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SEGMENT REPORTING (Tables)
 12 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
Schedule of financial results for Company's operating segments, as well as the OMG
The following table presents the financial results for the Company’s operating segments, as well as the OMG, for the year ended December 31, 2016:
 
Credit Group
 
Private Equity Group
 
Real
Estate Group
 
Total
Segments
 
OMG
 
Total
Stand Alone
Management fees (Credit Group includes ARCC Part I Fees of $121,181)
$
444,664

 
$
147,790

 
$
66,997

 
$
659,451

 
$
—

 
$
659,451

Other fees
9,953

 
1,544

 
854

 
12,351

 
—

 
12,351

Compensation and benefits
(177,071
)
 
(57,012
)
 
(39,033
)
 
(273,116
)
 
(111,599
)
 
(384,715
)
General, administrative and other expenses
(26,827
)
 
(14,256
)
 
(10,124
)
 
(51,207
)
 
(63,530
)
 
(114,737
)
Fee related earnings
250,719


78,066


18,694

 
347,479

 
(175,129
)
 
172,350

Performance fees—realized
51,435

 
230,162

 
11,401

 
292,998

 
—

 
292,998

Performance fees—unrealized
22,851

 
188,287

 
17,334

 
228,472

 
—

 
228,472

Performance fee compensation—realized
(11,772
)
 
(184,072
)
 
(2,420
)
 
(198,264
)
 
—

 
(198,264
)
Performance fee compensation—unrealized
(26,109
)
 
(149,956
)
 
(13,517
)
 
(189,582
)
 
—

 
(189,582
)
Net performance fees
36,405


84,421


12,798

 
133,624

 
—

 
133,624

Investment income (loss)—realized
4,928

 
18,773

 
931

 
24,632

 
(14,606
)
 
10,026

Investment income (loss)—unrealized
11,848

 
(613
)
 
5,418

 
16,653

 
(2,197
)
 
14,456

Interest and other investment income
26,119

 
16,579

 
1,661

 
44,359

 
149

 
44,508

Interest expense
(8,609
)
 
(5,589
)
 
(1,056
)
 
(15,254
)
 
(2,727
)
 
(17,981
)
Net investment income (loss)
34,286


29,150


6,954

 
70,390

 
(19,381
)
 
51,009

Performance related earnings
70,691


113,571


19,752

 
204,014

 
(19,381
)
 
184,633

Economic net income
$
321,410


$
191,637


$
38,446

 
$
551,493

 
$
(194,510
)
 
$
356,983

Distributable earnings
$
302,683

 
$
148,996

 
$
24,191

 
$
475,870

 
$
(211,564
)
 
$
264,306

Total assets
$
650,435

 
$
1,218,412

 
$
232,862

 
$
2,101,709

 
$
74,383

 
$
2,176,092

The following table presents the financial results for the Company’s operating segments, as well as the OMG, for the year ended December 31, 2015:
 
Credit Group
 
Private Equity Group
 
Real
Estate Group
 
Total
Segments
 
OMG
 
Total
Stand Alone
Management fees (Credit Group includes ARCC Part I Fees of $121,491)
$
432,769

 
$
152,104

 
$
66,045

 
$
650,918

 
$
—

 
$
650,918

Other fees(1)
414

 
1,406

 
2,779

 
4,599

 
—

 
4,599

Compensation and benefits
(167,735
)
 
(54,231
)
 
(40,591
)
 
(262,557
)
 
(98,065
)
 
(360,622
)
General, administrative and other expenses
(27,781
)
 
(15,295
)
 
(15,044
)
 
(58,120
)
 
(59,783
)
 
(117,903
)
Fee related earnings
237,667


83,984


13,189


334,840


(157,848
)

176,992

Performance fees—realized
87,583

 
24,849

 
9,516

 
121,948

 
—

 
121,948

Performance fees—unrealized
(71,341
)
 
87,809

 
15,179

 
31,647

 
—

 
31,647

Performance fee compensation—realized
(44,110
)
 
(19,255
)
 
(1,826
)
 
(65,191
)
 
—

 
(65,191
)
Performance fee compensation—unrealized
36,659

 
(74,598
)
 
(8,553
)
 
(46,492
)
 
—

 
(46,492
)
Net performance fees
8,791


18,805


14,316


41,912


—


41,912

Investment income (loss)—realized
13,274

 
6,840

 
2,658

 
22,772

 
(23
)
 
22,749

Investment income (loss)—unrealized
(15,731
)
 
(13,205
)
 
1,522

 
(27,414
)
 
52

 
(27,362
)
Interest and other investment income
10,429

 
6,166

 
259

 
16,854

 
379

 
17,233

Interest expense
(7,075
)
 
(5,936
)
 
(977
)
 
(13,988
)
 
(1,158
)
 
(15,146
)
Net investment income (loss)
897


(6,135
)

3,462


(1,776
)

(750
)

(2,526
)
Performance related earnings
9,688


12,670


17,778


40,136


(750
)

39,386

Economic net income
$
247,355


$
96,654


$
30,967


$
374,976


$
(158,598
)

$
216,378

Distributable earnings
$
289,091

 
$
91,800

 
$
17,615

 
$
398,506

 
$
(167,917
)
 
$
230,589

Total assets
$
530,758

 
$
927,758

 
$
186,058

 
$
1,644,574

 
$
96,637

 
$
1,741,211

 
(1)
For the year ended December 31, 2015, the Company presented compensation and benefits expenses and general, administrative and other expenses net of the administrative fees earned from certain funds. As a result, for the year ended December 31, 2015, $21.6 million and $4.4 million of administrative fees have been reclassified from other fees to compensation and benefits expenses and general, administrative and other expenses, respectively.
The following table presents the financial results for the Company’s operating segments, as well as the OMG, for the year ended December 31, 2014:
 
Credit Group
 
Private Equity Group
 
Real
Estate Group
 
Total
Segments
 
OMG
 
Total
Stand Alone
Management fees (Credit Group includes ARCC Part I Fees of $118,537)
$
416,400

 
$
93,963

 
$
87,683

 
$
598,046

 
$
—

 
$
598,046

Other fees
1,192

 
219

 
4,889

 
6,300

 
—

 
6,300

Compensation and benefits
(176,709
)
 
(40,229
)
 
(47,174
)
 
(264,112
)
 
(90,250
)
 
(354,362
)
General, administrative and other expenses
(24,196
)
 
(10,075
)
 
(15,632
)
 
(49,903
)
 
(52,817
)
 
(102,720
)
Fee related earnings
216,687


43,878


29,766


290,331


(143,067
)

147,264

Performance fees—realized
98,221

 
46,417

 
1,856

 
146,494

 
—

 
146,494

Performance fees—unrealized
(41,681
)
 
119,156

 
17,408

 
94,883

 
—

 
94,883

Performance fee compensation—realized
(48,077
)
 
(32,522
)
 
—

 
(80,599
)
 
—

 
(80,599
)
Performance fee compensation—unrealized
11,059

 
(97,658
)
 
(2,830
)
 
(89,429
)
 
—

 
(89,429
)
Net performance fees
19,522


35,393


16,434


71,349


—


71,349

Investment income—realized
29,081

 
21,154

 
2,344

 
52,579

 
—

 
52,579

Investment income (loss)—unrealized
(12,430
)
 
23,424

 
(61
)
 
10,933

 
—

 
10,933

Interest and other investment income
10,688

 
4,745

 
265

 
15,698

 
—

 
15,698

Interest expense
(3,555
)
 
(3,925
)
 
(1,137
)
 
(8,617
)
 
—

 
(8,617
)
Net investment income
23,784


45,398


1,411


70,593


—


70,593

Performance related earnings
43,306


80,791


17,845


141,942


—


141,942

Economic net income
$
259,993


$
124,669


$
47,611


$
432,273


$
(143,067
)

$
289,206

Distributable earnings
$
294,955

 
$
76,190

 
$
10,460

 
$
381,605

 
$
(148,849
)
 
$
232,756

Total assets
$
730,281

 
$
717,131

 
$
224,333

 
$
1,671,745

 
$
15,206

 
$
1,686,951

 
(1)
For the year ended December 31, 2014, the Company presented compensation and benefits expenses and general, administrative and other expenses net of the administrative fees earned from certain funds. As a result, for the year ended December 31, 2014, $19.0 million and $3.4 million of administrative fees have been reclassified from other fees to compensation and benefits expenses and general, administrative and other expenses, respectively.
Schedule of segment’ revenue, expenses and other income (expense)
The following table presents the components of the Company’s operating segments’ revenue, expenses and other income (expense):
 
For the Year Ended December 31,
 
2016
 
2015
 
2014
Segment Revenues
 
 
 
 
 
Management fees (includes ARCC Part I Fees of $121,181, $121,491 and $118,537 for the years ended December 31, 2016, 2015 and 2014, respectively)
$
659,451

 
$
650,918

 
$
598,046

Other fees
12,351

 
4,599

 
6,300

Performance fees—realized
292,998

 
121,948

 
146,494

Performance fees—unrealized
228,472

 
31,647

 
94,883

Total segment revenues
$
1,193,272

 
$
809,112

 
$
845,723

Segment Expenses
 
 
 
 
 
Compensation and benefits
$
273,116

 
$
262,557

 
$
264,112

General, administrative and other expenses
51,207

 
58,120

 
49,903

Performance fee compensation—realized
198,264

 
65,191

 
80,599

Performance fee compensation—unrealized
189,582

 
46,492

 
89,429

Total segment expenses
$
712,169

 
$
432,360

 
$
484,043

Other Income (Expense)
 
 
 
 
 
Investment income—realized
$
24,632

 
$
22,772

 
$
52,579

Investment income (loss)—unrealized
16,653

 
(27,414
)
 
10,933

Interest and other investment income
44,359

 
16,854

 
15,698

Interest expense
(15,254
)
 
(13,988
)
 
(8,617
)
Total other income (expense)
$
70,390

 
$
(1,776
)
 
$
70,593
Schedule of segment revenues components
The following table reconciles segment revenue to Ares consolidated revenues:
 
For the Year Ended December 31,
 
2016
 
2015
 
2014
Total segment revenue
$
1,193,272

 
$
809,112

 
$
845,723

Revenue of Consolidated Funds eliminated in consolidation
(18,522
)
 
(13,279
)
 
(249,394
)
Administrative fees(1)
26,934

 
26,007

 
22,147

Performance fees reclass(2)
(2,479
)
 
(7,398
)
 
(14,587
)
Total consolidated adjustments and reconciling items
5,933

 
5,330

 
(241,834
)
Total consolidated revenue
$
1,199,205


$
814,442

 
$
603,889

 
(1)
Represents administrative fees that are presented in administrative and other fees in the Company’s Consolidated Statements of Operations and are netted against the respective expenses for segment reporting.
(2)
Related to performance fees for AREA Sponsor Holdings LLC, an investment pool. Changes in value of this investment are reflected within other income (expense) in the Company’s Consolidated Statements of Operations.
Schedule of segment expenses components
The following table reconciles segment expenses to Ares consolidated expenses:
 
For the Year Ended December 31,
 
2016
 
2015
 
2014
Total segment expenses
$
712,169

 
$
432,360

 
$
484,043

Expenses of Consolidated Funds added in consolidation
42,520

 
36,417

 
187,494

Expenses of Consolidated Funds eliminated in consolidation
(21,447
)
 
(18,312
)
 
(120,694
)
Administrative fees(1)
26,934

 
26,007

 
22,147

OMG expenses
175,129

 
157,848

 
143,067

Acquisition and merger-related expenses
773

 
40,482

 
11,043

Equity compensation expense
39,065

 
32,244

 
83,230

Placement fees and underwriting costs
6,424

 
8,825

 
14,753

Amortization of intangibles
26,638

 
46,227

 
27,610

Depreciation expense
8,215

 
6,942

 
7,346

Total consolidation adjustments and reconciling items
304,251

 
336,680

 
375,996

Total consolidated expenses
$
1,016,420


$
769,040

 
$
860,039

 
(1)
Represents administrative fees that are presented in administrative and other fees in the Company’s Consolidated Statements of Operations and are netted against the respective expenses for segment reporting.
Schedule of segment other income (expense) components
The following table reconciles segment other income (expense) to Ares consolidated other income:
 
For the Year Ended December 31,
 
2016
 
2015
 
2014
Total other income (expense)
$
70,390

 
$
(1,776
)
 
$
70,593

Other income (expense) from Consolidated Funds added in consolidation, net
37,388

 
13,695

 
785,152

Other income (expense) from Consolidated Funds eliminated in consolidation, net
4,856

 
12,007

 
(53,883
)
OMG other expense
(19,381
)
 
(750
)
 
—

Performance fee reclass(1)
2,479

 
7,398

 
14,587

Gain associated with contingent consideration
17,675

 
21,064

 
—

Merger related expenses
—

 
(15,446
)
 
—

Other non-cash expense
1,728

 
(110
)
 
(3,384
)
Total consolidation adjustments and reconciling items
44,745

 
37,858

 
742,472

Total consolidated other income (expense)
$
115,135


$
36,082

 
$
813,065

 
(1)
Related to performance fees for AREA Sponsor Holdings LLC. Changes in value of this investment are reflected within other (income) expense in the Company’s Consolidated Statements of Operations.
Reconciliation of segment results to the Company's income before taxes and total assets
The following table presents the reconciliation of income before taxes as reported in the Consolidated Statements of Operations to segment results of ENI, FRE, PRE and DE:
 
For the Year Ended December 31,
 
2016
 
2015
 
2014
Economic net income
 
 
 
 
 
Income (loss) before taxes
$
297,920

 
$
81,484

 
$
556,915

Adjustments:
 
 
 
 
 
Amortization of intangibles
26,638

 
46,227

 
27,610

Depreciation expense
8,215

 
6,942

 
7,346

Equity compensation expenses
39,065

 
32,244

 
83,230

Acquisition and merger-related expenses
(16,902
)
 
34,864

 
11,043

Placement fees and underwriting costs
6,424

 
8,825

 
14,753

OMG expenses, net
194,510

 
158,598

 
143,067

Other non-cash expense
(1,728
)
 
110

 
3,384

(Income) loss before taxes of non-controlling interests in Consolidated Funds, net of eliminations
(2,649
)
 
5,682

 
(415,075
)
Total consolidation adjustments and reconciling items
253,573

 
293,492

 
(124,642
)
Economic net income
551,493

 
374,976

 
432,273

Total performance fees income - realized
(292,998
)
 
(121,948
)
 
(146,494
)
Total performance fees income - unrealized
(228,472
)
 
(31,647
)
 
(94,883
)
Total performance fee compensation - realized
198,264

 
65,191

 
80,599

Total performance fee compensation - unrealized
189,582

 
46,492

 
89,429

Total investment income
(70,390
)
 
1,776

 
(70,593
)
Fee related earnings
347,479

 
334,840

 
290,331

Performance fees—realized
292,998

 
121,948

 
146,494

Performance fee compensation—realized
(198,264
)
 
(65,191
)
 
(80,599
)
Investment and other income (expense) realized, net
50,415

 
25,638

 
59,660

Additional adjustments:
 
 
 
 
 
Dividend equivalent(1)
(3,863
)
 
(2,501
)
 
—

One-time acquisition costs(1)
(457
)
 
(1,553
)
 
(8,446
)
Income tax expense(1)
(3,199
)
 
(1,462
)
 
(1,725
)
Non-cash items
870

 
(758
)
 
(1,525
)
Placement fees and underwriting costs(1)
(6,431
)
 
(8,817
)
 
(14,753
)
Depreciation and amortization(1)
(3,678
)
 
(3,638
)
 
(7,832
)
Distributable earnings
$
475,870

 
$
398,506

 
$
381,605

Performance related earnings
 
 
 
 
 
Economic net income
$
551,493

 
$
374,976

 
$
432,273

Less: fee related earnings
(347,479
)
 
(334,840
)
 
(290,331
)
Performance related earnings
$
204,014


$
40,136

 
$
141,942

 
(1)
Certain costs are reduced by the amounts attributable to OMG, which is excluded from segment results. 
Schedule of reconciliation of total segment assets to total assets reported in the Consolidated Statements of Financial Condition
The reconciliation of total segment assets to total assets reported in the Consolidated Statements of Financial Condition consists of the following:
 
For the Year Ended December 31,
 
2016
 
2015
 
2014
Total segment assets
$
2,101,709

 
$
1,644,574

 
$
1,671,745

Total assets from Consolidated Funds added in Consolidation
3,822,010

 
2,760,419

 
20,758,806

Total assets from Consolidated Funds eliminated in Consolidation
(168,390
)
 
(180,222
)
 
(806,765
)
Operating Management Group assets
74,383

 
96,637

 
15,206

Total consolidated adjustments and reconciling items
3,728,003

 
2,676,834

 
19,967,247

Total consolidated assets
$
5,829,712

 
$
4,321,408

 
$
21,638,992