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Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Reportable segments financial data

The following tables present the financial data for the Company’s three reportable segments for the three months ended March 31, 2023:

			Three Months Ended March 31, 2023
			Global Private Equity						Global Credit												Global Investment Solutions						Total
			(Dollars in millions)
Segment Revenues
Fund level fee revenues
Fund management fees			$	326.9					$	122.6											$	56.7					$	506.2
Portfolio advisory and transaction fees, net and other			5.4						11.0												—						16.4
Fee related performance revenues			9.6						18.4												0.8						28.8
Total fund level fee revenues			341.9						152.0												57.5						551.4
Realized performance revenues			99.0						27.7												38.4						165.1
Realized principal investment income			11.9						9.0												2.9						23.8
Interest income			5.4						7.2												1.3						13.9
Total revenues			458.2						195.9												100.1						754.2
Segment Expenses
Compensation and benefits
Cash-based compensation and benefits			148.7						80.4												31.5						260.6
Realized performance revenues related compensation			46.3						12.7												36.6						95.6
Total compensation and benefits			195.0						93.1												68.1						356.2
General, administrative, and other indirect expenses			57.1						21.7												8.7						87.5
Depreciation and amortization expense			6.7						2.0												1.2						9.9
Interest expense			16.6						10.2												2.2						29.0
Total expenses			275.4						127.0												80.2						482.6
Distributable Earnings			$	182.8					$	68.9											$	19.9					$	271.6
(-) Realized net performance revenues			52.7						15.0												1.8						69.5
(-) Realized principal investment income			11.9						9.0												2.9						23.8
(+) Net interest			11.2						3.0												0.9						15.1
(=) Fee Related Earnings			$	129.4					$	47.9											$	16.1					$	193.4
Segment assets as of March 31, 2023			$	9,459.8					$	3,075.2											$	1,948.9					$	14,483.9

    The following tables present the financial data for the Company’s three reportable segments for the three months ended March 31, 2022:

			Three Months Ended March 31, 2022
			Global Private Equity												Global Credit						Global Investment Solutions						Total
			(Dollars in millions)
Segment Revenues
Fund level fee revenues
Fund management fees			$	304.2											$	93.7					$	56.3					$	454.2
Portfolio advisory and transaction fees, net and other			6.1												10.1						—						16.2
Fee related performance revenues			30.6												13.9						—						44.5
Total fund level fee revenues			340.9												117.7						56.3						514.9
Realized performance revenues			199.9												13.7						22.7						236.3
Realized principal investment income			14.2												10.3						1.8						26.3
Interest income			0.4												1.5						0.1						2.0
Total revenues			555.4												143.2						80.9						779.5
Segment Expenses
Compensation and benefits
Cash-based compensation and benefits			153.0												67.2						25.6						245.8
Realized performance revenues related compensation			90.7												6.7						20.9						118.3
Total compensation and benefits			243.7												73.9						46.5						364.1
General, administrative, and other indirect expenses			45.5												23.5						7.3						76.3
Depreciation and amortization expense			6.3												2.0						1.2						9.5
Interest expense			15.8												8.2						2.8						26.8
Total expenses			311.3												107.6						57.8						476.7
Distributable Earnings			$	244.1											$	35.6					$	23.1					$	302.8
(-) Realized net performance revenues			109.2												7.0						1.8						118.0
(-) Realized principal investment income			14.2												10.3						1.8						26.3
(+) Net interest			15.4												6.7						2.7						24.8
(=) Fee Related Earnings			$	136.1											$	25.0					$	22.2					$	183.3

Reconciliation of total segments to income before provision for taxes

The following tables reconcile the Total Segments to the Company’s Income (Loss) Before Provision for Taxes for the three months ended March 31, 2023 and 2022, and Total Assets as of March 31, 2023.

			Three Months Ended March 31, 2023
			Total Reportable Segments						Consolidated Funds						Reconciling Items												Carlyle Consolidated
						(Dollars in millions)
Revenues			$	754.2					$	121.9					$	(17.1)					(a)						$	859.0
Expenses			$	482.6					$	97.2					$	123.2					(b)						$	703.0
Other income (loss)			$	—					$	3.6					$	—					(c)						$	3.6
Distributable earnings			$	271.6					$	28.3					$	(140.3)					(d)						$	159.6
Total assets			$	14,483.9					$	7,403.1					$	(613.1)					(e)						$	21,273.9

			Three Months Ended March 31, 2022
			Total Reportable Segments						Consolidated Funds						Reconciling Items												Carlyle Consolidated
						(Dollars in millions)
Revenues			$	779.5					$	61.7					$	740.6					(a)						$	1,581.8
Expenses			$	476.7					$	52.9					$	312.3					(b)						$	841.9
Other income (loss)			$	—					$	2.8					$	—					(c)						$	2.8
Distributable earnings			$	302.8					$	11.6					$	428.3					(d)						$	742.7

(a)The Revenues adjustment principally represents unrealized performance revenues, unrealized principal investment income (loss) (including Fortitude), revenues earned from the Consolidated Funds which were eliminated in consolidation to arrive at the Company’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 reimbursement of certain costs incurred on behalf of Carlyle funds on a net basis, and the inclusion of tax expenses associated with certain foreign performance revenues, as detailed below:

									Three Months Ended March 31,
															2023						2022
															(Dollars in millions)
Unrealized performance and fee related performance revenues															$	(20.7)					$	698.8
Unrealized principal investment income (loss)															(29.0)						23.7
Adjustments related to expenses associated with investments in NGP Management and its affiliates															(3.4)						(3.1)
Tax expense associated with certain foreign performance revenues															—						(0.1)
Non-controlling interests and other adjustments to present certain costs on a net basis															50.8						17.9
Elimination of revenues of Consolidated Funds															(14.8)						3.4
															$	(17.1)					$	740.6

The following table reconciles the total segments fund level fee revenue to the most directly comparable U.S. GAAP measure, the Company’s consolidated fund management fees, for the three months ended March 31, 2023 and 2022.

									Three Months Ended March 31,
															2023						2022
															(Dollars in millions)
Total Reportable Segments - Fund level fee revenues															$	551.4					$	514.9
Adjustments(1)															(50.6)						(64.4)
Carlyle Consolidated - Fund management fees															$	500.8					$	450.5

(1) Adjustments represent the reclassification of NGP management fees from principal investment income, the reclassification of fee related performance revenues from business development companies and other products, management fees earned from consolidated CLOs which were eliminated in consolidation to arrive at the Company’s fund management fees, and the reclassification of certain amounts included in portfolio advisory fees, net and other in the segment results that are included in interest and other income in the U.S. GAAP results.

(b)The Expenses adjustment represents the elimination of intercompany expenses of the Consolidated Funds payable to the Company, the inclusion of equity-based compensation, certain tax expenses associated with realized performance revenues related compensation, and unrealized performance revenues related compensation, adjustments related to expenses associated with the investment in NGP Management that are included in operating captions, adjustments to reflect the reimbursement of certain costs incurred on behalf of Carlyle funds on a net basis, changes in the tax receivable agreement liability, and charges and credits associated with Carlyle corporate actions and non-recurring items, as detailed below:

									Three Months Ended March 31,
															2023						2022
															(Dollars in millions)
Unrealized performance and fee related performance revenue compensation expense															$	(2.3)					$	232.2
Equity-based compensation															57.1						40.7
Acquisition or disposition-related charges (credits) and amortization of intangibles and impairment															28.7						29.1
Tax expense associated with certain foreign performance revenues related compensation															(0.5)						(0.7)
Non-controlling interests and other adjustments to present certain costs on a net basis															40.0						16.5
Other adjustments including severance															3.9						4.6
Elimination of expenses of Consolidated Funds															(3.7)						(10.1)
															$	123.2					$	312.3

(c)The Other Income (Loss) adjustment results from the Consolidated Funds which were eliminated in consolidation to arrive at the Company’s total Other Income (Loss).

(d)The following table is a reconciliation of Income (Loss) Before Provision for Income Taxes to Distributable Earnings and to Fee Related Earnings:

									Three Months Ended March 31,
															2023						2022
															(Dollars in millions)
Income (loss) before provision for income taxes															$	159.6					$	742.7
Adjustments:
Net unrealized performance and fee related performance revenues															18.4						(466.6)
Unrealized principal investment (income) loss															29.0						(23.7)
Equity-based compensation(1)															57.1						40.7
Acquisition or disposition-related charges (credits), including amortization of intangibles and impairment															28.7						29.1
Tax expense associated with certain foreign performance revenues															(0.5)						(0.8)
Net income attributable to non-controlling interests in consolidated entities															(24.6)						(23.2)
Other adjustments including severance															3.9						4.6
Distributable Earnings															$	271.6					$	302.8
Realized performance revenues, net of related compensation(2)															69.5						118.0
Realized principal investment income(2)															23.8						26.3
Net interest															15.1						24.8
Fee Related Earnings															$	193.4					$	183.3

    

(1)Equity-based compensation for the three months ended March 31, 2023 and 2022 includes amounts that are presented in principal investment income and general, administrative and other expenses in the Company’s U.S. GAAP statement of operations.

(2)See reconciliation to most directly comparable U.S. GAAP measure below:

			Three Months Ended March 31, 2023
			Carlyle Consolidated						Adjustments (3)						Total Reportable Segments
			(Dollars in millions)
Performance revenues			$	160.8					$	4.3					$	165.1
Performance revenues related compensation expense			105.7						(10.1)						95.6
Net performance revenues			$	55.1					$	14.4					$	69.5
Principal investment income (loss)			$	11.7					$	12.1					$	23.8

			Three Months Ended March 31, 2022
			Carlyle Consolidated						Adjustments (3)						Total Reportable Segments
			(Dollars in millions)
Performance revenues			$	710.2					$	(473.9)					$	236.3
Performance revenues related compensation expense			370.7						(252.4)						118.3
Net performance revenues			$	339.5					$	(221.5)					$	118.0
Principal investment income (loss)			$	319.6					$	(293.3)					$	26.3

(3) Adjustments to performance revenues and principal investment income (loss) relate to (i) unrealized performance allocations net of related compensation expense and unrealized principal investment income, which are excluded from the segment results, (ii) amounts earned from the Consolidated Funds, which were eliminated in the U.S. GAAP consolidation but were

included in the segment results, (iii) amounts attributable to non-controlling interests in consolidated entities, which were excluded from the segment results, (iv) the reclassification of NGP performance revenues, which are included in principal investment income in the U.S. GAAP financial statements, (v) the reclassification of fee related performance revenues, which are included in fund level fee revenues in the segment results, and (vi) the reclassification of tax expenses associated with certain foreign performance revenues. Adjustments to principal investment income (loss) also include the reclassification of earnings for the investments in NGP Management and its affiliates to the appropriate operating captions for the segment results, and the exclusion of charges associated with the investment in NGP Management and its affiliates that are excluded from the segment results.

(e) The Total Assets adjustment represents the addition of the assets of the Consolidated Funds that were eliminated in consolidation to arrive at the Company’s total assets.

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Tabular disclosure that reconciles certain total segment information to consolidated income before taxes.

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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.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
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-Publisher FASB
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-Publisher FASB
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