Accrued Compensation and Benefits (Tables)

9 Months Ended

Sep. 30, 2023

Schedule of Components of Accrued Compensation and Benefits

Accrued compensation and benefits consist of the following:


	As of
	September 30, 2023		December 31, 2022
	(Dollars in millions)
Accrued performance allocations and incentive fee related compensation	$	3,182.4	$	3,625.3
Accrued bonuses	384.8		466.6
Employment-based contingent cash consideration(1)	2.9		76.5
Accrued pension liability	8.6		9.5
Other(2)	115.7		143.0
Total	$	3,694.4	$	4,320.9

(1) The acquisition of Carlyle Aviation Partners, Ltd. (“Carlyle Aviation Partners,” formerly known as Apollo Aviation Group) in December 2018 included an earn-out of up to $150.0 million that was payable upon the achievement of certain revenue and earnings performance targets during 2020 through 2025, which was accounted for as compensation expense. During the three months ended March 31, 2023, the Company entered into a termination and settlement agreement with respect to the earn-out, pursuant to which the Company paid $68.6 million, based on Carlyle Aviation’s performance, and will pay an aggregate $2.4 million in installments in 2024 and 2025. The acquisition of Abingworth LLP (“Abingworth”) in August 2022 included an earn-out of up to $130.0 million payable upon the achievement of certain revenue and earnings performance targets during 2023 through 2028, which is accounted for as compensation expense. As of September 30, 2023, $0.5 million has been accrued related to this earn-out. See Note 4 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 for additional information on the Abingworth acquisition.

(2) Includes accrued payroll and benefits, payroll-related taxes as well as $12.9 million and $26.7 million of realized performance allocations and incentive fee related compensation not yet paid to participants as of September 30, 2023 and December 31, 2022, respectively.

Schedule of Performance Allocations and Incentive Fee Related Compensation

The following table presents realized and unrealized performance allocations and incentive fee related compensation:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(Dollars in millions)
Realized	$	40.4	$	377.0	$	337.5	$	776.7
Unrealized	(94.3)		(213.5)		(377.9)		(35.5)
Total	$	(53.9)	$	163.5	$	(40.4)	$	741.2