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SEGMENT REPORTING (Tables)
 12 Months Ended
Dec. 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 year ended December 31, 2017:
 
Credit Group
 
Private Equity Group
 
Real
Estate Group
 
Total
Segments
 
OMG
 
Total
Management fees (Credit Group includes ARCC Part I Fees of $105,467)
$
481,466

 
$
198,498

 
$
64,861

 
$
744,825

 
$
—

 
$
744,825

Other fees
20,830

 
1,495

 
106

 
22,431

 
—

 
22,431

Compensation and benefits
(192,022
)
 
(68,569
)
 
(39,586
)
 
(300,177
)
 
(113,558
)
 
(413,735
)
General, administrative and other expenses
(33,308
)
 
(17,561
)
 
(10,519
)
 
(61,388
)
 
(75,143
)
 
(136,531
)
Fee related earnings
276,966


113,863


14,862

 
405,691

 
(188,701
)
 
216,990

Performance fees—realized
21,087

 
287,092

 
9,608

 
317,787

 
—

 
317,787

Performance fees—unrealized
54,196

 
191,559

 
80,160

 
325,915

 
—

 
325,915

Performance fee compensation—realized
(9,218
)
 
(228,774
)
 
(4,338
)
 
(242,330
)
 
—

 
(242,330
)
Performance fee compensation—unrealized
(35,284
)
 
(153,148
)
 
(48,960
)
 
(237,392
)
 
—

 
(237,392
)
Net performance fees
30,781


96,729


36,470

 
163,980

 
—

 
163,980

Investment income—realized
7,102

 
22,625

 
5,534

 
35,261

 
3,880

 
39,141

Investment income—unrealized
5,480

 
38,754

 
2,626

 
46,860

 
8,627

 
55,487

Interest and other investment income
5,660

 
3,906

 
2,495

 
12,061

 
1,267

 
13,328

Interest expense
(12,405
)
 
(5,218
)
 
(1,650
)
 
(19,273
)
 
(1,946
)
 
(21,219
)
Net investment income
5,837


60,067


9,005

 
74,909

 
11,828

 
86,737

Performance related earnings
36,618


156,796


45,475

 
238,889

 
11,828

 
250,717

Economic net income
$
313,584


$
270,659


$
60,337

 
$
644,580

 
$
(176,873
)
 
$
467,707

Realized income
$
293,724

 
$
192,814

 
$
24,527

 
$
511,065

 
$
(185,625
)
 
$
325,440

Distributable earnings
$
268,737

 
$
187,733

 
$
19,189

 
$
475,659

 
$
(204,024
)
 
$
271,635

Total assets
$
837,562

 
$
1,255,454

 
$
306,463

 
$
2,399,479

 
$
119,702

 
$
2,519,181

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
Management fees (Credit Group includes ARCC Part I Fees of $121,181)
$
444,664

 
$
147,790

 
$
66,997

 
$
659,451

 
$
—

 
$
659,451

Other fees(1)
9,953

 
1,544

 
854

 
12,351

 
—

 
12,351

Compensation and benefits
(182,901
)
 
(61,276
)
 
(41,091
)
 
(285,268
)
 
(99,447
)
 
(384,715
)
General, administrative and other expenses
(28,539
)
 
(14,679
)
 
(10,603
)
 
(53,821
)
 
(60,916
)
 
(114,737
)
Fee related earnings
243,177


73,379


16,157


332,713


(160,363
)

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
$
313,868


$
186,950


$
35,909


$
536,727


$
(179,744
)

$
356,983

Realized income
$
301,706

 
$
149,544

 
$
26,611

 
$
477,861

 
$
(177,533
)
 
$
300,328

Distributable earnings
$
294,814

 
$
144,140

 
$
21,594

 
$
460,548

 
$
(196,242
)
 
$
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
Management fees (Credit Group includes ARCC Part I Fees of $121,491)
$
432,769

 
$
152,104

 
$
66,045

 
$
650,918

 
$
—

 
$
650,918

Other fees
414

 
1,406

 
2,779

 
4,599

 
—

 
4,599

Compensation and benefits
(174,262
)
 
(56,859
)
 
(42,632
)
 
(273,753
)
 
(86,869
)
 
(360,622
)
General, administrative and other expenses
(30,322
)
 
(15,647
)
 
(15,766
)
 
(61,735
)
 
(56,168
)
 
(117,903
)
Fee related earnings
228,599


81,004


10,426


320,029


(143,037
)

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—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
$
238,287


$
93,674


$
28,204


$
360,165


$
(143,787
)

$
216,378

Realized income
$
288,700

 
$
93,668

 
$
20,056

 
$
402,424

 
$
(143,839
)
 
$
258,585

Distributable earnings
$
279,630

 
$
88,767

 
$
14,831

 
$
383,228

 
$
(152,639
)
 
$
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.
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,
 
2017
 
2016
 
2015
Segment Revenues
 
 
 
 
 
Management fees (includes ARCC Part I Fees of $105,467, $121,181 and $121,491 for the years ended December 31, 2017, 2016 and 2015, respectively)
$
744,825

 
$
659,451

 
$
650,918

Other fees
22,431

 
12,351

 
4,599

Performance fees—realized
317,787

 
292,998

 
121,948

Performance fees—unrealized
325,915

 
228,472

 
31,647

Total segment revenues
$
1,410,958

 
$
1,193,272

 
$
809,112

Segment Expenses
 
 
 
 
 
Compensation and benefits
$
300,177

 
$
285,268

 
$
273,753

General, administrative and other expenses
61,388

 
53,821

 
61,735

Performance fee compensation—realized
242,330

 
198,264

 
65,191

Performance fee compensation—unrealized
237,392

 
189,582

 
46,492

Total segment expenses
$
841,287

 
$
726,935

 
$
447,171

Other Income (Expense)
 
 
 
 
 
Investment income—realized
$
35,261

 
$
24,632

 
$
22,772

Investment income (loss)—unrealized
46,860

 
16,653

 
(27,414
)
Interest and other investment income
12,061

 
44,359

 
16,854

Interest expense
(19,273
)
 
(15,254
)
 
(13,988
)
Total other income (expense)
$
74,909

 
$
70,390

 
$
(1,776
)
Schedule of segment revenues components
The following table reconciles segment revenue to Ares consolidated revenues:
 
For the Year Ended December 31,
 
2017
 
2016
 
2015
Total segment revenue
$
1,410,958

 
$
1,193,272

 
$
809,112

Revenue of Consolidated Funds eliminated in consolidation
(27,498
)
 
(18,522
)
 
(13,279
)
Administrative fees(1)
34,049

 
26,934

 
26,007

Performance fees reclass(2)
(1,936
)
 
(2,479
)
 
(7,398
)
Revenue of non-controlling interests in consolidated
subsidiaries(3)
(74
)
 
—

 
—

Total consolidated adjustments and reconciling items
4,541

 
5,933

 
5,330

Total consolidated revenue
$
1,415,499


$
1,199,205

 
$
814,442

 
(1)
Represents administrative fees that are presented in administrative, transaction 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 in the Company’s Consolidated Statements of Operations.
(3)
Adjustments for administrative fees reimbursed attributable to certain of our joint venture partners.
Schedule of segment expenses components
The following table reconciles segment expenses to Ares consolidated expenses:
 
For the Year Ended December 31,
 
2017
 
2016
 
2015
Total segment expenses
$
841,287

 
$
726,935

 
$
447,171

Expenses of Consolidated Funds added in consolidation
65,501

 
42,520

 
36,417

Expenses of Consolidated Funds eliminated in consolidation
(26,481
)
 
(21,447
)
 
(18,312
)
Administrative fees(1)
34,049

 
26,934

 
26,007

OMG expenses
188,701

 
160,363

 
143,037

Acquisition and merger-related expenses
280,055

 
773

 
40,482

Equity compensation expense
69,711

 
39,065

 
32,244

Placement fees and underwriting costs
19,765

 
6,424

 
8,825

Amortization of intangibles
17,850

 
26,638

 
46,227

Depreciation expense
12,631

 
8,215

 
6,942

Expenses of non-controlling interests in consolidated subsidiaries(2)
1,689

 
—

 
—

Total consolidation adjustments and reconciling items
663,471

 
289,485

 
321,869

Total consolidated expenses
$
1,504,758


$
1,016,420

 
$
769,040

 
(1)
Represents administrative fees that are presented in administrative, transaction and other fees in the Company’s Consolidated Statements of Operations and are netted against the respective expenses for segment reporting.
(2)
Costs being borne by certain of our joint venture partners.
Schedule of segment other income (expense) components
The following table reconciles segment other income to Ares consolidated other income:
 
For the Year Ended December 31,
 
2017
 
2016
 
2015
Net investment income (loss)
$
74,909

 
$
70,390

 
$
(1,776
)
Other income from Consolidated Funds added in consolidation, net
154,869

 
37,388

 
13,695

Other income (expense) from Consolidated Funds eliminated in consolidation, net
(25,646
)
 
4,856

 
12,007

Other income of non-controlling interests in consolidated subsidiaries(2)
24

 
—

 
—

OMG other expense
11,828

 
(19,381
)
 
(750
)
Performance fee reclass(1)
1,936

 
2,479

 
7,398

Change in value of contingent consideration
20,156

 
17,675

 
21,064

Merger related expenses
—

 
—

 
(15,446
)
Other non-cash expense
1,730

 
1,728

 
(110
)
Offering costs
(688
)
 
—

 
—

Total consolidation adjustments and reconciling items
164,209

 
44,745

 
37,858

Total consolidated other income
$
239,118


$
115,135

 
$
36,082

 
(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.
(2)
Costs being borne by certain of our joint venture partners.
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, RI, FRE, PRE and DE:
 
For the Year Ended December 31,
 
2017
 
2016
 
2015
Economic net income
 
 
 
 
 
Income before taxes
$
149,859

 
$
297,920

 
$
81,484

Adjustments:
 
 
 
 
 
Amortization of intangibles
17,850

 
26,638

 
46,227

Depreciation expense
12,631

 
8,215

 
6,942

Equity compensation expenses
69,711

 
39,065

 
32,244

Acquisition and merger-related expenses
259,899

 
(16,902
)
 
34,864

Placement fees and underwriting costs
19,765

 
6,424

 
8,825

OMG expenses, net
176,873

 
179,744

 
143,787

Offering costs
688

 
—

 
—

Other non-cash expense
(1,730
)
 
(1,728
)
 
110

Expense of non-controlling interests in Consolidated subsidiaries(2)
1,739

 
—

 
—

(Income) loss before taxes of non-controlling interests in Consolidated Funds, net of eliminations
(62,705
)
 
(2,649
)
 
5,682

Total consolidation adjustments and reconciling items
494,721

 
238,807

 
278,681

Economic net income
644,580

 
536,727

 
360,165

Total performance fees income - unrealized
(325,915
)
 
(228,472
)
 
(31,647
)
Total performance fee compensation - unrealized
237,392

 
189,582

 
46,492

Total investment (income) loss - unrealized
(44,992
)
 
(19,976
)
 
27,414

Realized income
511,065

 
477,861

 
402,424

Total performance fees income - realized
(317,787
)
 
(292,998
)
 
(121,948
)
Total performance fee compensation - realized
242,330

 
198,264

 
65,191

Total investment (income) loss - realized
(29,917
)
 
(50,414
)
 
(25,638
)
Fee related earnings
405,691

 
332,713

 
320,029

Performance fees—realized
317,787

 
292,998

 
121,948

Performance fee compensation—realized
(242,330
)
 
(198,264
)
 
(65,191
)
Investment and other income realized, net
29,913

 
50,415

 
25,638

Additional adjustments:
 
 
 
 
 
Dividend equivalent(1)
(12,427
)
 
(4,181
)
 
(2,688
)
One-time acquisition costs(1)
(118
)
 
(457
)
 
(1,553
)
Income tax expense(1)
(1,677
)
 
(3,199
)
 
(1,462
)
Non-cash items
720

 
870

 
(758
)
Placement fees and underwriting costs(1)
(16,324
)
 
(6,431
)
 
(8,817
)
Depreciation(1)
(5,576
)
 
(3,916
)
 
(3,918
)
Distributable earnings
$
475,659

 
$
460,548

 
$
383,228

Performance related earnings
 
 
 
 
 
Economic net income
$
644,580

 
$
536,727

 
$
360,165

Less: fee related earnings
(405,691
)
 
(332,713
)
 
(320,029
)
Performance related earnings
$
238,889


$
204,014

 
$
40,136

 
(1)
Certain costs are reduced by the amounts attributable to OMG, which is excluded from segment results. 
(2)
Adjustments for administrative fees reimbursed and other revenue items attributable to certain of our joint venture partners.
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,
 
2017
 
2016
 
2015
Total segment assets
$
2,399,479

 
$
2,101,709

 
$
1,644,574

Total assets from Consolidated Funds added in Consolidation
6,231,245

 
3,822,010

 
2,760,419

Total assets from the Company eliminated in Consolidation
(186,904
)
 
(168,390
)
 
(180,222
)
Operating Management Group assets
119,702

 
74,383

 
96,637

Total consolidated adjustments and reconciling items
6,164,043

 
3,728,003

 
2,676,834

Total consolidated assets
$
8,563,522

 
$
5,829,712

 
$
4,321,408