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Segment Reporting (Tables)
 3 Months Ended
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
)