision for Income Taxes to Economic Net Income, to Fee Related Earnings, and to Distributable Earnings (Dollars in millions):
| Three Months Ended March 31,
| 2017 |  | 2016
Income before provision for income taxes | $ | 327.7 |  |  | $ | 15.3 |
Adjustments: |  |  |
Equity-based compensation issued in conjunction with the initial public offering, acquisitions and strategic investments | 67.0 |  |  | 45.4 |
Acquisition related charges, including amortization of intangibles and impairment | 8.8 |  |  | 17.7 |
Other non-operating expense | — |  |  | 3.8 |
Tax provision associated with performance fees | (2.9 | ) |  | (3.3 | )
Net (income) loss attributable to non-controlling interests in consolidated entities | (3.3 | ) |  | 2.3 |
Severance and other adjustments | 2.8 |  |  | 7.3 |
Economic Net Income | $ | 400.1 |  |  | $ | 88.5 |
Net performance fees(1) | 394.1 |  |  | 75.3 |
Investment income (loss)(1) | 10.6 |  |  | (6.4 | )
Equity-based compensation | 30.1 |  |  | 31.4 |
Fee Related Earnings | $ | 25.5 |  |  | $ | 51.0 |
Realized performance fees, net of related compensation | 35.3 |  |  | 70.1 |
Realized investment income (loss)(1) | (5.4 | ) |  | 7.5 |
Distributable Earnings | $ | 55.4 |  |  | $ | 128.6 |
(1) See reconciliation to most directly comparable U.S. GAAP measure below:
| Three Months Ended March 31, 2017
| Carlyle Consolidated |  | Adjustments (2) |  | Total Reportable Segments
| (Dollars in millions)
Performance fees |  |  |  |  |
Realized | $ | 83.2 |  |  | $ | (0.2 | ) |  | $ | 83.0 |
Unrealized | 598.4 |  |  | 33.3 |  |  | 631.7 |
Total performance fees | 681.6 |  |  | 33.1 |  |  | 714.7 |
Performance fee related compensation expense |  |  |  |  |
Realized | 45.8 |  |  | 1.9 |  |  | 47.7 |
Unrealized | 271.3 |  |  | 1.6 |  |  | 272.9 |
Total performance fee related compensation expense | 317.1 |  |  | 3.5 |  |  | 320.6 |
Net performance fees |  |  |  |  |
Realized | 37.4 |  |  | (2.1 | ) |  | 35.3 |
Unrealized | 327.1 |  |  | 31.7 |  |  | 358.8 |
Total net performance fees | $ | 364.5 |  |  | $ | 29.6 |  |  | $ | 394.1 |
Investment income (loss) |  |  |  |  |
Realized | $ | (0.2 | ) |  | $ | (5.2 | ) |  | $ | (5.4 | )
Unrealized | 46.5 |  |  | (30.5 | ) |  | 16.0 |
Investment income (loss) | $ | 46.3 |  |  | $ | (35.7 | ) |  | $ | 10.6 |
| Three Months Ended March 31, 2016
| Carlyle Consolidated |  | Adjustments (2) |  | Total Reportable Segments
| (Dollars in millions)
Performance fees |  |  |  |  |
Realized | $ | 131.8 |  |  | $ | 0.2 |  |  | $ | 132.0 |
Unrealized | 13.4 |  |  | 2.6 |  |  | 16.0 |
Total performance fees | 145.2 |  |  | 2.8 |  |  | 148.0 |
Performance fee related compensation expense |  |  |  |  |
Realized | 61.6 |  |  | 0.3 |  |  | 61.9 |
Unrealized | 7.9 |  |  | 2.9 |  |  | 10.8 |
Total performance fee related compensation expense | 69.5 |  |  | 3.2 |  |  | 72.7 |
Net performance fees |  |  |  |  |
Realized | 70.2 |  |  | (0.1 | ) |  | 70.1 |
Unrealized | 5.5 |  |  | (0.3 | ) |  | 5.2 |
Total net performance fees | $ | 75.7 |  |  | $ | (0.4 | ) |  | $ | 75.3 |
Investment income (loss) |  |  |  |  |
Realized | $ | 12.6 |  |  | $ | (5.1 | ) |  | $ | 7.5 |
Unrealized | (22.2 | ) |  | 8.3 |  |  | (13.9 | )
Total investment income (loss) | $ | (9.6 | ) |  | $ | 3.2 |  |  | $ | (6.4 | )

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- Definition 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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8813-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13816-109267 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8736-108599 + Details
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