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SEGMENT REPORTING (Tables)
 3 Months Ended
Mar. 31, 2017
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 three months ended March 31, 2017:
 
Credit Group
 
Private Equity Group
 
Real
Estate Group
 
Total
Segments
 
OMG
 
Total
Stand Alone
Management fees (Credit Group includes ARCC Part I Fees of $33,257)
$
121,347

 
$
39,819

 
$
15,615

 
$
176,781

 
$
—

 
$
176,781

Other fees
4,503

 
340

 
(9
)
 
4,834

 
—

 
4,834

Compensation and benefits
(51,342
)
 
(13,218
)
 
(9,736
)
 
(74,296
)
 
(26,314
)
 
(100,610
)
General, administrative and other expenses
(7,966
)
 
(4,198
)
 
(2,731
)
 
(14,895
)
 
(19,388
)
 
(34,283
)
Fee related earnings
66,542


22,743


3,139

 
92,424

 
(45,702
)
 
46,722

Performance fees—realized
8,778

 
—

 
27

 
8,805

 
—

 
8,805

Performance fees—unrealized
2,936

 
32,237

 
14,088

 
49,261

 
—

 
49,261

Performance fee compensation—realized
(5,285
)
 
—

 
(16
)
 
(5,301
)
 
—

 
(5,301
)
Performance fee compensation—unrealized
(1,458
)
 
(25,505
)
 
(8,438
)
 
(35,401
)
 
—

 
(35,401
)
Net performance fees
4,971


6,732


5,661

 
17,364

 
—

 
17,364

Investment income—realized
318

 
579

 
1,783

 
2,680

 
1,859

 
4,539

Investment income (loss)—unrealized
4,589

 
8,546

 
(444
)
 
12,691

 
(1,407
)
 
11,284

Interest and other investment income (expense)
(19
)
 
152

 
(181
)
 
(48
)
 
874

 
826

Interest expense
(2,458
)
 
(1,513
)
 
(432
)
 
(4,403
)
 
(476
)
 
(4,879
)
Net investment income
2,430


7,764


726

 
10,920

 
850

 
11,770

Performance related earnings
7,401


14,496


6,387

 
28,284

 
850

 
29,134

Economic net income
$
73,943


$
37,239


$
9,526

 
$
120,708

 
$
(44,852
)
 
$
75,856

Distributable earnings
$
64,272

 
$
21,914

 
$
3,113

 
$
89,299

 
$
(48,390
)
 
$
40,909

The following table presents the financial results for the Company’s operating segments, as well as the OMG, for the three months ended March 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 $28,625)
$
107,247

 
$
38,676

 
$
16,745

 
$
162,668

 
$
—

 
$
162,668

Other fees(1)
109

 
340

 
258

 
707

 
—

 
707

Compensation and benefits
(43,909
)
 
(14,364
)
 
(11,235
)
 
(69,508
)
 
(26,277
)
 
(95,785
)
General, administrative and other expenses
(5,310
)
 
(3,240
)
 
(3,441
)
 
(11,991
)
 
(16,551
)
 
(28,542
)
Fee related earnings
58,137


21,412


2,327


81,876


(42,828
)

39,048

Performance fees—realized
6,178

 
—

 
171

 
6,349

 
—

 
6,349

Performance fees—unrealized
(29,047
)
 
(12,423
)
 
4,122

 
(37,348
)
 
—

 
(37,348
)
Performance fee compensation—realized
(1,983
)
 
—

 
—

 
(1,983
)
 
—

 
(1,983
)
Performance fee compensation—unrealized
16,437

 
9,109

 
(2,233
)
 
23,313

 
—

 
23,313

Net performance fees
(8,415
)

(3,314
)

2,060


(9,669
)

—


(9,669
)
Investment income (loss)—realized
82

 
(32
)
 
(132
)
 
(82
)
 
(57
)
 
(139
)
Investment income (loss)—unrealized
(1,595
)
 
(10,157
)
 
2,799

 
(8,953
)
 
385

 
(8,568
)
Interest and other investment income (expense)
7,579

 
(91
)
 
892

 
8,380

 
(49
)
 
8,331

Interest expense
(2,448
)
 
(1,405
)
 
(274
)
 
(4,127
)
 
(728
)
 
(4,855
)
Net investment income (loss)
3,618


(11,685
)

3,285


(4,782
)

(449
)

(5,231
)
Performance related earnings
(4,797
)

(14,999
)

5,345


(14,451
)

(449
)

(14,900
)
Economic net income
$
53,340


$
6,413


$
7,672


$
67,425


$
(43,277
)

$
24,148

Distributable earnings
$
66,473

 
$
18,371

 
$
2,678

 
$
87,522

 
$
(46,241
)
 
$
41,281

 
(1)
During 2016, the Company changed its presentation of compensation and benefits expenses and general, administrative and other expenses to reflect these expenses net of the administrative fees earned from certain funds. As a result, for the three months ended March 31, 2016, $5.7 million and $1.1 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 Three Months Ended March 31,
 
2017
 
2016
Segment Revenues
 
 
 
Management fees (includes ARCC Part I Fees of $33,257 and $28,625 for the three months ended March 31, 2017 and 2016, respectively)
$
176,781

 
$
162,668

Other fees
4,834

 
707

Performance fees—realized
8,805

 
6,349

Performance fees—unrealized
49,261

 
(37,348
)
Total segment revenues
$
239,681

 
$
132,376

Segment Expenses
 
 
 
Compensation and benefits
$
74,296

 
$
69,508

General, administrative and other expenses
14,895

 
11,991

Performance fee compensation—realized
5,301

 
1,983

Performance fee compensation—unrealized
35,401

 
(23,313
)
Total segment expenses
$
129,893

 
$
60,169

Other Income (Expense)
 
 
 
Investment income (loss)—realized
$
2,680

 
$
(82
)
Investment income (loss)—unrealized
12,691

 
(8,953
)
Interest and other investment income (expense)
(48
)
 
8,380

Interest expense
(4,403
)
 
(4,127
)
Total other income (expense)
$
10,920

 
$
(4,782
)
Schedule of segment revenues components
The following table reconciles segment revenue to Ares consolidated revenues:
 
For the Three Months Ended March 31,
 
2017
 
2016
Total segment revenue
$
239,681

 
$
132,376

Revenue of Consolidated Funds eliminated in consolidation
(7,606
)
 
(2,611
)
Administrative fees(1)
9,606

 
6,822

Performance fees reclass(2)
(24
)
 
(572
)
Total consolidated adjustments and reconciling items
1,976

 
3,639

Total consolidated revenue
$
241,657

 
$
136,015

 
(1)
Represents administrative fees that are presented in administrative and other fees in the Company’s Condensed 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 Condensed Consolidated Statements of Operations.
Schedule of segment expenses components
The following table reconciles segment expenses to Ares consolidated expenses:
 
For the Three Months Ended March 31,
 
2017
 
2016
Total segment expenses
$
129,893

 
$
60,169

Expenses of Consolidated Funds added in consolidation
10,509

 
5,979

Expenses of Consolidated Funds eliminated in consolidation
(6,598
)
 
(5,752
)
Administrative fees(1)
9,606

 
6,822

OMG expenses
45,702

 
42,828

Acquisition and merger-related expenses
275,336

 
268

Equity compensation expense
15,089

 
9,173

Placement fees and underwriting costs
3,439

 
930

Amortization of intangibles
5,275

 
7,263

Depreciation expense
3,216

 
1,858

Total consolidation adjustments and reconciling items
361,574

 
69,369

Total consolidated expenses
$
491,467

 
$
129,538

 
(1)
Represents administrative fees that are presented in administrative and other fees in the Company’s Condensed 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 Three Months Ended March 31,
 
2017
 
2016
Total other income (expense)
$
10,920

 
$
(4,782
)
Other income (expense) from Consolidated Funds added in consolidation, net
38,445

 
(22,803
)
Other income (expense) from Consolidated Funds eliminated in consolidation, net
(10,605
)
 
12,239

OMG other expense
850

 
(449
)
Performance fee reclass(1)
24

 
572

Changes in fair value of contingent consideration
20,248

 
(228
)
Offering costs
(660
)
 
—

Total consolidation adjustments and reconciling items
48,302

 
(10,669
)
Total consolidated other income (expense)
$
59,222

 
$
(15,451
)
 
(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 Condensed 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 Condensed Consolidated Statements of Operations to segment results of ENI, FRE, PRE and DE:
 
For the Three Months Ended March 31,
 
2017
 
2016
Economic net income
 
 
 
Loss before taxes
$
(190,588
)
 
$
(8,974
)
Adjustments:
 
 
 
Amortization of intangibles
5,275

 
7,263

Depreciation expense
3,216

 
1,858

Equity compensation expenses
15,089

 
9,173

Acquisition and merger-related expenses
255,088

 
496

Placement fees and underwriting costs
3,439

 
930

OMG expenses, net
44,852

 
43,277

Offering costs
660

 
—

(Income) loss before taxes of non-controlling interests in Consolidated Funds, net of eliminations
(16,323
)
 
13,402

Total consolidation adjustments and reconciling items
311,296

 
76,399

Economic net income
120,708

 
67,425

Total performance fees income - realized
(8,805
)
 
(6,349
)
Total performance fees income - unrealized
(49,261
)
 
37,348

Total performance fee compensation - realized
5,301

 
1,983

Total performance fee compensation - unrealized
35,401

 
(23,313
)
Total investment income
(10,920
)
 
4,782

Fee related earnings
92,424

 
81,876

Performance fees—realized
8,805

 
6,349

Performance fee compensation—realized
(5,301
)
 
(1,983
)
Investment and other income (expense) realized, net
1,385

 
4,171

Additional adjustments:
 
 
 
Dividend equivalent(1)
(2,681
)
 
(684
)
One-time acquisition costs(1)
(12
)
 
(270
)
Income tax expense(1)
(226
)
 
(232
)
Non-cash items
(186
)
 
164

Placement fees and underwriting costs(1)
(3,439
)
 
(938
)
Depreciation and amortization(1)
(1,470
)
 
(931
)
Distributable earnings
$
89,299

 
$
87,522

Performance related earnings
 
 
 
Economic net income
$
120,708

 
$
67,425

Less: fee related earnings
(92,424
)
 
(81,876
)
Performance related earnings
$
28,284


$
(14,451
)
 
(1)
Certain costs are reduced by the amounts attributable to OMG, which is excluded from segment results.